“We have lent a huge amount of money to the United States. Of course we are concerned about the safety of our assets. To be honest, I am a little bit worried.” -Chinese Premier Wen Jiabao
More noise from the Chinese as they fidget nervously... uncomfortable with their gigantic exposure the United State debt behemoth.
1) Household Net Worth Had Record Drop Last Quarter
2) U.S. February Budget Deficit Widened as Revenue Fell (Update1)
3) Epic Fail: Baby Boomers are Broke
4) Age Wave Theory: Expect a Long Economic Winter
5) China ‘Worried’ About Safety of U.S. Investments, Wen Says: "China wants the U.S. government to “ensure the safety” of its investments in the world’s largest economy, Premier Wen Jiabao said."
Well, good thing Obama Urged Control of 'Exploding' Deficits. Hahaha!
Friday, March 13, 2009
China Fidgets Nervously, Painfully Exposed to the US Debt Behemoth
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5 comments:
Yves Smith commented on this.
It is more reasonable to believe that what the Chinese are doing is now using this opportunity as a political bargaining chip.
As was pointed out, this statement was made publicly, not privately on purpose. IANAE, but it makes sense that the Chinese could get a lot of use out of this.
Yeah we will likely give them the go ahead to take Taiwan back.
Giving up Taiwan would be too overt a move to make a quid pro quo exchange on, I think.
Behind closed doors negotiations on the exclusive economic claims in the South China Sea on the other hand...
Actually there's probably quite a lot the Chinese and US could bargain on in order to appease each other on debt issuance, for now.
They aren't going to "take Taiwan back".
They're smart enough to not want to upset the global applecart further than it's already been upset.
Besides, they have a big enough problem dealing with their internal problems right now. Lots of unemployment in China right now, people are beginning to get restless (and the rulers don't want a repeat of Tienanmen Square).
If I were the Chinese Govt, I would be buying gold.
They are. But they are not going to say they are. The US Govt by the price suppression is giving it to them.
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