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China's distaste for more U.S. debt could affect Canadian

China's distaste for more U.S. debt could affect Canadian jobs: BMO

China?s apparent lack of enthusiasm for taking on more U.S. debt could soon affect Canada, an analyst with BMO Capital Markets says.

China holds more than $1.3 trillion of U.S. debt, mainly short-term treasury bills, a kind of government IOU.

In the last five years, China has spent as much as one-seventh of its entire economic output buying foreign debt, most of it American.


California issuing IOUs also?
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Things are tough all over.

In reply to: China's distaste for more U.S. debt could affect Canadian

Somehow, I don't think that the implications for Canada are at the top of Barack's list. I guess that, if China doesn't want to hold US debt, its just going to have to buy goods and services from the US. That's bad news for the US how?.....

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RE: if China doesn't want to hold US debt

In reply to: Things are tough all over.

So you admit it is a debt? ALL those bonds?

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Ummmmmmmmmmmmmmmm........

In reply to: RE: if China doesn't want to hold US debt

Just what did you think it was? The tooth fairy?

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NOW you say

In reply to: Ummmmmmmmmmmmmmmm........

China holding a US bond is a debt that the US owes?

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Remember this

In reply to: Things are tough all over.

We're borrowing it from ourselves. That's why national
by Kiddpeat - 11/4/04 12:17 PM In reply to: The real loser is my daughter and her children.... by Josh K

debt is not as serious as it sounds. How do you feel about money you owe to yourself? Are you worried about how you'll pay?

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RE: China will have to buy goods and services from US

In reply to: Things are tough all over.

IF they do, it will be just long enough to copy the technology and then sell to the world.

China denies exporting stolen railway technologies

BEIJING - China's Railway Ministry denied reported accusations Saturday that foreigners are being squeezed out of the Chinese railway market and that local companies are exporting trains using Western technologies.

In a statement, ministry spokesman Wang Yongping defended the Chinese railway industry's record for innovation and said foreign companies would continue to have access to the China market.

The comments were the ministry's first since the Financial Times on January 2 quoted Philippe Mellier, chief executive of Paris-based train maker Alstom Transport, as saying that China was closing off its domestic market and that Chinese companies were exporting trains that used foreign technologies. The report suggested that such exports could be in violation of licensing agreements.

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(NT) And this surprises you?

In reply to: RE: China will have to buy goods and services from US

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That's why in the world of Bailout Lotto...

In reply to: China's distaste for more U.S. debt could affect Canadian

...the house is in the end the big loser.

The short ending: The minute China calls in its markers by forcing payment on those bonds, it's over. The U.S. will have to print so much money that hyperinflation will be the inevitable result.

The long (and more painful) ending: Chine does nothing now. When the Fed floats its next debt offering, China still does nothing - until the interest rate on the debt suits them. We agree, the printing presses go into overdrive, and we still get the hyperinflation.

Either way, we lose. Does NO ONE understand this?

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BS!

In reply to: That's why in the world of Bailout Lotto...

One would almost think that no one wants to buy US government bonds. Perhaps you missed the news. People are so desperate to buy US government securities that the interest rate the government pays has fallen drastically.

So, if China wants to liquidate its holdings, there will be plenty of others stepping up to the plate. If China does take dollars, what will it do with the dollars? It can stick them in a mattress. It can buy things on the US market. That means higher sales, higher wages, and higher profits.

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so if the US owes China $1.3 trillion

In reply to: BS!

and China says "we want our money"

the US says "we don't have it in cash"

will China say "OK, we'll take it in goods, wheat, oil, machinery"??

and if so, who exactly will be paying the 'higher wages'?

i'm no economical genius, but life has taught me that when the man has you over the barrel....he only lets you up when he's ready, and after he's paid you "cents on the dollar" for what he wants


.,

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The thing is, Jonah...

In reply to: so if the US owes China $1.3 trillion

Jonah, short-term treasury bills are issued with maturity dates of 3 months, 6 months, or one year. If you want to convert one to cash before the maturity date, there will be a penalty. A $1,000 T-bill is not worth $1,000 until the maturity date.

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I'm wishing for a re-run

In reply to: so if the US owes China $1.3 trillion

....... of a program that was on CNN today. It was led by Bill Bradley, and a documentary movie was shown re: the history of US debt from the time of George Washington. So, for almost 3 hours, there was discussion on the topic.

Frankly, for the first time I had a clearer grasp on it. Although the role of politicians is major in the cause, we citizens also share the blame. We have been content to become a debtor nation, and to think on the short term. We want services, as long as we don't have to pay for them. Then, of course, it didn't take long for the financial institutions to take advantage of the expiration of some regulations, and the very poor enforcing of the few left.

I have said here fop quite some time that I was concerned about China holding so much of our paper. I still am.

If the wars in Iraq and Afghanistan ended tomorrow, and all earmarks were eliminated. the savings would only be a drop in the bucket. Adding elimination of fraud and waste would also add little. We just owe so much. Trying to apply to "good sense" attitude of an earlier day just doesn't hack where we are now.

Angeline
Speakeasy Moderator

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