America is stretched to breaking point: watch the markets

[F430murci]

And the US success story goes on, they better calm down because soon there will be NO workers anymore to load the social security coffers.

http://finance.yahoo.com/news/sears-close-stores-lay-off-5-500-employees-131217119--finance.html Sears to close stores, lay off about 5,500 employees: Seeking Alpha

Seats is a dinosaur and has been on its way out for a long time.

This, however, does illustrate a problem, a completely different problem from that which you focus (not seeing forest for the trees) and a problem worldwide for all developed economies.

The Internet, Walmart, Home Depots and etc. have decimated retail chains and small mom and pop businesses. They cannot compete and brick and mortar retail is becoming a thing of the past. The business world and job market are evolving rapidly and the uneducated, hourly and unskilled workers are taking the brunt of it.

Fact is, people like me pay way more into the system in taxes than those being hurt or being put out if low wage, hourly positions. Skilled jobs and jobs for the educated are expanding now.

It will be interesting to see how the changing business market plays out. The US is resilient, resourceful and hard working. We will adapt and everything will be okay.

[TheCruncher]

And the US success story goes on, they better calm down because soon there will be NO workers anymore to load the social security coffers.

http://finance.yahoo.com/news/sears-close-stores-lay-off-5-500-employees-131217119--finance.html Sears to close stores, lay off about 5,500 employees: Seeking Alpha

Seats is a dinosaur and has been on its way out for a long time.

This, however, does illustrate a problem, a completely different problem from that which you focus (not seeing forest for the trees) and a problem worldwide for all developed economies.

The Internet, Walmart, Home Depots and etc. have decimated retail chains and small mom and pop businesses. They cannot compete and brick and mortar retail is becoming a thing of the past. The business world and job market are evolving rapidly and the uneducated, hourly and unskilled workers are taking the brunt of it.

Fact is, people like me pay way more into the system in taxes than those being hurt or being put out if low wage, hourly positions. Skilled jobs and jobs for the educated are expanding now.

It will be interesting to see how the changing business market plays out. The US is resilient, resourceful and hard working. We will adapt and everything will be okay.

So now it are the B&M shops that can't compete anymore with the online shops like Amazon, which are US new success story according to your earlier posts, but the truth is that they are also failing.

http://finance.yahoo.com/news/amazon-spends-grows-still-wants-104808791.html

Even with Amazon likely to hit $100 billion a year in revenue in 2015, it is not throwing off all the cash it needs. Last month the company revealed it had taken out a $2 billion line of credit with Bank of America for “working capital, capital expenditures, acquisitions and other corporate purposes.”

Meanwhile, losses are mounting. Three months ago, analysts thought the company would lose 7 cents a share in the third quarter. Then, after Amazon ratcheted down expectations, the estimated loss swelled tenfold, to 74 cents.

It is getting to be a familiar story. The last time Amazon made a profit in the third quarter was in 2011.

[F430murci]

Love how people not even in the US have so much first hand knowledge about how people are really doing here in the US.

Would you believe that outside your nationalistic world there is also television, newspapers and even internet. And most of all there is a conscience of how the US lead the whole world in an economic downturn in 2007, and now even try to blame Europe for their lying and cheating.

So me watching TV or reading nutty web sites on the Net really shows me how happy or well people are doing in Thailand, China, Russia or anywhere? Gotcha!

All this talk about how horrible things are and how everyone is a slave to debt and has no money here does not coincide with what I SEE and LIVE every day. Are things perfect. No!, but LOL at some if the ridiculous notions some of you have filled in your heads.

Yep, the US really screwed up with CMOs and CDOs. I was deep into it helping banks apply for TARP and litigating/arbitrating claims related to those getting burned by bad investments at both the individual level and at the institutional level . . . and I do not hear anyone IN THE REAL WORLD trying to blame Europe for the world for our mortgage backed security debacle.

Here is a comment from another US investor icon, but of course I have no doubt that you are better informed.

http://finance.yahoo.com/video/carl-icahn-markets-better-2008-223904949.html Carl Icahn: Markets Better Than 2008, Still May `Break'

You do realize that news generally does not report prevailing views, general sentiment or common daily occurrences. You don't hear many Joe Smith had a great day today, got a promotion at work, kids made straight As, wife cooked a great dinner and gave him something extra special before going to sleep today stories.

No, you hear the Joe Smith got fired today, beat his wife, kicked his dog and then went on a shooting rampage with his AR-15. That's what gets reported on the news, the uncommon, sad and bad news.

Sure, things can wrong, the world could collapse, an asteroid could hit us or aliens could invade at any time.

Smart people watch the conduct of others and not necessarily what someone says to remain relevant or get a little media attention.

I knew in 2007 what was going to happen and the quarter/month in which it was going to happen. I went 80% cash in October/November of 2007 so I have no illusions regarding our economy and markets.

[F430murci]

Keep up the apologist excuses.

Here is some news from your national hero today, guess why he lost 2,5 Billion$ only this week. More to come, keep your head in the sand, your country is as bankrupt as can be and the only way out will be to dupe the man in the street. I hope you realise that includes you.

http://finance.yahoo.com/news/warren-buffetts-bad-week-2-133144496.html

Warren Buffett's bad week: $2.5B lost on two stocks

IBM and Coke represent two of Berkshire Hathaway's (BRK-A) three biggest investments, but their operational missteps have already cost him $2.52 billion this week

And the winning losing streak of Americas smartest investor goes on, so the markets must be doing pretty well for the average US citizen.

http://finance.yahoo.com/news/buffett-copycats-risk-pounding-berkshire-052506483.html

Buffett copycats risk a pounding as Berkshire portfolio suffers

NEW YORK (Reuters) - It's not been a good time for Warren Buffett wannabes.

Sharp drops in many of the stocks owned by Buffett's Berkshire Hathaway in recent weeks hit the sprawling conglomerate's equity portfolio hard. The loss on seven of those holdings alone totals more than $5 billion provided Berkshire's stakes have remained the same since June 30, the last date for which they were disclosed.

Last year, for the first time since Buffett took control of Berkshire in 1965, the company's five-year gain in book value per share underperformed the S&P 500's five-year rise,

The performance of a major DJIA component

Could that be because the Chinese can make the same machines at a fraction of the price, only because their board members don't need private jets etc.

LOL, wrong again about CAT rnot being able to compete with cheap Chinese equipment being the cause for a decrease in revenues . . . I kind of keep up with CAT as it has been in my portfolio since 2010.

----------

CAT has been struggling due to weak demand for machinery and equipment in the global mining sector since the fourth quarter of 2012. CAT’s revenue from its Resource Industries segment, which primarily comprises of sales of mining equipment and machinery, has been declining due to profitability improvement programs at mining companies. Large asset write-offs in late 2012 and 2013, forced mining companies such as Vale, Rio Tinto and BHP Billiton, to cut costs and reduce capital spending. This significantly reduced demand for mining equipment and led to a 37.3% year-on-year decline in CAT’s Resource Industries’ revenue for 2013. The after affects of the 2013 asset write-offs and low mined commodity prices have kept the demand for mining equipment and machinery suppressed in 2014. Declining prices of mined commodities such as coal and iron ore, driven by high production and slowing demand from China, have discouraged mining companies from investing in new mines or expanding operations.

. . .

In the past two quarters, sales of construction machinery have been able to partially cushion the decline in mining equipment sales. However, this may be absent in the third quarter. The weak Brazilian economy and tough year-on-year comparison with Latin American markets has taken a toll on CAT’s Construction Industries segment. According to CAT’s retail statistics for August, global retail sales were down 1%, with only North American markets posting positive growth. Sales to Latin American markets declined 23%. In the previous year, CAT had received large orders from Brazil’s government which had significantly increased sales, leading to tough comparisons for this year’s third quarter. In addition, the economic condition in Brazil has been particularly troublesome in 2014 due to the recession brought on by declining investments in the country. Investments in Brazil contracted 5% due to the poor business environment and uncertainty ahead of the elections.

http://www.forbes.com/sites/greatspeculations/2014/10/21/caterpillars-earnings-preview-revenue-and-profits-could-decline-on-poor-mining-and-construction-sales/

____________________________________________________________

and the above Forbes article was off its mark just a bit . . .

