tag:blogger.com,1999:blog-11027528911364475.post1001340143501446648..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: China Owns Lots of PaperJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-11027528911364475.post-66965577779588089562011-01-12T14:34:21.408-08:002011-01-12T14:34:21.408-08:00"So what is much more likely in my opinion? I..."So what is much more likely in my opinion? In the years to come perhaps a slower growing China, a much stronger Chinese currency, or a less export driven / more internal demand driven China... or perhaps all three."<br /><br />Or the value of their paper gets inflated/defaulted away. Your options are the preferable but history suggests that inflation and/or default are often sovereigns' strategies in situations such as these.<br /><br />One thing is sure. The old saying about what cannot continue not continuing applies in spades here.Tom Lindmarkhttp://www.butthenwhat.comnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-33951698438849832132011-01-12T08:50:40.163-08:002011-01-12T08:50:40.163-08:00There have been two prior occasions when a country...There have been two prior occasions when a country's reserves hit the 5% of world GDP mark. The US in the late 1920s and Japan in the late 1980s. Hmmm, not particularly hopeful precedents for China.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-2318823469629275402011-01-11T20:47:02.672-08:002011-01-11T20:47:02.672-08:00China cannot stop. The point is that demand abroa...China cannot stop. The point is that demand abroad cannot stay at the same rate. In addition to Chinese demand I'm curious about demand changes from the EU as they deal with their madness.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-41268019558765818132011-01-11T19:17:23.731-08:002011-01-11T19:17:23.731-08:00Why would China want to stop at 125% of US GDP?
I...Why would China want to stop at 125% of US GDP?<br /><br />It looks to me that China has the whole world in the death spiral.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-89460057739244648182011-01-11T13:58:12.872-08:002011-01-11T13:58:12.872-08:00Yep I think you are on to something not addresses ...Yep I think you are on to something not addresses in the press yet. Bonds prices have fallen since September in spite of QE2. I've been wondering for a while if this hasn't been due to a shift in demand abroad.Anonymousnoreply@blogger.com