Cancun and China

Re: RE: [spiers] Cancun and China

Yes... all true! But the Chinese already have discovered USA financial
instruments... and that is the problem. China is the #2 foreign holder of US
Treasuries behind Japan, as well as stocks, dollars, etc. If the crybaby
millionaires in USA get their way and we slap a 27% duty on things Chinese, we
risk
their goods stop coming in, and our dollars making the round trip back to
finance
our govt activity. The problem is not whether China will discover investing
in usa... the problem is if they decide to stop.

The problem is China has refused to import inflation from USA, or more
precisely, import the effects of printing too many dollars. When the plan of
the
bad guys in our govt & big biz does not work, they want to go to "war" to change
the subject.

Milton Friedman recently said "The use of quantity of money as a target has
not been a success, I'm not sure I would as of today push it as hard as I once
did." Greenspan recently admitted the Fed theories are wrong, and now they
are working on hunches.

At least they are willing to admit they are wrong, and no one can say they
did not give fair warning. If they are wrong, who is right? Those "austrians"
have proven pretty reliable in their analysis. (and as a side note, see how
all this managed trade obliterates any "comparative advantage"? Comparative
advantage is only a theory, and only applicable in free trade scenarios. In
managed trade, obviously, matters having nothing to do with trade cause
distortions.

Happily, we work with frequency, not volume, so if and when the winds blow
ill, we'll just adjust accordingly.

John

In a message dated 9/24/03 3:18:28 PM, sparksor@sbcglobal.net writes:

as the Chinese
will, that you have to put the money to work at real rates of return and
no finer place than in American Banks (that loan money globally
quaranteed by the American Tax payors) and in american corporations
because of the

hugh amount of money to be placed. Saudi's are the largest holders of
Disney Stock. Guess they know a good money maker when they see it.

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