Re: [Marxism] China's holdings of US Debt

["Lüko Willms" <lueko.willms@xxxxxxxxxxx>]

On Tue, 3 Mar 2009 05:20:35 -0500, S. Artesian wrote:

> The basis of my contention is trade volumes between US-China, EU-China, 
> Japan-China, and that the size of the reserves are too large to be 
> exclusively "official" govt revenues, i.e. taxes, fees, licenses, 
> import/export duties.

   The reserves held by the central bank are not just based on government 
revenues, on the contrary. What before was gold, is now the USD, mainly in 
the form of US government bonds. 

  You yourself quoted: 

On Fri, 13 Feb 2009 01:00:47 +0100, S. Artesian wrote:

> Luo Ping, a director-general at the China Banking Regulatory Commission, 
said after a speech in New York on Wednesday that China would continue to 
buy Treasuries in spite of its misgivings about US finances.
> 
> "Except for US Treasuries, what can you hold?" he asked. "Gold? You don't 
hold Japanese government bonds or UK bonds. US Treasuries are the safe 
haven. For everyone, including China, it is the only option."
> 
> Mr Luo, whose English tends toward the colloquial, added: "We hate you 
guys. Once you start issuing $1 trillion-$2 trillion [$1,000bn-$2,000bn] . . 
.we 
know the dollar is going to depreciate, so we hate you guys but there is 
nothing much we can do."


Comradely yours, 
Lüko Willms
Frankfurt, Germany
--------------------------------
visit http://www.mlwerke.de Marx, Engels, Luxemburg, Lenin, Trotzki in Ge
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