Comments on: The one thing the US really exports to China http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/ Wed, 07 Jan 2009 22:53:34 +0000 http://wordpress.org/?v=2.6.1 By: Guest http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99269 Guest Sat, 25 Aug 2007 20:15:26 +0000 http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99269 I love this blog, but ... "It was well-known that USA, some Boeings apart, was exporting mostly debt and war" "and not wait 10-20 years to Chinese hegemony..." "china is just priting tons of RMB so it can pretty soon replace the dollar as the world currency." "BY the way if RMB is adjusted 40 % up then CHina might be the first economy in the world." ... some of the comments are getting crazier by the week. Chinese hegemony? Half the time any more I can't tell if I'm reading objective (if conflicting) analysis and opinion, or doom-peddlers and "China's Gonna Be #1" porn fantasies. I love this blog, but …

“It was well-known that USA, some Boeings apart, was exporting mostly debt and war”

“and not wait 10-20 years to Chinese hegemony…”

“china is just priting tons of RMB so it can pretty soon replace the dollar as the world currency.”

“BY the way if RMB is adjusted 40 % up then CHina might be the first economy in the world.”

… some of the comments are getting crazier by the week. Chinese hegemony? Half the time any more I can’t tell if I’m reading objective (if conflicting) analysis and opinion, or doom-peddlers and “China’s Gonna Be #1″ porn fantasies.

]]> By: Guest http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99268 Guest Thu, 23 Aug 2007 18:55:20 +0000 http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99268 http://arstechnica.com/journals/science.ars/2007/08/17/dark-matter-confuses-us-all http://3quarksdaily.blogs.com/3quarksdaily/2007/08/sean-carroll-on.html http://arstechnica.com/journals/science.ars/2007/08/17/dark-matter-confuses-us-all
http://3quarksdaily.blogs.com/3quarksdaily/2007/08/sean-carroll-on.html

]]> By: bsetser http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99267 bsetser Thu, 23 Aug 2007 18:49:59 +0000 http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99267 ethanj -- i have been meaning to revisit the whole dark matter debate. yes, the bea revisions imply more dark matter. the surge in valuation of us equity investment abroad has also created more light matter. and i continue to think that "tax arbitrage" explains a lot of dark matter -- the whining articles in monday's ft by foreign firms worried that they might lose a tax dodge only reinforced that sense. and that sort of feeds into koteli's comment ... ethanj –

i have been meaning to revisit the whole dark matter debate. yes, the bea revisions imply more dark matter. the surge in valuation of us equity investment abroad has also created more light matter.

and i continue to think that “tax arbitrage” explains a lot of dark matter — the whining articles in monday’s ft by foreign firms worried that they might lose a tax dodge only reinforced that sense.

and that sort of feeds into koteli’s comment …

]]> By: koteli http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99266 koteli Thu, 23 Aug 2007 12:06:33 +0000 http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99266 Hi, Brad, Menzie Chinn has a post about "How does China retain monetary autonomy" and a paper about capital controls in a paper by Ma and MaCauley for the BIS. Some comments would be appreciated. And Cassandra has a beautiful post, some extract: "That there has been a large transfer of wealth from savers and the equally-weighted American to military contractors, leveraged asset-buyers and their intermediaries is undeniable. Perhaps, in similar fairness we should create a look-back tax that assesses the gains (some or many ill-gotten) made from the asset inflation and money illusion and redistributes it the ordinary savers and pensioners? We can call it the Sowood Tax in sympathy with Mr Larson's magnanimous gesture of returning previously-earned performance fees to investors following his Fund's recent debacle. America is not for wont of wealth, but is for wont of more disperse distribution of it. When however the distribution is sooo skewed, taxing the average to save the average citizen seem reasonably daft, given the enormous tax holidays and munificent gifts adorned upon the upper-most percentiles. Perhaps the time has come for more meaningful sacrifices that begins to tackle what almost every objective observer sees as a way of life that depends upon unsustainable consumption, encouraged by absent levies upon the many externalities this life spawns. The bubble, is perhaps in the American Way itself. And everyone sees it, but Americans themselves." MM is getting alone? Thanks! Hi, Brad,

Menzie Chinn has a post about “How does China retain monetary autonomy” and a paper about capital controls in a paper by Ma and MaCauley for the BIS. Some comments would be appreciated.

And Cassandra has a beautiful post, some extract:

“That there has been a large transfer of wealth from savers and the equally-weighted American to military contractors, leveraged asset-buyers and their intermediaries is undeniable. Perhaps, in similar fairness we should create a look-back tax that assesses the gains (some or many ill-gotten) made from the asset inflation and money illusion and redistributes it the ordinary savers and pensioners? We can call it the Sowood Tax in sympathy with Mr Larson’s magnanimous gesture of returning previously-earned performance fees to investors following his Fund’s recent debacle. America is not for wont of wealth, but is for wont of more disperse distribution of it. When however the distribution is sooo skewed, taxing the average to save the average citizen seem reasonably daft, given the enormous tax holidays and munificent gifts adorned upon the upper-most percentiles. Perhaps the time has come for more meaningful sacrifices that begins to tackle what almost every objective observer sees as a way of life that depends upon unsustainable consumption, encouraged by absent levies upon the many externalities this life spawns. The bubble, is perhaps in the American Way itself. And everyone sees it, but Americans themselves.”

