China's $3.2 trillion headache

[fd24]

And even then they ran into trouble with their own debt ceiling.

Anyway, out of our $3 trillion currency reserves, only about $1 trillion of that is in US debt.

It's extremely unlikely for the American economy to collapse in the near future, so I'm not too worried.


And even IF it happened, the leftover $2 trillion would still be the largest currency reserves on Earth by a very large margin.

Like I said at the start many countries would love to have this problem nothing to worry about at all

 

[below_freezing]

err...what exactly is China of today, pray tell, smart one?

Socialism. The revenue of the top 60 state owned companies in China is equal to 45% of GDP. This whole "free market" business is just to make the state owned companies even more powerful.



---------- Post added at 04:28 AM ---------- Previous post was at 04:25 AM ----------

If countries like Britain and America can survive with only $100 billion in currency reserves (and much larger debt interest payments than us), then we'll do fine with $3 trillion, or even just a tiny fraction of that.

Our debt interest payments are small, and we have no trade deficit.

Financial strength for a country on the scale of China, Russia, India, Japan and the US (largest populations, land area and "GDP") is nearly uncorrelated with accounting gains or losses. The US and Japan are both huge negatives in account balance. Japan has taken the interesting and unexplainable strategy of beggaring Japanese people in order to buy US debt such that Japan owes itself 200% of GDP yet has a positive FOREX reserve.

The 3 trillion is nearly meaningless both in terms of gains and losses; it only represents the amount of protection money we paid to the white man.

 

[jdme]

And even then they ran into trouble with their own debt ceiling.

Trouble was political, not economic.

Anyway, out of our $3 trillion currency reserves, only about $1 trillion of that is in US debt.

And the rest is? I hope it's not Euro/Yen,..you know.

It's extremely unlikely for the American economy to collapse in the near future, so I'm not too worried.

Now you will make lot of Pakistani forumers unhappy

And even IF it happened, the leftover $2 trillion would still be the largest currency reserves on Earth by a very large margin.

Unless it's gold reserve, nothing is safe.

 

[Nav]

china is rapidly buying Gold from various sources , they know the threat of $ default..
[Nadai milat - 21 aug 2011]

 

[IndoCarib]

China doesnt have to worry. Look at what Biden said;

Biden: US will never default on its debts - Americas - Al Jazeera English

Biden tells China not to rule out US power - The Economic Times

US is still best bet - Biden - Times LIVE

Well, if you can trust him !

 

[fd24]

China doesnt have to worry. Look at what Biden said;

Biden: US will never default on its debts - Americas - Al Jazeera English

Biden tells China not to rule out US power - The Economic Times

US is still best bet - Biden - Times LIVE

Well, if you can trust him !

No they are not to be trusted. They are liars. Back to thread wish pakistan had this problem

 

[IndoCarib]

No they are not to be trusted. They are liars. Back to thread wish pakistan had this problem

Wish Pakistan had this problem ?? That means holding US dollars is not a bad idea you mean ? So in a way you believe in US economic power and in what Biden said. Surprising, I thought most Pakistanis wished for US economic demise !