Posted on 12/18/2011 4:50:45 PM PST by Red in Blue PA
China's plan for a new $300 billion sovereign wealth fund is as much a warning to Washington as it is a body blow to Brussels.
It's the clearest sign yet of Beijing's waning faith in bonds issued by Europe and the United States. Europe's festering debt debacle, record low yields on U.S. Treasuries and a depreciating dollar all add weight to the view in China that the time is ripe to change investment tack.
"China has decided that real assets are better than broken debt fix promises and low interest rates," says Paul Markowski, president of MES Advisers and a long-time external adviser to China's monetary policymakers on global financial markets.
(Excerpt) Read more at reuters.com ...
They can see the writing on the wall.
When they stop lending the punchbowl will truly be empty.
Hopefully we still have a few warheads left. We'll need them.
What else can they do with all that paper money?
Not sure what good warheads will do when the issue at hand is overspending on our side and a lack of will to reign it in.
just follow your own argument.
What makes you think China is any different than the rest of the world. They are doing the same thing, printing money.
Nobody likes the Chinese. They break their word all the time in business.
They will never be the world's reserve currency because no one likes them.
And so where do they go? If they don't sell their cheap sweat shop junk to American and other global markets, they will collapse.
Their dollars can buy commodities but even in that trade they are considered difficult pain in the *ss buyers.
Are they going to buy arms, jets, cruise missiles, Carribean islands? What? And for what?
I would not want to be Chinese. Behind the layers of their onion peel, they are screwed.
It’s not new and has been around for several years. But yes, more people should pay attention. It’s difficult, though, for that fact to get much attention. Fund managers (including banksters) have been flooding us with the propaganda about China’s collapse for over 5 years. China continues to increase production, though at a lesser pace. She has other trading partners for outgoing exports and incoming natural resources. As for the “ghost cities,” China has her own way of building and filling such projects and always has.
China tested its first atom bomb in 1966 and immediately began development of its first thermonuclear weapon, tested in 1967.
"Many foreign firms have advanced technology and they are having business difficulties and at the brink of bankruptcy. This is the opportunity that occurs only once in a thousand years," Zheng Xinli, an influential government adviser, was quoted as saying last week by Hong Kong's Wen Wei Po newspaper.
What are they going to invest in?
DHL Deutsche Post
DB DeutscheBahn
T-Mobile Deutsche Telecom
Electricite de France
Airbus
That would be a few.
What are they gong to invest in? What are the ‘real assets’ they will invest in? /// gold? oil reserves? or companies that are known to do good in recessions?
Ping.
Invest in France and Germany??? Ahem, France is screwed, they are ready to be downgraded. Germany is facing a recession and the German population is annoyed to say the least that their Euros are bailing out the Eurozone.
The Euro banks are facing a crisis to say the least and are tightening up everywhere. Import-Export trade is facing increased credit costs as a result. And the end result is a global recession.
The Chinese are holding currencies such as the US dollar that are in work for devaluation and they have to play peg games to keep their own currency under, or else their trade market recedes and collapses. All other currencies face similar fates.
The Chinese are welcome to come to the USA and gobble up real estate like the Japanese did during the 1980s but then the Japanese got their butts handed to them by the end of the 80s. So come on down Beijing!
The Brazilians aren’t doing bad. They are good to invest in. I do business with Brazil and I know for a fact that the Brazilians can’t stand the Chinese. They won’t let the Chinese do squat unless it’s something that no one wants, in other words a bad investment.
No, the story on the Chinese is they sell cheap stuff and we give em cheap paper called dollars or treasuries.
We can get out of debt and ruin the Arab world in one week, withou firing a shot.
Drop a word with speculators to start shorting oil. Plant a story that oil the oil fields are secure and there is plenty to go around. Now start gong heavy into domestic production.
Get oil down to 30 bucks a barrel. Problem solved and as a benefit you kill global warming because alternative energy will be too expensive to develop.
Time to slap huge tariffs on the Communist Chinese. It is the only way to get the Communist Chinese to economically cooperate with America
In fact anyone still support any current policy we have with Communist China is nothing more than a Communist
Chinese Real Estate? No one else will. Anyway all things considered $300 million is a pittance.
Governments are notoriously bad at capital allocation.
$300 billion is a pittance too.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.