China to US: 'We own you'

I suspect that some of the commentators on this particular news story have read too much into the words of Premier Wen, discerning some sinister designs on the part of a malignant adversary.

It's not unreasonable of Wen to request that the United States exercise caution with regard to its fiscal and monetary policy, given the sheer volume of treasury debt and U.S. currency that China holds. Yet many people seem to consider this arrogant and imperious, or to even imply an attitude of supreriority.

The truth is, Wen Jiabao has been very tactful in handling this particular issue, and the official media in China (the Xinhua News Agency and the People's Daily) are overwhelmingly conciliatory and positive in their depictions and coverage of the United States.

When I read news stories in the Chinese media, the incessant refrain is that the interests of China and the United States are now inextricably linked, and that the two countries should work together to deal properly with the current economic crisis. There is no tone of resentment or hostility.

Even when stories emerge which are critical of specific actions of the United States - for example, the recent incident involving U.S. ships in waters close to China, the publication of an official white paper criticizing China's human rights record, or the passage of a resolution by the U.S. Congress on Tibet, the Chinese official media always take pains to basically say, in spite of all these things, we still want out relationship with the United States to further develop and prosper.

Never a truer word spoken, if China cash them US treasury bills and Bonds the USA will be screwed! Hence why US puts up with toxins in Chinese made products and nary a ban on them. Even if it kills us!

China called it wants its toxic formula and toys back.

Oh yeah, child labour, toxins in most everything they make for the North American consumer means chemical and biological warfare against an enemy once banned, can be practised easily against us, if it is followed with a "I'm sorry, I don't know how all that mercury and lead got into your child's toy or food?"  I am sure your child wasn't planning on passing your family name for the next couple of generations though!  Ah the gentle art of Genocide, sterilization of a generation through consumer goods, and all without ever firing a shot!

This is why Obama got elected. The republicans had no new vision except cut taxes and the like.

The trade deficit is "not important", and wasn't important to Clinton, either. Basically, what you see in China is the best example of Lenin's famous quip that capitalists were such idiots that they would take bids on the rope to hang themselves, and that is exactly what Wall Street has done.

The robber barons have sold themselves.

But, China cannot avoid massive civil unrest without keeping us buying. So, their advantage is more apparent than real.

Go ahead, China, and make my day by dumping all that American currency. Your products will go through a price roof as if it had all been a cloud of smoke, which, in reality, was all that it was.

When, not if, China does this, their "lost decade" will really look bad. Their factories will be silent, but the unemployed workers will be very, very noisy.

We have the resource to dig our way out: energy; land; high tech; universities. China lacks energy, land, and its high tech are imitators, so far, not innovators.

China has a right to expect to be paid. China is like our ATM. On the other hand, China needs us to buy their goods. I don't think there's a clear cut villain here.

I don't see this as a matter of heroes and villains. It's more like  noire film with no real goo guys and lots of shades of grey in the detest ability scale.

I think the best way to look at this is to read Robert Greene's "48 Laws of Power" we can at least come to understand it then.

It's time to pay the piper.

China like the US both practise the same Mantra "We are a Can Do Society" the only caveat is the US is under way more scrutiny and laws to amass wealth like in China where business and an underground economy is King.  If you want to make your fortune Hong Kong is without a doubt the Number 1 country to do it in, by hook or by crook. Many Chinese businessmen and women have moxy and tradition we once had but lost. Remember the deal with a handshake and honour?  There are some Chinese businessmen who still hold to that tradition. Perhaps some get screwed by cheats.  But many Chinese businesses know each other and operate that way. Tradition and Honour something we once had but lost, in the legalese brought on by Lawyers looking to screw each other with loopholes.  

China is a peaceful country. If US didn't shit thing, why did China say so?

I really do not understand what Chairman Wen said..Because it makes no sense. Certainly the value of the dollar is being artifically propped up at the moment. All you have to do is see the value of the dollar in 2000 compared to 2009. 

Clearly the US was not in trouble until the Enron begged 911 to happen and the downward spiral was on....but as everything began tanking to include the banks...and the mortgage crisis....the dollar remained basically the same value in comparison to the RMB.

China had its currency pegged at about 8.rmb for 1 US dollar....and to this day it is no longer pegged to the dollar but China uses a basket approach now by averaging many country currencies....to give a similar value which the dollar is about the same as in 2008 January, the US dollar traded for 7.2996 Yuan.

