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capaneo Canada. Mar 16 2009 11:22. Posts 8465 | | |
As some of you know I dont visit this site anymore and I have a blog some other place and this is a copy of my last post there: (as a matter of fact after posting blogs here I realize why the admins here are so short minded and insted of dealing with problems just ban people. Most of you guys who are new here and post are too dumb that the only way to deal with you is to ban you )
http://tinyurl.com/a9zat6
+ Show Spoiler +
By Rebecca Christie and Kim Chipman
March 14 (Bloomberg) -- The U.S. sought to ease Chinese Premier Wen Jiabao’s concern about the security of his country’s investments in U.S. government debt, reiterating pledges to cut the budget deficit in half in four years.
“There’s no safer investment in the world than in the United States,” White House Press Secretary Robert Gibbs said yesterday at a briefing in Washington.
Gibbs was responding to comments from Wen that China, the U.S. government’s largest creditor, is “worried” about its holdings of Treasuries and wants assurances that the investment is safe. “I request the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets,” Wen said at a press briefing in Beijing.
President Barack Obama is relying on China to sustain buying of Treasuries amid record amounts of U.S. debt sales to fund a $787 billion stimulus package and a deficit this year forecast to reach $1.5 trillion. Investors abroad own almost half of all U.S. debt outstanding, and China last year overtook Japan as the biggest foreign buyer.
Wen’s comments contributed to a decline in Treasuries yesterday. Yields on benchmark 10-year notes rose as high as 2.96 percent, from 2.85 percent a day earlier, and closed at 2.89 percent.
White House National Economic Council Director Lawrence Summers, asked yesterday about Wen’s remarks, said overseas “confidence” in Treasuries would be hurt without the administration’s steps to end the economy’s decline.
Japan, China
China held $696 billion in U.S. Treasury debt as of Dec. 31, more than Japan’s holdings of $578 billion. Foreign holdings of U.S. Treasury debt at the end of last year totaled $3.1 trillion.
The Treasury also offered a response that sought to reassure investors.
“The U.S. Treasury market remains the deepest and most liquid market in the world,” Treasury spokeswoman Heather Wong said in an e-mailed statement. “President Obama is committed to taking the steps necessary to restore growth and put this country on the path of fiscal sustainability, including cutting the long-term deficit in half over the next four years.”
During the first five months of fiscal 2009, which began Oct. 1, the U.S. budget deficit swelled to a record $764.5 billion for the period, compared with a $265 billion shortfall during the same period a year earlier. The shortfall this year already has exceeded the record $459 billion gap for all of 2008.
‘Stronger Position’
The administration is “tackling many long-ignored problems, ensuring that the U.S. will be in a stronger position than ever,” Wong said. “We are facing whatever challenges come up and will continue to do so.”
Treasuries have handed investors a loss of 2.7 percent in yuan terms this year, according to Merrill Lynch & Co.’s U.S. Treasury Master index. Chinese holdings of the securities surged 46 percent last year, according to Treasury Department data.
“Of course we are concerned about the safety of our assets,” Wen said after an annual meeting of the legislature. “To be honest, I am a little bit worried.”
Diversifying Reserves
China should seek to “fend off risks” as it diversifies its $1.95 trillion in foreign-exchange reserves, Wen said. Yu Yongding, a former adviser to the central bank, said in an interview on Feb. 10 that the nation should seek guarantees that its Treasury holdings won’t be eroded by “reckless policies.”
Treasuries have benefited from demand as a haven in the past two years as financial companies reported $1.2 trillion in credit losses. China boosted holdings of government debt as it lost more than $5 billion from investing $10.5 billion of its reserves in New York-based Blackstone Group LP, Morgan Stanley and TPG Inc. since mid-2007.
“China won’t sell the U.S. debt now as that will only drive down Treasury prices, hurting not only the U.S. but also the value of its own investments,” said Shen Jianguang, a Hong Kong-based economist at China International Capital Corp., an investment bank partly owned by Morgan Stanley.
U.S. Secretary of State Hillary Clinton urged China, while visiting officials in Beijing on Feb. 22, to continue buying U.S. debt, which she called a “safe investment.”
I was reading some article before in a magazine about Obama reassuring the market and it had a line saying “you know thing are really bad when president is talking stock market.” After reading that article first thing comes to mind is that things are really bad when Chinese are worried about their money in US.
