US+Banks+China+Dollar=misery ?

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US+Banks+China+Dollar=misery ? - 2/28/2008 12:35:37 PM

seeksfemslave

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Over the last few years China invested their surplus dollars in US govnt. debt.
As US interest rates and the value of the dollar fell the "sovereign" wealth funds in China shifted their surpus dollars, estimated to increase by 500 billion per year, to real estate, industries and banks.

As a consequence of the losses due to the sub prime loan scandal the US banks are desperate for Chinese investment. If the investment into the US is stopped then it is expected that the current recession in the US will get very much more serious.
It is not only China involved but the Oil rich Middle Eastern states as well

Have we arrived at the tipping point in global power relations ?
What is a free enterprise nation to do ?

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RE: US+Banks+China+Dollar=misery ? - 3/1/2008 10:42:32 AM

RealityLicks

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As well as the energy providers, the SWF's of Asian states with large trade surpluses like Singapore are also increasing their share in western investments. While you have exaggerated how much China's SWF has on tap, it is true that the amount of money controlled outside the West grew by a massive $1200 Billion in 2006 alone.

Transparency is what worries the protectionists. The US blocked Dubai from holding on to five ports it acquired in the P+O takeover. Security concerns? What about jobs? Qatar look set to take Sainsbury off our hands and there can't be a bank in America or the UK that hasn't relied heavily on SWF's to stay afloat in these credit crunch days.

IMF/World Bank regulators want more transparency and are seriously concerned that the West's global hegemony suddenly looks even more fragile than imagined. For some reason, they want the right to prevent the system from working in the way it has done for centuries - I thought capitalism was a necessary condition for human freedom? - but where were they when the hedge funds were de-regulated? Now the shit has started hitting the fan, they're panicking.

I think the horse has bolted on this one. Energy prices will stay and money will continue to flow to Russia and the Arab states etc. Their investment choices will define our lives in the west.

(in reply to seeksfemslave)

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RE: US+Banks+China+Dollar=misery ? - 3/1/2008 11:27:23 AM

popeye1250

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Reality, what they're engaging in now isn't "Capitalism",in capitalism if you can't get enough workers you raise the pay rates and benefits until you can.
What they're doing now is "outsourcing" those jobs but, they still expect access to our markets!
All these "free trade" deals are just "outsourcing" disguised as "free trade.
GREED at it's mose basest level.
Now, if a company goes out of business we in America don't care because they don't employ American workers anyway!
There won't be any "bailouts" ala Chrysler, this time around.
And if Bank of America goes under, oh well. Let their stockholders take the hit like they should, not U.S. Taxpayers.

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"But Your Honor, this is not a Jury of my Peers, these people are all decent, honest, law-abiding citizens!"

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RE: US+Banks+China+Dollar=misery ? - 3/1/2008 12:16:37 PM

pahunkboy

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Joined: 2/26/2006
From: Central Pennsylvania
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quote:

ORIGINAL: popeye1250

Reality, what they're engaging in now isn't "Capitalism",in capitalism if you can't get enough workers you raise the pay rates and benefits until you can.
What they're doing now is "outsourcing" those jobs but, they still expect access to our markets!
All these "free trade" deals are just "outsourcing" disguised as "free trade.
GREED at it's mose basest level.
Now, if a company goes out of business we in America don't care because they don't employ American workers anyway!
There won't be any "bailouts" ala Chrysler, this time around.
And if Bank of America goes under, oh well. Let their stockholders take the hit like they should, not U.S. Taxpayers.

This is a extrordenary post. Consider that Popeye has a different outlook on many matters when compared to myself. This is where the 'dumbing down" comes into play. Here is a man with a different walk of life then my own; yet we both pretty much conclude the same-

as far as it being a tipping point. ; if we are lucky- it is only a recession.

when does the go around come around?

free trade means the powerful may shop the globe but the peon can not.

giving the chance-why shop walmart when if we could buy direct, we would. same with rxs. they are not safe the logic goes.
anyhow the dollar needs to be backed by gold

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RE: US+Banks+China+Dollar=misery ? - 3/1/2008 12:34:51 PM

wkdshadow

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The overall problem is the dollar as we know it today is only a political currency anyways. There is no backing in it's value other than our word. The dollar does need to move to a standard backed by something physically tangible that's of value, whether it be copper, gold, platinum, or silver - most likely a mixture of all four. But that's the only problem - as many people will point out, America produces little. We consume lots. This is a problem, as is our move to a service oriented economy.

(in reply to seeksfemslave)

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