I can't find a link on a web news site but they keep repeating it on CNN.

China has expressed irritation with the pork-barrel merchants on Capitol Hill blustering about their (Chinese) currency value and have threatened to dump their dollar holdings ($400 mil in bonds) and cause a greenback meltdown.

Anybody worried ?

I can't find a link on a web news site but they keep repeating it on CNN.

China has expressed irritation with the pork-barrel merchants on Capitol Hill blustering about their (Chinese) currency value and have threatened to dump their dollar holdings ($400 mil in bonds) and cause a greenback meltdown.

Anybody worried ?

Here you are:

China threatens 'nuclear option' of dollar sales

http://www.telegraph.co.uk/money/main.jhtm...C-mostviewedbox

&

http://www.telegraph.co.uk/money/main.jhtm.../cnchina108.xml

Worried ?

We should be worried but it's in nobody's interest if China would even consider to sell off a small (or larger) % of their enormous reserves in US$ Bonds (some US$ 900 Billion !).

World wide markets AND the US$ would crash and that's not in the interest of China as well.

It's a political game between the US & China and China is trying to back off the threats the US is making to China.

Diplomacy from both sides is the answer.

LaoPo

nothing to worry. politicians are talking BS as usual.

I can't find a link on a web news site but they keep repeating it on CNN.

China has expressed irritation with the pork-barrel merchants on Capitol Hill blustering about their (Chinese) currency value and have threatened to dump their dollar holdings ($400 mil in bonds) and cause a greenback meltdown.

Anybody worried ?

I think this is such a small number you might have it out by several orders of magnitude. I can think of several companies that have larger holdings of USD than $400 mil.

Think $400 billion or $4 trillion of USD holdings and you might be in the ball park.

nothing to worry. politicians are talking BS as usual.

..but we can't live & survive without diplomacy either...

LaoPo

I can't find a link on a web news site but they keep repeating it on CNN.

China has expressed irritation with the pork-barrel merchants on Capitol Hill blustering about their (Chinese) currency value and have threatened to dump their dollar holdings ($400 mil in bonds) and cause a greenback meltdown.

Anybody worried ?

I think this is such a small number you might have it out by several orders of magnitude. I can think of several companies that have larger holdings of USD than $400 mil.

Think $400 billion or $4 trillion of USD holdings and you might be in the ball park.

"It is estimated that China holds over $900bn in a mix of US bonds."

From:

http://www.telegraph.co.uk/money/main.jhtm...C-mostviewedbox

LaoPo

It would hurt China as much as the US, and the world. So logic says they won't do it. But they make a good point: they've got us by the short hairs.

I can't find a link on a web news site but they keep repeating it on CNN.

China has expressed irritation with the pork-barrel merchants on Capitol Hill blustering about their (Chinese) currency value and have threatened to dump their dollar holdings ($400 mil in bonds) and cause a greenback meltdown.

Anybody worried ?

I think this is such a small number you might have it out by several orders of magnitude. I can think of several companies that have larger holdings of USD than $400 mil.

Think $400 billion or $4 trillion of USD holdings and you might be in the ball park.

"It is estimated that China holds over $900bn in a mix of US bonds."

From:

http://www.telegraph.co.uk/money/main.jhtm...C-mostviewedbox

LaoPo

About $400 billion to $500 billion in US Treasuries trades every day. All they could do is put a little more bonds into the market for a couple months, or a lot in a very short period. They already started decreasing holdings ($10 bill in the last 2 months) so it'll be an empty threat by the time they could play this.

But since they'd be doing it in response to trade sanctions, they'd have nothing to lose. The sanctions are the real things to worry about.

Why would the holder of an asset willingly make a statement that would devalue the asset they hold? If that was there intent, they certainly wouldn't advertise it IMO. Funny how you never hear any comments like this when assets are near historic peaks, but only when they are at historic support. Personally, Im more worried about the GBP right now, but of course I could be wrong.

edit: I'm not saying the $USD necessarily looks like a good buy here, as it's locked in a downtrend. I would want to see some signs of reversal first.

