China Blasts U.S. Debt Problems, Urges New Global Reserve Currency

[jdme]

It will settle down after initials jitters. There is no other alternative. Saudis should be more concerned about collapse of Euro-zone.

 

[Maritimer]

Where else can we put our $3 trillion in excess currency reserves?

The three main options... are the USA, Europe and Japan.

ALL of which, are facing severe economic problems.

It's a Catch-22 situation.

By parking the money in the US, China was merely making sure that there is enough money for American consumers to buy the Chinese exported goods, not realizing that one fine day the US may not have enough income to repay the debt. This crisis is as much China's as it is for the US.

China can use its reserves by increasing its investments in mineral assets in Africa, Middle-East and Australia - something which it has already begun doing. The lesser China depends on exports to US, the better it is for the Chinese economy in the longer run.

 

[Aramsogo]

It will settle down after initials jitters. There is no other alternative. Saudis should be more concerned about collapse of Euro-zone.

Short run maybe or maybe not. This "no other alternatives" argument is like a safety blanket that comforts the entrenched status quo at night. It's really an idiotic argument if you think about it because in a free market, everyone is vying to be that alternative. I bet the British were saying "no alternatives" in 1918 too. There's always an alternative. This downgrade will only spur its emergence.

 

[Ahmad Abdullah Ravian]

Foreseen .......

 

[jdme]

Short run maybe or maybe not. This "no other alternatives" argument is like a safety blanket that comforts the entrenched status quo at night. It's really an idiotic argument if you think about it because in a free market, everyone is vying to be that alternative. I bet the British were saying "no alternatives" in 1918 too. There's always an alternative. This downgrade will only spur its emergence.

Mighty Indian Rupee I fear...

Other two agencies have not changed the rating. We will have to wait and watch.

 

[below_freezing]

By parking the money in the US, China was merely making sure that there is enough money for American consumers to buy the Chinese exported goods, not realizing that one fine day the US may not have enough income to repay the debt. This crisis is as much China's as it is for the US.

China can use its reserves by increasing its investments in mineral assets in Africa, Middle-East and Australia - something which it has already begun doing. The lesser China depends on exports to US, the better it is for the Chinese economy in the longer run.

Nope we "lose our savings" but the US loses it all. I'm fine with that loss. Can't shoot a gun without some recoil.

 

[jdme]

Nope we "lose our savings" but the US loses it all. I'm fine with that loss. Can't shoot a gun without some recoil.

If you have learned any economics, you would know that you will lose everything due to cascade effect. What do you do in real life?

 

[gambit]

If you have learned any economics, you would know that you will lose everything due to cascade effect. What do you do in real life?

This is the man who genuinely believe that China's semicon industry is more advanced than South Korea's or Japan's based upon his shallow knowledge and so-called 'analysis' of Chinese foundry fabs. Never in his mind that he would meet someone online who is in the industry he claimed authority about and spectacularly proved him wrong: Me. So do not expect any real knowledge from him in economics or anything else for that matter.

 

[Chinese-Dragon]

If you have learned any economics, you would know that you will lose everything due to cascade effect.

Do you care to explain that, using an actual source?

Superpowers have collapsed before, the British Empire and the USSR for example.

Where was the "cascade effect" there? And who "lost everything" as a result?

 

[fd24]

If you have learned any economics, you would know that you will lose everything due to cascade effect. What do you do in real life?

I dont see how the cascade effect is going to effect the many hungry and starving in the world. Are they going to starve more? But americans they have shown that there tolerance to suffering is less than others thats why the vietnamese kicked them and now a load of blokes in afghanistan jn pyjamas with obsolete waepons is doing the same to them. Lets see how they handle starving and suffering

 

[harpoon]

Where else can we put our $3 trillion in excess currency reserves?

The three main options... are the USA, Europe and Japan.

ALL of which, are facing severe economic problems.

It's a Catch-22 situation.

How about Gold, diamonds or other valuables.

 

[Thomas]

How about Gold, diamonds or other valuables.

they can't, the point is they have to keep buying U.S. debt so that the dollar doesn't sink to low. A low dollar makes Chinese goods more expensive and U.S. goods cheaper.

Personally I am all for them no longer buying U.S. debt. It will force our politicians to make deeper cuts in spending. A cheaper dollar increases exports and jobs as well.

 

[Juice]

Maybe if the US hand over Hawaii and California, China will erase all half of the debt. The other half the US can pay slowly (with interest) throughout the rest of the century.

Come and get it! Pack a lunch. When your country breaks apart we will take the maritime provinces, and leave you the rest.

China hade millions starving not too long ago, and where is all that back-yard steel? China is a long way from economic lectering just yet. Ride our coat-tails a few more years, and learn how the system works, till then be quite.

 

[aakash_2410]

What happened in 1876?? Check your dates.

You then wrote: "These Anglo Saxons are way too smart."

Low self-esteem from thousands of years of foreign occupation?????

Nope. First Mongols then Japanese and then because of century of humiliation.

That was so uncalled for mate.

 

[LetsGetRowdy]

Come and get it! Pack a lunch. When your country breaks apart we will take the maritime provinces, and leave you the rest.

China hade millions starving not too long ago, and where is all that back-yard steel? China is a long way from economic lectering just yet. Ride our coat-tails a few more years, and learn how the system works, till then be quite.

Oh don't worry. We won't have to lift a muscle, because your leaders will hand it over to us as collateral.

And with almost 15 trillion in debt I don't think you are in the position to lecture any other country, especially China with the highest surplus on 'how the system works'. But maybe we could teach you how the system works.