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  (Source: TheNextWeb)
It will hire the extra 1,000 employees throughout 2012

Source: Reuters





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RE: At first I was like, "Hell yea!"...
By semiconshawn on 9/6/2012 8:48:51 PM , Rating: 2
Wow. Way to not really prove any particular point.


RE: At first I was like, "Hell yea!"...
By Samus on 9/7/2012 2:05:11 AM , Rating: 2
When you owe the bank $100,000 dollars, you have a problem.

When you owe the bank $10,000,000,000,000, the bank (China) has a problem.


RE: At first I was like, "Hell yea!"...
By TSS on 9/7/2012 6:37:05 AM , Rating: 2
If you're lending $3,6 billion a day and suddenly, nobody is willing to fund you anymore because you don't pay back debts,

You've got a much, much bigger problem.

Also, the chinese haven't bought treasuries since march. They're not stupid, they no longer trust the US. I fully expect them to use it as a buffer for stimulating their economy because even china is slowing down. Considering the EU and US can no longer afford stimulus, it should be much more effective in china, especially since redeeming treasuries will depress the US further and eliminate a competitor if they want to create a middle class. And no, they won't stimulate exports, they will stimulate domestic demand.

The japanese have. Which is logical when you consider the Yen has dropped from 114 to 78 in 4 years. US debt got a whole lot cheaper for them especially since they're expecting (or hoping) the yen to weaken in the future. Their holdings in treasuries are now on par with those of the chinese.

And ofcourse, the Fed. Who can create money out of thin air. And is a *Private* entity with (non-disclosed) shareholders. And currently has $2 trillion worth of US debt.

Let us not forget that your number is wrong as well, there's about $5 trillion in federal debt (don't know about lower levels of government) that's held by foreigners, china and japan each have roughly $1 trillion. The other $11 trillion is owned by the public, various banks, pension funds, the social security fund (also filled with $2,6 trillion worth of treasuries) and whatnot.

So, if you default on your debt, China loses $1 trillion, and US balance sheets lose $11 trillion.

Also, jumping back to the Yen again, the japanese economy has only deflated by 2,5% in 4 years. So that means that the US dollar has been inflated by about 30% in 4 years to make up for the difference in conversion rate, which sounds about right. Take a look at this:
http://research.stlouisfed.org/fred2/series/M2/

Well whatta ya know, a ~30% increase in 4 years, what a coincidence!

Remind me, Who has the problem again?


By semiconshawn on 9/7/2012 11:23:54 AM , Rating: 2
quote:
Remind me, Who has the problem again?


The average Chinese worker.

Ranting about nation scale economics doesn't change that one bit.


By Samus on 9/8/2012 2:12:48 AM , Rating: 2
Christ TSS way to read between the lines, can you take a joke ;)


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