Lonestar1

U.S. Treasuries: China's Dilemma

It's so sad to read this article. This is like a bad boy being caught in the middle of his misdeed, and claims he will get worse. What's the chance this boy will prosper? Zero, because evrybody will abandone him.

Should China Continue Propping Up the U.S. Dollar?

This has been discussed in many other boards. But nobody can name ONE concret benefits to US if China's yuan appreciate. Substantial changes in currency values is a decisive destabilizing force in globalization. China began the revaluation in July 2005, coinciding with timing of US housing's entering of bubble zone. Hot money left US and entered China in order to capture the benefits of revaluations. This continued all all the way to mid 2007 when the bubble began to bust.

What Is the U.S. - China Economic Outlook Under Obama?

Not insightful comments.


"There are some investors thinking that China may “lead the pack” and recover faster than others (see next): I hardly think so.".

Who else would lead?
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"The RMB 4 trillion stimulus package obviously is not enough – otherwise, why do they keep introducing supplementary packages?"

If you try to offer more insightful information, don't just read WSJ, do more research on your own. Including stimulus packages from local gov's, I estimate the total would be at least 15 trillion RMB.
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"A quick solution for China, for instance, would be to introduce universal, free health insurance: that would remove the yoke of having to save in case of illness.".

It is more cultural phenomenon. Japanese saves a lot too, even though they have good healthcare. You are assuming a better healthcare would cause people to spend more and save less.

On the other hand, even though US does not have universal, free healthcare, people spend more than they have. It's cultural as well.

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Those geopolitical comments are even more superfacial. Sorry to say it.

Obama's 'Aggressive Attitude' Towards China Is Nothing New

Obama's first aggressive move would be most likely domestic. All countries are concentrating on their domestic affairs currently. While talking tough may win some media attention, implementing it would be disasterous. Why would one want to start a fight that he can not win?

Contrasting China Now to the U.S. in 1929

The similarity between China today vs US in 1929 has been proposed and discussed in many forums. The arguement is quite convincing.

If indeed China goes through the same pain as US did in 1929, US may run into a situation as Germany did in 1929.

China's Economy Faces New Problems

Asia, particularly China, may have something similar to our 1929 due to overcapacity. And US may experience scarcity of goods as Europe did back then. That is the practical implication of hyperinflation. It's not a pretty for anyone.