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Will China Stop Buying Our Bonds?

March 4, 2009 RSS Feed Print

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Here is what our economy needs, according to Hillary Clinton:

Our economies are so intertwined, the Chinese know that to start exporting again to their biggest market the United States has to take some very drastic measures with this stimulus package, which means we have to incur more debt.

Save us, China! But what if China whispers "No." Superstrategist Ed Yardeni makes the case:

Why would the Chinese want to fund our stimulus program, which might benefit them through exports, when they could spend the money on directly stimulating their economy? Do they really want to continue to depend on US consumers for their growth? They are increasingly likely to focus on building their infrastructure and stimulating home-grown demand. Indeed, Premier Wen is scheduled to give a speech tomorrow announcing that the government will expand its stimulus program. The Chinese are more likely to choose to finance their infrastructure than our rapidly expanding welfare state! I guess we are all socialists now.

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I meant 2000 years not 200 year ago

Jay of CA 1:57PM April 02, 2009

I hear what you are saying my chinese brother. I believe that you mean what you say. Unfortuneately there is an old prophecy that says that CHina will come to the great Euphrates with a 200 million man Army and 1/3 of all people will perish that day.
I know us Americans have done wrong too, but what is about to gon into motion here is not going to be stopped by any good traditions. It is as old as time itself. It is called "evil" it is called rebellion against God ALmighty" When Lucifer rebelled against God he was kicked out of Heaven with 1/3 of the angels
and they have resided on planet earth since before the first human existed here and they are what we are going to be dealing with and are dealing with every day. They desire our soles not our money. Money is paper and nothing more. A sole has more value than all the Bonds in the universe. Satan is preparing to posses a man. A leader of high stature. He will make all the leaders of every culture that has ever existed seem like nothingness. He will control all of Chinas money the US money , Europe, Middle East , all of it and all peoples and all food supplies and will try to control what religion is practiced and which is not. But there is hope my brother. There is a Savior, there is one who is more powerfull in every way. There is one who is richer and wiser and omnipatant and omni present and hold the keys to death and the bottomless pit. He is Yashua Messiah (Jesus Christ) the Son of GOD! He thankfully will put all of this to an end once and for all as he promised aprox 200 years ago. He will end all of the financial greed and carnage in one day. He laughs at this foolishness but yet he crys at those who are in pain and he will rescue those who accept him as their Lord and Savior and follow him. As in the days of the plagues of Egypt where the angel of death passed over those that believed he will save us who He knows.
I hope all of you here read this and accept the free gift the is being offered
May GOD bless you all !
J

Jay of CA 1:53PM April 02, 2009

Given its high savings rate, there is no way but to keep on buying US bonds. Unless the Chinese become smarter and start to exchange these paper promises for American lands, of course. And I think they should convert a big portion of the bond holdings into lands and start becoming American people's biggest landlord. There is no way the American taxpayers can pay taxes fast enough to make up for the deficits, so the only way is for the US dollar to plunge by at least 30% in the long run. So, the interests being paid to the bonds are certainly not enough to cover for this loss of purchasing power. The only solid thing the Chinese can hold on to at this point is American land. Of course, sound American stocks (eg. insurance, utilities and farm) are still good to own now also. The Chinese can literally control the entire US energy and food chains if they convert the bonds into stocks. These companies are indispensable: every American needs utilities and food to survive.

Sunny 1:35AM March 30, 2009

Will China Stop Buying Our Bonds?

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