I think this is not only very interesting it’s also very scary. If foreign buyers of US debts get concerned about their money it means that US won’t be able to borrow in order to finance their government. With concerns growing about the future of US economy maybe we will see a "run on the FEDs" by its debtors. US having around 10 trillion, which is one year of GDP, in debts and around half of that to foreigners will have hard and maybe even impossible time to pay back the lenders. Which means their only option will be to "rev up their printings machines" and that will cause inflation or maybe even hyperinflation in US. The American government having big fixed costs such world’s biggest military and no money will be a very dangerous situation not only for US but for the whole world.
We saw Lehman and BearStern going broke. AIG is down the toilet. And most importantly GM which was the true flagship of US economy is going broke. So what makes people think that US government who is doing the same exact thing as those companies is immune? We used to have a saying that anyone takes a bribe other than the ones who are truly faithful to God, because they have really high prices. I believe in US and western economy faithfully, but their price is just getting too high.
I think the America will come out of this (hopefully) but a generation or two has to pay and work through their nose for the mess we are creating now. And the reason is that many American voters are just too dumb to realize you cannot let a loser not to lose. Let’s face it half the nation voted for McCain and Palin!
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| In US everyone is happy as long as all the prices are rising. Unless its crude oil - Marc Faber | Last edit: 16/03/2009 12:32 |
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PplusAD Germany. Mar 16 2009 11:33. Posts 7180 | | |
| | As some of you know I dont visit this site anymore |
Lol u remind me of that Broodwar players who always claimed they dont practice.
they are inactive
They only play ~ 50-60games week |
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| U see what i did there with A8 ? He 4 bets and there we go insta jam A8 : ---booooom -- . hahahaha ( Krantz) | |
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RJ227 United States. Mar 16 2009 11:40. Posts 170 | | |
I don't know who you are but if you don't visit a site, common sense suggests you don't return and post some dickhead blog each day. |
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| Thanks for the compliment E but I would rather come back as one of Michael Vicks dogs | |
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capaneo Canada. Mar 16 2009 11:58. Posts 8465 | | |
Its very simple I dont like the way this place is regulated and dont want to waste my time talking to trashs like you on issues that you posts so I dont visit this site. But there are still some thoughtful people on this site so for that reason I keep a very limited posting of my blogs on this site since I kind of have control over postings here. Basically I only take the parts that I like and I use them. And do not use the parts I dont like. Now if you are truly too dumb to figure that out there you got it.
I have a suggestion for you btw. Before you open your mouth and talk think about the problem and question you are presented and you might actually be able to get answers. |
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| In US everyone is happy as long as all the prices are rising. Unless its crude oil - Marc Faber | Last edit: 16/03/2009 12:00 |
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RJ227 United States. Mar 16 2009 12:04. Posts 170 | | |
And LOL at a guy from Canada making all of these idiotic insinuations about AMERICA. You don't even fucking live here yet your LIMITED blog is only stuff about America. ROFL. This looks like nothing more than a childish play for attention. I can't help but laugh at your post. You don't like the way the site is regulated, yet you come back and post (more than a) limited blog? I'm sorry that I'm more intelligent than you and you can't find anyone else to discuss things with you, things that don't even pertain to you, but really...Either don't visit the site, or visit it. Don't make some retarded header like anyone cares if you visit or not. Congratulations. Now one more (and assuredly not the last) person thinks you're a complete and utter moron. |
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| Thanks for the compliment E but I would rather come back as one of Michael Vicks dogs | |
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NewbSaibot United States. Mar 16 2009 12:06. Posts 4946 | | | |
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capaneo Canada. Mar 16 2009 12:15. Posts 8465 | | |
| | On March 16 2009 11:04 RJ227 wrote:
And LOL at a guy from Canada making all of these idiotic insinuations about AMERICA. You don't even fucking live here yet your LIMITED blog is only stuff about America. ROFL. This looks like nothing more than a childish play for attention. I can't help but laugh at your post. You don't like the way the site is regulated, yet you come back and post (more than a) limited blog? I'm sorry that I'm more intelligent than you and you can't find anyone else to discuss things with you, things that don't even pertain to you, but really...Either don't visit the site, or visit it. Don't make some retarded header like anyone cares if you visit or not. Congratulations. Now one more (and assuredly not the last) person thinks you're a complete and utter moron. |
If you think im stupid then dont read my stuff and dont post here. And I wont get any attention anymore and I will leave. If you don't want to hear me talking then dont talk to me. How hard is it to understand these stuff?
