Since President Nixon opened the doors to China back in the 1970s, the relationship has certainly been interesting – and complicated. Of course, now China is a critical piece of the global economy and a huge funder of U.S. debt, which is even more important in light of our massive deficit spending.
So, will China continue buying up our Treasuries? Perhaps so. This is according to a piece in the FT. The director general of the China Banking Regulatory Commission, Luo Ping, said there is really no other place to put lots of cash (at least in a safe way). In fact, he wasn't too thrilled with the U.S.'s financial moves over the years. And, he even thinks the U.S. dollar will continue to sink (yes, not really a ringing endorsement from our financial sugar daddy).
Interestingly enough, the FT says that Luo said, "We hate you guys."
OK, there may have been a loss in translation somehow. But, for the most part, China has lost a bundle investing in the U.S., especially with major equity stakes in financial institutions like Blackstone (NYSE: BX).
Tom Taulli is the author of various books, including The Complete M&A Handbook
Why isn't Bank of America updating its shareholders on CEO situation?
Before the bell: Futures sharply lower on Dubai's debt problems
Will Rich Ross really have a positive impact on Disney's movie operations?
Reader Comments (Page 1 of 1)
2-12-2009 @ 2:06PM
Toy said...
I dislike China just as much as they hate us .I don't think we owe China a dime they just like our money and when we start cutting off the money then they hate SO who cares what they like,take care of ( AMERICA) screw China