China Hopes U.S. Keeps Deficit to Appropriate Size

They can't be serious. The US has no intention of doing that. The deficit is going to grow by trillions/year for years to come. The corporate bailouts have just begun.

"(AP) BEIJING (AP)- Days after coming to power in September, Japan's new prime minister broached forming a new East Asian trading bloc with rival China - one that would exclude the United States."

Japan needs to go its own way. We need to close our base on Okinawa and elsewhere in Japan. They can bear the cost for their own defense. When N Korea threatens them, they can deal with it their own way.
The WTO is the generally accepted trade regulator, so a new Asian trade group should not be a threat to the US or other Western nations. Our partnership with China supercedes any benefit we get from trading with Japan's MNCs, IMO.

hahaha...Good Luck!! I want the same thing, and we're going to spend ourselves out until we become a province of China the way things are going.

Fact,Japan holds more of our debt than china,they are playing a waiting game,in the not to long term ,were screwed.History has its own legs.

Is an appropriate deficit an out house?

In the days of peleg the earth was divided...did they learn how to divide?

The Table of Nations....

How did Jesus turn the tables of the money changers? A golf game?

Or sufi dancing to save on Chiropractic charges?

For this porpoise I was sparred....Eli Eli Lamana sabacthani....

Or for the feminine armies of God...

Darren M wrote:

hahaha...Good Luck!! I want the same thing, and we're going to spend ourselves out until we become a province of China the way things are going.

I think you are safe, don't think china wants the US to be a chinese province....too many whiny people...they got enough of their own.

Major:
So true, not just of the US. So many people think they're 'owed' something by the guy above them. Well, if you think that, what about the guys below YOU? What do you owe them and where does it stop? We all have to be responsible for ourselves - it's called being an adult. Like I tell the young people around me who were gung-ho for 'free' health care, if you think the government is going to take care of you, I have two words for you: Hurricane Katrina. Get up off your duffs and take care of yourselves.

Question: Why can't countries that have surplus money keep their money under the beds instead of lending it to the US? Or why don't they lend the money to Europe ?

Any idea??

MajorMalfunction wrote:

<quoted text>
I think you are safe, don't think china wants the US to be a chinese province....too many whiny people...they got enough of their own.

I don't see where we owe anybody ANYTHING. We give more money in foreign aid, and help everybody in the world more than most countries combined. Maybe we should ask the world for a handout, instead of a loan. Of course, after Iraq, it would make it a little difficult to play that card.

If you were referring to me as being whiny, or wanting a handout, you've got it all wrong. I am a retired Infantryman, and worked hard, and still work hard for everything I have, while my government spends billions of $$$ on programs that aren't working and pet projects.

However, before you say anything about American Government, you might want to spend some time looking at your own. I can talk crap about my "leaders", as I am an American.

Darren M wrote:

<quoted text>
I don't see where we owe anybody ANYTHING. We give more money in foreign aid, and help everybody in the world more than most countries combined. Maybe we should ask the world for a handout, instead of a loan. Of course, after Iraq, it would make it a little difficult to play that card.
If you were referring to me as being whiny, or wanting a handout, you've got it all wrong. I am a retired Infantryman, and worked hard, and still work hard for everything I have, while my government spends billions of $$$ on programs that aren't working and pet projects.
However, before you say anything about American Government, you might want to spend some time looking at your own. I can talk crap about my "leaders", as I am an American.

I was saying in general...not you personally...unless of cause you regard yourself as 'whiny' person...as for 'our' leaders I already know they are crap...not in disagreement there...

Redneck wrote:

Is an appropriate deficit an out house?

Can an outhouse be inhouse?

the examiner wrote:

Question: Why can't countries that have surplus money keep their money under the beds instead of lending it to the US? Or why don't they lend the money to Europe ?
Any idea??

Because if they stopped propping up the US dollar then the international monitary system collapses and the value of the US securities and dollars which these countries hold would be wiped out. From a Chinese perspective it is even advantageous to have the financial muscle that could potentially destroy America because they can use it as a bargaining chip.

Long term many countries including China are seeking ways to reduce their dependancy on the US dollar if they have not already sold their holdings. Some countries (Brazil, Russia, India, and China) now have trade agreements in place that utilise their own currencies rather than the US dollar for trading. There is every reason to believe that more countries will join them and the dollar will depreciate accordingly.

Also long term may well see a move from the US dollar towards a basket of currencies for international trade. After all, why would you buy an American dollar security paying interest at 4% when it's depreciating against your own currency at a rate of 10%? I suspect this is one of the reasons that China has pegged her currency to the dollar to ensure that she can cushion herself against dollar depreciation.

We can also expect the price of gold and other commodities to increase as the spare cash is not being invested in real goods rather than America's overvalued dollar. Inflation is just around the corner folks.

That's like asking a drug addict to stop taking more drugs.

Darren M wrote:

<quoted text>
I don't see where we owe anybody ANYTHING. We give more money in foreign aid, and help everybody in the world more than most countries combined. Maybe we should ask the world for a handout, instead of a loan. Of course, after Iraq, it would make it a little difficult to play that card.
If you were referring to me as being whiny, or wanting a handout, you've got it all wrong. I am a retired Infantryman, and worked hard, and still work hard for everything I have, while my government spends billions of $$$ on programs that aren't working and pet projects.
However, before you say anything about American Government, you might want to spend some time looking at your own. I can talk crap about my "leaders", as I am an American.

America has deficits in their trading and in their current account. That is a debt owed to other nations who have managed their budgets more prudently. If America has chosen to spend more than they earn buying influence through foreign aid or by sending their soldiers to impose military solutions on other nations then that is your country's responsibility and not the responsibility of other nations.

If America considers that they are doing the world a big favour by fighting wars halfway round the planet then perhaps she should have charged other countries for the service and clawed some of the money back. However, until you can find some customers to pick up the bill then it is still your choice and your financial responsibility.