It sees the trend continuing into 2009, with the RMB ending next year at a rate of 6.17 to the dollar, compared to 7.27 now and 8.26 when the fixed peg was dropped.

So the US has a 700$illion bank bailout, and a 787$illion stimulus loan, and the dollar has not fallen? Makes no sense to me....if you please.

This whole currency valuation thing makes no literal sense to value legitimacy anyway. It should be based on the size of population...with that being the indicator to that populations consumption rate vs. it level of production to maintain the consumption. China having a billion more people would be in the dirvers seat anyway...per the volume of production and consumption.

What I see is China is facing a loss on its T-Bills, and really the dollar is not reporting its true value because of the economic collapse...this being the case in which they do not know the bottom of the mortgage crisis or true house values...they float their past performance instead of the reality now.

The reality is that China has real value because their land and housing market is based upon being real owners to the land. Chinese people are the original people of the land....unlike the US who bought most of the Mid-West and West from France for 15 million...but it was conquered land. The truth is America stole the land from Native American Indians, and forced them on reservations.. Does it seem plausible people will buy US property that has no real land owner because it is no different than buying stolen goods?  No man can prove ownership of land, and is why China believes all the people own it, and have a real stake in the countries values. America is baseless.......

But China is using the USA in its own corrupt form as well by having the China leadership fall for the corruption in selling goods in the USA...simply because they make more money because of the fake currency scheme....the US purports across the world. China is on one hand establishing its real value, but they contribute to the fall of the dollar..by thier over exporting agenda into the USA. Clearly a billion people making things to go to the US for only 250 million people to buy....is proportionally obscure.

China is not going to cash in the T-Bills....because they are firm believers in stability...they do not want to see the US fail, or any country fail.. What I think will happen is they will not buy as many T-bills... or sell the same volume as they buy.

China does see that it is inevitable they are going to face a loss on the T-Bills. as many investors have taken a hit during this economic bash.

Doing so...will create the new economy....and real currency values implanted. Seeing the loss, will get American and Chinese values come in line...so trade is on a near equal par. This way the US can create jobs in the US with those jobs creating products for the Chinese markets..that chinese can afford to purchase.

Once this happens trade will begin to equalize. The problem is Chinese are very good at making things the US likes to use...but Americans are very clueless to how to make things that the Chinese like to use..so they will buy.

It will get better...I predict.

Rev. Jermano

Yes they own the US, and soon the US will have to sale Alaska back to Russia or to China in order to keep China of its back. 

Thanks for your comments.

China has every right to state their concerns over the way Us seems to be handling the situation. You are simply printing money to help companies which essentially(indirectly) brought this upon US.

I cannot agree with the authors assertion that the US is being warned about being socialist. Instead its the opposite, why help the companies with hard earned tax payers money? Socialism would be letting the fall happen and have the society restructure itself around the newly "poor".

This would bring greater equanimity amongst the populace than free loaders rich with tax payers cash!

Atleast put in a clause of a higher interest payback starting in three years time for these companies! Let these payments pay for a tax holiday for lower income groups. Now that would be true socialism or even capitalism depending upon the way you look at it.

Clinton is the president who signed the NAFTA bill. Many republicans nowadays (and in Clinton's presidency) have strayed from their conservative values making them puppets for the liberals to do their bidding.

I like this excerpt from: http://www.citizen.org/trade/nafta/

NAFTA requires limits on the safety and inspection of meat sold in our grocery stores; new patent rules that raised medicine prices; constraints on your local government’s ability to zone against sprawl or toxic industries; and elimination of preferences for spending your tax dollars on U.S.-made products or locally-grown food. In fact, calling NAFTA a “trade” agreement is misleading, NAFTA is really an investment agreement. Its core provisions grant foreign investors a remarkable set of new rights and privileges that promote relocation abroad of factories and jobs and the privatization and deregulation of essential services, such as water, energy and health care.

True conservatives opposed this. Conservative is the only way, all other government endeavors to "help" have failed. Name me one government program, besides the military, that actually functions properly.

those of you who thinks China will still try to be nice with the USA obviously is not in China, and have never seen or read the book

"Zhong Guo Bu gao xing!"

then you'll realise how they actually feel, and what they are going to do