Clinton Urges China to Keep Buying Treasuries

[MacNut]

Feb. 22 (Bloomberg) -- U.S. Secretary of State Hillary Clinton urged China to continue buying Treasury bonds to help finance President Barack Obama’s stimulus plan.

The two nations’ economies are intertwined and it wouldn’t be in China’s interest if the U.S. were unable to sell its government debt, Clinton said in an interview with Shanghai’s Dragon Television today. China knows it needs a healthy American economy as its biggest export market, she said, adding that the U.S. must take “drastic measures” to stimulate growth.

“We are truly going to rise or fall together,” Clinton said. “By continuing to support American treasury instruments, the Chinese are recognizing” that interconnection.

China, the largest holder of U.S. government debt, boosted purchases by 46 percent last year to a record $696.2 billion as the global recession spurred demand for the securities. The Chinese government said last week it plans to keep buying Treasuries, adding that future purchases will depend on the preservation of their value and the safety of the investment.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ahowJ.dThUNs&refer=home
Is this good or bad?

[.Andy]

Is this good or bad?
What do you think?

Why have threads become a minimal content test lately fishing for opinion without posters disclosing theirs?

[MacNut]

Everyone says we should not be in debt to China, isn't this just adding to that. So long term is this really a good idea.

[.Andy]

Everyone says we should not be in debt to China, isn't this just adding to that. So long term is this really a good idea.
Who's everyone? Are they the same people that trumpet free market ideology except when it's other countries being involved in the free market?

[fivepoint]

Is this good or bad?

It's scary, is what it is. People have been talking for a while about the U.S.'s credit rating being lowered, and this represents a real-world example of what that actually means.

China isn't sure that, if they do buy the notes, any of the money they'll be loaning will actually come back to them. If they don't buy the notes, they can almost rest assured that the Fed will simply print the money plunging us into Hyper Inflation at which point all the money we pay old loans back with will be virtually worthless... (think paying for groceries with a wheelbarrow full of money)

http://1.bp.blogspot.com/_cvdgPlEKW9k/SVwrwooMMCI/AAAAAAAAANk/ObCdsTxhhbc/s400/money_wheelbarrow3.jpg



VERY SCARY STUFF.

We hate you guys. Once you start issuing $1 trillion-$2 trillion we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do.

-- Lueo Ping, China Regulatory Commission (02/11/09)