Who owns US? The top 10 creditor hostaged by US

Iamanidiot

Senior Member
Joined
Dec 21, 2009
Messages
5,325
Likes
1,504
India people are as thrifty as Chinese. They started poor but end rich. There are numerous success story happening in US every day.
Kickok I find Chinese to be more straightforward than Indians.With Regards to my country I always find a discrepancy between words and actions atleast in business thats my opinion.

Now I thought Chinese are buying US bonds to keep the value of the Yuan low.In case of dumping US bonds Yuan gets appreciated and that will effect Chinese exports I thought.One Mainland Chinese enterpreneur is telling me their profit margins are already razor thin 2-3% (because of domestic competetion)with regards to exports and any appreciation in the Yuan and RMB will play havoc to Chinas economy and also in the streets

PS:Note to Chinese posters the US is using economics to play havoc with you..don't underestimate the US
 
Last edited:

Daredevil

On Vacation!
Super Mod
Joined
Apr 5, 2009
Messages
11,615
Likes
5,772
You are right JP. China is stuck between a rock and a hard place as far as the buying of US treasury bonds is concerned.
 

kickok1975

Senior Member
Joined
Aug 9, 2009
Messages
1,539
Likes
350
But there is only one problem. The returns on such treasury bonds ($800 billion) is very very less as opposed to if China were to invest the same money on some other stuff.
The return is low but it's safe. That's government's mindset. Certainly they can invest in some higher risk, high margin places. But what if failure, who would take blame?
Smart officials know it.
 

kickok1975

Senior Member
Joined
Aug 9, 2009
Messages
1,539
Likes
350
Kickok I find Chinese to be more straightforward than Indians.With Regards to my country I always find a discrepancy between words and actions atleast in business thats my opinion.

Now I thought Chinese are buying US bonds to keep the value of the Yuan low.In case of dumping US bonds Yuan gets appreciated and that will effect Chinese exports I thought.One Mainland Chinese enterpreneur is telling me their profit margins are already razor thin 2-3% (because of domestic competetion)with regards to exports and any appreciation in the Yuan and RMB will play havoc to Chinas economy and also in the streets

PS:Note to Chinese posters the US is using economics to play havoc with you..don't underestimate the US
Chinese export industry is facing some big problems now, currency appreciation is one of them. The labor shortage is so severe that some workers would stay at hotel negotiating with different factories for days on their pay before they start work. Factory will pay bonus for return worker and reference reward. I'm in this business and now is a hard time.
 

Iamanidiot

Senior Member
Joined
Dec 21, 2009
Messages
5,325
Likes
1,504
Chinese export industry is facing some big problems now, currency appreciation is one of them. The labor shortage is so severe that some workers would stay at hotel negotiating with different factories for days on their pay before they start work. Factory will pay bonus for return worker and reference reward. I'm in this business and now is a hard time.
This makes me this scenario:
1)The migrant labour has got employment in the ponzi construction schemes that are being done at the county level by the county officials.This seems to be
of having the undesired effect of labour shortage in the coastal areas.
2)In wake of all this jasmine revolutions getting work for them in interior china is better for Beijing
3)The ponzi schemes initially started by County officials to reach their growth targets set by beijing and to compensate for their ability to collect taxes at the federal level is being used this way in beijing.

4)The Construction bubble will increase more this time

All the above are my thoughts and wish to know your opinion upon what I said
 

Adux

Senior Member
Joined
Feb 24, 2009
Messages
4,022
Likes
1,707
Country flag
You are right just half way. It's not easy for US to default its debt. Capitalism is built upon credit and no matter how strong you are, you have to play market rule. US default on Chinese debt will cause China lose all the money, but would also bankrupt confidence internally and externally of US. It's a double edge knife.
You under-estimate the US State Department and its political clout around the world. Except for China and maybe Russia, all other world powers will stand by US, Nobody can play economic warfare as good as the US. US hasnt reached or is not near that line, but to loose their primary position uber power of the world because of economics that too, to a country like China, isnt going to happen.The EU, India and the rest of the world will prefer, always will prefer the US to that of a Communist immoral China!