----------

Shares of Caterpillar (NYSE: CAT [FREE Stock Trend Analysis]) gained more than 4% in pre-market trading after the company posted a better-than-expected profit for the third quarter and lifted its 2014 profit outlook.

. . .

Its sales climbed to $13.549. However, analysts were expecting a profit of $1.36 per share on sales of $13.2 billion.

Sales rose 15% in North America, while sales slipped 21% in Latin America. Asia/Pacific sales dropped 7% in the quarter.

Read more: http://www.benzinga.com/news/earnings/14/10/4946708/update-caterpillar-shares-rise-on-strong-q3-results#ixzz3GzDxs3ZC

[TheCruncher]

Could that be because the Chinese can make the same machines at a fraction of the price, only because their board members don't need private jets etc.

LOL, wrong again about CAT rnot being able to compete with cheap Chinese equipment being the cause for a decrease in revenues . . . I kind of keep up with CAT as it has been in my portfolio since 2010.

----------

CAT has been struggling due to weak demand for machinery and equipment in the global mining sector since the fourth quarter of 2012. CAT’s revenue from its Resource Industries segment, which primarily comprises of sales of mining equipment and machinery, has been declining due to profitability improvement programs at mining companies. Large asset write-offs in late 2012 and 2013, forced mining companies such as Vale, Rio Tinto and BHP Billiton, to cut costs and reduce capital spending. This significantly reduced demand for mining equipment and led to a 37.3% year-on-year decline in CAT’s Resource Industries’ revenue for 2013. The after affects of the 2013 asset write-offs and low mined commodity prices have kept the demand for mining equipment and machinery suppressed in 2014. Declining prices of mined commodities such as coal and iron ore, driven by high production and slowing demand from China, have discouraged mining companies from investing in new mines or expanding operations.

. . .

In the past two quarters, sales of construction machinery have been able to partially cushion the decline in mining equipment sales. However, this may be absent in the third quarter. The weak Brazilian economy and tough year-on-year comparison with Latin American markets has taken a toll on CAT’s Construction Industries segment. According to CAT’s retail statistics for August, global retail sales were down 1%, with only North American markets posting positive growth. Sales to Latin American markets declined 23%. In the previous year, CAT had received large orders from Brazil’s government which had significantly increased sales, leading to tough comparisons for this year’s third quarter. In addition, the economic condition in Brazil has been particularly troublesome in 2014 due to the recession brought on by declining investments in the country. Investments in Brazil contracted 5% due to the poor business environment and uncertainty ahead of the elections.

http://www.forbes.com/sites/greatspeculations/2014/10/21/caterpillars-earnings-preview-revenue-and-profits-could-decline-on-poor-mining-and-construction-sales/

____________________________________________________________

and the above Forbes article was off its mark just a bit . . .

----------

Shares of Caterpillar (NYSE: CAT [FREE Stock Trend Analysis]) gained more than 4% in pre-market trading after the company posted a better-than-expected profit for the third quarter and lifted its 2014 profit outlook.

. . .

Its sales climbed to $13.549. However, analysts were expecting a profit of $1.36 per share on sales of $13.2 billion.

Sales rose 15% in North America, while sales slipped 21% in Latin America. Asia/Pacific sales dropped 7% in the quarter.

Read more: http://www.benzinga.com/news/earnings/14/10/4946708/update-caterpillar-shares-rise-on-strong-q3-results#ixzz3GzDxs3ZC

So you have explained to us now that CAT profits went down in the past because the major mining companies placed less orders because of budget issues, but I don't see anywhere that those companies bought no machinery at all, or bought cheaper machinery from their major customers, the Chinese.

And because sales were above expectations this quarter , doesn't mean that sales were good. If one sells for 1$ of goods in 2014 and for 2$ of goods in 2015, they have a sales increase of an astonishing 100%, but doesn't mean they are profitable.

And look what I just read about those fabulous figures from CAT.

http://finance.yahoo.com/news/caterpillar-kills-it--under-armour-s-u-turn--dunkin--can-t-deliver-155017529.html

For the full year CAT raised guidance to $6 a share in earnings versus $5.75 prior to the call. "Isn't beating by 36-cents in Q3 and raising guidance for the year by a quarter tantamount to an earnings warning?"

If you take a close look at CAT you will notice that they waste a lot of money, same as most other untouchable US companies, read GM and alike.

Well, I shouldn't have mentioned GM, because unfortunately the once largest car manufacturer in the world went bankrupt. How do you explain such a thing?

A share price is always a reflection of future expectations, or in many cases manipulations by big players these days, but aren't a guarantee that those expectations are real.

GTAT.Q rose 60% today and about 120% early this week, but GTAT has filed for chapter 11 two weeks ago and is expected to be worth 0,00$ in the very near future.

Edited October 23, 2014 by TheCruncher

[F430murci]

And the US success story goes on, they better calm down because soon there will be NO workers anymore to load the social security coffers.

http://finance.yahoo.com/news/sears-close-stores-lay-off-5-500-employees-131217119--finance.html Sears to close stores, lay off about 5,500 employees: Seeking Alpha

Seats is a dinosaur and has been on its way out for a long time.

This, however, does illustrate a problem, a completely different problem from that which you focus (not seeing forest for the trees) and a problem worldwide for all developed economies.

The Internet, Walmart, Home Depots and etc. have decimated retail chains and small mom and pop businesses. They cannot compete and brick and mortar retail is becoming a thing of the past. The business world and job market are evolving rapidly and the uneducated, hourly and unskilled workers are taking the brunt of it.

Fact is, people like me pay way more into the system in taxes than those being hurt or being put out if low wage, hourly positions. Skilled jobs and jobs for the educated are expanding now.

It will be interesting to see how the changing business market plays out. The US is resilient, resourceful and hard working. We will adapt and everything will be okay.

So now it are the B&M shops that can't compete anymore with the online shops like Amazon, which are US new success story according to your earlier posts, but the truth is that they are also failing.

http://finance.yahoo.com/news/amazon-spends-grows-still-wants-104808791.html

Even with Amazon likely to hit $100 billion a year in revenue in 2015, it is not throwing off all the cash it needs. Last month the company revealed it had taken out a $2 billion line of credit with Bank of America for “working capital, capital expenditures, acquisitions and other corporate purposes.”

Meanwhile, losses are mounting. Three months ago, analysts thought the company would lose 7 cents a share in the third quarter. Then, after Amazon ratcheted down expectations, the estimated loss swelled tenfold, to 74 cents.

It is getting to be a familiar story. The last time Amazon made a profit in the third quarter was in 2011.

Haha, Amazon is not failing. Amazon is expanding. Expansion can be expensive.

I explained Amazon's business model in my earlier. If you are not comfortable with its business model (many are not) don't invest in Amazon. I don't, but I still think they are a solid company with a very intelligent owner.

You quote only one analysts comment out of a long article, but conveniently left out the 3 or 4 other analysts comments and no one said Amazon was failing. They were just bashing the Fire phone and talking about Amazon's expansion being costly. You knew what the article said since you quoted a few sentences out of the middle of the long article. Sketchy.

Amazon has done business this way for many years and have grown into a huge company. Some ideas worked well, some not so well, but they are well positioned for the future.

It is common for analysts to take jabs at Amazon because a lot of investors and analysts are primarily concerned about profits. Amazon's focus is not on profits and more on expansion.

