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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: kris b who wrote (75838)	12/16/2006 6:25:32 PM
From: GST	Read Replies (2) \| Respond to of 110194

Reserves held by China serve a purpose -- not so much an immediate investment purpose but rather a development purpose. Dollar reserves are like the house in a casino -- you play, you pay, they take your money and sit on it. They are the house -- they win and they have to take your money -- what else are they supposed to do?? Then they lend the money back to us and we play again, and pay -- well we don't actually pay, we just say "put it on my tab". Its not just that we are playing after we got cleaned out -- it is that we are playing with their money and are dumb enough to think of it as "our money" so long as they lend it to us in our own currency. They are taking in so much money they hardly know what to do with it. What they would like to do is buy assets. So far we have said no. As we become weaker and weaker by the day we will someday say yes and sell off our assets -- they would like to start with oil companies and go from there -- buying half the Fortune 500 would be a nice prize for them.