China economic tone-setting conference ends with vow to maintain stable growth http://news.xinhuanet.com/english/2008-12/10/content_10484771.htm
On Dec 10, 5:04 pm, Justice <[EMAIL PROTECTED]> wrote: > I had posted the RGE Swaps article here in this part to which I added: > > ============ > It's "nice" that the fed is able to borrow for "free" -- even if it > is > 28 days, even as they loan out money to these same entities at 1% -- > but somehow it just doesn't make sense. > > China doesn't seem to be in the mode of "cashing in" -- they have so > much in savings that they can tap -- I suspect they are just waiting > for maturity, like everyone else. It just won't be a roll over -- > which means coming up with cash to pay out. Have no idea when they > are due, but I do recall Greenspan telling Bush that it would be > harmful to pay off long term debt in advance -- but that was 8 years > ago. > > As I understand it, it takes about 7% growth in that country to stay > even (although 10% is what is reported) and they are still chugging > along from between 8-9%. > > On Dec 9, 9:35 pm, NovaeMeme <[EMAIL PROTECTED]> wrote: > > NovaeMeme View profile > More options Dec 10, 9:44 am > > From: NovaeMeme <[EMAIL PROTECTED]> > Date: Wed, 10 Dec 2008 06:44:10 -0800 (PST) > Local: Wed, Dec 10 2008 9:44 am > > > China doesn't seem to be in the mode of "cashing in" -- they have so > > much in savings that they can tap -- I suspect they are just waiting > > for maturity, like everyone else. It just won't be a roll over -- > > which means coming up with cash to pay out. Have no idea when they > > are due, but I do recall Greenspan telling Bush that it would be > > harmful to pay off long term debt in advance -- but that was 8 years > > ago. > > As I understand it, it takes about 7% growth in that country to stay > > even (although 10% is what is reported) and they are still chugging > > along from between 8-9%. > > I don't have the time to fully reply to this, and let's just say the > whole thing is so complex that even I can't follow it. However, with > respect to China, those savings you refer to are in DOLLARS and > TREASURIES. And it has already been noted that there has been a drop > in their purchasing. > > =================== > Xi -- how much of the "savings" is in sovereign wealth? How much of > the sovereign wealth has been put into US bonds, etc.? > > ===================================== > Original post which you might not have seen: > > > > > > > > For the first time ever, the Federal Government was able to borrow > > > > > money from the open market for FREE. That’s right… no interest payment > > > > > at all for Uncle Sam. > > > > > The most recent auction of $30 billion worth of 28-day Treasuries had > > > > > four-times the number of buyers than they had bonds, and at zero > > > > > percent interest. First time that’s ever happened. > > > > > It’s a sure sign that investors are scared. They’d rather park their > > > > > cash with the government and get no appreciation – just the principle > > > > > back – than risk it in the stock market or even a bank account. > > > > > And it’s not just the four-week bonds that are pegging all-time low > > > > > interest rates. On Monday, $27 billion worth of three-month Treasury > > > > > bills were auctioned with an infinitesimally small 0.005% rate – the > > > > > lowest on that particular term since the government first issued them > > > > > in 1929.- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
