Σάββατο, 14 Μαρτίου 2009

Chinese Premier Wen Jiabao "he is a little bit worried about the safety of Chinese assets in the United States"

to Premier Wen Jiabao , who worries about his Investments in USA

Through Mao's era

From The Chinese Exclusion Act, a United States federal law passed on May 6, 1882, following revisions made in 1880 to the Burlingame Treaty of 1868. Those revisions allowed the U.S. to suspend immigration, and Congress subsequently acted quickly to implement the suspension of Chinese immigration,

"We lent such huge fund to the United States and of course we're concerned about the security of our assets and, to speak truthfully, I am a little bit worried," said Wen at a press conference after the close of the annual parliament session. He urged the U.S. government to keep to its commitment and ensure the safety of the Chinese assets in the United States. China has invested its huge foreign exchange reserves in low-risk but low-yield assets, such as U.S. government bonds, to play it safe. "China is indeed the largest creditor of the United States, which is the world's biggest economy. We are extremely interested in developments in the U.S. economy," said Wen, adding that he is expecting the effect of the measures taken by the U.S. administration of President Barack Obama to counter the international financial crisis. Wen reiterated China's principle of guaranteeing the "safety, liquidity and good value" of its foreign exchange reserves and diversifying the investment of the reserves. "On the foreign reserves issue, the first consideration is our national interest," said Wen. "But we also have to consider the stability of the overall international financial system, as the two factors are interlinked."
"Currently, our reserves are generally safe," he said.
Meanwhile, Wen said the country's foreign reserves will be mainly used in overseas investment and trade, as the reserves are actually the liabilities of the central bank instead of fiscal fund. He said in its bid to explore both domestic and overseas markets and utilize resources in both markets, China will seek make a better use of its reserves for the purpose of supporting domestic undertakings and improving people's living standards. China's foreign exchange reserves hit a record 1.95 trillion U.S. dollars at the end of 2008, the largest in the world and far exceeding that of Japan, the second-largest foreign exchange holder with 1.03 trillion U.S. dollars. According to the U.S. Treasury, China held 681.9 billion U.S. dollars worth of U.S. government bonds as of November.
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Την τελευταία πενταετία η Κίνα έχει επιδείξει υπερβολικό ζήλο στην αγορά ομολόγων του αμερικανικού Δημοσίου. Σύμφωνα με την ΙΗΤ, σήμερα η Κίνα έχει τοποθετήσεις σε ομόλογα του αμερικανικού Δημοσίου αξίας 652 δισ. δολαρίων ενώ πριν από ένα χρόνο διατηρούσε 459 δισ. δολάρια. Προσθέτοντας σε αυτά τα ομόλογά της στη Fannie Mae, οικονομικοί αναλυτές εκτιμούν πως η Κίνα έχει σήμερα στην κατοχή της ένα δολάριο για κάθε 10 δολάρια του δημόσιου χρέους των ΗΠΑ. Aυτό το γεγονός δίνει και ένα ισχυρο διαπραγματευτικό χαρτί στα χέρια της Κινεζικής ηγεσίας, και είναι αυτό που εξαναγκάζει τις ΗΠΑ να γίνονται πλέον πολύ προσεχτικές όταν αναφέρονται στον ΔΑΝΙΣΤΗ τους την ΚΙΝΑ !!
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lingering perilously close to a Chinese base on Hainan Island, in the South China Sea, reportedly stripped down to their underwear when our sailors turned water hoses on them. Maybe the shower facilities on Chinese fishing vessels – it was fishing trawlers, not military gunboats, that met the Americans on China's doorstep – are insufficient, or maybe the Chinese were mooning us. I'm inclined to think the latter. In any case, Sunday's incident ratchets up tensions with China – which have been roiled in recent weeks, not only by a series of similar incidents, but also on account of issues broader than China's claims to virtually the whole of the South China Sea. The Chinese, some analysts aver, are "testing" the Obama administration to see how much they can get away with. They are sending a "signal," we are told, which ought to have been clear enough after the 2001 incident, in which a U.S. surveillance plane was forced to land on Hainan after a collision with a Chinese fighter jet. The fallen Chinese pilot, one Wang Wei, is today a national hero, symbol of a resurgent Chinese nationalism that has little to do with who sits in the Oval Office. In the self-referential parlance of Washington, however, it's all about a "test" for President Obama. Beijing claims U.S. actions violate the UN Law of the Sea, a treaty to which they are signatory and the U.S. is not. However, in contesting this assertion – which came up in the aftermath of the last Hainan incident – U.S. officials routinely note that the UN law, while granting China sovereignty over its "exclusive economic zone," would have been violated only if the Impeccable was on a commercial expedition, and yet the clear concern on the part of the Chinese is that this was a military mission.

1 σχόλιο:

Ανώνυμος είπε...

China should be worried about their dangerous over investment in US Treasury obligations. Washington ’s long-term choice is either repudiation or monetization. For monetization to be effective, the depreciation in the dollar would have to be substantial and this in turn would dramatically raise prices of imports for American consumers which would mean a tremendous drop in foreign imports. Debt monetization would cause more disruption to exporting nations than selective repudiation of Treasury debt.

Washington has bailed out the banks, Wall Street & their Washington special interests and much of the cost is added to the national debt to by paid by this and future generations while real estate and investments continue to fall. Find out what a growing repudiate the debt movement could mean for treasury bonds, the dollar, gold and the stock market.

The Campaign to Cancel the Washington National Debt By 12/22/2013 Constitutional Amendment is starting now in the U.S. See: http://www.facebook.com/group.php?gid=67594690498&ref=ts
Thanks,
Ron