China expresses worry over its US assets.

[omnieoin]

China expresses worry over its U.S. assets | Reuters

Not sure if this has been discussed, and I don't usually post, but this grabbed my attention and I wanted to share it.

This seems like a worrying development if things get worse in the future.
China and America are stuck between a rock and a hard-place. The American's can't do anything that would cause the Chinese to sell their dollars; the Chinese, although the may have superpower ambitions, can't do anything that would cause the US to collapse as they need the investment and export market, and if the US collapsed its dollars would be worthless anyway.

This situation could very well deteriorate in the future. After all, we've seen some strange things in the past year.

Any thoughts?

[Colonel Kurtz]

China expresses worry over its U.S. assets | Reuters

Not sure if this has been discussed, and I don't usually post, but this grabbed my attention and I wanted to share it.

This seems like a worrying development if things get worse in the future.
China and America are stuck between a rock and a hard-place. The American's can't do anything that would cause the Chinese to sell their dollars; the Chinese, although the may have superpower ambitions, can't do anything that would cause the US to collapse as they need the investment and export market, and if the US collapsed its dollars would be worthless anyway.

This situation could very well deteriorate in the future. After all, we've seen some strange things in the past year.

Any thoughts?

Why are you worried about this?

I think it is inevitable that the US dollar will not be worth the paper it is written on in a few years.

[/etc]

if only the chinese would stop worrying and start switching their dollar assets to euro. this should change the €/$ rate to somewhere around 1.8 overnight simply by annoucing their intention. Better still, use euro to purchase all their oil supplies, this will further change the exchange rate to US$2 to every €1.

we will all get a little richer as a result. thank you china!

perhaps, its the US who should start worrying.

[Dios]

A lot depends on whether or not the Asian economies want to follow up with quantitative easing or not. If not then their only real export market will be Europe, if they do it will leave the EU with the strongest currency on earth, not the most desireable thing in the world. The real question is why on earth they stocked up on dollars to the extent that they did - it was clear a long time ago that the US had no intention of repaying anything they owed, thats why the spending was so rampant.

China is in a seriously bad situation right now. Their rapid growth has partly been a calculated attempt to try and build up their economy before their demographic strategy catches up to them: their "one child per family" graph makes the pope's children look like a population contraction. They must build up financial insulation before those people get too old to work.

This happening right now is about the worst thing imaginable for them. Manufacturing economies are critically reliant on other countries buying their goods, and China cannot afford an economic contraction at this point in their development.

The US on the other hand is one of the very few states that has all the resources it needs within its borders, excepting perhaps enough oil to keep the cars on the road, but then again they recently invaded a nice oil rich country in the Middle East... interesting, almost as if they knew the contraction was inevitable and were securing the most vital resource...

[odie1kanobe]

Nope China stating that if your Navy pisses us off in South China sea we will not buy your bonds and dump the ones we have.

[Captain Con O'Sullivan]

I think that this announcement can't be taken in isolation as an indicator of the relationship either economically or politically between the US and China but would be better considered against a much longer series of events.

Before the issue of Chinese sovereign funds propping up the dollar became quite so tricky there was much maneouvering from the Americans asking the Chinese to revalue their trading currency the remnimbi in order to help with US balance of payments.

Ostensibly on a state visit to Australia some three or four years ago Bush happened to stop off for a meeting with Chinese officials on the way home and expected the Chinese to agree to the remnimbi revaluation. They asked him if he wanted another coffee before wishing him a safe journey home.

I've seen the way the Chinese have been playing Monopoly around the world
(particularly the way they've been picking up influence in mineral rich African states) while the Bush administration was busy losing its bizarre game of Republican Risk.

I have a suspicion that the Chinese have and have had for some time a long term strategy for dealing with the US. I am sure that the Chinese did not fail to notice Reagan's celebration of the ability to burn off the Soviet machine with an economic growth race.

The latest financial turmoil may have changed the game somewhat but I remain convinced that the best advice you could give a kid nowadays about what language to learn would be 'Chinese'. The Americans are going to have to acknowledge the painful truth in a few short years that they need the Chinese more than the Chinese need them.

This statement by China that its US assets worries them I think is a coded warning to the US authorities not to get too protectionist or China won't be sitting in its usual chair come next US bond-auction day.

More like an eighteenth century heavy hint, I'd say. But the good news is that at least there's an administration in the US now which stands a much better chance of being able to communicate in that delicate diplomatic language the Chinese understand very well.
If the Chinese decline to turn up at a US govt bond auction who else is going to buy?

[JCSkinner]

China expresses worry over its U.S. assets | Reuters

Not sure if this has been discussed, and I don't usually post, but this grabbed my attention and I wanted to share it.

This seems like a worrying development if things get worse in the future.
China and America are stuck between a rock and a hard-place. The American's can't do anything that would cause the Chinese to sell their dollars; the Chinese, although the may have superpower ambitions, can't do anything that would cause the US to collapse as they need the investment and export market, and if the US collapsed its dollars would be worthless anyway.

This situation could very well deteriorate in the future. After all, we've seen some strange things in the past year.

Any thoughts?

Ditch the dollar, all dollar-based assets and commodities traded in dollars.

[west'sawake]

China expresses worry over its U.S. assets | Reuters

Not sure if this has been discussed, and I don't usually post, but this grabbed my attention and I wanted to share it.

This seems like a worrying development if things get worse in the future.
China and America are stuck between a rock and a hard-place. The American's can't do anything that would cause the Chinese to sell their dollars; the Chinese, although the may have superpower ambitions, can't do anything that would cause the US to collapse as they need the investment and export market, and if the US collapsed its dollars would be worthless anyway.

This situation could very well deteriorate in the future. After all, we've seen some strange things in the past year.

Any thoughts?

Sounds like another version of the old nuclear deterrant, MAD, Mutually Assured Destruction!

[Dios]

I have a suspicion that the Chinese have and have had for some time a long term strategy for dealing with the US.

From where I'm sitting it looks like the opposite, the US has China well and truly in hand, a fairly impressive turnaround from the situation only a couple of years ago.

[G unit Paramilitary]

******************** the dollar,euro,sterling pound and all other paper currency. Gold coins,silver coins,and copper coins should be used. With the price of items listed in either grams of gold,silver or copper.