MM is getting alone?

Thanks!

]]> By: Guest http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99265 Guest Thu, 23 Aug 2007 07:42:48 +0000 http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99265 "...ICBC... said it holds $1.2 billion of securities linked to U.S. subprime mortgages... Expectations that profits from lending will keep rising have made China's banks the world's most expensive..." http://www.bloomberg.com/apps/news?pid=20601080&sid=aIckNz2sd9ok&refer=asia “…ICBC… said it holds $1.2 billion of securities linked to U.S. subprime mortgages… Expectations that profits from lending will keep rising have made China’s banks the world’s most expensive…” http://www.bloomberg.com/apps/news?pid=20601080&sid=aIckNz2sd9ok&refer=asia

]]> By: Guest http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99264 Guest Thu, 23 Aug 2007 07:23:35 +0000 http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99264 "...Under Statement 157, this means fair value is measured using "unobservable inputs." While companies can't actually see the changes in the fair values of their assets and liabilities, they're allowed to book them through earnings anyway, based on their own subjective assumptions..." http://www.bloomberg.com/apps/news?pid=20601039&sid=aY8m0nta94GA&refer=home “…Under Statement 157, this means fair value is measured using “unobservable inputs.” While companies can’t actually see the changes in the fair values of their assets and liabilities, they’re allowed to book them through earnings anyway, based on their own subjective assumptions…” http://www.bloomberg.com/apps/news?pid=20601039&sid=aY8m0nta94GA&refer=home

]]> By: Guest http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99263 Guest Thu, 23 Aug 2007 07:01:13 +0000 http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99263 "...'Given the recent market dislocation stemming from the sub-prime mortgage crisis, this month's investor confidence readings may seem paradoxical... less so, however, once it is remembered that for every seller, there is a buyer... 'It is interesting to note that North American investors were net sellers of equities in early July. Their allocation decisions in August have allowed them to reacquire assets at much more attractive prices..." http://www.hedgeweek.com/articles/detail.jsp?content_id=162040 “…’Given the recent market dislocation stemming from the sub-prime mortgage crisis, this month’s investor confidence readings may seem paradoxical… less so, however, once it is remembered that for every seller, there is a buyer… ‘It is interesting to note that North American investors were net sellers of equities in early July. Their allocation decisions in August have allowed them to reacquire assets at much more attractive prices…” http://www.hedgeweek.com/articles/detail.jsp?content_id=162040

]]> By: Guest http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99262 Guest Thu, 23 Aug 2007 06:51:40 +0000 http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99262 "...In what has been the best short sale theme since 2002... many hedge funds have greatly benefited from the collapse in sub-prime mortgages through their short exposure to mortgage lenders and sub-prime mortgage-backed securities and indices... in reality many hedge funds were expecting such an event and were able to profit from the decline..." http://www.hedgeweek.com/articles/detail.jsp?content_id=162039 “…In what has been the best short sale theme since 2002… many hedge funds have greatly benefited from the collapse in sub-prime mortgages through their short exposure to mortgage lenders and sub-prime mortgage-backed securities and indices… in reality many hedge funds were expecting such an event and were able to profit from the decline…” http://www.hedgeweek.com/articles/detail.jsp?content_id=162039

]]> By: EthanJ http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99261 EthanJ Thu, 23 Aug 2007 06:40:00 +0000 http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99261 Brad, If the best US export is debt, what effect on national income? It appears that net income from international investments (US abroad and Foreigners' holdings in the US) remains stubbornly positive. The latest revisions (June 2007) have wiped out the slight negative dip from 2006. Is dark matter returning? BEA Link (pgs 9-12, especially): http://bea.gov/scb/pdf/2007/07%20July/0707_ita_annual.pdf Brad,

If the best US export is debt, what effect on national income? It appears that net income from international investments (US abroad and Foreigners’ holdings in the US) remains stubbornly positive. The latest revisions (June 2007) have wiped out the slight negative dip from 2006.

Is dark matter returning?

BEA Link (pgs 9-12, especially):
http://bea.gov/scb/pdf/2007/07%20July/0707_ita_annual.pdf

]]> By: AC http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99260 AC Thu, 23 Aug 2007 06:36:09 +0000 http://blogs.cfr.org/setser/2007/08/22/the-one-thing-the-us-really-exports-to-china/#comment-99260 Brad -- Thanks. I also thought that he was wrong. Brad — Thanks. I also thought that he was wrong.

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