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Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (2289)	9/11/2008 10:30:55 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 86356

How much longer do you think China and other countries will keep buying our debt? You don't grasp the entire picture. China has hundreds of millions of people they are trying to educate, train, and employ. Who do you think facilitates that?? The AMERICAN CONSUMER!! We go down, they go down.. And because the Chinese now have developed a taste for the "good life", they're not going to be as easy to control should economic times go bad for them. And the government? Well.. their reserves are going to disappear very quickly if they have to prop up their own undercapitalized banks. You have to remember that Chinese banks have a tremendous amount of non-performing debt due to internal corruption.. And this link also mentions European State owned banks having the same problems: seekingalpha.com Bottom line, the Chinese need use to buy their goods and keep their people employed. We "need" the Chinese to buy our debt to keep the price of consumer goods cheap and minimize inflationary pressures. And the Chinese need to buy our debt so they can "park" their profits in the US and avoid having to repatriot that capital back to China, thereby putting upward pressure on their currency. This is intertwined MM, just the way global economics were envisioned to be. Keep economic interests so emeshed that no one can imagine actually going to war with one another. So don't think that China, and/or Russia, doesn't have something to lose by applauding US economic problems. Because they have just as many problems as we do.. Hawk

To: RetiredNow who wrote (2289)	9/11/2008 1:10:58 PM
From: TimF	Read Replies (1) \| Respond to of 86356

Fannie and Freddie bailouts? Funded by China. Our war in Iraq? Funded by China. How many times are you going to count each dollar of the federal debt owed to China? We have a $3tril dollar budget, a fourteen trillion dollar economy (each of those figures per year) and $500bil (TOTAL not per year) owed to China. If you want to consider the annual increase, well over the last eight years the federal debt to China has increased by less than $45bil per year. That $45bil a year is funding the war in Iraq, all the bailouts etc.??? Most federal government actions are paid through taxes, most of the rest are paid from borrowing from Americans, then most of the rest are paid for from borrowing from other countries besides China. We are not funding everything by borrowing from China.