China says lending to US will not go on forever

[Doctor Cynic]

http://www.google.com/hostednews/afp/article/ALeqM5iGG6ahd4tnwZSqP12PTw7hCIQsTg

This is about to get maxed out:



BEIJING (AFP) — China warned Wednesday it would not keep lending money to the US economy indefinitely, even as new data showed it had consolidated its position as the top buyer of American government bonds.

"China's increased purchase of US Treasury securities should not be interpreted as an endorsement of the assumption that the US can borrow its way out of the current financial crisis," the China Daily said in an editorial.

The warning from the state-run newspaper, an English-language daily that mainly addresses a foreign audience, came after the US Treasury Department reported a steep increase in Chinese holding of US Treasury bonds.

[Ian David]

1. Only Republicans could manage to lose a financial war to a bunch of commies.

That's like losing a hotdog-eating contest to a vegetarian.

[Cessna Invesco Palin]

2. China's export and financial sectors are hardly communist.

In fact, I don't really think communism adequately describes the Chinese system any more. I'm not really sure what you'd call it.

[w4rma]

3. fascist. corporatist. (nt)

[Ian David]

5. Thom Hartman says it's a Musolini-style Fascism.

The melding of Corporation and Government.

[AntiFascist]

8. Corporatism....

it may depend on whether the government controls the corporations or vice versa. At any rate, it is authoritarian and anti-Democratic. Personally, I think Marx was a tool of the banking elite.

:hide:

[Johonny]

13. Not really

I see it as more an a political society. The economic sector appears to have no connection to the political sector so long as you make sure you bribe the right people and don't openly cause a national embarrassment.

[Odin2005]

17. I call it Confucio-Fascism.

A cross of Western Fascism and Traditional Chinese authoritarianism.

[theoldman]

4. I can understand China buying a lot of US treasury bills

in order to have us by the gonads. What I do not understand is why they keep buying them now that the interest rates are next to nothing.

[Ian David]

6. It's cheaper than wasting good newspaper to wrap their fish. n/t

[Cessna Invesco Palin]

9. Because they're a relatively safe long-term investment.

Considering the volatility in China's export sector and global stock markets, it actually makes a lot of sense.

[AntiFascist]

12. Because, like everyone else, ...

they need a "safe" place to move their money. When the US begins to move toward insolvency, like California is now, then they will begin to think twice about it.

[Javaman]

7. Honestly, I'm surprised it's gone on this long. considering that t-bonds are

basically interest free now.

[Tierra_y_Libertad]

10. Brother, can you spare a yuan?

Such irony.

The major capitalist nation borrowing from the major (supposedly)Communist nation to save it from bankruptcy.

:rofl: :rofl: :rofl:

[Deja Q]

11. WHich means we need jobs here at home so we can pay back the debt more quickly.

Or raise taxes on those who have jobs.

China should sit back and wait for P-E Obama to start making some actions before acting in abject fear.

[dysfunctional press]

14. we need to nuke the rest of the world into submission while we still have the chance...

i think that's kernel at the cold black heart of the neo-con's foreign policy thinking(for lack of a better word).

[Odin2005]

15. China isn't stupid, If they take us down we will be sucking them in with us.

Besides, compared to our GDP, is our debt really THAT bad? Can any resident economists tell me what the US's debt load is relative to GDP compared to other countries?

[ProfessorGAC]

16. Simple Translation

They're running out of liquid cash.

Look, i'm certainly documented here on DU of highly disapproving of the "supply side", "borrow and spend" economics of the repuke party the last 30 years.

But, when China says it, i don't think it means anything more serious or profound than that they're cash flow is hitting the drain plug.

They're playing as if they have aces. They're holding 3 - 5 and trying to fill a straight.
GAC
GAC