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Clinton says China wise to buy U.S. debt instruments

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earthfriendly
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Clinton says China wise to buy U.S. debt instruments

Postby earthfriendly » Tue, 25 May 2010 2:36 pm

LOL. Sorry but I could not help myself. Do you agree with Clinton? Or shall I ask, is there any safe currency out there?



http://www.reuters.com/article/idUSBJB00384320100525

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Postby nakatago » Tue, 25 May 2010 4:05 pm

Image

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Strong Eagle
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Postby Strong Eagle » Tue, 25 May 2010 4:14 pm

She's correct. No matter what you may think about the US dollar, fact is, it is still better than any other investment vehicle. Would you invest in Euro denominated securities? No, I didn't think so.

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Postby Vaucluse » Tue, 25 May 2010 4:26 pm

nakatago wrote:Image


Hehe, I do like that photo . . . a picture paints a thousand words

Strong eagle wrote:
She's correct. No matter what you may think about the US dollar, fact is, it is still better than any other investment vehicle. Would you invest in Euro denominated securities?


I'd disagree with your assertion, but a comparative is not the issue here, SE. From the article"

Chinese officials, including Premier Wen Jiabao, last year prodded the Obama administration to avoid pursuing fiscal policies that could erode the value of those treasury holdings.
......................................................

'nuff said Image

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Postby Strong Eagle » Tue, 25 May 2010 8:24 pm

Vaucluse, unless you just fell off the turnip truck this morning, which I doubt, there are only a couple of ways for the US to handle the deficit. One is to pay it off... and no doubt, efforts will be made to do so.

The much easier way is through inflation. At 4 percent inflationary growth, the US deficit will be halved, in terms of real dollars, in about 18 years.

Of course the US will 'erode' the value of their treasury holdings... only way out of a debt crisis... and a good payback to a country that has been manipulating its currency for at least a decade.

And no, this won't stop China from buying more treasuries... there is no where else to go.

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Postby Superglide » Tue, 25 May 2010 8:39 pm

To say the Euro is not the right currency, is living in the moment.

Gold shows to be the best, I guess, but right after that, I put my Euros on the Euro. :)
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Postby earthfriendly » Thu, 27 May 2010 3:14 am

US currency seems to be the safest amongst them. It is the lesser evil. I don't have much confidence in the fiscal discipline of govts around the world. E.g. it is in the Japanese culture to save but look at the debt that their govt is raking up.

Where else can China invest? I don't know. Something more tangible rather than paper notes like commodities, metal, agricultural products, raw materials?

Vaucluse wrote:
Chinese officials, including Premier Wen Jiabao, last year prodded the Obama administration to avoid pursuing fiscal policies that could erode the value of those treasury holdings.


If you owe the bank thousands, then you have a problem. If you owe the bank millions, then the bank has a problem. China mey be even more concerned about the US debt than the US itself (which just wants to spend itself out its problem). And what is the worst case scenario for USA? They can simply default on the notes. It sounds far fetch and irresponsible but just for the jest of it. Like Mr. EF said, USA has all the goods wheras China is holding on to some papers :P .

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Postby ksl » Thu, 27 May 2010 1:45 pm

Its really tough to say this, and I'm sure China is not stupid at all, WTF should they do with $'s or a Euros, when, they can dump paper for gold!

The USA and Europe are up the creek without paddles! If China manipulated there currency so what? Sad that the rest of the world lost out.
Looks like we all lost the game of monopoly to China :-|

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Postby Koalabear » Fri, 28 May 2010 9:56 pm

China is wise of course. With so many potential conflict issues in the future, when a weaker country cannot match a stronger country via military might, its nice to control their debt. Its part of their asymmetric warfare strategy. Read more on currency wars.

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Postby Koalabear » Fri, 28 May 2010 9:59 pm

ksl wrote:Its really tough to say this, and I'm sure China is not stupid at all, WTF should they do with $'s or a Euros, when, they can dump paper for gold!

The USA and Europe are up the creek without paddles! If China manipulated there currency so what? Sad that the rest of the world lost out.
Looks like we all lost the game of monopoly to China :-|


its sad but true. Im witnessing a systematic transfer of real estates from caucasian hands to chinese hands in the past decade in usa and canada. Those idiots come down here spoiling the market throwing cash on the table, turning the tables against caucasians who once thought they were rich, without realizing the difference between credit rich and balance sheet rich.

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Postby Koalabear » Fri, 28 May 2010 11:20 pm

Strong Eagle wrote:Vaucluse, unless you just fell off the turnip truck this morning, which I doubt, there are only a couple of ways for the US to handle the deficit. One is to pay it off... and no doubt, efforts will be made to do so.

The much easier way is through inflation. At 4 percent inflationary growth, the US deficit will be halved, in terms of real dollars, in about 18 years.

Of course the US will 'erode' the value of their treasury holdings... only way out of a debt crisis... and a good payback to a country that has been manipulating its currency for at least a decade.

And no, this won't stop China from buying more treasuries... there is no where else to go.


there is no way else to go.......... for now.

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Postby revhappy » Sat, 29 May 2010 11:51 am

Koalabear wrote:

... Those idiots come down here spoiling the market throwing cash on the table, turning the tables against caucasians who once thought they were rich, without realizing the difference between credit rich and balance sheet rich....


So who are the idiots, read your sentence carefully ? :lol:

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Postby Koalabear » Sat, 29 May 2010 11:35 pm

revhappy wrote:
Koalabear wrote:

... Those idiots come down here spoiling the market throwing cash on the table, turning the tables against caucasians who once thought they were rich, without realizing the difference between credit rich and balance sheet rich....


So who are the idiots, read your sentence carefully ? :lol:


the thing is alot of them overpaid because they looked quite desperate to get a house for some reason. Why is it overpaid? The caucasian sellers managed to get some very high, albeit fake bids from relatives and the chinese matched the increased bid every time even though the chinese is the only genuine buyer on the market. Of course caucasians in Canada are balance sheet stable so they ate the chinese for lunch.

In the states its a different story though.


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