Author: myfriend

A good use of China's treasure chest, "Buy America" [Copy link] 中文

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Post time 2009-3-18 15:36:23 |Display all floors
Originally posted by Da_Zhao at 2009-3-18 16:07
>You've pretty much just said nothing. The fact is that capital isn't scarce, it's just not being loaned to consumers but hoarded in cash instead

In that case there's certainly no need for Ch ...

Ops, that will gall #16.:)

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Post time 2009-3-18 16:34:28 |Display all floors
Da,

China purchases Treasuries because it must place its current account balance offshore or structural barriers to domestic consumption (starting with the management of its exchange rate)  will cause rampant inflation.

Given that the average bank now has a ratio of something like 6:5 reserves to deposits, capital is very available in the market, it's just not going anywhere.
"Justice prevails... evil justice."

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Post time 2009-3-18 18:02:47 |Display all floors
Originally posted by ju1961 at 2009-3-18 10:06
firstly,the USA won't allowed any cuntry to buy the key industry .secondly,the breakdown of wallstreet do not mean the breakdown of US.So we just do our business just like the chairman hu had annou ...


China just rejected Coca Cola buying the Huiyuan juice brand.  Is that a key industry for China?  

The US does try to protect the sale of certain industries to foreign companies, funds, and governments but China is far worse.  Chinese auto and telecom companies cannot be bought they must remain 51% Chinese owned.  

Apparently drink makers also fall under the category of critical national industries and they cannot be bought either.

If China wants to be able to buy anything, it needs to play fair.  China has one of the most protected economies and perhaps that is good for China, but as a result other countries are going to be wary of selling things that way.

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Post time 2009-3-18 18:04:20 |Display all floors
Interesting,

You stated:  “China purchases Treasuries because it must”
Let me remain you that China MUST do nothing.
I repeat – NOTHING at all China must do.
However, China obviously will do what is best for its Country and people.
I'm quiet certain that your country and leaders will do the same.
Well, one would think so anyway though reading the financial news and listening to Bloomberg regarding our state of financial affairs I can only wonder.

Now comes the best part:  China has rejected Coca-Cola bid to buy a major Chinese juice produce.
Thanks Grandpa 1000000000,300000-One Billion and three hundred thousand million people will thank you in the future:)

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Gold Medal

Post time 2009-3-18 19:05:17 |Display all floors
Originally posted by idiot8 at 2009-3-18 19:02




The US does try to protect the sale of certain industries to foreign companies, funds, and governments but China is far worse.  Chinese auto and telecom companies cannot be bought they must remain 51% Chinese owned.  


I don't think it is worse. China was not permitted to purchase Unocol in 2005 and any attempt to purchase US companies is eyed with distrust.

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Post time 2009-3-18 19:52:07 |Display all floors
"USA should sell some of what it has, such as land, minerals, and encourage companies like General Motors, Bank of America, etc. to sell themselves"


haha, man you looks cute. but more like a day dream.

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Post time 2009-3-18 20:23:41 |Display all floors
Even though the American has been completely broken,there's no nation can but the entire or part of American,because of its army!

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