August 8, 200718 yr http://www.telegraph.co.uk/money/main.jhtm...cnchina107a.xml The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation. Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (?658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies. Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels. advertisementdcmaxversion = 9dcminversion = 8DoOn Error Resume Nextplugin = (IsObject(CreateObject("ShockwaveFlash.ShockwaveFlash." & dcmaxversion & "")))If plugin = true Then Exit Dodcmaxversion = dcmaxversion - 1Loop While dcmaxversion >= dcminversionIt would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds. Xia Bin, finance chief at the Development Research Centre (which has cabinet rank), kicked off what now appears to be government policy with a comment last week that Beijing's foreign reserves should be used as a "bargaining chip" in talks with the US. "Of course, China doesn't want any undesirable phenomenon in the global financial order," he added. He Fan, an official at the Chinese Academy of Social Sciences, went even further today, letting it be known that Beijing had the power to set off a dollar collapse if it choose to do so. "China has accumulated a large sum of US dollars. Such a big sum, of which a considerable portion is in US treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency. Russia, Switzerland, and several other countries have reduced the their dollar holdings. "China is unlikely to follow suit as long as the yuan's exchange rate is stable against the dollar. The Chinese central bank will be forced to sell dollars once the yuan appreciated dramatically, which might lead to a mass depreciation of the dollar," he told China Daily. The threats play into the presidential electoral campaign of Hillary Clinton, who has called for restrictive legislation to prevent America being "held hostage to economic decicions being made in Beijing, Shanghai, or Tokyo". She said foreign control over 44pc of the US national debt had left America acutely vulnerable. Simon Derrick, a currency strategist at the Bank of New York Mellon, said the comments were a message to the US Senate as Capitol Hill prepares legislation for the Autumn session. "The words are alarming and unambiguous. This carries a clear political threat and could have very serious consequences at a time when the credit markets are already afraid of contagion from the subprime troubles," he said. A bill drafted by a group of US senators, and backed by the Senate Finance Committee, calls for trade tariffs against Chinese goods as retaliation for alleged currency manipulation. The yuan has appreciated 9pc against the dollar over the last two years under a crawling peg but it has failed to halt the rise of China's trade surplus, which reached $26.9bn in June. Henry Paulson, the US Tresury Secretary, said any such sanctions would undermine American authority and "could trigger a global cycle of protectionist legislation". Mr Paulson is a China expert from his days as head of Goldman Sachs. He has opted for a softer form of diplomacy, but appeared to win few concession from Beijing on a unscheduled trip to China last week aimed at calming the waters. So now China controls our monetary policy? Good grief. We have to start getting rid of the budget defecit and help American businesses or this country is cooked. We can start by getting the heck out of Iraq.
August 8, 200718 yr All together now... WHO DIDN'T SEE THIS COMING FROM A MILE AWAY?? Anyone? Fox? I saw it coming. We get EVERYTHING from China, and we don't send much back to them, except our dollars. They have more control over our economy than the Fed does by now.
August 8, 200718 yr good for china...lets americans know we dont rule the world and even if we did...we wouldnt have the slightest f***ing clue what to do with it
August 8, 200718 yr good for china...lets americans know we dont rule the world and even if we did...we wouldnt have the slightest f***ing clue what to do with it :|
August 9, 200718 yr good for china...lets americans know we dont rule the world and even if we did...we wouldnt have the slightest f***ing clue what to do with it :| I like the avatar and signature.
August 9, 200718 yr good for china...lets americans know we dont rule the world and even if we did...we wouldnt have the slightest f***ing clue what to do with it moron
August 9, 200718 yr good for china...lets americans know we dont rule the world and even if we did...we wouldnt have the slightest f***ing clue what to do with it :| :thumbdown :thumbdown
August 9, 200718 yr good for china...lets americans know we dont rule the world and even if we did...we wouldnt have the slightest f***ing clue what to do with it moron we have military bases in what 85% of the countries of the world? call me crazy...but i kinda like it when another nation doesnt play our little games all the time...i think too many countries just roll over when it comes to dealing with the United States and in the long run that will be a bad thing because there will be "block back"...the more examples we have given by foreign powers of the benefits of using negoiation over force, the better off we will be as a perceived as a super power...
August 9, 200718 yr You can't fault a country for "rolling over" when they see the economical and social benefits of dealing with the US.
