Comments on: U.S. Financial Crisis: Why China Has Much to Fear http://www.citizeneconomists.com/blogs/2008/10/07/us-financial-crisis-why-china-has-much-to-fear/ Citizen Economists is an online economics magazine written by citizen journalists. These ordinary citizens provide reports and commentary on the current events affecting the economics of the fields they work in. Wed, 08 Feb 2012 04:44:52 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Joanna Speer http://www.citizeneconomists.com/blogs/2008/10/07/us-financial-crisis-why-china-has-much-to-fear/comment-page-1/#comment-71826 Joanna Speer Sat, 14 Aug 2010 19:46:08 +0000 http://www.amateureconomists.com/blogs/?p=317#comment-71826 that's incredible. that’s incredible.

]]> By: J.D. Seagraves http://www.citizeneconomists.com/blogs/2008/10/07/us-financial-crisis-why-china-has-much-to-fear/comment-page-1/#comment-1783 J.D. Seagraves Tue, 07 Oct 2008 22:49:46 +0000 http://www.amateureconomists.com/blogs/?p=317#comment-1783 China has every right to unload those assets if they choose. They are not to blame -- we are. There would be no "assets" (debt) to buy if we did not run deficits. China isn't making us do that. All China has done is allow us to live beyond our means. If China did decide to dump all of their U.S. debt and dollars, it would be a murder-suicide. They are such large holders that by the time they were half-done, the dollar would be destroyed. No, the Chinese government is with us... For now. It can't last forever, though. China has every right to unload those assets if they choose. They are not to blame — we are. There would be no “assets” (debt) to buy if we did not run deficits. China isn’t making us do that. All China has done is allow us to live beyond our means.

If China did decide to dump all of their U.S. debt and dollars, it would be a murder-suicide. They are such large holders that by the time they were half-done, the dollar would be destroyed. No, the Chinese government is with us… For now. It can’t last forever, though.

]]> By: Raymond http://www.citizeneconomists.com/blogs/2008/10/07/us-financial-crisis-why-china-has-much-to-fear/comment-page-1/#comment-1782 Raymond Tue, 07 Oct 2008 22:46:05 +0000 http://www.amateureconomists.com/blogs/?p=317#comment-1782 By bailing out Fannie and Freddie the American taxpayer did in fact bail out the Chinese government since they were big holders of that funny, er, Fannie paper. I now wonder if the Chinese government is even remotely considering unloading the rest of their unwanted American "assets" trough the newly passed bail out package? Nah, that would be too obvious, Paulson is too subtle an operator :) By bailing out Fannie and Freddie the American taxpayer did in fact bail out the Chinese government since they were big holders of that funny, er, Fannie paper.

I now wonder if the Chinese government is even remotely considering unloading the rest of their unwanted American “assets” trough the newly passed bail out package?

Nah, that would be too obvious, Paulson is too subtle an operator :)

]]> By: Moyo http://www.citizeneconomists.com/blogs/2008/10/07/us-financial-crisis-why-china-has-much-to-fear/comment-page-1/#comment-1779 Moyo Tue, 07 Oct 2008 21:14:16 +0000 http://www.amateureconomists.com/blogs/?p=317#comment-1779 It's funny to think what is responsible for such relationship, the Chinese government is the single largest holder of the US dollar, of Gold, and of US Treasuries. I had immagined that given the current downturn, they would have offloaded some of their current positions, but such an act would have anhilated the US economy. Gives so much insight to the reason why there must have been so much visits by Paulson to China just before the Financial crisis kicked into its fourth gear. Good analysis! It’s funny to think what is responsible for such relationship, the Chinese government is the single largest holder of the US dollar, of Gold, and of US Treasuries. I had immagined that given the current downturn, they would have offloaded some of their current positions, but such an act would have anhilated the US economy.
Gives so much insight to the reason why there must have been so much visits by Paulson to China just before the Financial crisis kicked into its fourth gear.

Good analysis!

]]>