While you are at it, check out the NPA levels of Chinese Domestic Lending.
 
Last edited:

p2prada

Senior Member
Joined
May 25, 2009
Messages
10,234
Likes
4,015
Owned by Saudi Arabia means Investment in US by Saudis. for figures ,u try on internet u will get something on it..
No. US has Trillions in investment in Saudi in terms of statistics. But it is the US which owns Saudi. Nobody and I repeat NOBODY can fvck with the US holding Oil as a card. They will declare war and come down on you so fast, you will be muddy with oil oozing from all sides.

Just touch one of their oil installations and you will have the entire USN parked on your drive way pelting you with REAL oil.

Nothing is more legal for the US to declare war on any country than touching their oil installations. You will practically invite them to run your country if you do try it. Read up on Operation Praying Mantis and you will know.
 

Armand2REP

CHINI EXPERT
Senior Member
Joined
Dec 17, 2009
Messages
13,811
Likes
6,734
Country flag
Looks like India is pretty smart not invest in US. One report says Indian living in US remit more than 51 billion back to India each year, the world most.
Kind of hard for Indians living in the US to remit $51 billion when India only receives $55 billion from all expats. $55 billion is the world's most.
 

kickok1975

Senior Member
Joined
Aug 9, 2009
Messages
1,539
Likes
350
This makes me this scenario:
1)The migrant labour has got employment in the ponzi construction schemes that are being done at the county level by the county officials.This seems to be
of having the undesired effect of labour shortage in the coastal areas.
2)In wake of all this jasmine revolutions getting work for them in interior china is better for Beijing
3)The ponzi schemes initially started by County officials to reach their growth targets set by beijing and to compensate for their ability to collect taxes at the federal level is being used this way in beijing.

4)The Construction bubble will increase more this time

All the above are my thoughts and wish to know your opinion upon what I said
I don't think this labor shortage is related to any Ponzi Scheme or government manipulation. It's a pure supply and demand and most of workers needed are not in construction industry. When you have plenty job and not enough people to work, you have labor shortage, Vice versa, simple as it is.
 

kickok1975

Senior Member
Joined
Aug 9, 2009
Messages
1,539
Likes
350
You under-estimate the US State Department and its political clout around the world. Except for China and maybe Russia, all other world powers will stand by US, Nobody can play economic warfare as good as the US. US hasnt reached or is not near that line, but to loose their primary position uber power of the world because of economics that too, to a country like China, isnt going to happen.The EU, India and the rest of the world will prefer, always will prefer the US to that of a Communist immoral China!

While you are at it, check out the NPA levels of Chinese Domestic Lending.
Unless US is at war with China, there is no legitimate reason nor moral stand for US to default on China debt. It would be easier for US to just devaluate its currency. But since US dollar is world reserve currency which US benefit more than any other country, it has limited motivation to further damage its reputation without considering consequence.

You are certainly underestimating the power of capitalism and free market force. The whole America and western civilization is built upon it and we all know it's those rich and powerful who controls banks and multinationals that control America, not State of department.
 
Joined
Feb 16, 2009
Messages
29,880
Likes
48,575
Country flag
Unless US is at war with China, there is no legitimate reason nor moral stand for US to default on China debt.
The threat of no longer being #1 economy anymore may be grounds enough??? The Japanese on many occasions wanted to reduce their US debt holdings and have not been able too. If USA loses it's AAA rating the debt holdings may be reduced to pennies on the dollar.
 

kickok1975

Senior Member
Joined
Aug 9, 2009
Messages
1,539
Likes
350
The threat of no longer being #1 economy anymore may be grounds enough??? The Japanese on many occasions wanted to reduce their US debt holdings and have not been able too. If USA loses it's AAA rating the debt holdings may be reduced to pennies on the dollar.
It still doesn't justify a "MAD" between US and China. A full scale war between US and China would not limit to their boundaries and would not be a conventional war only. The collateral damages would spread far beyond their borders.