. . . Amazon is failing, Caterpillar is failing, banks are failing the US is failing , , , the sky is falling. You guys are funny.

[animatic]

What an amazing chain of partially researched suppositions and mis readings of USA press stories, all lining up to a Hail Mary pass that could never hit the end zone of reality. In the best propaganda a thread of small truths is entangled by many falsehoods. Is this propaganda or just narrow vision and an editorial viewpoint to back up? Who can tell. It is bad scare tactic reporting, that got 10 pages of commentary.

[Johpa]

Fact is, people like me pay way more into the system in taxes than those being hurt or being put out if low wage, hourly positions. Skilled jobs and jobs for the educated are expanding now.

It will be interesting to see how the changing business market plays out. The US is resilient, resourceful and hard working. We will adapt and everything will be okay.

Well I certainly would hope that people like yourself, who make more money than do low wage hourly workers pay more in taxes than do those lowly wage earners. The tax issue in the US is the regressive aspects of the tax system which cause low wage earners to pay a higher percentage of their income back as taxes than do high wage earners.

The skilled jobs are only expanding in localized specific markets and not others. Yes, Amazon is hiring, but at the same time their inherent efficiency is causing job losses elsewhere, and at the national level those job losses include more skilled people than Amazon hires in return. Ironically that efficiency is based upon the publicly funded creation of the Internet just as Walmart's efficiency was based upon the publicly funded Interstate system. That is just the nature of capitalism, the more efficient, the ones who require less labor, survive and morph into monopolies, the type of corporation that Warren Buffet gets a hard on over. Entrepreneurs are job destroyers not job creators. The only thing that creates an increase in job positions is an increase in aggregate demand. The US needs to contemplate eliminating all income taxes on income below median income to stimulate aggregate demand and grow the economy, but too many people have gulped the Reagan era Kool-Aid nonsense that a rising tide lifts all boats and to lower taxes. Ask Kansas State governor Sam Brownback how well that notion worked for his state.

http://www.businessinsider.com/kansas-governor-race-sam-brownback-paul-davis-2014-10

[F430murci]

Could that be because the Chinese can make the same machines at a fraction of the price, only because their board members don't need private jets etc.

LOL, wrong again about CAT rnot being able to compete with cheap Chinese equipment being the cause for a decrease in revenues . . . I kind of keep up with CAT as it has been in my portfolio since 2010.

----------

CAT has been struggling due to weak demand for machinery and equipment in the global mining sector since the fourth quarter of 2012. CAT’s revenue from its Resource Industries segment, which primarily comprises of sales of mining equipment and machinery, has been declining due to profitability improvement programs at mining companies. Large asset write-offs in late 2012 and 2013, forced mining companies such as Vale, Rio Tinto and BHP Billiton, to cut costs and reduce capital spending. This significantly reduced demand for mining equipment and led to a 37.3% year-on-year decline in CAT’s Resource Industries’ revenue for 2013. The after affects of the 2013 asset write-offs and low mined commodity prices have kept the demand for mining equipment and machinery suppressed in 2014. Declining prices of mined commodities such as coal and iron ore, driven by high production and slowing demand from China, have discouraged mining companies from investing in new mines or expanding operations.

. . .

In the past two quarters, sales of construction machinery have been able to partially cushion the decline in mining equipment sales. However, this may be absent in the third quarter. The weak Brazilian economy and tough year-on-year comparison with Latin American markets has taken a toll on CAT’s Construction Industries segment. According to CAT’s retail statistics for August, global retail sales were down 1%, with only North American markets posting positive growth. Sales to Latin American markets declined 23%. In the previous year, CAT had received large orders from Brazil’s government which had significantly increased sales, leading to tough comparisons for this year’s third quarter. In addition, the economic condition in Brazil has been particularly troublesome in 2014 due to the recession brought on by declining investments in the country. Investments in Brazil contracted 5% due to the poor business environment and uncertainty ahead of the elections.

http://www.forbes.com/sites/greatspeculations/2014/10/21/caterpillars-earnings-preview-revenue-and-profits-could-decline-on-poor-mining-and-construction-sales/

____________________________________________________________

and the above Forbes article was off its mark just a bit . . .

----------

Shares of Caterpillar (NYSE: CAT [FREE Stock Trend Analysis]) gained more than 4% in pre-market trading after the company posted a better-than-expected profit for the third quarter and lifted its 2014 profit outlook.

. . .

Its sales climbed to $13.549. However, analysts were expecting a profit of $1.36 per share on sales of $13.2 billion.

Sales rose 15% in North America, while sales slipped 21% in Latin America. Asia/Pacific sales dropped 7% in the quarter.

Read more: http://www.benzinga.com/news/earnings/14/10/4946708/update-caterpillar-shares-rise-on-strong-q3-results#ixzz3GzDxs3ZC

So you have explained to us now that CAT profits went down in the past because the major mining companies placed less orders because of budget issues, but I don't see anywhere that those companies bought no machinery at all, or bought cheaper machinery from their major customers, the Chinese.

And because sales were above expectations this quarter , doesn't mean that sales were good. If one sells for 1$ of goods in 2014 and for 2$ of goods in 2015, they have a sales increase of an astonishing 100%, but doesn't mean they are profitable.

A share price is always a reflection of future expectations, or in many cases manipulations by big players these days, but aren't a guarantee that those expectations are real.

If you take a close look at CAT you will notice that they waste a lot of money, same as most other untouchable US companies, read GM and alike.

Well, I shouldn't have mentioned GM, because unfortunately the once largest car manufacturer in the world went bankrupt. How do you explain such a thing?

GTAT.Q rose 60% today and about 120% early this week, but GTAT has filed for chapter 11 two weeks ago and is expected to be worth 0,00$ in the very near future.

Your just making stuff up talking out of both ends . . . That is what the article said.

Show me one article, just one . . . only one . . . and you can cite you nutty zerohedge type stuff that say CAT sales suffered because mining companies opted for cheap Chinese machinery instead of CAT machinery.

GM suffered because they made crap cars that were ugly. I have not kept up with GM, but are they not doing okay now?

----------

GM profit nearly doubles

Big profits from rising SUV and truck sales in North America helped General Motors nearly double its third-quarter net profit and more than offset its struggles in Europe and South America.

The automaker posted net income of $1.38 billion, or 81 cents per share. In the year-ago quarter, GM made $698 million, or 45 cents per share.

The July-September quarter was the first this year without significant charges for recalls. GM has issued 75 recalls in 2014 covering more than 30 million vehicles, costing the company more than $2.8 billion.

http://www.latimes.com/business/la-fi-gm-earns-20141023-story.html?track=rss

[F430murci]

Fact is, people like me pay way more into the system in taxes than those being hurt or being put out if low wage, hourly positions. Skilled jobs and jobs for the educated are expanding now.

It will be interesting to see how the changing business market plays out. The US is resilient, resourceful and hard working. We will adapt and everything will be okay.

Well I certainly would hope that people like yourself, who make more money than do low wage hourly workers pay more in taxes than do those lowly wage earners. The tax issue in the US is the regressive aspects of the tax system which cause low wage earners to pay a higher percentage of their income back as taxes than do high wage earners.

The skilled jobs are only expanding in localized specific markets and not others. Yes, Amazon is hiring, but at the same time their inherent efficiency is causing job losses elsewhere, and at the national level those job losses include more skilled people than Amazon hires in return. Ironically that efficiency is based upon the publicly funded creation of the Internet just as Walmart's efficiency was based upon the publicly funded Interstate system. That is just the nature of capitalism, the more efficient, the ones who require less labor, survive and morph into monopolies, the type of corporation that Warren Buffet gets a hard on over. Entrepreneurs are job destroyers not job creators. The only thing that creates an increase in job positions is an increase in aggregate demand. The US needs to contemplate eliminating all income taxes on income below median income to stimulate aggregate demand and grow the economy, but too many people have gulped the Reagan era Kool-Aid nonsense that a rising tide lifts all boats and to lower taxes. Ask Kansas State governor Sam Brownback how well that notion worked for his state.

http://www.businessinsider.com/kansas-governor-race-sam-brownback-paul-davis-2014-10

My point is that those making larger wages are the ones paying the bulk of taxes was in response to the statement that loss of lower paying jobs will result in no money being paid into SS.

