TW: The US is used to being the big dog on the worldstage, telling other nations what to do and how to manage their economies. Those days may be coming to an end. Below is only one person's opinion, but when one builds up multi trillion $ debts and has one's financial system fall apart with major component banks lying prostrate (and several carcasses being snapped up by international firms), one cannot expect to strut with quite the same gusto.
From Bloomberg:
Japan, China and other holders of U.S. government debt must quickly reach an agreement to prevent panic sales leading to a global financial collapse, said Yu Yongding, a former adviser to the Chinese central bank...'We are in the same boat, we must cooperate...If there's no selling in a panicked way, then China willingly can continue to provide our financial support by continuing to hold U.S. assets...An agreement is needed so that no nation rushes to sell causing a collapse'... Japan is the biggest owner of U.S. Treasury bills, holding $593 billion, and China is second with $519 billion. Asian countries together hold half of the $2.67 trillion total held by foreign nations.
`China is very worried about the safety of its assets...If you want China to keep calm, you must ensure China that its assets are safe.' China is helping the U.S. 'in a very big way' and added that it should get something in return...It is not fair that we are doing this in good faith and are prepared to bear serious consequences and you are still labeling China this and that...China knows what to do. We don't need your intervention.'
The U.S. financial crisis had taught China a lesson and that was: ``Why are we piling up these IOUs if they may default?...Our export-growth strategy has run its natural course...We should change course..[these IOUs are] paper and it may default and it will not increase China's national welfare.' '
http://bloomberg.com/apps/news?pid=20601087&sid=anZHfo6tQi60&refer=home
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