Comments on: The Dollar Dike Gives Way? http://dailyreckoning.com/the-dollar-dike-gives-way/ Covering the economy, global markets and world politics. Sun, 22 Nov 2009 09:36:11 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: StingingNettle http://dailyreckoning.com/the-dollar-dike-gives-way/#comment-9394 StingingNettle Tue, 26 May 2009 18:05:53 +0000 http://dailyreckoning.com/?p=15926#comment-9394 But we got all the stuff! From toaster ovens to flatscreen TV's. Maybe we can sell it back to them. I mean, I know I would rather own a ipod than US government debt. But we got all the stuff! From toaster ovens to flatscreen TV’s. Maybe we can sell it back to them. I mean, I know I would rather own a ipod than US government debt.

]]> By: Dan W http://dailyreckoning.com/the-dollar-dike-gives-way/#comment-9322 Dan W Tue, 26 May 2009 03:57:28 +0000 http://dailyreckoning.com/?p=15926#comment-9322 Please....Stop all this crap about China being in trouble here. This is a calculated move by China and the US Treasury. For years we have relocated industry to China of which China has taken a 51% interest in the physical relocated plant. The Chinese in turn has paid us Billions in "loans" the forward collateral is the other 49%. This is a hell of a lot more then the treasury could of taken in corporate income taxes from relocated industries. The more credit China feeds us (US) the weaker we become. Look to the last opium war for the model of all this (we are addicted to Chinese credit) with a reversal of roles. It is interesting to note that one of the terms of the last opium war was the British broking "coolies" to America. Please….Stop all this crap about China being in trouble here. This is a calculated move by China and the US Treasury. For years we have relocated industry to China of which China has taken a 51% interest in the physical relocated plant. The Chinese in turn has paid us Billions in “loans” the forward collateral is the other 49%. This is a hell of a lot more then the treasury could of taken in corporate income taxes from relocated industries. The more credit China feeds us (US) the weaker we become. Look to the last opium war for the model of all this (we are addicted to Chinese credit) with a reversal of roles. It is interesting to note that one of the terms of the last opium war was the British broking “coolies” to America.

]]> By: Jackarine Ludwig http://dailyreckoning.com/the-dollar-dike-gives-way/#comment-9319 Jackarine Ludwig Tue, 26 May 2009 02:55:11 +0000 http://dailyreckoning.com/?p=15926#comment-9319 Dear Bill, The FT seems to be only telling half the story with regards to China "buying more US bonds than ever". This may be true at the short end, but does not look that way at the long end. I also believe that Westerners need not insinuate that the Chinese are 'so dumb' as to not be diversifying their holdings. Underestimating the Chinese, when it comes to money, is not a wise speculation. The Chinese only just announced about 4 weeks ago, that they had increased their Aurum holdings by 65% between 2003 and today. Now who's to say that if they did that in stealth in 6 years, that they wouldn't be diversifying out of the dollar in stealth as well? One need not necessarily sell bonds or dollars to diversify out of them. I'm sure we all know what loans & collateral are. Kind regards. jl. Dear Bill,

The FT seems to be only telling half the story with regards to China “buying more US bonds than ever”.

This may be true at the short end, but does not look that way at the long end.

I also believe that Westerners need not insinuate that the Chinese are ’so dumb’ as to not be diversifying their holdings. Underestimating the Chinese, when it comes to money, is not a wise speculation.

The Chinese only just announced about 4 weeks ago, that they had increased their Aurum holdings by 65% between 2003 and today.

Now who’s to say that if they did that in stealth in 6 years, that they wouldn’t be diversifying out of the dollar in stealth as well?

One need not necessarily sell bonds or dollars to diversify out of them. I’m sure we all know what loans & collateral are.

Kind regards.
jl.

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