I think people here VASTLY overestimate the percentage of US debt owned by the Chinese government. You guys realize they hold all of about 10% of it, right?
Shit starts hitting the fan sooner than 20-30 years from now. By 2020, massive tax hikes will have to be implemented to start paying for stuff.
Unfunded Medicare liabilites will break the US financially over the long haul.
not china, the buy actual currency, not t-bills. We 'run the press' as you moonbats like to say, they buy the bills to lower the value of their currency relative to ours. the main financiers or t-bills are Americans, the Europeans, and Japanese, and i think several arab counties are also very large investors.
no it won't. The fed can take money out of the economy just as easy as it can put it in, and noone with even the slghtest degree of credibility believes otherwise, including the dallas fed in the op.
Top Foreign holders of U.S. Treasuries (March 2009)
Holder Total
China $767.9 Billion
Japan $686.7 Billion
Caribbean $213.6 Billion
OPEC $192.0 Billion
Russia $138.4 Billion
United Kingdom $128.2 Billion
ericlp
Diamond Member
- Dec 24, 2000
- 6,139
- 236
- 106
Originally posted by: senseamp
China can # S&
When they lent us money in our own currency, there was no guarantee it wouldn't be repaid with newly printed dollars
Actually, they are suckers, basically they donated all their hard labor to supply us with cheap junk and finance us buying it, for which we will give them some newly printed green toilet paper.
uh..... Where does one begin to even try to reply to this pile of shit?
Hmm, Yeah, what if you loaned out money on a promissory note? Do you think you can just walk away from your debt?
They have major US operations like, Intel, MicroSoft, Boeing, Apple, Texas Instruments, IBM, Motorola (just to name a few that I know about) that have invested heavily in China. That's just the tip of the ice burg. We are selling more cars in China (our own cars) then in the USA. The car market is strong ... Apparently China is getting a LOT of money and still growing unlike the stinky turd second world country -- USA.
Do you really think for a moment that US is the only buyer of china goods? Keep DREAMING... The US might be a Major consumer and would most likely damage them if they lost us as a client. But the US would be way more damaged since we would have to buy our products from say Canada to buy products from China. Even if they pulled out and cut ties with USA we would still be paying interest on the debt.
You red neck hicks really need to open up your eyes and figure it out that when you walk into walmart and buy ANYTHING in the whole store from trash cans to 60" LCD TV's it's all made in China. Yep, even the cloths you are wearing. True some cloths are made in mexico, India the vast majority comes from China. And most of the electronics like cell phones, tv's, radios, keyboards, mice, ipods, mp3 players and so on are all made in China.
I'd love to see you try to get an american worker to actually MAKE socks or shoes. The only thing good Americans are good at doing is charging up credit cards. shoving whopers and Bigmacs down their gullets or trying to sue the crap out of each other.
First
Lifer
- Jun 3, 2002
- 10,518
- 271
- 136
So China has $1.4T in U.S. dollars, what are they going to do? Exactly, nothing. They'll dump our T-bills over the long haul and it will lead to...us not lending as much from them. Good. U.S. will pay off debt through growth, raise some taxes, cut some spending, and ultimately find financing elsewhere. Not exactly rocket science.
You people don't understand the problem is not with what's currently being owned. It's who is gonna buy all these debt you will have to issue with all the big deficits coming up.
You do know this year's deficit is gonna be 1.7 trillion and the next few years isn't gonna look any better right? Who has the dollar to buy those additional debt? US public when the US is right in the middle of a recession? Europe/Japan when they are issuing their own debt?
You want to do all these deficit spending, and you want someone to pick up the tab, you better start kissing some butt.
Any infrastructure based on technology is inherently a planned obsolescence.
As for existing infrastructure that is useless: Rail, especially regional and local commuter rail to smaller cities/towns.
StageLeft
No Lifer
- Sep 29, 2000
- 70,150
- 5
- 0
I think so, too. I see no way around substantial tax increases across most of the board for the US.
Hillary already is. It's obvious that the appetite for US bonds is softening, as could be seen yesterday.
I think that with the gov projecting a 1.7T deficit this year, it's extremely safe to assume it will be higher.
This thread is Fail in so many ways.
The Chinese Yuan will remain less than 3% of global foreign exchange reserves for the next 20 years. US Dollar dominance will continue to erode against the Euro, Yen and Pound but will easily remain more than 50%.
When $75 trillion in future unfunded liabilities jump to $100 trillion? Assuming this new 'projection' is remotely accurate this pesky little fact remains:
With simple revisions the future unfunded liabilities in SS and Medicare (and don't forget the Part D Big Pharma Give-A-Way) represent less than 2% of GDP over the next 75 years.
Yes. Our politicians suck and are a bunch of spineless wienies for not making this a chief priority.
And. Yes. It pisses me off that Obama has been dealt a really crappy hand but he cannot play the FEAR CARD with the global economy.
The only solace I find (and it's minimal) is that the US will once again inflate its way out of the publicly held debt. A $500 billion deficit ain't sheet when we have a $25 trillion GDP in 10 years.
And for those who don't believe this responsibility lies squarely at the foot of George Bush and the Republican VooDoo Economics:
*F* - *U*
The Chinese Yuan will remain less than 3% of global foreign exchange reserves for the next 20 years. US Dollar dominance will continue to erode against the Euro, Yen and Pound but will easily remain more than 50%.
When $75 trillion in future unfunded liabilities jump to $100 trillion? Assuming this new 'projection' is remotely accurate this pesky little fact remains:
With simple revisions the future unfunded liabilities in SS and Medicare (and don't forget the Part D Big Pharma Give-A-Way) represent less than 2% of GDP over the next 75 years.
Yes. Our politicians suck and are a bunch of spineless wienies for not making this a chief priority.
And. Yes. It pisses me off that Obama has been dealt a really crappy hand but he cannot play the FEAR CARD with the global economy.
The only solace I find (and it's minimal) is that the US will once again inflate its way out of the publicly held debt. A $500 billion deficit ain't sheet when we have a $25 trillion GDP in 10 years.
And for those who don't believe this responsibility lies squarely at the foot of George Bush and the Republican VooDoo Economics:
*F* - *U*
If the U.S. goes down I'm moving to Canada, real easy to transition your CPA certs to their standards. Just gotta hold on long enough for me to finish becoming one....
StageLeft
No Lifer
- Sep 29, 2000
- 70,150
- 5
- 0
If the US goes down don't count on Canada still standing.Originally posted by: TruePaige
If the U.S. goes down I'm moving to Canada, real easy to transition your CPA certs to their standards. Just gotta hold on long enough for me to finish becoming one....
- Oct 30, 2000
- 42,589
- 5
- 0
China was not bitching when George was in charge.
They are looking at the current actions - not at what may have lead up to them.
Bush was spending money on something that China could understand.
Obama was handing out money and China can see nothing being obtained for those $$.
Perception can obscure facts.
ok, now that i think about it the eu was aggregated, which would have put china 4th at the time.
800 nillion is pretty minor, thats what, 7%?
Can you explain the "simple revisions"? That is good news I have not heard; would like to hear what the options are for this.
funny, rails are already running over capacity and its only predicted to increase.
obsolete relative to newer rail tech, but certainly not useless.
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