And btw this is not about US. Its mainly about economy. And I dont really expect you to understand the difference there. But you might be able to draw a conclusion that if I live and work in Canada why would I be worried about US economy. And I like everyone else have tons of American assets. Its like you just go to chinese and say. "Hey, you are not American why do you care about the US economy?" |
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| In US everyone is happy as long as all the prices are rising. Unless its crude oil - Marc Faber | Last edit: 16/03/2009 12:19 |
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rANDY United Kingdom. Mar 16 2009 12:24. Posts 2223 | | |
dont forget to remind us you no longer read this site |
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RJ227 United States. Mar 16 2009 12:27. Posts 170 | | |
For someone who has incredible arrogance especially about intelligence, you certainly make many a grammatical error. Try being less of a dick next time and spend more time perfecting the nuances of the English language.
Also, keep taking baseless shots at my intelligence. That seems to be the thread you're clinging to. I graduated from one of the top universities in the US, you know...the country in question.
The fact of the matter is this. You preface each of your many blog posts about the US with a line that you don't visit this site anymore. A) No one cares. Get over yourself. B) Practice what you preach. |
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| Thanks for the compliment E but I would rather come back as one of Michael Vicks dogs | |
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lebowski Greece. Mar 16 2009 12:44. Posts 9205 | | |
meh capaneo just start posting here again imo. It's not like you have to "deal with everyone" if you decide to do so anyway |
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| new shit has come to light... a-and... shit! man... | |
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Zep United States. Mar 16 2009 12:46. Posts 2292 | | |
I rarely post on this site, but for some reason i feel compelled to share some common sense and logic with you today.
I find it mildly amusing for you to recognize what the Bush administration did to the United States' economy, and then claim that Obama is the one truly fucking things up. The fact that the economy is in ruts has nothing to do with the political party that inherited the white house, yet you and every single half-retarded conservative out there believes that the economy continues to tank because of Obama. Maybe you should listen to what every expert has been saying for the past two years, THE MACROECONOMY IS GOING TO CONTINUE TO DECLINE AT LEAST UNTIL THE 4TH QUARTER OF 2009. And most believe we are going to see an even bigger downturn in the macroeconomy possibly leading to a long-term depression. You and every other social conservative piece of scum out there truly believes that the measure of the economy is not based upon financial experts opinions, but rather whenever the DJI declines it's b/c a liberal opened up his mouth and said something. Whenever the DJI increases, it's because Rush Limbaugh or some other fat, retarded, piece of shit social conservative ass wipe said something and obviously the economy is responding to their positive message (I believe The Daily Show recently touched up on this).
Final note, social conservatives such as yourself are the reason why the United States economy is failing, why militarily we've stretched beyond our fiscal means and resources to actually provide any sort of protection to the United States, and why internationally we've lost so much recognition as a world leader. So thank you for failing the United States further by means of slander. You should consider taking some college or university level courses on international relations, the micro and macro economy, and maybe even some business classes since you social conservatives forgot how to be fiscally responsible years ago...then again, you'll probably just end up agreeing with your cousin/wife that liberal education is the devil and that you two would enjoy a Harry Potter book burning festival followed by passages out of the bible proclaiming that God is telling you to bomb abortion clinics and kill every fagot in San Fransisco. |
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| NeillyJQ: I really wanted to prove to myself I could beat NL200, I did over a small sample, and believe Ill be crushing there in the future. | |
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rednalluk Sweden. Mar 16 2009 13:03. Posts 626 | | |
It's interesting, but is this really something new?
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Patrocle France. Mar 16 2009 13:04. Posts 623 | | |
are you playing with the nick "Lolzcapaneo" ?
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| An apple a day keeps the doctor away | |
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Cap you crack my shit up "I don't post here anymore" yet I've made 2 blogs in 2 days |
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chris United States. Mar 16 2009 17:05. Posts 5505 | | | |
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| 5 minute showers are my 8 minute abs. - Neilly | |
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