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Idiots that think we can force China to stop North Korea--welcome to reality

Posted on 1/10/18 at 10:58 am
Posted by I B Freeman
Member since Oct 2009
27843 posts
Posted on 1/10/18 at 10:58 am
China Weighs Slowing or Halting Purchases of US Treasuries--Markets Rattled

Bond prices are falling and interest rates are going up.
This post was edited on 1/10/18 at 11:01 am
Posted by saints5021
Louisiana
Member since Jul 2010
17429 posts
Posted on 1/10/18 at 11:15 am to
I bet you we do force them
Posted by Champagne
Already Conquered USA.
Member since Oct 2007
48268 posts
Posted on 1/10/18 at 11:19 am to
Trade war with China? We are their Huckleberry. That's just our game.
Posted by Sunbeam
Member since Dec 2016
2612 posts
Posted on 1/10/18 at 11:26 am to
quote:

I bet you we do force them



How? With what?

1) We can't do shite to them with economic sanctions, or political maneuvering. Frankly they are the straw that stirs the drink these days, and a lot more nations are tied to them at the hip than us.

2) Something military. Well, uh...

3) Nuke them. Only thing we could do. And well they can nuke back.

If it makes you feel better, China is absolutely no military threat to the US.

On the other hand we aren't going to be maneuvering the Navy around within about 600 miles or so of their coastline if things ever did get hot either.

Quite simply there is nothing we can do about China. It's simply too big in numerous ways now for us to influence or control at all. And this includes economically, militarily, politically, heck culturally.

Always struck by how unrealistic both liberal and some conservative people can be. If China oppresses Tibetans, we can't do jack about it.

If they don't care to do anything about N. Korea, similarly we have no way to make them.

That simple.

If you get really froggy and want to talk about sanctions, well we got a built in interest group from across the country tied to China trade.

It'll hurt us and be a lot messier than it would them.

To be honest again, if the US closed it's economy to trade with China, they'd hurt for a year or two.

And wouldn't notice or care at all in about 5. That's just how big they are now.
Posted by funnystuff
Member since Nov 2012
8322 posts
Posted on 1/10/18 at 11:35 am to
Honestly, that may not be a bad thing. The byproduct of having large capital account surpluses is having large current account deficits. And running this persistently huge current account deficit since the 80s hasn’t exactly fixed our economic woes.
Posted by Stingray
Shreveport
Member since Sep 2007
12420 posts
Posted on 1/10/18 at 11:38 am to
You think this is proof that China can't be leveraged on NK?
Posted by Snipe
Member since Nov 2015
10897 posts
Posted on 1/10/18 at 12:13 pm to
China has and will continue to control N.K. for their own best interests.

Posted by GumboPot
Member since Mar 2009
118664 posts
Posted on 1/10/18 at 12:20 pm to
The person on Bloomberg just said that China is the worlds biggest holder of U.S. Treasuries. That's not even close.

AS of 2016 U.S. Individuals and Institutions own the most U.S. Treasuries.



If Bloomberg is going to get an expert on to offer comments at least be accurate.
This post was edited on 1/10/18 at 12:21 pm
Posted by GumboPot
Member since Mar 2009
118664 posts
Posted on 1/10/18 at 12:28 pm to
quote:

Bond prices are falling and interest rates are going up.




Not necessarily due to China:

quote:

“If China ceases to be a net purchaser of U.S. Treasuries, this is unlikely to have a significant impact on the overall yield curve unless China divests a large share of its total holdings in a short time period,” said Rajiv Biswas, Singapore-based chief Asia-Pacific economist at IHS Markit.

Yields were already climbing this week amid expectations the improving global economy will boost inflation pressures round the world, just as major central banks scale back their asset purchases.

Markets are also braced for a deluge of debt supply this week. The U.S. is scheduled to reopen $20 billion of 10-year debt Wednesday, followed by $12 billion of 30-year bonds Thursday. Germany sold 4.03 billion euros of 0.5 percent 10-year bonds Wednesday with syndications in Italy and Portugal to follow.
Posted by Stingray
Shreveport
Member since Sep 2007
12420 posts
Posted on 1/10/18 at 12:36 pm to
quote:

AS of 2016 U.S. Individuals and Institutions own the most U.S. Treasuries


Bloomberg would retort that their statement is to be taken as biggest single entity to hold that debt.
Posted by Skeezer
Member since Apr 2017
2296 posts
Posted on 1/10/18 at 12:40 pm to
Bond rates need to rise. They have been artificially low for way too long.
Posted by GumboPot
Member since Mar 2009
118664 posts
Posted on 1/10/18 at 12:42 pm to
quote:

Bloomberg would retort that their statement is to be taken as biggest single entity to hold that debt.



In that case it would be the Social Security Trust fund.

FWIW, I would like to see the yield curve increase. I'd love to see spending pressure put on the federal government.
Posted by GumboPot
Member since Mar 2009
118664 posts
Posted on 1/10/18 at 12:44 pm to
quote:

Bond rates need to rise. They have been artificially low for way too long.




They've been artificially low due to central banks injecting money into the monetary system via bond purchases.
Posted by DallasTiger11
Los Angeles
Member since Mar 2004
11804 posts
Posted on 1/10/18 at 12:44 pm to
quote:

To be honest again, if the US closed it's economy to trade with China, they'd hurt for a year or two.

And wouldn't notice or care at all in about 5. That's just how big they are now.



This is such bullshite.
Posted by GumboPot
Member since Mar 2009
118664 posts
Posted on 1/10/18 at 12:49 pm to
quote:


This is such bullshite.



Right.

The U.S. economy is $19 Trillion.

The Chinese economy is $11.5 Trillion.

We have about 320 million people. China has 1.4 billion people.

They need us a lot more than we need them. We also have alternatives to China...like several other Asian nations and India.
Posted by goatmilker
Castle Anthrax
Member since Feb 2009
64161 posts
Posted on 1/10/18 at 12:52 pm to
We could turn Mexico into China lite in ten years or less if we had to and reduce illegal immigration at the same time. Hmmmmm
Posted by Stingray
Shreveport
Member since Sep 2007
12420 posts
Posted on 1/10/18 at 1:27 pm to
quote:

I'd love to see spending pressure put on the federal government.


Yes, exactly what I thought when I read it. Did we think cheap money would last forever?
Posted by keakar
Member since Jan 2017
29883 posts
Posted on 1/10/18 at 1:53 pm to
really easy numb nuts, we put nuclear weapons in japan AND south korea and china is just a nobody and is no longer the dominant power in the region when everyone else around them has nukes.

game set match,
Posted by BaylorTiger
Member since Nov 2006
2083 posts
Posted on 1/10/18 at 3:11 pm to
No offense IB that had nothing to do with North Korea...

It might be making headlines in your news circle but it was a highly anticipated, in many senses, economically practical move and if anything, was related to trade, not DPRK.
Posted by I B Freeman
Member since Oct 2009
27843 posts
Posted on 1/10/18 at 3:32 pm to
they are the largest foreign holder most of the time---it jumps between China and Japan. Both have enough holding to significantly attack our economy.
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