China divesting itself of US debt

[SonsofLiberty]

In June China cut its US debt holdings by 3.1%, granted they still hold more of our debt this year than last, but this could be a signal of things to come.

http://news.bbc.co.uk/2/hi/business/8207174.stm

The move by China is a smart move (for them), the problem begins as more of our debt is not renewed by other countries causing us to monetize more and more of it ourselves (yes we have been doing this recently).

[darknessesedge]

can anyone blame the chinese for wanting out of their US debt holdings?
the way obama is printing $$$ our dollar will resemble pre ww2 german marks soon.

its funny, a communist country showing us how to run our economic policies...hahahaha

[Conan]

can anyone blame the chinese for wanting out of their US debt holdings?
the way obama is printing $$$ our dollar will resemble pre ww2 german marks soon.

its funny, a communist country showing us how to run our economic policies...hahahaha

I wouldn't laugh because its not funny....IMO

[SonsofLiberty]

can anyone blame the chinese for wanting out of their US debt holdings?
the way obama is printing $$$ our dollar will resemble pre ww2 german marks soon.

its funny, a communist country showing us how to run our economic policies...hahahaha

It would be funny if it weren't so serious. The people of this country have no idea of the seriousness of our situation.

The Chinese I believe are going to try to divest slowly and they will make statements that "they have not lost confidence, they just need to invest more in their own infrastructure, diverse their holdings etc etc"..... quite smart from their position as politicians will tell us we can believe them (while they will probably be divesting themselves as well)..

I have been buying gold with a portion of my earnings each month. I upped the percentage about 6 months ago and believe I will be upping that percentage again (gold and silver that is)

[darknessesedge]

It would be funny if it weren't so serious. The people of this country have no idea of the seriousness of our situation.

The Chinese I believe are going to try to divest slowly and they will make statements that "they have not lost confidence, they just need to invest more in their own infrastructure, diverse their holdings etc etc"..... quite smart from their position as politicians will tell us we can believe them (while they will probably be divesting themselves as well)..

I have been buying gold with a portion of my earnings each month. I upped the percentage about 6 months ago and believe I will be upping that percentage again (gold and silver that is)

I agree.
maybe this is what we finally need.
no one to buy our debt.
maybe when we cant borrow/print/tax anymore, then the politicians will finally get a clue and show fiscal restraint.
im all for countries not buying our debt anymore.

[Conan]

I agree.
maybe this is what we finally need.
no one to buy our debt.
maybe when we cant borrow/print/tax anymore, then the politicians will finally get a clue and show fiscal restraint.
im all for countries not buying our debt anymore.

They will never get a clue.....self interest overrides all common sense.

[SonsofLiberty]

I agree.
maybe this is what we finally need.
no one to buy our debt.
maybe when we cant borrow/print/tax anymore, then the politicians will finally get a clue and show fiscal restraint.
im all for countries not buying our debt anymore.

forget about the clue, we will have rampant inflation, if not hyper-inflation. The peopel of this country are going to find out first hand the ramifications of our actions over the years.

[darknessesedge]

forget about the clue, we will have rampant inflation, if not hyper-inflation. The peopel of this country are going to find out first hand the ramifications of our actions over the years.

we our already seeing it in the hc debates.
the left wants to cut medicare/medicade so that they can go with obamacare..
so we have 1 entitlement group fighting to keep it, vs another entitlement group that want obamacare..
the entitlements have bankrupted the USA.

[darknessesedge]

A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship. The average age of the world's greatest civilizations from the beginning of history has been about 200 years. During those 200 years, these nations always progressed through the following sequence:

From bondage to spiritual faith;
From spiritual faith to great courage;
From courage to liberty;
From liberty to abundance;
From abundance to complacency;
From complacency to apathy;
From apathy to dependence;
From dependence back into bondage.

we are at From apathy to dependence

[SonsofLiberty]

we our already seeing it in the hc debates.
the left wants to cut medicare/medicade so that they can go with obamacare..
so we have 1 entitlement group fighting to keep it, vs another entitlement group that want obamacare..
the entitlements have bankrupted the USA.

Yes they have bankrupted us, but I do not believe any cuts will be made in medicare, I think that was just a ploy to argue that this program will save money. Nope, things will carry on as usual, even after it is evident to all that we are monetizing our debt and then when the dollar collapses you will see a bunch of scurrying to figure out how we can correct the problem(s) that capitalism has created.

[SonsofLiberty]

A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship. The average age of the world's greatest civilizations from the beginning of history has been about 200 years. During those 200 years, these nations always progressed through the following sequence:

From bondage to spiritual faith;
From spiritual faith to great courage;
From courage to liberty;
From liberty to abundance;
From abundance to complacency;
From complacency to apathy;
From apathy to dependence;
From dependence back into bondage.

we are at From apathy to dependence

Quite true, which is why we were set up as a republic. The problem is that we have traded in the constraints placed on our republic by the constitution for a democracy. We will follow accordingly.

[SonsofLiberty]

Haven't American companies been investing in China for decades? Where is the return on that?

Im not sure what this has to do with monetary policy and our dollar.

If the Dollar gets very weak does that make it easier to push for a single currency for the America's

That could be a definite possibility. And with a common currency goes even more of our constitution.

Why are countries with socialized medicine doing better than America?

Doing better how? That is too broad a question to answer. They may not have other social spending like we do. Their debt may be a lower percentage than ours, Many currencies are having problems (there is fear of the UK going bankrupt).

You need to be more specific with this question.

Sorry I have lots of questions and no answers

No prob, just try to be a little more narrow in the questions.

[AZslim]

A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship. The average age of the world's greatest civilizations from the beginning of history has been about 200 years. During those 200 years, these nations always progressed through the following sequence:

From bondage to spiritual faith;
From spiritual faith to great courage;
From courage to liberty;
From liberty to abundance;
From abundance to complacency;
From complacency to apathy;
From apathy to dependence;
From dependence back into bondage.

we are at From apathy to dependence

Really? every single one one of them had a "liberty to abundance" phase? A "courage to liberty" phase?

How much liberty existed in ancient China or Egypt? How about ancient Sparta?

Average age of the great civilizations is 200 years?
China?
Greece?
Rome?
Egypt?
The Moor's?

In order to average 200 years there would have to be a whole bunch of really short lived ones.

[E7ALR]

In June China cut its US debt holdings by 3.1%, granted they still hold more of our debt this year than last, but this could be a signal of things to come.

http://news.bbc.co.uk/2/hi/business/8207174.stm

The move by China is a smart move (for them), the problem begins as more of our debt is not renewed by other countries causing us to monetize more and more of it ourselves (yes we have been doing this recently).Don't forget that China also took part in the BRIC meeting in June.

http://www.timesonline.co.uk/tol/news/world/us_and_americas/article6514737.ece

Sounds like they are taking steps to position their holdings for a shift to a different reserve currency.