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From: China 山东(shan dong) 济宁(ji ning ) @paulfox1 Time : 2016-12-15 22:22:34 #15

If the US wasn't so pre-occupied with world-domination and invading poor countries, it may consider spending less on its military, and more on paying off its debts.

From: China 江苏(jiang su) 苏州(su zhou ) @JFjane Time : 2016-12-17 10:03:05 #16

US rate hikes attracts more hot money fluing back ,then affects many bubbles in stockmarket ,real estate ETC ( property bubbles)

But strong US dollars could cause American ownself fanacial crisis ,an old Chinese saying:搬起石头砸自己的脚,--lift a stone but drop it to his own feet.

Now China is cutting our US debt holdings , 30billion a month , we realise the risk ,and we now are investing  the money to " ONE BELT ONE ROAD" as a pool .

Standard & Poor gives the USA sovereigin rating 2A+,when the world doesnt believe the strong US dollars, what would happen??after thinking it over ,feel horrible... We dont know who would be the last one of the relay race to hold the US debts.

From: China 辽宁(liao ning) 沈阳(shen yang ) @AchrisT Time : 2016-12-17 16:05:25 #17

@ Anonymous25450

@ JFjane

Hi JFjane, whom ever; I am sorry to say you have a few misstatements in your response.

1. The US government has never defaulted (or said “Your sorry) to any investor, country or person alike.

2. All the banks still in existence today have paid back their bailout money, those that didn’t have been closed.

Not like China the banks are owned by private funds, not the US Government. In China, the PRC owns a majority share in the banks.

As far as losses; the Chinese government does pay back the losses absorbed by investors of the stock market (the fall of 2016), just as the US government doesn’t pay back the losses of the markets. The markets are what they are. If you invest money in the market you are willing to take the gains as much as the losses of your own risk.

Your statement “The rising debts make the more interests cost, if the interest rate is 1.5%, then the investment profit rate must be higher than 1.5%. Otherwise, the debts and service cost may affect economic growth rate.” Is somewhat correct as the interest rates do effect the economic growth of an economy. But the rate is usually much higher the 1.5% you can look back in history and go back to the time when Volcker was the fed chairman. Whom raised the rate to 21% and brought a screeching halt to the economy.  Green span raised the rates in small moves of .25 and .5 % the economy still grew.

Last week the interest rates were raised and the market responded positive to the move. It all depends on what the companies can borrow at and how much the rate is going to eat at the bottom line.

If we maintain the interest rate at 1.5% as you indicate the banks are not loaning money to grow the economy. They would rather invest in guarantee vehicles like the US bonds. or little more risk the State bonds. Investing in such strengths the dollar not the economy. As we have seen since the 2008 fall.

Your statement “ … USA … [government] is like most Americans ,using tomorrow money ,enjoy … [nowadays] life.” In a country that runs a trade deficit, borrowing is need to maintain the economy. Plus, because only in a few times in the history has the government ever directly invested in the private companies. This action is not taken lightly and is against our constitution as our government is not allowed to make profit or have ownership in business.  China, does it all the time as it has a large stack in the companies it owns. The bailouts by the US government is seen as an evil necessary, to protect the taxpayers from greater losses.  

In Anonymous25450 statement “Haa haa, dont get over confident to ever getting this money back !!!! USA is very good at trade war or trade blockade to avoid paying back !!!” This is a falsity agreement. This has never happened in the history, unless the country was found to be financing Terrorism, then the money is still owed but put on hold, China as all countries do the same. It is paid when either the country stops supporting terrorist, or are found to be not a valid claim. If you believe so state your facts not opinions.

If you are looking for facts and understanding a basic economic course would help you both out, monetary and fiscal policy is hard to deal with but at least a course could help in some understanding.