August 9, 200718 yr good for china...lets americans know we dont rule the world and even if we did...we wouldnt have the slightest f***ing clue what to do with it :thumbdown :thumbdown we have military bases in what 85% of the countries of the world? call me crazy...but i kinda like it when another nation doesnt play our little games all the time...i think too many countries just roll over when it comes to dealing with the United States and in the long run that will be a bad thing because there will be "block back"...the more examples we have given by foreign powers of the benefits of using negoiation over force, the better off we will be as a perceived as a super power... LOL. Aren't you Mr. International Solidarity? There is an ever growing international consensus for China to reevaluate the yuan. Their current valuation isn't only hurting the United States, just ask Japan, Europe, and a ton of East Asian countries who are too dependent on Chinese trade to make any moves in their economic interests until the Chinese act first. This issue is hardly the US's "little game," it's more like the international financial community's "very big game with serious ramifications." BTW. The term is BLOW BACK, not "block back." If you're going to throw out terms to validate your argument, at least get the term right and use it in the proper context. Blow back refers to the unintended consequences of US military activity, primarily covert activity. Heated negotiations dealing with currency and the possibility of trade sanctions hardly qualify as "blow back," especially when a large part of the international community is on our side on this issue. We're applying pressure to get China to continue a revaluation process that is in the interest of the international community and China has been incredibly reluctant to continue. In the process, China's essentially telling us, "Come any closer, and we'll push the self destruct button." Honestly, what the hell is commendable about that?
August 9, 200718 yr This 'threat' is as empty as a bottle of scotch in Joe Namath's house. China has a lot to lose, infact too much to lose to do this. They just like to talk and hear themselves speak.
August 9, 200718 yr good for china...lets americans know we dont rule the world and even if we did...we wouldnt have the slightest f***ing clue what to do with it :thumbdown :thumbdown we have military bases in what 85% of the countries of the world? call me crazy...but i kinda like it when another nation doesnt play our little games all the time...i think too many countries just roll over when it comes to dealing with the United States and in the long run that will be a bad thing because there will be "block back"...the more examples we have given by foreign powers of the benefits of using negoiation over force, the better off we will be as a perceived as a super power... LOL. Aren't you Mr. International Solidarity? There is an ever growing international consensus for China to reevaluate the yuan. Their current valuation isn't only hurting the United States, just ask Japan, Europe, and a ton of East Asian countries who are too dependent on Chinese trade to make any moves in their economic interests until the Chinese act first. This issue is hardly the US's "little game," it's more like the international financial community's "very big game with serious ramifications." BTW. The term is BLOW BACK, not "block back." If you're going to throw out terms to validate your argument, at least get the term right and use it in the proper context. Blow back refers to the unintended consequences of US military activity, primarily covert activity. Heated negotiations dealing with currency and the possibility of trade sanctions hardly qualify as "blow back," especially when a large part of the international community is on our side on this issue. We're applying pressure to get China to continue a revaluation process that is in the interest of the international community and China has been incredibly reluctant to continue. In the process, China's essentially telling us, "Come any closer, and we'll push the self destruct button." Honestly, what the hell is commendable about that? first of all...it was 2 am when i wrote that and my contacts were all gunked up...so i apoligize for my mistype...but i meant blow back...i mean come on...im not that bad with my terms and phrases...and i meant blow back not like how the CIA use it...more or less...like this policy we have had for years is showing the potential to blow up in our faces...and really...i think its commendable because when other countries put their foot down...that is a good thing for us...maybe not the next day, week or month...but futher down the line we will be better off
August 9, 200718 yr This 'threat' is as empty as a bottle of scotch in Joe Namath's house. China has a lot to lose, infact too much to lose to do this. They just like to talk and hear themselves speak. we're more dependent on china then they are on us. Their biggest trade partner is the EU, so they could afford it more than we can.
August 9, 200718 yr This 'threat' is as empty as a bottle of scotch in Joe Namath's house. China has a lot to lose, infact too much to lose to do this. They just like to talk and hear themselves speak. we're more dependent on china then they are on us. Their biggest trade partner is the EU, so they could afford it more than we can. They still can't afford it, at least not now. Their economy is still developing, and would crash almost as hard as ours if they actually followed through on this threat.
August 11, 200718 yr This 'threat' is as empty as a bottle of scotch in Joe Namath's house. China has a lot to lose, infact too much to lose to do this. They just like to talk and hear themselves speak. we're more dependent on china then they are on us. Their biggest trade partner is the EU, so they could afford it more than we can. It would certainly hurt us, but it would destroy China's economy.
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