Unfortunately China would fk themselves even more. Who buys most of china(s) exports???

nothing to worry. politicians are talking BS as usual.

..but we can't live & survive without diplomacy either...

LaoPo

Agreed, Dr. Naam. Besides the two Chinese technocrats who aren't exactly a Cabinet spokesperson or an up & coming Government official just want to suck up to their higher echelon bosses. More geo-political posturing is to be expected as next year's Olympics and Presidental elections unfold.

AT LAST, AT LAST ....I knew someday my luncheon vouchers would come in handy!

nothing to worry. politicians are talking BS as usual.

..but we can't live & survive without diplomacy either...

LaoPo

1. Besides the two Chinese technocrats who aren't exactly a Cabinet spokesperson or an up & coming Government official just want to suck up to their higher echelon bosses.

2. More geo-political posturing is to be expected as next year's Olympics and Presidental elections unfold.

1. I doubt that J_Cheung,...the Hierarchy at the Beijing top doesn't allow lower echelon chaps to speak before it's their turn; it would/could be dangerous to surpass the 'bosses'...

2. Probably true, but hard at the same time to know or realize what's going on behind the Red curtains, so to speak.

This is an interesting [bBC] link of 'How China is Ruled' :

http://news.bbc.co.uk/2/shared/spl/hi/in_d...ment/html/1.stm

LaoPo

nothing to worry. politicians are talking BS as usual.

..but we can't live & survive without diplomacy either...

LaoPo

1. Besides the two Chinese technocrats who aren't exactly a Cabinet spokesperson or an up & coming Government official just want to suck up to their higher echelon bosses.

2. More geo-political posturing is to be expected as next year's Olympics and Presidental elections unfold.

1. I doubt that J_Cheung,...the Hierarchy at the Beijing top doesn't allow lower echelon chaps to speak before it's their turn; it would/could be dangerous to surpass the 'bosses'...

2. Probably true, but hard at the same time to know or realize what's going on behind the Red curtains, so to speak.

This is an interesting [bBC] link of 'How China is Ruled' :

http://news.bbc.co.uk/2/shared/spl/hi/in_d...ment/html/1.stm

LaoPo

LaoPo, this is more liken to the technocrats acting the "bad cop" before the "good cop" (that's their bosses) shows up & "berates" them for talking out of turn. A lot of local cadres were cheering on the Chinese bourses' new highs while President Hu & Premier Wen wanted to enact tougher warnings against rampant stock market speculation earlier this year.

Cartoon from today's Economist on an associated topic.

Illustration by Kevin Kallaugher

Regards

/edit format //

nothing to worry. politicians are talking BS as usual.

..but we can't live & survive without diplomacy either...

LaoPo

1. Besides the two Chinese technocrats who aren't exactly a Cabinet spokesperson or an up & coming Government official just want to suck up to their higher echelon bosses.

2. More geo-political posturing is to be expected as next year's Olympics and Presidental elections unfold.

1. I doubt that J_Cheung,...the Hierarchy at the Beijing top doesn't allow lower echelon chaps to speak before it's their turn; it would/could be dangerous to surpass the 'bosses'...

2. Probably true, but hard at the same time to know or realize what's going on behind the Red curtains, so to speak.

This is an interesting [bBC] link of 'How China is Ruled' :

http://news.bbc.co.uk/2/shared/spl/hi/in_d...ment/html/1.stm

LaoPo

LaoPo, this is more liken to the technocrats acting the "bad cop" before the "good cop" (that's their bosses) shows up & "berates" them for talking out of turn. A lot of local cadres were cheering on the Chinese bourses' new highs while President Hu & Premier Wen wanted to enact tougher warnings against rampant stock market speculation earlier this year.

Correct; what I meant to say under #1 was that it was most likely a 'planned' interview [by the bosses] which was given by:

"Two officials at leading Communist Party bodies have given interviews in recent days..."

one of which was:

"[Mr.] 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." ....

Of course it's all about Diplomacy Bargaining between the 2 countries.

A_Traveller: brilliant cartoon; Thanks!

