Do you belive China Bankupt ?

[Without_a_car]

FYI

 

Foreign ownership

 

As of January 2011, foreigners owned $4.45 trillion of U.S. debt, or approximately 47% of the debt held by the public of $9.49 trillion and 32% of the total debt of $14.1 trillion.[53] The largest holders were the central banks of China, Japan, the United Kingdom and Brazil.[55] The share held by foreign governments has grown over time, rising from 13% of the public debt in 1988[56] to 25% in 2007.[57]

 

As of May 2011 the largest single holder of U.S. government debt was China, with 26 percent of all foreign-held U.S. Treasury securities (8% of total US public debt).[58] China's holdings of government debt, as a percentage of all foreign-held government debt, have decreased a bit over the last year, but are up significantly since 2000 (when China held just 6 percent of all foreign-held U.S. Treasury securities).[59]

 

US has never repay her debt with a single ounce of gold. They just print more fiat money.

 

When US printed more money in QE1/2, China printed 4 trillion yuan, and let it go into property speculation.

 

China's 4 trillion yuan stimulus to boost economy, domestic demand

http://news.xinhuanet.com/english/2008-11/...nt_10331324.htm

 

After 3 years of easy money in China

 

PBOC cuts 2011 banks' lending target

By Soo Ai Peng and Aileen Wang (China Daily)

Updated: 2011-01-19 11:19

http://www.chinadaily.com.cn/bizchina/2011...nt_11880239.htm

 

BEIJING - The People's Bank of China (PBOC), the nation's central bank, is reported to have cut its 2011 lending target for banks by 10 percent from last year in a bid to slow free-wheeling lending and tame inflation.

 

Even though there are widespread expectations that China will not publicly issue a target for 2011 lending after similar instructions were ignored by banks in 2010, many analysts believe the central bank will still restrict lending from behind the scenes.

 

Now Chinese property tumbling

Edited November 25, 2011 by Without_a_car

[Acieed]

Dude, there are generally 2 types of debts. 1) External debt, such as U.S. borrow from China, Japan and never pay back, continues to print money because there is still confidence in the US economy. And then, 2) there is domestic debt, basically government borrow from it's own people via CPF, bonds, and other sorts.

 

U.S. owes a lot of $$$ to China and Japan, that she cannot pay back in monetary terms. It's a hope that economy continues to grow, and technology transfers, knowledge and talent exchange, tourism, all sorts of fun stuff continue to drive China and Japan's domestic economy so they will not have a problem with their own domestic debt.

 

One day, if the Americans and Europeans decide to stop playing the game, then Asia, especially small countries with little to no domestic economy will be very screwed very quickly. If the people also give up playing the game, everyone calls BS and goes on strike then the domestic economy will also crash, maybe even go to war and go back to barter trade since there is very low trust in the monetary system, all $$ becomes worthless.

 

As long as there is hope, the game plays on.

 

This is very funny.

It seems every country on this EARTH are in extraordinary debts. which country is the creditor ?

 

[Limitedspeed]

Well you must first be very rich like Americans then you can be poor/bankrupt, right?

 

China is only starting to be rich hence how then can one be bankrupt when you are not already rich?

[Acieed]

You've made a good point. China's own domestic economy has not achieved even half of it's full potential. What will happen is a re-calibration of the more developed and the less developed regions. Crash ? Crash what ? Crash for 10% of the people isn't a crash.

 

But a crash of HDB market means 70% with 30-year loan, will be in deep sh*t.

 

Well you must first be very rich like Americans then you can be poor/bankrupt, right?

 

China is only starting to be rich hence how then can one be bankrupt when you are not already rich?

 

[Without_a_car]

You've made a good point. China's own domestic economy has not achieved even half of it's full potential. What will happen is a re-calibration of the more developed and the less developed regions. Crash ? Crash what ? Crash for 10% of the people isn't a crash.

 

But a crash of HDB market means 70% with 30-year loan, will be in deep sh*t.

 

In the face of high inflation, Chinese wages hasn't really gone up alot. From the looks of it, the CCP rather reward the connected few, than create a broad base middle income to drive internal demand.

Edited November 25, 2011 by Without_a_car

[Jim]

FYI

 

Foreign ownership

 

 

 

As of January 2011, foreigners owned $4.45 trillion of U.S. debt, or approximately 47% of the debt held by the public of $9.49 trillion and 32% of the total debt of $14.1 trillion.[53] The largest holders were the central banks of China, Japan, the United Kingdom and Brazil.[55] The share held by foreign governments has grown over time, rising from 13% of the public debt in 1988[56] to 25% in 2007.[57]

 

As of May 2011 the largest single holder of U.S. government debt was China, with 26 percent of all foreign-held U.S. Treasury securities (8% of total US public debt).[58] China's holdings of government debt, as a percentage of all foreign-held government debt, have decreased a bit over the last year, but are up significantly since 2000 (when China held just 6 percent of all foreign-held U.S. Treasury securities).[59]

 

Foreigners own 47% of US debt. China may be the biggest of them all, but it is merely 8% of total debt, like what I mentioned. The remaining 53% are owned by the US Fed, US government organisations, state governments, US banks and other US citizens. I say the Americans are very much in control of their own debt.

[Ngck]

This is very funny.

It seems every country on this EARTH are in extraordinary debts. which country is the creditor ?

 

 

you cancel out each other, everyone will still be in debt

 

 

[Jim]

Well you must first be very rich like Americans then you can be poor/bankrupt, right?