I am not so sure that I buy into what you are saying about taxes. I pay enough in taxes ever year to buy a small home and I get very little benefit. People that make very low wages pay very small amounts of taxes get most of what they pay back, and they are the ones using public schools, SS and etc.

Looks like top 5 percent pay 60% of the taxes and that top 50% of wage earners pay 96 % of all taxes.

The bottom half of wage earners pay 3.6 % of taxes.

The loss of jobs is very, very sad. I just disagree with the assertion that the loss of lower paying jobs will result in no SS or has some dramatic effect on taxes collected.

----------

Treasury Department analysts credit President Bush's tax cuts with shifting a larger share of the individual income taxes paid to higher income taxpayers. In 2005, says the Treasury, when most of the tax cut provisions are fully in effect (e.g., lower tax rates, the $1,000 child credit, marriage penalty relief), the projected tax share for lower-income taxpayers will fall, while the tax share for higher-income taxpayers will rise.

• The share of taxes paid by the bottom 50 percent of taxpayers will fall from 4.1 percent to 3.6 percent.

http://usgovinfo.about.com/od/incometaxandtheirs/a/whopaysmost.htm

[NeverSure]

Well yes China does own a lot of debt much of it belonging to the US

https://www.treasury.gov/ticdata/Publish/mfh.txt

As can be seen they have not been buying as much of it.

Nor has Japan which is why the FED started buying their own IOU's with basically more of their own IOU's

awhile back. That practice is supposedly stopping now...

How Long, Oh Lord, How Long? When will people EVER learn?

The reason that China and Japan and Thailand and many others "hold US debt" is because the dollar is the international unit of trade especially for oil. No country outside of Asia would accept China's currency in payment for anything.

China owns US dollars so that it can engage in international trade. It, Japan, and Thailand hold them in US Treasuries because they get at least a little interest. They hold only as much as they need to cover their current accounts. So naturally they don't need to buy more right now. They already have them.

If the US didn't produce enough treasuries to accommodate every other country, trade would come to a halt.

Any ignorant belief that China is so awash in money that it loans it to the US is hogwash. China is deeper in debt than the US as a ratio to GDP and so is Japan. It's a struggle for China to hold those US Treasuries but they have to or their trade would come to a halt.

Oh, and the US is the biggest buyer of Chinese exports by far, even surpassing the entire EU as a group. link Imagine what would happen to China if things went too sour with the US?

[Asiantravel]

Well yes China does own a lot of debt much of it belonging to the US

https://www.treasury.gov/ticdata/Publish/mfh.txt

As can be seen they have not been buying as much of it.

Nor has Japan which is why the FED started buying their own IOU's with basically more of their own IOU's

awhile back. That practice is supposedly stopping now...

How Long, Oh Lord, How Long? When will people EVER learn?

The reason that China and Japan and Thailand and many others "hold US debt" is because the dollar is the international unit of trade especially for oil. No country outside of Asia would accept China's currency in payment for anything.

China owns US dollars so that it can engage in international trade. It, Japan, and Thailand hold them in US Treasuries because they get at least a little interest. They hold only as much as they need to cover their current accounts. So naturally they don't need to buy more right now. They already have them.

If the US didn't produce enough treasuries to accommodate every other country, trade would come to a halt.

Any ignorant belief that China is so awash in money that it loans it to the US is hogwash. China is deeper in debt than the US as a ratio to GDP and so is Japan. It's a struggle for China to hold those US Treasuries but they have to or their trade would come to a halt.

Oh, and the US is the biggest buyer of Chinese exports by far, even surpassing the entire EU as a group.

“ China is deeper in debt than the US as a ratio to GDP and so is Japan.”

China’s net assets exceeded RMB 300 trillion ($49.3 trillion) in 2011, almost three times China’s total indebtedness and unlike America, it doesn't have a super skyscraper of $114.5 Trillion dollars of unfunded liabilities.

And in the event of any catastrophe I would have far greater faith in the resilience of the Chinese people to recover because they won't sit back and depend on the government to support them.

Edited October 24, 2014 by Asiantravel

[mania]

How Long, Oh Lord, How Long? When will people EVER learn?

The reason that China and Japan and Thailand and many others "hold US debt" is because the dollar is the international unit of trade especially for oil.

Those are some long legs that horse your riding has

Yes of course countries hold some World Reserve Currency for that exact reason

Same reason I mentioned in other threads for certain petrol dollar wars being waged.

But to suggest that is the only reason is silly given the amounts

If you would like to do some reading you will find there are a few reasons to do so.

things like it also being a way for China to control the value of their own currency

as I said in a following post.

[NeverSure]

Well yes China does own a lot of debt much of it belonging to the US

https://www.treasury.gov/ticdata/Publish/mfh.txt

As can be seen they have not been buying as much of it.

Nor has Japan which is why the FED started buying their own IOU's with basically more of their own IOU's

awhile back. That practice is supposedly stopping now...

How Long, Oh Lord, How Long? When will people EVER learn?

The reason that China and Japan and Thailand and many others "hold US debt" is because the dollar is the international unit of trade especially for oil. No country outside of Asia would accept China's currency in payment for anything.

China owns US dollars so that it can engage in international trade. It, Japan, and Thailand hold them in US Treasuries because they get at least a little interest. They hold only as much as they need to cover their current accounts. So naturally they don't need to buy more right now. They already have them.

If the US didn't produce enough treasuries to accommodate every other country, trade would come to a halt.

Any ignorant belief that China is so awash in money that it loans it to the US is hogwash. China is deeper in debt than the US as a ratio to GDP and so is Japan. It's a struggle for China to hold those US Treasuries but they have to or their trade would come to a halt.

Oh, and the US is the biggest buyer of Chinese exports by far, even surpassing the entire EU as a group.

“ China is deeper in debt than the US as a ratio to GDP and so is Japan.”

China’s net assets exceeded RMB 300 trillion ($49.3 trillion) in 2011, almost three times China’s total indebtedness and unlike America, it doesn't have a super skyscraper of $114.5 Trillion dollars of unfunded liabilities.

And in the event of any catastrophe I would have far greater faith in the resilience of the Chinese people to recover because they won't sit back and depend on the government to support them.

Good grief man. China is a communist country and it owns the means of production. The US is a democracy and the means of production belong to the private sector. It isn't apples and apples.

The US private sector is doing very well, making money and paying taxes but China has no such thing.

You can't just throw out a couple of figures without realizing that you didn't include the HUGE US private sector which is wealthy beyond anything the world has ever seen before.

I think some people who write here must be communists. They must think that the US government is all there is in America.

[F430murci]

Well yes China does own a lot of debt much of it belonging to the US

https://www.treasury.gov/ticdata/Publish/mfh.txt

As can be seen they have not been buying as much of it.

Nor has Japan which is why the FED started buying their own IOU's with basically more of their own IOU's

awhile back. That practice is supposedly stopping now...

How Long, Oh Lord, How Long? When will people EVER learn?

The reason that China and Japan and Thailand and many others "hold US debt" is because the dollar is the international unit of trade especially for oil. No country outside of Asia would accept China's currency in payment for anything.

China owns US dollars so that it can engage in international trade. It, Japan, and Thailand hold them in US Treasuries because they get at least a little interest. They hold only as much as they need to cover their current accounts. So naturally they don't need to buy more right now. They already have them.

If the US didn't produce enough treasuries to accommodate every other country, trade would come to a halt.

