Keepmovingforward's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/124937/comments http://seekingalpha.com/article/126112-u-s-reassurances-of-its-creditworthiness-should-make-us-uneasy?source=feed#comment-427531 427531
Instead, the Chinese understand that their export driven economic model & success relies on US consumers. They simply cannot achieve the 8+ percent growth necessary in their economy to stave off the rioting and chaos that has taken place in parts of their country.

As US (and UK) consumers have scaled back consumption, China, and the rest Asia, has suffered far worse than the US. The Chinese Premier knows (one only has to look to Japan) that his is a culture of thrift - not consumption - and yet there are a billion people to feed. Factories in China are closing and with them jobs that feed families.

China makes these comments for two reasons: 1) to ensure that the US does all that is necessary to restart our own engine of growth and 2) to mute the inevitable call from US officials to allow that Yaun to appreciate against the dollar. China will need a strong barganing position despite being the largest creditor to the US. They have lived off the backs, and piggy-banks, of the American consumer for 30 years post Chairman MAO. This is not sustainable (as evidenced by the large US trade and budget deficits that support our consumption, and their export-driven, addiction). A better model is necessary - one that promotes long term and balanced growth for both the US and China.

China realizes this and now must begin the task to really shape the mainland as a true ECONOMIC as well as political democracy. Consider the flawed US-supports- the-world consumption model: countries peg currency to dollar, or supress the value of their currency to the dollar. They send goods and services here - even starting businesses here. US buys these imports, financed by deficits and the sale of Treasuries. The cycle repeats. Recessions cause imbalance in the model. World suffers. US stimulates to recharge consumer. The cycle repeats. China, and all of the Asian Nations, must share the burden. The US must get its fiscal house in order. And that is what is beginning now.

China knows this all too well. They, however, need time. No doubt it will come at US expense if we let it. To suggest that US IOUs are suspect raises enough eye-brows for political gamesmenship to begin. If China were REALLY worried, the last thing they do is to go public. Instead, sales of Treasuries would have already begun.

The Yaun/US exchange rate is pegged. A strong dollar means a stronger international Yaun. That means less Chinese exports to everyone. ]]> Mon, 16 Mar 2009 10:23:30 -0400
Instead, the Chinese understand that their export driven economic model & success relies on US consumers. They simply cannot achieve the 8+ percent growth necessary in their economy to stave off the rioting and chaos that has taken place in parts of their country.

As US (and UK) consumers have scaled back consumption, China, and the rest Asia, has suffered far worse than the US. The Chinese Premier knows (one only has to look to Japan) that his is a culture of thrift - not consumption - and yet there are a billion people to feed. Factories in China are closing and with them jobs that feed families.

China makes these comments for two reasons: 1) to ensure that the US does all that is necessary to restart our own engine of growth and 2) to mute the inevitable call from US officials to allow that Yaun to appreciate against the dollar. China will need a strong barganing position despite being the largest creditor to the US. They have lived off the backs, and piggy-banks, of the American consumer for 30 years post Chairman MAO. This is not sustainable (as evidenced by the large US trade and budget deficits that support our consumption, and their export-driven, addiction). A better model is necessary - one that promotes long term and balanced growth for both the US and China.

China realizes this and now must begin the task to really shape the mainland as a true ECONOMIC as well as political democracy. Consider the flawed US-supports- the-world consumption model: countries peg currency to dollar, or supress the value of their currency to the dollar. They send goods and services here - even starting businesses here. US buys these imports, financed by deficits and the sale of Treasuries. The cycle repeats. Recessions cause imbalance in the model. World suffers. US stimulates to recharge consumer. The cycle repeats. China, and all of the Asian Nations, must share the burden. The US must get its fiscal house in order. And that is what is beginning now.

China knows this all too well. They, however, need time. No doubt it will come at US expense if we let it. To suggest that US IOUs are suspect raises enough eye-brows for political gamesmenship to begin. If China were REALLY worried, the last thing they do is to go public. Instead, sales of Treasuries would have already begun.

The Yaun/US exchange rate is pegged. A strong dollar means a stronger international Yaun. That means less Chinese exports to everyone. ]]> http://seekingalpha.com/article/96315-bank-of-america-bank-on-this-opportunity?source=feed#comment-258865 258865 Fri, 19 Sep 2008 09:09:44 -0400 http://seekingalpha.com/article/96314-the-banking-sector-has-bottomed?source=feed#comment-258840 258840 ]]> Fri, 19 Sep 2008 08:51:43 -0400 ]]> http://seekingalpha.com/article/94155-bill-gross-politicking-for-his-own-bailout?source=feed#comment-246925 246925 Sat, 06 Sep 2008 11:48:03 -0400 http://seekingalpha.com/article/90748-citi-s-pandit-still-going-in-circles?source=feed#comment-229462 229462 Wed, 13 Aug 2008 11:58:28 -0400 http://seekingalpha.com/article/82182-high-likelihood-of-a-market-crash?source=feed#comment-190262 190262 Sun, 22 Jun 2008 13:10:26 -0400