PREMIER WEN'S COMMENTS ON U.S. TREASURIES: PROTECT CHINA'S INVESTMENTS

Wikileaks ^ | 12/26/2012 | US Government

[radpolis]

Since Premier Wen Jiabao's March 13 remarks at a press conference that China was "concerned" regarding the security of its U.S. Treasury holdings and other investments (ref). At the G-20 ministerial meeting, the head of the State Administration of Foreign Exchange (SAFE) and Deputy Central Bank Governor noted continued Chinese concerns about the inflationary implications of the expansion of the Fed's balance sheet. In a meeting that preceded Wen's remarks, SAFE Director General (DG) Yin Yong noted SAFE's concerns about the potential for U.S. dollar depreciation and U.S. inflation, as both would erode the renminbi(RMB) value of their assets. On March 19, DG Yin told us that Premier Wen and other senior leaders believe it is important to avoid actions that could be perceived as adversely impacting the claims of senior creditors to systemically large financial institutions and to avoid a repeat of " Lehman" in 2008.

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(C) On March 18 Director Xiao Lian of the Center for American Economic Studies at the Chinese Academy of Social Sciences (CASS), told us that Premier Wen and the senior leadership have been under "strong pressure" to address public criticism about recent high profile losses on China's overseas investments. On March 16, CASS researcher Zhang Ming speculated to us that China may want to invest in Treasury Inflation-Protected Securities (TIPS) or RMB-denominated assets, to protect its overseas investments. Professor Yu Yongding, also of CASS and Director Xiao Lian's superior, has long advocated that China press the U.S. to issue RMB-denominated debt, and at a recent conference Yu opined that China should receive equities in U.S. nationalized banks as collateral for its U.S. investments. Xiao told us he has proposed that the U.S. Government issue convertible bonds that Chinese investors could convert into stocks (presumably of financial institutions held by the U.S. government).

[radpolis]

If you want evidence that the US Government is a subsidiary of Communist China, here it is.

I don't know how any red-blooded American can't be infuriated by the treason of the federal government.

What did TARP, take over of Fannie and Freddie, and the bank bailouts really come down to?

Protecting Chinese assets in the United States.

Read the whole cable. It is frightening.

[Varsity Flight]

**** What did TARP, take over of Fannie and Freddie, and the bank bailouts really come down to? ****

Made all U.S. citzens, taxpaying backstops, for the all the same players. (Except for the Tea Party electorate, see any change in the same players or their media?)

[screaminsunshine]

We are. Everyone I know is. Shut them down!