Any ignorant belief that China is so awash in money that it loans it to the US is hogwash. China is deeper in debt than the US as a ratio to GDP and so is Japan. It's a struggle for China to hold those US Treasuries but they have to or their trade would come to a halt.

Oh, and the US is the biggest buyer of Chinese exports by far, even surpassing the entire EU as a group.

China is deeper in debt than the US as a ratio to GDP and so is Japan.

Chinas net assets exceeded RMB 300 trillion ($49.3 trillion) in 2011, almost three times Chinas total indebtedness and unlike America, it doesn't have a super skyscraper of $114.5 Trillion dollars of unfunded liabilities.

And in the event of any catastrophe I would have far greater faith in the resilience of the Chinese people to recover because they won't sit back and depend on the government to support them.

Love it! Uhm, China has entire cities full of sky scrapers that are empty ghost towns meaning those construction loans are not being repaid and developers are going broke. Meanwhile, the average Chinese lives in shanties under the shadows of empty high rise apartments.

China suffers from an income inequality problem a level of which has only ever been seen in a few African countries. Fact is, no one really knows how bad of shape China is in financially, but they will adapt and resolve their problems.

Interesting how your statements, however, are completely contrary to those knowledgeable of China's problems and solutions currently be undertaken by China to address the problem. Seriously, you just talk out of a lower orifice without any idea if what you are saying.

---------

The challenge facing the next generation of the Chinese leadership is steering the nation as it moves from an export and investment driven economy to a more sustainable consumption-driven economy.

However, such transformation will not be easy. Over the last two decades, various measures to encourage Chinese consumption had limited success.

The expansion of higher education since mid-1990s was one early attempt. While a success in matriculation -- 19% of Chinese under the age of 30 have a college degrees -- the move failed to spur consumption as families instead saved to afford university educations. A similar story can be seen in the commercialization of the housing market. Families have to save increasingly more in order to afford apartments with rising prices.

Given the spotty success of Beijing policy to boost consumption, new research suggests the key may lie in tackling China's growing divide between the rich and the poor.

The government has never publicly released household-level data necessary to study this problem. To gauge the scope of the problem, my colleagues and I at China Household Finance Survey conducted a nationwide survey, interviewing a random sample of 8,438 households in China, both rural and urban.

We found that China's Gini coefficient -- a number that is widely used to measure a country's income inequality -- is 0.61. This number suggests a level of income inequality so high that can only be found in some of the African countries such as South Africa and Seychelles. In the U.S., this number is 0.39.

. . .

An effective approach to reduce the inequality and to boost consumption, however, is to shift government spending priorities away from massive infrastructure development -- roads, railroads and airports -- and toward social welfare investment and income transfer programs.

. . .

China can also learn from successful programs in the developed and developing countries. Programs such as Earned Income Tax Credits of the United States help the poor who actually work. Many developing countries such as Brazil, Mexico, and India have various Conditional Cash Transfer programs that pay poor families if they keep their kids in the school.

. . .

Recognizing the serious income inequality problem in China, Beijing issued a new income redistribution policy in February. The new policy moves in the right direction, but is not nearly enough. Beijing plans to raise the government spending on social welfare programs by two percentage points within next five years, from 12% to 14%. The comparable number in the United States is 37%. If Chinese government wants to serious tackle the income inequality while helping boost consumption of the country, they have to work on a much larger scale.

http://www.cnn.com/2013/03/05/opinion/china-economy-gan/?c=&page=2

[Asiantravel]

Seats is a dinosaur and has been on its way out for a long time.

This, however, does illustrate a problem, a completely different problem from that which you focus (not seeing forest for the trees) and a problem worldwide for all developed economies.

The Internet, Walmart, Home Depots and etc. have decimated retail chains and small mom and pop businesses. They cannot compete and brick and mortar retail is becoming a thing of the past. The business world and job market are evolving rapidly and the uneducated, hourly and unskilled workers are taking the brunt of it.

Fact is, people like me pay way more into the system in taxes than those being hurt or being put out if low wage, hourly positions. Skilled jobs and jobs for the educated are expanding now.

It will be interesting to see how the changing business market plays out. The US is resilient, resourceful and hard working. We will adapt and everything will be okay.

So now it are the B&M shops that can't compete anymore with the online shops like Amazon, which are US new success story according to your earlier posts, but the truth is that they are also failing.

http://finance.yahoo.com/news/amazon-spends-grows-still-wants-104808791.html

Even with Amazon likely to hit $100 billion a year in revenue in 2015, it is not throwing off all the cash it needs. Last month the company revealed it had taken out a $2 billion line of credit with Bank of America for “working capital, capital expenditures, acquisitions and other corporate purposes.”

Meanwhile, losses are mounting. Three months ago, analysts thought the company would lose 7 cents a share in the third quarter. Then, after Amazon ratcheted down expectations, the estimated loss swelled tenfold, to 74 cents.

It is getting to be a familiar story. The last time Amazon made a profit in the third quarter was in 2011.

Haha, Amazon is not failing. Amazon is expanding. Expansion can be expensive.

I explained Amazon's business model in my earlier. If you are not comfortable with its business model (many are not) don't invest in Amazon. I don't, but I still think they are a solid company with a very intelligent owner.

You quote only one analysts comment out of a long article, but conveniently left out the 3 or 4 other analysts comments and no one said Amazon was failing. They were just bashing the Fire phone and talking about Amazon's expansion being costly. You knew what the article said since you quoted a few sentences out of the middle of the long article. Sketchy.

Amazon has done business this way for many years and have grown into a huge company. Some ideas worked well, some not so well, but they are well positioned for the future.

It is common for analysts to take jabs at Amazon because a lot of investors and analysts are primarily concerned about profits. Amazon's focus is not on profits and more on expansion.

. . . Amazon is failing, Caterpillar is failing, banks are failing the US is failing , , , the sky is falling. You guys are funny.

" Haha, Amazon is not failing. Amazon is expanding. Expansion can be expensive."

Amazon posts huge loss, warns of more

LOS ANGELES — Amazon had warned that it would lose bundles of cash in the third quarter, and it didn't disappoint.

But the size of the loss and a forecast that warned of more red ink by year's end chilled investors, who had already sent shares sharply lower for the year.

http://www.usatoday.com/story/tech/2014/10/23/amazon-posts-loss-for-3rd-quarter/17783495/

Edited October 24, 2014 by Asiantravel

[TheCruncher]

The US private sector is doing very well, making money and paying taxes but China has no such thing.

Could you point out to us how much taxes the major companies have paid in the US over the last decade ?

I think you must have missed that most of the large profitable companies, read Apple, GE and Starbucks just to name a few, don't pay any taxes at all, and keep their earnings in countries far from the US jurisdiction.

Even lately Warren Buffett openly set up, and defended, a deal with Burger King to flee to Canada for tax purposes.

[F430murci]

How Long, Oh Lord, How Long? When will people EVER learn?

The reason that China and Japan and Thailand and many others "hold US debt" is because the dollar is the international unit of trade especially for oil.

Those are some long legs that horse your riding has

Yes of course countries hold some World Reserve Currency for that exact reason

Same reason I mentioned in other threads for certain petrol dollar wars being waged.

But to suggest that is the only reason is silly given the amounts

If you would like to do some reading you will find there are a few reasons to do so.

things like it also being a way for China to control the value of their own currency

as I said in a following post.

Yep, China's primary reason for purchasing US Treasuries has been to artificially manipulate its currency and keep its currency from appreciating so that its exports will remain desireable. If its currency appreciates, its low quality products are no longer inexpensive, desirable or competitive.

[Asiantravel]

How Long, Oh Lord, How Long? When will people EVER learn?

The reason that China and Japan and Thailand and many others "hold US debt" is because the dollar is the international unit of trade especially for oil. No country outside of Asia would accept China's currency in payment for anything.

