Will China continue to buy US T-Bonds?

[GumbyLearner]

Just thought I'd start something on this topic?

http://www.youtube.com/watch?v=ndoJ...6FFAEAE3&playnext=1&playnext_from=PL&index=34

What do ASF members think?

 

[Naked shorts]

Just thought I'd start something on this topic?

http://www.youtube.com/watch?v=ndoJ...6FFAEAE3&playnext=1&playnext_from=PL&index=34

What do ASF members think?

Why do you think they are stockpiling commodities and asking for a world currency?

But considering these two factors, at the end of the day, China is reliant on the US to buy its products so if the US fails, so does China.
It will be interesting to watch China slowly become the consuming nation...If that ever happens :run:

 

[knocker]

Why do you think they are stockpiling commodities and asking for a world currency?

But considering these two factors, at the end of the day, China is reliant on the US to buy its products so if the US fails, so does China.
It will be interesting to watch China slowly become the consuming nation...If that ever happens :run:

Consuming or consumed?

 

[pj2105]

Why do you think they are stockpiling commodities and asking for a world currency?

But considering these two factors, at the end of the day, China is reliant on the US to buy its products so if the US fails, so does China.
It will be interesting to watch China slowly become the consuming nation...If that ever happens :run:

I believe so. 1.2 billion plus in China about 330 million in the USA. The USA is virtually bankrupt, they do not earn enough to be able to pay off the interest that they owe, add pension payments that will need to be made to the baby boombers, that they will also drop off the the employment radar...and the rest of their economics problems and the USA is not going anywhere soon. (For me) in another 50 years they will be on par with a country like Brazil.

China with their stimulus package internally has now seen a shift of what they produce internally. The Chinese want houses/cars/schools/tv/electronic equipment just like everybody else and there are a billion of them.

I disagree with the above statement 'if the US fails, so does China'.

Not true, the USA has by any measure already failed, they just have a good friend in China looking after them...but for how long? They have already stated that they want a new world currency...that is the harbringer of death for USA domination. Slowly, over time (say 10 years) they will get it, they have to, nobody trusts the USA dollar anymore, their economy is shot.

Think of it this way if China today dumped all the USA dollars and treasury notes that they owe on the market and said I am willing to trade it for any other currency, the US dollar will literally be worthless, you would be able to buy it for a few AUD cents. But with that China would be 'cutting off their nose to spite their face', and China's worth in the USA will devalue their worth. But the USA currency would collapse, I think China is holding something like 3 trillion dollars? (please don't quote me on this I'm sure I've read the amount somewhere, but am not sure). The USA is no longer in charge of their own destiny, they are reliant on China.
The USA needs China; China does not need the USA. But they understand that the better the USA is the more value the currency that they are holding is worth.

 

[boofhead]

The chinese government investment arm has made mention recently it has been looking at alternatives that have better returns than USA bonds. Chinese govt has financial interests in so many companies that have started to expand around the world too. I wonder how long it will take for people to change attitudes on government ownership and the evils of socialism & nationalism.