LaoPo

nothing to worry. politicians are talking BS as usual.

..but we can't live & survive without diplomacy either...

LaoPo

Agreed, Dr. Naam. Besides the two Chinese technocrats who aren't exactly a Cabinet spokesperson or an up & coming Government official just want to suck up to their higher echelon bosses. More geo-political posturing is to be expected as next year's Olympics and Presidental elections unfold.

Spot on! This is merely a shot across the bow of the Democrat party in the U.S.(more than likely orchestrated by those higher echelon bosses in China). If the Democrats retain both houses of Congress and gain the White House, they have made it clear that would enact and enforce tougher trade policy in regards to China. The ironic thing about all of this is that not only would China be shooting themselves in the foot short term, but in the long run China wants and needs a strong U.S. dollar, so this is just political rhetoric and with elctions in the U.S. 15 months away I would expect to see more and more of this tough talk on both sides until the elctions. Just as individuals make decisions based on their own self interest, it is the same with countries and with that said China will clean up their act and start producing safer toys and untainted food products and the U.S. will continue to buy these items, and the new administration in the U.S. will likely have a strong dollar policy that will make the Chinese and Japanese very happy that the bought all of those U.S. stocks and bonds when the dollar was very cheap.

Thanks Bingo! You and Mid have a great way of injecting a bit of levity into a serious situation. All joking aside though, I think that China should be very careful what it wishes for.

Thanks Bingo! You and Mid have a great way of injecting a bit of levity into a serious situation. All joking aside though, I think that China should be very careful what it wishes for.

How long until "China wishes for" is replaced by "China orders, insists and commands" ?

As Lao Po said earlier in this thread, it's in nobody's interest whatsoever for China to dump the dollar. Political posturing indeed. This continues to be the world's greatest symbiotic though bumpy relationship, with the US investing in, and buying everything cheaply from China; and with China using the opportunity to propell itself upward and take its coming regional leadership place. Apart from silly skirmishes over Taiwan, I look for the US and China interests to become even more closely aligned in the future, on not only economic matters, but political matters such as N. Korea and Iran.

It's only perhaps lamentable to see the other important large GDP countries (Japan, Germany,UK, France) marginalized by the dance of these two gargantuans. Granted, the China GDP is still roughly only 2/3rds the size of #2 Japan, which is itself a mere 25% of the size of the U.S. GDP.... But, look out.

Thanks Bingo! You and Mid have a great way of injecting a bit of levity into a serious situation. All joking aside though, I think that China should be very careful what it wishes for.

Always a good indicator is someone doesn't read the previous page of the thread.

Posted 2007-08-10 21:53:21 Cartoon from Economist, with due credit.

Regards

Thanks Bingo! You and Mid have a great way of injecting a bit of levity into a serious situation. All joking aside though, I think that China should be very careful what it wishes for.

It's almost comical to see HOW Americans look upon China, maybe fed by the US propaganda machine...who knows?

1. If you read a little better, Sir VegasVic, you would have known that the image, posted by Bingobongo, was actually posted first by another member: A-Traveller...

2. And, you could also have written: "I think that the USA should be very careful what it wishes for"

The relationship between the 2 countries is a two-way street, not 1-way. China offers enormous possibilities for the US also:

read this:

Wal-Mart Uses Chicken Feet, Spam to Spur Sales Abroad

Could you ever have imagined that millions of Chinese would consume American chickenfeet... They DO, whether you like them or not (the chickenfeet that is).

http://www.bloomberg.com/apps/news?pid=new...id=aIt0Gr1nlTc8

LaoPo

As Lao Po said earlier in this thread, it's in nobody's interest whatsoever for China to dump the dollar. Political posturing indeed. This continues to be the world's greatest symbiotic though bumpy relationship, with the US investing in, and buying everything cheaply from China; and with China using the opportunity to propell itself upward and take its coming regional leadership place. Apart from silly skirmishes over Taiwan, I look for the US and China interests to become even more closely aligned in the future, on not only economic matters, but political matters such as N. Korea and Iran.

