This Page

has been moved to new address

China: In the driver's seat with the US, buying us OUT

Sorry for inconvenience...

Redirection provided by Blogger to WordPress Migration Service
Bloviating Zeppelin: China: In the driver's seat with the US, buying us OUT

Bloviating Zeppelin

(in-ep-toc'-ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

Tuesday, May 22, 2012

China: In the driver's seat with the US, buying us OUT

Because it would appear that the US has decided China may bypass Wall Street and purchase treasuries directly from the government.

From Reuters.com:

(Reuters) - China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.

The relationship means the People's Bank of China buys U.S. debt using a different method than any other central bank in the world.

The other central banks, including the Bank of Japan which has a large appetite for Treasuries, place orders for U.S. debt with major Wall Street banks designated by the government as primary dealers. Those dealers then bid on their behalf at Treasury auctions.

China, which holds $1.17 trillion in U.S. Treasuries, still buys some Treasuries through primary dealers, but since June 2011, that route hasn't been necessary.

The documents viewed by Reuters show the U.S. Treasury Department has given the People's Bank of China a direct computer link to its auction system, which the Chinese first used to buy two-year notes in late June 2011.

China can now participate in auctions without placing bids through primary dealers. If it wants to sell, however, it still has to go through the market.

The change was not announced publicly or in any message to primary dealers.

Why? Because the Obama Administration is embarrassed that China can now buy our debt directly. Because we are that far down the budget hole. And woe the day that China decides that it wants to call our debt. We would be flat owned -- literally -- by China. And beholden to them.

In that vein, China is now the largest world owner of movie theaters, having purchased AMC Entertainment. But it gets even "better" in terms of China's fiscal power through ownership:
In April, The Walt Disney Company China, Marvel Studios and DMG Entertainment of Beijing announced a production deal in which "Iron Man 3" will be co-produced in China. That follows the February announced that a $330 million joint venture between DreamWorks Animation, China Media Capital (CMC) and two other Chinese companies to establish a China-focused family entertainment company, Oriental DreamWorks.

China is a threat, and China is remarkably unstable. There are roughly 500 demonstrations a day in China -- primarily covered up and unreported by the press.

And your government pins its hopes on China?

Yes, that's how stupid and desperate is your current American government.

Under Barack Hussein Obama.

BZ

9 Comments:

Blogger TexasFred said...

And China OWNS us thanks to Obama and I am pretty sure back into the Bush administration...

Ya know, the last few picks Americans have made for POTUS make me think that the entire nation has been *dumbed down*...

Wait... They HAVE been *dumbed down*...

Mon May 21, 06:27:00 PM PDT  
Blogger Well Seasoned Fool said...

When the Communists ousted the Nationalist they assumed the Nationalist' debts by established international law. They defaulted. So, when they cone to collect on our bonds, we pay them back with theirs.

http://bluecollarmuse.com/2011/07/31/why-worry-about-a-us-default-china-defaulted-and-nothing-bad-happened-to-the-prc/

A president with guts would do the same with all the other bonds we hold. Not that that will happen.

Mon May 21, 06:41:00 PM PDT  
Blogger Bloviating Zeppelin said...

TF, you would be correct -- the current administration AND the former administration and -- FURTHER -- into CLINTON!

WSF: of course not, sir.

BZ

Mon May 21, 06:51:00 PM PDT  
Blogger Trekkie4Ever said...

China does indeed own us and it is a frightening aspect, that Mr. Obama for selling us out.

I hope many people have opened their eyes and will vote him and his cronies out of office.

One can only hope.

Mon May 21, 06:53:00 PM PDT  
Blogger Z said...

our government is STUPID.

Mon May 21, 07:36:00 PM PDT  
Blogger Bloviating Zeppelin said...

Leticia:

I suspect that November will yield a MASSIVE change that we had not yet anticipated.

Z: in a word: YES. Concur.

BZ

Mon May 21, 07:59:00 PM PDT  
Blogger Trekkie4Ever said...

BZ, I truly hope you are right. I honestly do.

Tue May 22, 03:35:00 PM PDT  
Blogger Old NFO said...

AND they are buying companies left and right, like AMC Theaters!

Tue May 22, 04:07:00 PM PDT  
Blogger Bloviating Zeppelin said...

Leticia:

I think those who believe Obaka is simply a "given" are WRONG.

WRONG.

This guy is fucking up by the numbers and I couldn't be happier.

Further: I don't think even HE is convinced the presidency is worth it. I think he believes the presidency and having to cater to any number of crafts and issues and persons is BENEATH him.

BZ

Tue May 22, 04:51:00 PM PDT  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home