From: China 江苏(jiang su) 苏州(su zhou ) @JFjane Time : 2016-12-18 22:28:40 #18

AchrisT:

yours :All the banks still in existence today have paid back their bailout money, those that didn’t have been closed

On September 15, 2008, 158 - year - old veteran Wall Street investment bank lehman brothers collapse,  Before the collapse of lehman's assets to $639 billion, covering more than 40 countries around the world.It caused Iceland suffered the economic crisis ,and many European countries bought its debts.

yours:If we maintain the interest rate at 1.5% as you indicate the banks are not loaning money to grow the economy

I meant the public debts ,not bank debts ,and the interest rate is my suppose..

The US government has never defaulted (or said “Your sorry) to any investors

I hope so too ,it needs to be proved in the future ,no QE to dilute the debts

 

The bailouts by the US government is seen as an evil necessary, to protect the taxpayers from greater losses.

 Federal Reserve is private bankers that represents the benifits of the private banking group, so Wall street earn more profit than other buiseness(profit is eaten by the banks).The goverment is like an agent. sometimes goverment needs to give rules to guide the proivate bankers to avoid the finacial risks.

Our goverment owns 80% share of the  four main banks.trustworthness based on nationality credit,.No chinese would believe the four main banks would bankrupt...

 

Sorry as you said ,I need to learn more knowledge to talk about the topic here ,just my limit and narrow opinions .thanks.

 

From: China 辽宁(liao ning) 沈阳(shen yang ) @AchrisT Time : 2016-12-19 18:39:56 #19

 

@JFjane

I will be happy to teach you from what I have learned through my MBA in Economics and the 23 years’ experience in the industry. But I don’t think here is the place. You forget that money is not backed up with anything but supply and demand. In China’s case, what they say it is worth.

Governments don’t have to use bonds to cover spending, they have the power to print as much as they want and spend it as they please.

Bonds are a tool for the Central Banks to maintain the Float (the amount of currency in the market). Their interest is inflation, deflation, and interst rates. Not private banks interest.

Lehman Brothers was a bank owned by investors, not the US Government.

China banks are owned by PRC, the Executive Officers are Party members so they are owned and operated by the government. So, you are right about the Banks never going bankrupt unless the Government goes bankrupt, thrown out of power or choose to claim the currency worthless.

US Dollar is a marketable item and has to answer to supply and demand of the market. The currency is release into and taken from the market. This action allows for the float to be known and a true value rated by the market.

The RMB is not a marketable currency and answers to what the Chinese Government says it is worth. Is it worth what the Chinese Government says, by all calculations in the west, it is stronger then what it is stated at. But, the Float is still only guess at and could be honestly or dishonestly stated.

In the history of China and the US, the US has never default on money borrowed, a payment or interest, China has twice. The two times were total defaults, meaning they didn’t even settle a payment to pay it back. If I was an investor I would think a country the always pays it bills speaks more compared to a country that has said twice “screw you, we aren’t paying.”

I love the subject, lived it for 23 years of my life. I am even happier to teach it.

Anonymous25530
@Anonymous25530 Time : 2016-12-25 00:28:09 #20

The Reserve will probably raise interest rates and blame Trump for any economic fallout. Markets are up now. RMB exchange rate is at 6.8 RMB to $1. Manufactoring is already returning to the US, providing more revenue and therefore we're able to pay down the debt. Mr. Trump will make major cuts in government spending. Infastructure will be paid for  by tariffs and increased taxable income. A FairTax (www.fairtax.org) would stimulate the economy even more and tax the underground economy, save medicare and social security. It wouldn't hurt the poor or elderly due to the prebate for essential items. Things are looking up as the globalistsD, media, establishment, Soros, Republicrats, neocons, banking and special interests have all been defeated!!

From: United States North Carolina Bahama @ScorpioTiger Time : 2017-01-03 13:11:22 #21

As an American, I will offer a gesture to pay off our debt to China. Free massages to all Chinese ladies until debt is paid in full. My hands will be tired but I will smile knowing I'm doing my part to pay our debt.

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