China may be totally destroyed but US would be severely wounded. It would be a disaster for human being and the chance of this scenario is close to zero.

US will not give up its No.1 spot easily but the only way to face China's challenge is to revive her economy. US is still holding many advantages and the contest to win the No. 1 will be intense. This competition will be the biggest event in the first half of 21st century.
 
Joined
Feb 16, 2009
Messages
29,880
Likes
48,575
Country flag
This is not a war in the conventional sense more economic. USA brought down Soviet Union thru economics and the fear is that China could do the same to USA ???
 

kickok1975

Senior Member
Joined
Aug 9, 2009
Messages
1,539
Likes
350
This is not a war in the conventional sense more economic. USA brought down Soviet Union thru economics and the fear is that China could do the same to USA ???
What troubles US is the challenges come from China are not from Communism ideology like Soviet, but from the very capitalism US advocated and attempted to spread for years.

Chinese are natural pragmatic and mercantile people. It will create tremendous implications once their potentials are fully unleashed. US would have been better off had China remain in Mao's China.
 

cw2005

Regular Member
Joined
Aug 20, 2009
Messages
215
Likes
53
No. US has Trillions in investment in Saudi in terms of statistics. But it is the US which owns Saudi. Nobody and I repeat NOBODY can fvck with the US holding Oil as a card. They will declare war and come down on you so fast, you will be muddy with oil oozing from all sides.

Just touch one of their oil installations and you will have the entire USN parked on your drive way pelting you with REAL oil.

Nothing is more legal for the US to declare war on any country than touching their oil installations. You will practically invite them to run your country if you do try it. Read up on Operation Praying Mantis and you will know.
Totally agree with you. For oil, USA could betray anyone. After the Iraq war, USA gained huge benefit in oil control leading to people's suspicions of why USA had started the war. Just watch out for Libya, it won't be surprise at the end of the incident, USA would replace European oil companies and become the largest controller there.

Another good example is the rare metal issue, while USA has one of the largest deposit but with zero production. What they want is to suck dry other countries' resource while conserving its own.

Its perception of China as an enemy is not because of different social system, but of fighting for resource in other countries. Sometimes I afraid, USA will fight India for resource in the near future as India develop further.

While China's foreign policy remains predictable and continue upon changing of leaders, the same could not be said for the USA. Today you might be friend, to morrow, you become enemy.
 

kickok1975

Senior Member
Joined
Aug 9, 2009
Messages
1,539
Likes
350
Totally agree with you. For oil, USA could betray anyone. After the Iraq war, USA gained huge benefit in oil control leading to people's suspicions of why USA had started the war. Just watch out for Libya, it won't be surprise at the end of the incident, USA would replace European oil companies and become the largest controller there.

Another good example is the rare metal issue, while USA has one of the largest deposit but with zero production. What they want is to suck dry other countries' resource while conserving its own.

Its perception of China as an enemy is not because of different social system, but of fighting for resource in other countries. Sometimes I afraid, USA will fight India for resource in the near future as India develop further.

While China's foreign policy remains predictable and continue upon changing of leaders, the same could not be said for the USA. Today you might be friend, to morrow, you become enemy.
How true! No forever friend nor enemy, just forever interest. US could turn against India if India grow significantly enough to challenge US global primacy. Before that happen, the best strategy for India is hide below the radar and let China, US fight each other.
 

Iamanidiot

Senior Member
Joined
Dec 21, 2009
Messages
5,325
Likes
1,504
How true! No forever friend nor enemy, just forever interest. US could turn against India if India grow significantly enough to challenge US global primacy. Before that happen, the best strategy for India is hide below the radar and let China, US fight each other.
thats what preciselly India is doing.For effectively being a counterweight to US you have to be like the US

1)Your domestic set-up must be sound and robust domestic set-up.India was/is/will be thriving to get such a set-up.The advantage of such a set-up is most of the flaws will undergo self-correction and will be a sustainable set-up.If you don't have this your flaws will always be exploited by others
 

Latest Replies

Global Defence

New threads

Articles

Top