It's only perhaps lamentable to see the other important large GDP countries (Japan, Germany,UK, France) marginalized by the dance of these two gargantuans. Granted, the China GDP is still roughly only 2/3rds the size of #2 Japan, which is itself a mere 25% of the size of the U.S. GDP.... But, look out.

Hence, these so-called "threats" and innuendoes of dumping the dollar echoes the same blatherings made by minor Japanese officials & xenophobic scholars back in the late 80s when "Japan bashing" from the U.S. Congress was in its heydays.

Thanks Bingo! You and Mid have a great way of injecting a bit of levity into a serious situation. All joking aside though, I think that China should be very careful what it wishes for.

It's almost comical to see HOW Americans look upon China, maybe fed by the US propaganda machine...who knows?

1. If you read a little better, Sir VegasVic, you would have known that the image, posted by Bingobongo, was actually posted first by another member: A-Traveller...

2. And, you could also have written: "I think that the USA should be very careful what it wishes for"

The relationship between the 2 countries is a two-way street, not 1-way. China offers enormous possibilities for the US also:

read this:

Wal-Mart Uses Chicken Feet, Spam to Spur Sales Abroad

Could you ever have imagined that millions of Chinese would consume American chickenfeet... They DO, whether you like them or not (the chickenfeet that is).

http://www.bloomberg.com/apps/news?pid=new...id=aIt0Gr1nlTc8

LaoPo

Yea thats right, those darned U.S. news outlets are all just propoganda machines of the state , eat your heart out Joseph Goebbels. As usual Lao your emotional defense of anything involved with China shows your true colors, not to worry my friend you won't have to wait too much longer to see how this plays out, and yes I will say it again "China should be very careful what it wishes for ". Watch and learn my friend

As it stands right now, I am not that pessimistic. However, we may have a fairly rocky environment in the very near future and I only hope that we will finally get that long awaited correction.

I am pretty convinced that central banks as already seen last week will stear us clear from this mess.

'No plans' to sell off greenback

By Xin Zhiming (China Daily)

13th august 2007

The US dollar plays an important role in the global monetary system and dollar assets are an important part of China's foreign exchange reserve, the central bank said yesterday.

The announcement by the People's Bank of China (PBOC), experts said, should scotch rumors that Beijing would sell off its US dollar reserve in response to Washington's pressure to revaluate the yuan.

So who should I believe? The PBOC? Or TV posters saying the opposite?

'No plans' to sell off greenback

By Xin Zhiming (China Daily)

13th august 2007

The US dollar plays an important role in the global monetary system and dollar assets are an important part of China's foreign exchange reserve, the central bank said yesterday.

The announcement by the People's Bank of China (PBOC), experts said, should scotch rumors that Beijing would sell off its US dollar reserve in response to Washington's pressure to revaluate the yuan.

So who should I believe? The PBOC? Or TV posters saying the opposite?

there you go again...posting facts. why? good for what??

Yea thats right, those darned U.S. news outlets are all just propoganda machines of the state , eat your heart out Joseph Goebbels. As usual Lao your emotional defense of anything involved with China shows your true colors, not to worry my friend you won't have to wait too much longer to see how this plays out, and yes I will say it again "China should be very careful what it wishes for ". Watch and learn my friend

I certainly hope your hint to a Nazi is not meant to be one to my person! Please refrain from such remarks, if you will. It's not very stylish.

Your last sentence is like a Hawk/Hardliner warning...

The pussy must be scared...or not?

LaoPo

'No plans' to sell off greenback

By Xin Zhiming (China Daily)

13th august 2007

The US dollar plays an important role in the global monetary system and dollar assets are an important part of China's foreign exchange reserve, the central bank said yesterday.

The announcement by the People's Bank of China (PBOC), experts said, should scotch rumors that Beijing would sell off its US dollar reserve in response to Washington's pressure to revaluate the yuan.

So who should I believe? The PBOC? Or TV posters saying the opposite?

Clearly, high placed Chinese officials had read TV and realized we knew it was an empty threat.