China owns US dollars so that it can engage in international trade. It, Japan, and Thailand hold them in US Treasuries because they get at least a little interest. They hold only as much as they need to cover their current accounts. So naturally they don't need to buy more right now. They already have them.

If the US didn't produce enough treasuries to accommodate every other country, trade would come to a halt.

Any ignorant belief that China is so awash in money that it loans it to the US is hogwash. China is deeper in debt than the US as a ratio to GDP and so is Japan. It's a struggle for China to hold those US Treasuries but they have to or their trade would come to a halt.

Oh, and the US is the biggest buyer of Chinese exports by far, even surpassing the entire EU as a group.

“ China is deeper in debt than the US as a ratio to GDP and so is Japan.”

China’s net assets exceeded RMB 300 trillion ($49.3 trillion) in 2011, almost three times China’s total indebtedness and unlike America, it doesn't have a super skyscraper of $114.5 Trillion dollars of unfunded liabilities.

And in the event of any catastrophe I would have far greater faith in the resilience of the Chinese people to recover because they won't sit back and depend on the government to support them.

Good grief man. China is a communist country and it owns the means of production. The US is a democracy and the means of production belong to the private sector. It isn't apples and apples.

The US private sector is doing very well, making money and paying taxes but China has no such thing.

You can't just throw out a couple of figures without realizing that you didn't include the HUGE US private sector which is wealthy beyond anything the world has ever seen before.

I think some people who write here must be communists. They must think that the US government is all there is in America.

" The US private sector is doing very well, making money and paying taxes but China has no such thing."

but its shrinking ?

Compensation shrinks for all income groups – except the very highest

American paychecks shrank last year, just-released data show, further eroding the public’s purchasing power, which is so vital to economic growth.Flat or declining average pay is a major reason so many Americans feel that the Great Recession never ended for them. A severe job shortage compounds that misery not just for workers but also for businesses trying to profit from selling goods and services.

http://america.aljazeera.com/opinions/2014/10/wages-compensationeconomystagnationsocialsecurityadministrationd.html

Edited October 24, 2014 by Asiantravel

[NeverSure]

Good grief man. China is a communist country and it owns the means of production. The US is a democracy and the means of production belong to the private sector. It isn't apples and apples.

The US private sector is doing very well, making money and paying taxes but China has no such thing.

You can't just throw out a couple of figures without realizing that you didn't include the HUGE US private sector which is wealthy beyond anything the world has ever seen before.

I think some people who write here must be communists. They must think that the US government is all there is in America.

" The US private sector is doing very well, making money and paying taxes but China has no such thing."

but its shrinking ?

Compensation shrinks for all income groups – except the very highest

American paychecks shrank last year, just-released data show, further eroding the public’s purchasing power, which is so vital to economic growth.Flat or declining average pay is a major reason so many Americans feel that the Great Recession never ended for them. A severe job shortage compounds that misery not just for workers but also for businesses trying to profit from selling goods and services.

http://america.aljazeera.com/opinions/2014/10/wages-compensationeconomystagnationsocialsecurityadministrationd.html

Please try to follow along. I was discussing the means of production, not the consumer.

The US unemployment rate is 5.9%, WAY down from just 5 years ago. You're quoting Al Jazeera for cripe's sake.

You're not worth it. End of.

[F430murci]

Seats is a dinosaur and has been on its way out for a long time.

This, however, does illustrate a problem, a completely different problem from that which you focus (not seeing forest for the trees) and a problem worldwide for all developed economies.

The Internet, Walmart, Home Depots and etc. have decimated retail chains and small mom and pop businesses. They cannot compete and brick and mortar retail is becoming a thing of the past. The business world and job market are evolving rapidly and the uneducated, hourly and unskilled workers are taking the brunt of it.

Fact is, people like me pay way more into the system in taxes than those being hurt or being put out if low wage, hourly positions. Skilled jobs and jobs for the educated are expanding now.

It will be interesting to see how the changing business market plays out. The US is resilient, resourceful and hard working. We will adapt and everything will be okay.

So now it are the B&M shops that can't compete anymore with the online shops like Amazon, which are US new success story according to your earlier posts, but the truth is that they are also failing.

http://finance.yahoo.com/news/amazon-spends-grows-still-wants-104808791.html

Even with Amazon likely to hit $100 billion a year in revenue in 2015, it is not throwing off all the cash it needs. Last month the company revealed it had taken out a $2 billion line of credit with Bank of America for working capital, capital expenditures, acquisitions and other corporate purposes.

Meanwhile, losses are mounting. Three months ago, analysts thought the company would lose 7 cents a share in the third quarter. Then, after Amazon ratcheted down expectations, the estimated loss swelled tenfold, to 74 cents.

It is getting to be a familiar story. The last time Amazon made a profit in the third quarter was in 2011.

Haha, Amazon is not failing. Amazon is expanding. Expansion can be expensive.

I explained Amazon's business model in my earlier. If you are not comfortable with its business model (many are not) don't invest in Amazon. I don't, but I still think they are a solid company with a very intelligent owner.

You quote only one analysts comment out of a long article, but conveniently left out the 3 or 4 other analysts comments and no one said Amazon was failing. They were just bashing the Fire phone and talking about Amazon's expansion being costly. You knew what the article said since you quoted a few sentences out of the middle of the long article. Sketchy.

Amazon has done business this way for many years and have grown into a huge company. Some ideas worked well, some not so well, but they are well positioned for the future.

It is common for analysts to take jabs at Amazon because a lot of investors and analysts are primarily concerned about profits. Amazon's focus is not on profits and more on expansion.

. . . Amazon is failing, Caterpillar is failing, banks are failing the US is failing , , , the sky is falling. You guys are funny.

" Haha, Amazon is not failing. Amazon is expanding. Expansion can be expensive."

Amazon posts huge loss, warns of more

LOS ANGELES Amazon had warned that it would lose bundles of cash in the third quarter, and it didn't disappoint.

But the size of the loss and a forecast that warned of more red ink by year's end chilled investors, who had already sent shares sharply lower for the year.

http://www.usatoday.com/story/tech/2014/10/23/amazon-posts-loss-for-3rd-quarter/17783495/

Huge losses does not mean failing. $544 mil in losses suck, but Amazon is a $ 100 bil a year corporation. The Fire phone may be failing and causing losses, but Amazon is not failing.

You guys are apoarently too stupid to actually look at why Anazon reported 3rd quarter losses and to understand the difference between a bad quarter and the entire company failing.

The 500 mil loss number is tiny compared to the billions Amazin just spent to expand into and develop other markets and the 1 or 2 billion in losses to provide free music to those ordering and etc.

---------

This quarter includes sales, or lack thereof, for Amazon's Fire Phone, which has been widely panned by critics and consumers alike. The company also acquired the video game streaming startup Twitch for $1 billion and said it was investing $2 billion in the Indian ecommerce market. It took out a $2 billion line of credit from Bank of America to finance this aggressive expansion and investment.

There were some good signs for the company as well. Along with an increase in revenue, Amazon saw its free cash flow grow to $1.08 billion, roughly three times what it had in the third quarter of 2013.

[VegasVic]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Well yes China does own a lot of debt much of it belonging to the US

https://www.treasury.gov/ticdata/Publish/mfh.txt

As can be seen they have not been buying as much of it.

Nor has Japan which is why the FED started buying their own IOU's with basically more of their own IOU's

awhile back. That practice is supposedly stopping now...

How Long, Oh Lord, How Long? When will people EVER learn?

The reason that China and Japan and Thailand and many others "hold US debt" is because the dollar is the international unit of trade especially for oil. No country outside of Asia would accept China's currency in payment for anything.

