Comments on: What’s China’s Gameplan?

By: dsm

dsm — Sat, 25 Apr 2009 02:17:29 +0000

I’ve been blogging about China’s accumulation of US debt since last October. China, indeed any non-friendly country that’s purchasing US Treasuries isn’t really buying our debt. They’re purchasing future foreign policy concessions. In China’s case, we will recognize their sovereign claims to Taiwan, Tibet, and various south sea islands. Perhaps we’ll help make sure that the Dalai Lama is brought to “justice” in China.

And I don’t think that the US has to default to precipitate these foreign policy concessions. We’ll need debt forgiveness long before we default. Yeah, third world China is going to be playing IMF/World Bank to first world America.

Thank you John Maynard Keynes!

PS: What’s a carrier battle group worth? If you’re not shipping stuff over seas, does it make sense to sell it to someone who is?

By: Richard Peterson

Richard Peterson — Fri, 24 Apr 2009 19:58:37 +0000

It is not in China’s interest to destroy the US economy. But neither is it in their interest to save the US economy at the expense of their own. How they walk this fine line will be interesting to watch in the years ahead.

By: StingingNettle

StingingNettle — Fri, 24 Apr 2009 18:10:25 +0000

“The price tag for the crisis-related bailouts, guarantees and boondoggles is nearly $13 billion”

I know its hard to get use to writing trillion.

By: Jon King

Jon King — Fri, 24 Apr 2009 15:23:19 +0000

Yawn…so what? Sure we had to spend a ton of money to prevent a total collapse from the Bush policies. Obama did what he had to do…the lesser of two evils by far. He spent a boat load of money to put a floor under the market and the financial system. Now we will be flat for 2 years then have reasonable, steady, real growth. Why is this so hard for your right wingers to get? The Bush policies almost collapsed the world and Obama had to spend massive amounts of money to prevent a collapse. The Chinese and others will absorb the US debt, the alternatives stink on ice. Gold is going nowhere, it is as common as air.

Chill out and help a smart, fair President work to right the mess that you right wingers created.

By: WarEagleHB

WarEagleHB — Fri, 24 Apr 2009 14:39:58 +0000

I am glad that I am not the only DR reader that knows what a headgate and squeeze shoot are – reminds me what a diverse group of readers the guys at Agora have put together. I can’t speak for anyone else, but when I read “Empire of Debt” for the first time, it was literally a life changing experience for me. My wife and I changed our lifestyle, investment focus, and political leanings (i.e. I am no longer a sheep being led around by the “powers that be” in the Republican party).

To Bill, Addison, and the rest of the team at Agora, keep up the great work!

By: Ariel in BA

Ariel in BA — Fri, 24 Apr 2009 05:08:16 +0000

Bill, of course the market insight is our bread and butter, but please keep including the gaucho stories.

Maybe instead of sepa it’s a cepo (look that one up in a dictionary), but I wouldn’t know since I’m a city dweller. Cosimir also sounds like a strange name; could be Casimir (very rare), Casimiro, or Cosme instead.

By: Daniel Newhouse

Daniel Newhouse — Fri, 24 Apr 2009 04:03:54 +0000

After pointing out how illogical China’s maneuvering seams without some ulterior motive to explain it – my first reaction is What did we promise them? To let them invade Taiwan unmolested? That would do it. Do we have the Japanese on board?

By: Jim

Jim — Fri, 24 Apr 2009 01:14:22 +0000

Bill I am enjoying your daily updates on ranch life in the Andes. What you called a sepa, in Montana we call a headgate and the remainder of the contraption is a squeeze chute. Yep, it can get pretty western when you get two cows in the chute at one time.

By: Don Diego

Don Diego — Fri, 24 Apr 2009 00:53:24 +0000

Dear Mr. Bonner,

In Texas English “sepa” means headgate. I am part of an old ranching family and as the old man in the family my job is to stay out of the corral and to help educate the younger members of the clan in the ways of investing and finance. The ranch is passed down based on who among the younger generations loves the land, takes care of their family and has demonstrated that they are successful in business. I frequently use your writing to help them understand the reality of the world that we live in, because I find your writings to be both educational and entertaining.

I made my first fortune in technology and my second fortune in the equity and commodities markets. Also I have a digital data base of economic, market and financial data going back several hundred years. If history is any guide to the future, then the current data indicates that the US and world will have about 15 years (plus or minus 5 years) in which the economy will significantly under perform the mean performance by at least two standard deviations, i.e. we can expect a depression.

Keep up the good work.

Respectfully Yours,

Don Diego de la San Saba

By: JMR ManDribble

JMR ManDribble — Thu, 23 Apr 2009 23:34:07 +0000

Our great friends with red flags and black boots couldn’t possibly be up to such mischief! Didn’t you see how they smiled and waved during the opening ceremonies o’er the summer? And their amazing job at autocratic control with such a population… A-M-A-Z-I-N-G!!!

They’re buying our ‘Bills because they love us and our beautiful cheeseburgers. And biscuits and gravy! It’s obvious, you xenophobes!

Hahahahahahahahaha. My. I’m rollin’. Hehehehehe. Whew.