Comments on: The China-Once-Again-Investing Corporation

By: Brad Setser: Follow the Money » Blog Archive » The China-Once … | 中国风投

Fri, 12 Jun 2009 22:59:42 +0000

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By: Too Much Fed

Too Much Fed — Fri, 12 Jun 2009 05:58:11 +0000

Howard Richman said: “If the People’s Bank of China planned to support the dollar for another 2-3 years or so, and then pull the plug, then we would be seeing the precise yield curve that we are seeing.”

So is the chinese intent to bankrupt the lower and middle class of the USA and the USA gov’t and then dump them into third world status???

Howard Richman said: “It could be that Bernanke will be the last central banker in the world to figure out that his decision to ignore the trade deficits is taking the American economy directly toward the edge of a cliff.”

Are you sure that bernanke, greenspan, and the fed are not “in on the scheme”???

By: Too Much Fed

Too Much Fed — Fri, 12 Jun 2009 05:52:20 +0000

FollowTheMoney said: “unfortunately, in my view the Federal Reserve collapses within 5 years (perhaps sooner).”

Unfortunately???

How about the sooner the better?

Then ABOLISH it. Then make it illegal with a constitutional amendment that allows anyone to sue to stop it.

By: Too Much Fed

Too Much Fed — Fri, 12 Jun 2009 05:43:27 +0000

bsetser said: “unless, of course you believe that the policy response to the crisis is sufficiently inflationary to generate inflation amid huge amounts of spare capacity globally”

I think you are ignoring one possibility. Supply goes down in the USA, the lower and middle class and the gov’t become basically bankrupt, and the dollar goes down. The dollar going down “cuts the USA off” from spare capacity globally.

By: Forex Reserves: Spend’em if you got’em « Oxford SWF Project

Forex Reserves: Spend’em if you got’em « Oxford SWF Project — Thu, 11 Jun 2009 14:03:34 +0000

[...] owner of Hummer. The China Investment Corporation just increased its holdings in Morgan Stanley (and is generally seen to be more active in financial markets). PetroChina will purchase a 45.5 % stake in Singapore Petroleum Co. The list goes [...]

By: FollowTheMoney

FollowTheMoney — Thu, 11 Jun 2009 13:24:08 +0000

May Chinese exports dropped record 26.4% year over year, yet U.S. government statistics report increase in May retail sales including:

“Sales at clothing stores rose 0.4%”

I know price of oil went up, but some things just don’t add up….

By: Minzu

Minzu — Thu, 11 Jun 2009 12:41:35 +0000

Glen,

Mr. Jiang said the Chinese are convinced their labour could solve the oil sands’ high-cost challenge and even temper world oil prices, which to some extent are influenced by the cost of producing the most expensive barrels. ”

Even if prof Jiang has a Canadese passport we will count him as true patriot. Some day millions of workers will arrive, shovels at the ready.

By: Rien Huizer

Rien Huizer — Thu, 11 Jun 2009 11:19:15 +0000

Purple,

Charity among states is pretty rare. Would you like your government to be charitable to foreigners? With your tax dollars?

By: purple

purple — Thu, 11 Jun 2009 09:55:41 +0000

Yes, because China’s money was welcomed with opened arms by Rio Tinto and Unocal, for instance.

China will be mostly allowed to buy garbage (Hummer) and US Treasuries.

By: Indian Investor

Indian Investor — Thu, 11 Jun 2009 07:08:23 +0000

China is collaborating with Iran to develop their local refining capacity. Gazprom is also investing in this. Iran is one of the world’s largest producers of crude oil but due to the US-imposed sanctions the country is dependent on importing refined petroleum products. The US strategy is to use Iran’s dependency on imported gas, along with sanctions against refining there, to bring that country to its knees.
Secondly, the US wants to divert Iran’s crude oil westwards, to reduce Europe’s dependence on Russian oil. Whereas Russia and China aim to have the oil flowing East from Iran, to Pakistan, and then to China or India.
In situations like this the consideration is that the US doesn’t want a commercially viable and very profitable business to go on.
The US prevented first Essar and then the Reliance Group from doing business with Iran.
Due to the Government of India’s obsequiousness to the US,they had little of no ability to defend the Indian companies’ right to operate in the lucrative domestic Iran oil and gas market.
Brad Setser is projecting an image in this post where the US is thought of as a very open, capitalist country that is oh-so-goody-goody. And the evil China funds can’t be relied upon to be commercial, and not strategic in their approach. In actuality, the US can’t be trusted to operate in a free-and-fair manner at all.
The case of intervention with Reliance was using the US EXIM Bank’s $900 million guarantee for Reliance’s funding. The US congress threatened to withdraw the guarantee if reliance were to continue to supply petrol to Iran.