China owns US dollars so that it can engage in international trade. It, Japan, and Thailand hold them in US Treasuries because they get at least a little interest. They hold only as much as they need to cover their current accounts. So naturally they don't need to buy more right now. They already have them.

If the US didn't produce enough treasuries to accommodate every other country, trade would come to a halt.

Any ignorant belief that China is so awash in money that it loans it to the US is hogwash. China is deeper in debt than the US as a ratio to GDP and so is Japan. It's a struggle for China to hold those US Treasuries but they have to or their trade would come to a halt.

Oh, and the US is the biggest buyer of Chinese exports by far, even surpassing the entire EU as a group.

<a data-ipb="nomediaparse" data-cke-saved-href="https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=who+is+the+biggest+buyer+of+china" href="https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=who+is+the+biggest+buyer+of+china" s+exports"="">

NeverSure, There you go again stating the facts of the situation, when you know very well that thaivisa thrives on conspiracy theory and anti American rhetoric The next few years are going to be very interesting indeed as the U.S. quickly becomes a net exporter of petroleum products, and at the same time the Chinese real estate market and their SHADOW banking system experiences massive convulsions Here comes King Dollar, like it or not boys and girls

[F430murci]

Good grief man. China is a communist country and it owns the means of production. The US is a democracy and the means of production belong to the private sector. It isn't apples and apples.

The US private sector is doing very well, making money and paying taxes but China has no such thing.

You can't just throw out a couple of figures without realizing that you didn't include the HUGE US private sector which is wealthy beyond anything the world has ever seen before.

I think some people who write here must be communists. They must think that the US government is all there is in America.

" The US private sector is doing very well, making money and paying taxes but China has no such thing."

but its shrinking ?

Compensation shrinks for all income groups except the very highest

American paychecks shrank last year, just-released data show, further eroding the publics purchasing power, which is so vital to economic growth.Flat or declining average pay is a major reason so many Americans feel that the Great Recession never ended for them. A severe job shortage compounds that misery not just for workers but also for businesses trying to profit from selling goods and services.

http://america.aljazeera.com/opinions/2014/10/wages-compensationeconomystagnationsocialsecurityadministrationd.html

Please try to follow along. I was discussing the means of production, not the consumer.

The US unemployment rate is 5.9%, WAY down from just 5 years ago. You're quoting Al Jazeera for cripe's sake.

You're not worth it. End of.

For crying out loud, how do you reason or argue with stupid and educated by Zereohedge and Al Jazeera. Haha, you don't. I am out too. Was kind if fun for a moment. Guess that shows how bad I really need to get a life.

[VegasVic]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Well yes China does own a lot of debt much of it belonging to the US
https://www.treasury.gov/ticdata/Publish/mfh.txt

As can be seen they have not been buying as much of it.
Nor has Japan which is why the FED started buying their own IOU's with basically more of their own IOU's
awhile back. That practice is supposedly stopping now...

How Long, Oh Lord, How Long? When will people EVER learn?

The reason that China and Japan and Thailand and many others "hold US debt" is because the dollar is the international unit of trade especially for oil. No country outside of Asia would accept China's currency in payment for anything.

China owns US dollars so that it can engage in international trade. It, Japan, and Thailand hold them in US Treasuries because they get at least a little interest. They hold only as much as they need to cover their current accounts. So naturally they don't need to buy more right now. They already have them.

If the US didn't produce enough treasuries to accommodate every other country, trade would come to a halt.

Any ignorant belief that China is so awash in money that it loans it to the US is hogwash. China is deeper in debt than the US as a ratio to GDP and so is Japan. It's a struggle for China to hold those US Treasuries but they have to or their trade would come to a halt.

Oh, and the US is the biggest buyer of Chinese exports by far, even surpassing the entire EU as a group.

China is deeper in debt than the US as a ratio to GDP and so is Japan.

Chinas net assets exceeded RMB 300 trillion ($49.3 trillion) in 2011, almost three times Chinas total indebtedness and unlike America, it doesn't have a super skyscraper of $114.5 Trillion dollars of unfunded liabilities.
And in the event of any catastrophe I would have far greater faith in the resilience of the Chinese people to recover because they won't sit back and depend on the government to support them.

Love it! Uhm, China has entire cities full of sky scrapers that are empty ghost towns meaning those construction loans are not being repaid and developers are going broke. Meanwhile, the average Chinese lives in shanties under the shadows of empty high rise apartments.

China suffers from an income inequality problem a level of which has only ever been seen in a few African countries. Fact is, no one really knows how bad of shape China is in financially, but they will adapt and resolve their problems.

Interesting how your statements, however, are completely contrary to those knowledgeable of China's problems and solutions currently be undertaken by China to address the problem. Seriously, you just talk out of a lower orifice without any idea if what you are saying.

---------

The challenge facing the next generation of the Chinese leadership is steering the nation as it moves from an export and investment driven economy to a more sustainable consumption-driven economy.

However, such transformation will not be easy. Over the last two decades, various measures to encourage Chinese consumption had limited success.

The expansion of higher education since mid-1990s was one early attempt. While a success in matriculation -- 19% of Chinese under the age of 30 have a college degrees -- the move failed to spur consumption as families instead saved to afford university educations. A similar story can be seen in the commercialization of the housing market. Families have to save increasingly more in order to afford apartments with rising prices.

Given the spotty success of Beijing policy to boost consumption, new research suggests the key may lie in tackling China's growing divide between the rich and the poor.

The government has never publicly released household-level data necessary to study this problem. To gauge the scope of the problem, my colleagues and I at China Household Finance Survey conducted a nationwide survey, interviewing a random sample of 8,438 households in China, both rural and urban.

We found that China's Gini coefficient -- a number that is widely used to measure a country's income inequality -- is 0.61. This number suggests a level of income inequality so high that can only be found in some of the African countries such as South Africa and Seychelles. In the U.S., this number is 0.39.

. . .

An effective approach to reduce the inequality and to boost consumption, however, is to shift government spending priorities away from massive infrastructure development -- roads, railroads and airports -- and toward social welfare investment and income transfer programs.

. . .

China can also learn from successful programs in the developed and developing countries. Programs such as Earned Income Tax Credits of the United States help the poor who actually work. Many developing countries such as Brazil, Mexico, and India have various Conditional Cash Transfer programs that pay poor families if they keep their kids in the school.

. . .

Recognizing the serious income inequality problem in China, Beijing issued a new income redistribution policy in February. The new policy moves in the right direction, but is not nearly enough. Beijing plans to raise the government spending on social welfare programs by two percentage points within next five years, from 12% to 14%. The comparable number in the United States is 37%. If Chinese government wants to serious tackle the income inequality while helping boost consumption of the country, they have to work on a much larger scale.

http://www.cnn.com/2013/03/05/opinion/china-economy-gan/?c=&page=2

Yes indeed the real estate crisis has only just begun in China, and as this massive snowball rolls faster and faster down the slopes gaining speed and size the SHADOW banking system will be exposed for the house of cards that it is A popular uprising is inevitable in China, what is happening in Hong Kong currently is just the tip of the iceberg

[TheCruncher]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Well yes China does own a lot of debt much of it belonging to the US

https://www.treasury.gov/ticdata/Publish/mfh.txt

As can be seen they have not been buying as much of it.

Nor has Japan which is why the FED started buying their own IOU's with basically more of their own IOU's

awhile back. That practice is supposedly stopping now...

How Long, Oh Lord, How Long? When will people EVER learn?

The reason that China and Japan and Thailand and many others "hold US debt" is because the dollar is the international unit of trade especially for oil. No country outside of Asia would accept China's currency in payment for anything.

China owns US dollars so that it can engage in international trade. It, Japan, and Thailand hold them in US Treasuries because they get at least a little interest. They hold only as much as they need to cover their current accounts. So naturally they don't need to buy more right now. They already have them.

If the US didn't produce enough treasuries to accommodate every other country, trade would come to a halt.