 

China is only starting to be rich hence how then can one be bankrupt when you are not already rich?

 

To quote a famous book, "To those who have much, more will be given. To those who have little, even what they have will be taken away."

 

The only condition one needs to satisfy to be bankrupt is to have more debt than one can service.

 

China's debt crisis is not like Greece's in that they dont owe foreign creditors and dont have to worry about day to day bond market fluctuations.

 

However, there is a lot of domestic lending and a lot of corrupt accounting. I used to buy a lot of "S Chips" - China companies listed in SGX, and my fingers are burnt into a crisp.

 

China's banking system is totally capable of imploding without foreigners meddling. If and when the Chinese people lose faith in the banking system, we'll see bank runs. The proverbial PRC investors coming to Singapore with suitcase full of cash to buy Singapore property are the early ones.

 

Also, China's financial system is hard to manage. To some people, the RMB is overvalued. To some, it is undervalued. Pushing either way hard can cause problems.

 

At this point, I think to keep Chinese inflation stable, RMB need to gain value to keep the farmers properly fed. However, pushing the value up too hard could put Chinese export industry into recession, resulting in hungry factory workers.

 

And China needs roughly 8% GDP growth to keep factory workers fed, and this is increasingly hard with the slowdown in US and Europe. There is only so many ghost towns and ghost cities they can build. Any slowdown and we will have a few hundred million angry unemployed workers here and there.

 

Not a pretty picture. Head for the hills.

[Gz0707]

this video?

 

more money = more debt.

[Meanmachine]

still china is the last if to bankrupt, Europe and USA is in the first queue

 

 

The Chinese and Indian are one of the best businessmen in the world, they are neither the 1st or the last to be the world top contender of who is who richest man on earth, all I can think is " Bank-roll " not bankrupt

 

[Gukubird]

This is very funny.

It seems every country on this EARTH are in extraordinary debts. which country is the creditor ?

 

 

GIC and Temasek? 冤大头?

[Itsec]

search youtube on petroldollar system..it will lead u to things happening in this world... what's happening to iraq/libya/syria/iran... and a few more...it forms part of the pl**. all major currencies are collapsing... and there's a small little country in euro has gone 'un-noticed' and its debt to GDP is crazy... waiting to burst and probably in 2012..

 

china has its own natural resources and it can self-sustain.. at most just back to their close-door policies... and we have out dear big brother sam.. printing and printing even there's no QE3... lol..

 

 

[Without_a_car]

search youtube on petroldollar system..it will lead u to things happening in this world... what's happening to iraq/libya/syria/iran... and a few more...it forms part of the pl**. all major currencies are collapsing... and there's a small little country in euro has gone 'un-noticed' and its debt to GDP is crazy... waiting to burst and probably in 2012..

 

china has its own natural resources and it can self-sustain.. at most just back to their close-door policies... and we have out dear big brother sam.. printing and printing even there's no QE3... lol..

 

petrodollar; coupling USD with oil is brilliant...

[Itsec]

petrodollar; coupling USD with oil is brilliant...

 

 

that's why they can print and print.... use printed paper to exchange for goods... best ever deal in this world.. get a cheque from bankers (who helps to create more debts) and continue to print paper and exchange for goods... gov get the goods and bankers get the commission and interests which is COMPOUNDED!!! and those interests or electronic $$$ received are loaned out which in terms created more debts.. everyday sit in the office, see the digits increased exponentially...

 

best job in this world!!!

 

that's why gov hates gold/silver standard...

[Wishcumstrue]

I say the Americans are very much in control of their own debt.

 

LOL! You joking right?

 

Pray tell why doesn't a single 2012 US Presidential candidates prepare their election campaign saying that in face of their angry voters?

 

"People! Don't worry, we are in full control of our ++14 Trillion US$ debt....so vote for me!...Yes, We Can!"

 

Okay, if the Americans are so smart with their money, why are some countries prepared to abandon the USD even when guns are placed on their head?

 

And it certainly didn't help when S&P lowered US credit rating from AAA to AA+ in Aug..when warnings were already made by many economists during the period of post 2008 crisis.

http://www.reuters.com/article/2011/08/06/...E7746VF20110806

 

If US are indeed in control with their debt, their government certainly won't be going around pointing fingers at others while Americans are demanding equality in the forms of OWS.

[Wishcumstrue]

When any country decide to replace the dollar. Invade the country, and trigger debt crisis.

 

http://www.independent.co.uk/news/business...r-1798175.html#

 

Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq.

 

Yeah...scary huh?

 

Imagine, when you decide not to use someone else's printed currency in trading your goods and services, you will kenna whacked by the money-printer.

 

Saddam Hussein learn that the hard-way after Iraq began trading in Euro$ for its oil export

 

Now the Russians are doing it. who interestingly, just re-activated their offensive missile systems boarding NATO, under the guise of deterring the US-lead missile system in Europe.

 

Now, it isn't hard to imagine the US is prepared to go to war to defend its interest and control of oil price with its USD-base link.

 

Who would wanna give up such powerful tool that can influence the World by simply printing money without limits?

 

[Wishcumstrue]

China is holding US fiat paper money which is technically worthless as it cannot be redeem for gold.

Does this latest move by China signify a gradual and unstoppable move away from USD?

 

China to Trade RMB against Aussie, Canadian Dollars

[Without_a_car]

Does this latest move by China signify a gradual and unstoppable move away from USD?

 

China to Trade RMB against Aussie, Canadian Dollars

 

They can try, but they will pay a price...