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Subject: Nasty rumor- Chinese leadership in state of shock over economy
Le Zookeeper    11/25/2009 12:47:16 AM
Some sources reveal that China is in a deep state of shock as to the next course of action with its huge dollar reserves and bonds. Chinese inaction as to the next step to get out of US dollars and US dollar denominated bonds etc are non-existent. It seems the leadership is heading to the inevitable- tell its people they got short changed by the US/UK banking/government nexus of a cool $2trillion dollars. Just how does a government break that news to a country with a much smaller economy in real dollar terms than US or EU. Would you think that would cause another revolution?
 
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YelliChink       11/25/2009 1:26:05 AM
Unlikely. Chinese people fear instability more than commie's rule of terror/stupidity. The likely scenario is that commies will retaliate in another front.
 
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Le Zookeeper    Yelli   11/25/2009 2:24:13 AM
The reports I am getting again point to the fact that the only way China, Russia, Japan, EU and other lenders of the US can save face with their own population is to take action against US. Which obviously will be war sooner or later as US also will not tolerate action against it.
 
Just how do u go on TV and say, "Comrades since the great leap forward u worked hard made TVs, refrigerators and exported it thank you for your hard work but the dollars we got paid with are now worthless we have no money to pay you, would you please comeback to work and make more TVs and refrigerators so that we can recover the losses".
 
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YelliChink       11/25/2009 2:29:07 AM

The reports I am getting again point to the fact that the only way China, Russia, Japan, EU and other lenders of the US can save face with their own population is to take action against US. Which obviously will be war sooner or later as US also will not tolerate action against it.



They won't, but a shooting war is not the only retaliatory act in their book. If they can somehow get other countries to accept RMB for materials, then sell manufactured goods to them to get RMB back, they can get away with it as mere tactical loss for greater strategic gain.
 
They also don't need to shoot themselves. There are plenty surrogates in the world ready to whore themselves in exchange for gun to power.
 
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Nanheyangrouchuan       11/30/2009 12:19:44 AM
The RMB needs to float and the PBOC knows this.  But the CCP is so control obsessed that they can't let go.  They also can't let Chinese companies operate as independent companies, all PRC companies with an international presence function as an arm of PRC diplomacy and power.
 
We also know that China's vaunted cash reserves were in a considerable number of financial industry and manufacturing stocks, which have nose dived.
 
And let's speculate how much China had invested in Dubai World????  The estimates on CNBC say >$200 million.  This is a sovereign state that looked great on paper and is as hollow as a chocolate bunny. And many other small nations within the EU and even Asia are suddenly under the microscope.  What is China's exposure?
 
Lastly, while China's car mfg numbers are up, gas sales are flat.  No one buys a car and doesn't drive it.  There is alot of speculation that China fed stimulus money to SOEs to buy and warehouse cars.  Likewise with overall mfg productivity, lots of impressive numbers to back up the 9% GDP claim but electricity demand and production has only increased enough to cover winter heating.
 
 

 
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FJV    Dubai   11/30/2009 3:06:33 PM
This is a sovereign state that looked great on paper.
 
How did this look good on paper? Because it never did look good to me.
 
 
 
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Nanheyangrouchuan       11/30/2009 5:32:55 PM

This is a sovereign state that looked great on paper.

 

How did this look good on paper? Because it never did look good to me.


 

Hindsight is 20-20 and Dubai could have weathered this storm much better if it hadn't believed in its own hype and massively overbuilt.  The "build it and they will come" model is dead and Dubai is one of those examples, but Dubai will survive because the rest of the middle east doesn't have the ability to attract the necessary minds and financing to have a financial center other than Dubai. 
 
But this isn't about Dubai, this is about the smoke around China's finances getting thicker.
 
 
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Hsunder       12/5/2009 4:16:59 PM

Some sources reveal that China is in a deep state of shock as to the next course of action with its huge dollar reserves and bonds. Chinese inaction as to the next step to get out of US dollars and US dollar denominated bonds etc are non-existent. It seems the leadership is heading to the inevitable- tell its people they got short changed by the US/UK banking/government nexus of a cool $2trillion dollars. Just how does a government break that news to a country with a much smaller economy in real dollar terms than US or EU.

Would you think that would cause another revolution?

Keep dreaming moronic dreams on this board while people in China keep making more money.

Hmmm...yes, it's such a problem to have so much money to worry about. And the US denominated reserves are much less than $2 trillion, and are slowly being lowered as it diversifies.

Or are you actually so fanatical that you'd rather see the US dollar collapse completely today (before China can diversify), bringing the entire US economy down, just to slightly inconvenience China? Remember, those reserves are not actually necessary for China's continued progress. There's more for China where that came from ;-)




 
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Nanheyangrouchuan       12/6/2009 9:22:45 PM



Some sources reveal that China is in a deep state of shock as to the next course of action with its huge dollar reserves and bonds. Chinese inaction as to the next step to get out of US dollars and US dollar denominated bonds etc are non-existent. It seems the leadership is heading to the inevitable- tell its people they got short changed by the US/UK banking/government nexus of a cool $2trillion dollars. Just how does a government break that news to a country with a much smaller economy in real dollar terms than US or EU.



Would you think that would cause another revolution?

Keep dreaming moronic dreams on this board while people in China keep making more money.


Hmmm...yes, it's such a problem to have so much money to worry about. And the US denominated reserves are much less than $2 trillion, and are slowly being lowered as it diversifies.


Or are you actually so fanatical that you'd rather see the US dollar collapse completely today (before China can diversify), bringing the entire US economy down, just to slightly inconvenience China? Remember, those reserves are not actually necessary for China's continued progress. There's more for China where that came from ;-)



Everyone knows that China is just a hollow dream, well, hollow except for crushing pollution and tens of millions of men who will never have a real girlfriend or wife.  China also is running out of food because of its pollution, so it must import from Brazil, Australia and Africa.  Where will China get its water from?  Fight a nuclear war with India or buy from the Russian mafia?  
 
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