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  • China Is Now in Firm Control of U.S. Debt Markets [View article]
    Your statement is completely the inverse of reason. "as soon as China runs out of things to BUY with its U.S. Treasuries, it will STOP buying them."

    Well then, what will China do with the dollars it earns in trade surplus every year? What? What? jeez.
    May 28 09:10 am |Rating: +4 -2 |Link to Comment
  • China Is Now in Firm Control of U.S. Debt Markets [View article]
    Actually, China is accumulating treasuries because it is accumulating US dollars from a trade surplus. When you have US dollars there are two places they can end up - US goods and US financial instruments. Thus your statement, "When China runs out of things to buy with its U.S. Treasuries, it will stop accumulating them," makes no sense - when China stops buying US goods it will actually have to buy more treasuries, not less.
    Nor is your use of "budget surplus" correct. Budget surpluses do not result in foreign treasury accumulations, trade surpluses do.
    Basically I think you have a pretty weak understanding of how trade works and unfortunately it shows, so you should just stop it.
    May 26 10:42 am |Rating: +10 -14 |Link to Comment
  • Tuesday Outlook: New World Order? [View article]
    I enjoy reading the notes but would enjoy it more if I could find out what the drawn blue and red lines represented.
    Apr 08 09:52 am |Rating: 0 0 |Link to Comment
  • Market Bottom Already? I Don't Think So [View article]
    I am glad you did not add inflation to the list of down-the-road problems. When consumers in a consumer driven economy can't borrow any more and, in fact, have to apply every scrap discretionary income to credit card and auto debts, the consumption party is over. How long does it take a person to pay off half a year's salary in debts and finally start back spending on discretionary items? That's how long the recession will last.
    Apr 08 09:37 am |Rating: 0 0 |Link to Comment
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