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  • China Is Now in Firm Control of U.S. Debt Markets [View article]
    Youtube has a funny Russell Peters' video of a bargaining session between him (a Canadian Indian) and a Chinese merchant. Caucasians men are used to buying at fixed price not even on sale. Mainland Chinese are FAR sharper merchants than even the 2nd generation ones in HK let alone the 'soft' Chinese immigrants here.
    Recently China bought up all the copper & iron ore in the world at rock bottom Buffet like prices - with its US dollars - probably by giving US 30yr Treasuries to commodity sellers.

    Similarly did anyone notice the deafening silence of NO-ONE buying US assets unlike 1990s - neither the Arabs, Chinese/Asians nor the Europeans? This article clearly shows an exodus OUT OF US assets is underway.

    Hilariously the US government is "selling Tbonds" to itself with QE. Also, Obama is going to tax US corporations' foreign assets and deferral loopholes!

    This article is DEAD RIGHT and answered nagging doubts on what China "COULD DO". Now I understand it better. By liquidating long term tbonds and buying tbills they are WAITING for the other shoe to drop yet don't rock the boat by premature yuan appreciation. China will not tolerate losing $1T but if it it may be able to agilely manage a "mere" $100b of value loss as it becomes the #1 super power or reserve currency in its own right.

    The point is China WILL BUY US assets to grow its economy at the 50% or 70% off sale. It will buy technology, marketing rights, raw materials, cheap food, cheap capital goods etc. when the US dollar is down heavily. Just like it bought tons of copper at $1+/lb. China WILL resume buying Tbonds when US govt has to shell out 7% or Volker-like 10% or more!

    Now how to understand US policy? Do the ones truly in power behind the throne really care about the 50%-70% decline of US living standards. They are brokers and make money on change & TRANSACTIONS, not the level of wealth in US society.

    You can tell they have accomplished a total re-positioning of their bets & assets clearly when the media starts singing the merits of a devasted US Dollar. Unfortunately US exports are barely 8.5% of its GDP yet future generations will have to pay high interest rates as the vast debt is rolled over.
    May 26, 2009. 04:45 PM | 7 Likes Like |Link to Comment
  • Obama's New Mileage Standards: Let's Wait and See How the Final Rules Shake Out [View article]
    What is the big deal?

    1) I think Detroit CAN make lighter-weight-Camry size sedans for 80% of us commuters with 35mpg NOW, without any gimmicks or hybridization. To say GM cannot make money selling a $30k product is stupid when $2k cars sell in India TODAY!

    2) I think behind the curtain OPEC and Big Oil are the big gorillas bankrupting US with TRILLION dollar imports of oil & products. What CAN BE DONE TODAY will hurt big oil massively! However the 1980 legacy of Bush-Regan's Big Oil support has ended with 9/11 GWBush.

    3) I am all in favor of government putting BOTH $2/gal taxes to keep at-pump costs high AND MASSIVE 50%+ gas guzzler taxes on the traitorous 10% who insist on buying huge SUVs
    when the Uncle Sam has to go on bended knee hold out begging bowls for generous Chinese to buy worthless USD paper. Without such a guzzler tax, the stupid bought-media driven US flock will remain at 40-60% either buying SUVs or WANTING them. This is no different than teenagers WANTING 3000 calorie double cheeseburger/malt/frys... because they taste good regardless of what it does to US health costs.

    4) Finally, very little of the gas/SUV tax can easily subsitize the 10% to buy golf-carts for the little drives the missus makes in suburbia or schools. The funny thing is one these 'smart cars' still costs as much as TEN $2k Nano's :) ha ha

    May 20, 2009. 07:43 PM | Likes Like |Link to Comment
  • U.S., China Increase Trade Deficit: Win-Win Situation [View article]
    I think the author has many good points, but I think he has a bit of satire (just look at his grinning face you guys!).

    However I disagree with only a few points

    (1) Definition of "US leaders" which he seems to equate with Chinese political leaders. In the USA, the true leaders are the financial king makers. Just see how GS was the first to pull 100% of their money out of AIG's bleeding guts using Paulson as a surgical glove! Now that Congress is unlikely to throw more good money after AIG, the rest of the "slower" world may only get pennies/$ on who knows how many hundreds of billions more!
    So the point is American leaders are still the guys holding the purse strings and effective power - a cabal of back-room bankers and oil-men - perhaps - who knows?

    (2) USA does NOT have any grand master strategy here. Like any street-corner cocaine addict the government keeps on going back to the well for more easy money ever since Regan, Bush Sr & especially Bush Jr. taking the $-printing press for granted. However, that is good only as much as others are willing to give them credence. One small remark by the Chinese premier had US politicians cowering - Obama mumbling the US$ & system is the safest. However, it is all about price dear man.

    About time Americans stood up and became mensh!
    Mar 19, 2009. 01:26 AM | Likes Like |Link to Comment
  • FDIC: The Bair (And Frightening) Truth [View article]
    So if China, Japan and other exporters should stop buying Treasuries and the US Government will get less play money to waste?
    Mar 17, 2009. 05:02 AM | 2 Likes Like |Link to Comment
  • How to Not Pay the AIG Bonuses [View article]
    * GS=biggest pricks on wall street
    * AIG=biggest pussies on wall street

    There is nothing new about GS is f*c#% AIG! They just used Pauson as a condom!
    Now the question are taxpayers lesbians that they get f*c#%ed by AIG?
    Excuse my french ..
    Mar 17, 2009. 04:34 AM | Likes Like |Link to Comment