- Jan 31, 2005
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While many of us rightly so were pissed about the bailouts the fact is it had little to do with actually saving any company in question and a lot to do with keeping foreign investment confident.
And now the game is up. It seems the whole charade is over and its down to the brass tacks of the matter.
Article
China and the United States sparred on Friday over how to handle an economic crisis that has forced central banks around the globe into a series of dramatic interest rate cuts.
Figures due on Friday were expected to show the sharpest U.S. job losses in 26 years, underling the severity of a downturn caused by the worst financial crisis since the 1930s.
Sharp labour market weakness would add urgency to a bid by executives of the cash-starved U.S. auto industry who are in Washington pleading for a bailout.
In a sign of the problems facing the industry, Japanese carmaker Honda Motor pulled out of Formula One motor racing, unwilling to bankroll a team with an estimated annual budget of $500 million.
With many developed countries either in recession or heading that way, central banks have cut interest rates close to the bone and attention is now starting to focus on what happens if they get to zero.
Against the bleak economic backdrop, signs of tension marked two days of talks between the United States and China.
The Americans fretted that China might be losing the stomach to let its currency keep rising in value and China voiced concern about Washington's management of the world's largest economy -- in which China has a huge financial stake.
US. Treasury Secretary Henry Paulson described the talks as "robust" and characterised by "straightforward back-and-forth" exchanges.
Assistant Chinese Finance Minister Zhu Guangyao, asked whether Beijing would keep buying U.S. debt, responded by urging Washington act to protect China's financial interests.
"We hope the U.S. side will seriously consider the Chinese side's concern and protect the interests of Chinese investors," Zhu told a news conference.
And now the game is up. It seems the whole charade is over and its down to the brass tacks of the matter.
Article
China and the United States sparred on Friday over how to handle an economic crisis that has forced central banks around the globe into a series of dramatic interest rate cuts.
Figures due on Friday were expected to show the sharpest U.S. job losses in 26 years, underling the severity of a downturn caused by the worst financial crisis since the 1930s.
Sharp labour market weakness would add urgency to a bid by executives of the cash-starved U.S. auto industry who are in Washington pleading for a bailout.
In a sign of the problems facing the industry, Japanese carmaker Honda Motor pulled out of Formula One motor racing, unwilling to bankroll a team with an estimated annual budget of $500 million.
With many developed countries either in recession or heading that way, central banks have cut interest rates close to the bone and attention is now starting to focus on what happens if they get to zero.
Against the bleak economic backdrop, signs of tension marked two days of talks between the United States and China.
The Americans fretted that China might be losing the stomach to let its currency keep rising in value and China voiced concern about Washington's management of the world's largest economy -- in which China has a huge financial stake.
US. Treasury Secretary Henry Paulson described the talks as "robust" and characterised by "straightforward back-and-forth" exchanges.
Assistant Chinese Finance Minister Zhu Guangyao, asked whether Beijing would keep buying U.S. debt, responded by urging Washington act to protect China's financial interests.
"We hope the U.S. side will seriously consider the Chinese side's concern and protect the interests of Chinese investors," Zhu told a news conference.
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