How Long Can China Keep Buying Us Treasury Bills To Bail Out The Us Economy?
Posted by China Sourcing CommentatorSep 13
As long as they want to keep the dollar value high and their own currency cheap, so that we continue to buy more Chinese exports and thus employ more Chinese people. And they have a lot of people to employ.
They could let the dollar gain value, cause Chinese exports to fall, and cause US exports to increase, creating more US jobs.
There will always be buyers of US treasury bonds. They are sold at auction, where the bids are interest rate offers. And the interest rate that people are willing to accept is lower than what it was 10 years ago.
Popularity: 2% [?]
Stumble Upon
Del.icio.us
Buzz
It is a good question has been raised the issues of many US economists and financial analysts for the US deficits rely on Chinese investments including treasury bills, toxic mortgage backed up bonds, and many other kinds of financial products. I think China will eventually giving up of buying the US financial products. It will end up the US turn into sort of flat broke regardless those Japanese and Russian purchased US financial products which are over priced and nominal financial bubbles. America must take the concrete actions and get out of its monetary approaches by applying the Keynesian macroeconomic practice which has led US great depression more than twice in history. It is a bad model for economic recovery by printing monies and issues of those toxic financial products. We can see Israel’s fate is totally manipulated by the US in terms of their economic and political movements in terms of keep on printing money to cover its deficits, war fare practices, invade the west banks and the Gaza stripes, starting war with other minor nations initiated by the US militant power.
I think China has already fed up with the US traits in handling the economy of absolutely monetarism which leading to many countries including Korea, Southern Asian countries, Hong Kong the SAR. The economic locomotive of the US has misled many countries to walk into the garden way and making them financially go collapse eventually. I think the following article shall provide you an overview on the exisiting bilateral benefits of such described deal for the past years.http://blogs.cfr.org/setser/2006/03/21/i…http://search.yahoo.com/search?p=The%20%…
US political leaders have not totally and correctly implemented the so called executive caps while so many US bankers have taken billions of US dollars as compensation or bonus neglecting three out of the total nine banks sre not making any money but lost a lot for the three banks.
Obama, Baneker, and Geithner must put some good efforts to destroy the global stock markets directly and indirectly, but wisely. Many economists and social concerned peoples in this are urged the Obama administration must suppress the growth of Dow Jones Index to the maximum of 4,000 and fall under the bracket of 3,900 to 4,100 for the next ten years. Hong Kong Heng Seng Index must be declined to 8,000 points and stay low for the next ten years. Furthermore Hong Kong government must launch an overall wage cut of all HOng Kong civil servants, professionals of all government funded institutions, health and educational. Axe 6% to 60% is a must policy for Hong Kong get economic recovery to keep away from the HOng Kong Doomsday in the next five years. Hong Kong government lead by the good for nothing fascist and catholic freak, Donald Tsang Yum-kuen, has spent 70% the total reserved money of HK $ 10,000 billions left by the last governor of Chris Patton. Hong Kong and the US must stop the monetary activities in investment of property and financial investments.
Does Hong Kong and the US administration spending most of the deficits by means of leveraging the banks and the financial markets. Are you aware that China has recently waived the US dollars as trading money units with quite a trading partners?http://www.answers.com/topic/leverage-fi…
as long as China wants to sell exports to US and support its own economy.