Any ignorant belief that China is so awash in money that it loans it to the US is hogwash. China is deeper in debt than the US as a ratio to GDP and so is Japan. It's a struggle for China to hold those US Treasuries but they have to or their trade would come to a halt.

Oh, and the US is the biggest buyer of Chinese exports by far, even surpassing the entire EU as a group.

<a data-ipb="nomediaparse" data-cke-saved-href="https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=who+is+the+biggest+buyer+of+china" href="https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=who+is+the+biggest+buyer+of+china" s+exports"="">

NeverSure, There you go again stating the facts of the situation, when you know very well that thaivisa thrives on conspiracy theory and anti American rhetoric The next few years are going to be very interesting indeed as the U.S. quickly becomes a net exporter of petroleum products, and at the same time the Chinese real estate market and their SHADOW banking system experiences massive convulsions Here comes King Dollar, like it or not boys and girls

Which oil products the US is gone export? I hope you don't mean shale oil from fracking, because that will be one of the biggest disappointments in the history of the US.

First of all at the current oil prices it isn't profitable to do fracking, and Opec has already announced that they are happy with the current prices and are here to stay, and secondly more and more communities prohibit fracking.

[VegasVic]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Well yes China does own a lot of debt much of it belonging to the US

https://www.treasury.gov/ticdata/Publish/mfh.txt

As can be seen they have not been buying as much of it.

Nor has Japan which is why the FED started buying their own IOU's with basically more of their own IOU's

awhile back. That practice is supposedly stopping now...

How Long, Oh Lord, How Long? When will people EVER learn?

The reason that China and Japan and Thailand and many others "hold US debt" is because the dollar is the international unit of trade especially for oil. No country outside of Asia would accept China's currency in payment for anything.

China owns US dollars so that it can engage in international trade. It, Japan, and Thailand hold them in US Treasuries because they get at least a little interest. They hold only as much as they need to cover their current accounts. So naturally they don't need to buy more right now. They already have them.

If the US didn't produce enough treasuries to accommodate every other country, trade would come to a halt.

Any ignorant belief that China is so awash in money that it loans it to the US is hogwash. China is deeper in debt than the US as a ratio to GDP and so is Japan. It's a struggle for China to hold those US Treasuries but they have to or their trade would come to a halt.

Oh, and the US is the biggest buyer of Chinese exports by far, even surpassing the entire EU as a group.

<a data-ipb="nomediaparse" data-cke-saved-href="https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=who+is+the+biggest+buyer+of+china" href="https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=who+is+the+biggest+buyer+of+china" s+exports"="">

NeverSure, There you go again stating the facts of the situation, when you know very well that thaivisa thrives on conspiracy theory and anti American rhetoric alt=clap2.gif> The next few years are going to be very interesting indeed as the U.S. quickly becomes a net exporter of petroleum products, and at the same time the Chinese real estate market and their SHADOW banking system experiences massive convulsions Here comes King Dollar, like it or not boys and girls

Which oil products the US is gone export? I hope you don't mean shale oil from fracking, because that will be one of the biggest disappointments in the history of the US.

First of all at the current oil prices it isn't profitable to do fracking, and Opec has already announced that they are happy with the current prices and are here to stay, and secondly more and more communities prohibit fracking.

Patience there laddie, as we post here the winds of political change are occurring in America The U. S. will become a net exporter of coal, nat gas and refined products, and as politically incorrect as you apparently feel that fracking is, it will continue to flourish

[TheCruncher]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Which oil products the US is gone export? I hope you don't mean shale oil from fracking, because that will be one of the biggest disappointments in the history of the US.

First of all at the current oil prices it isn't profitable to do fracking, and Opec has already announced that they are happy with the current prices and are here to stay, and secondly more and more communities prohibit fracking.

Patience there laddie, as we post here the winds of political change are occurring in America The U. S. will become a net exporter of coal, nat gas and refined products, and as politically incorrect as you apparently feel that fracking is, it will continue to flourish

You must have missed the news lately.

http://finance.yahoo.com/news/investors-pulling-money-shale-put-040023956.html;_ylt=AwrSyCTd0ElU_C0A_HeTmYlQ

Investors Pulling Money From Shale Put Brakes on Wall Street-Funded Boom

http://finance.yahoo.com/news/oil-80-barrel-muffles-forecasts-040023881.html;_ylt=AwrSyCTd0ElU_C0A.3eTmYlQ

Oil at $80 a Barrel Muffles Forecasts for U.S. Shale Boom

[lovetotravel]

Huge losses does not mean failing. $544 mil in losses suck, but Amazon is a $ 100 bil a year corporation. The Fire phone may be failing and causing losses, but Amazon is not failing.

You guys are apoarently too stupid to actually look at why Anazon reported 3rd quarter losses and to understand the difference between a bad quarter and the entire company failing.

The 500 mil loss number is tiny compared to the billions Amazin just spent to expand into and develop other markets and the 1 or 2 billion in losses to provide free music to those ordering and etc.

---------

This quarter includes sales, or lack thereof, for Amazon's Fire Phone, which has been widely panned by critics and consumers alike. The company also acquired the video game streaming startup Twitch for $1 billion and said it was investing $2 billion in the Indian ecommerce market. It took out a $2 billion line of credit from Bank of America to finance this aggressive expansion and investment.

There were some good signs for the company as well. Along with an increase in revenue, Amazon saw its free cash flow grow to $1.08 billion, roughly three times what it had in the third quarter of 2013.

Stockholders have been rewarded very well:

https://www.google.co.th/search?q=stock+quote+amazon&ie=utf-8&oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb&gws_rd=cr&ei=Kz1KVKj0LIPV8gXok4GgCw

[TheCruncher]

We just don't understand Neversure and F430Murci. I think it's called USness.

[Asiantravel]

Huge losses does not mean failing. $544 mil in losses suck, but Amazon is a $ 100 bil a year corporation. The Fire phone may be failing and causing losses, but Amazon is not failing.

You guys are apoarently too stupid to actually look at why Anazon reported 3rd quarter losses and to understand the difference between a bad quarter and the entire company failing.

The 500 mil loss number is tiny compared to the billions Amazin just spent to expand into and develop other markets and the 1 or 2 billion in losses to provide free music to those ordering and etc.

---------

This quarter includes sales, or lack thereof, for Amazon's Fire Phone, which has been widely panned by critics and consumers alike. The company also acquired the video game streaming startup Twitch for $1 billion and said it was investing $2 billion in the Indian ecommerce market. It took out a $2 billion line of credit from Bank of America to finance this aggressive expansion and investment.

There were some good signs for the company as well. Along with an increase in revenue, Amazon saw its free cash flow grow to $1.08 billion, roughly three times what it had in the third quarter of 2013.

Stockholders have been rewarded very well:

https://www.google.co.th/search?q=stock+quote+amazon&ie=utf-8&oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb&gws_rd=cr&ei=Kz1KVKj0LIPV8gXok4GgCw

If its stock price continues to slide downward, the story will probably be that investors are losing patience with Amazon’s persistently low profit margins. If the huge investments Bezos is making don’t pan out, Amazon will be in trouble.

Where Amazon stands out is how excruciatingly long it takes it to pay its suppliers — 95.8 days on average last year, according to Morningstar, compared with 30.1 for Costco and 38.5 for Walmart.

Skeptics have argued in the past that suppliers may not be willing to put up with that forever. And in fact, recent quarterly reports seem to show the payables period shrinking and Amazon’s cash conversion advantage narrowing (the company’s business is extremely seasonal, so quarterly numbers are pretty noisy). It’s too early to tell whether this is the new normal, but it is an entirely reasonable thing for investors to worry about.

http://blogs.hbr.org/2014/10/at-amazon-its-all-about-cash-flow/

Edited October 24, 2014 by Asiantravel