Tech & Biz

Chinese Threaten to Cripple US Banking System

by mtippett | September 25, 2008 at 08:21 am

781 views | 24 Recommendations | 7 comments

Anyone who has been paying attention to the US economy has known that 3 countries control the fate the American financial system: Russia, China and Saudi Arabia. They have been bankrolling America's excesses for a long time now. The Chinese have now decided that this practice is too dangerous and have taken drastic measures:

BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

If you think things have been haywire lately you ain't seen nothin' yet.

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Paschen

flagged this story as Good Stuff

at 08:23 on September 25th, 2008

mtippett, I like this story. It's good stuff.

Good for them, and it is about time.

René

flagged this story as Good Stuff

at 08:27 on September 25th, 2008

Is it time to start a total boycott of everything Made in China?

Fairbanks

at 08:30 on September 25th, 2008

Nobody knows what to do or what will happen anyway. A lot of cash is out of the market until the siuation stabilizes somewhat.

Rachel Nixon

at 08:39 on September 25th, 2008

The Chinese seem to be contradicting this original report:

The China Banking Regulatory Commission (CBRC) said it has never told local banks to stop lending to U.S. banks. "If they are not willing to lend, this is the normal practice of risk control," Reuters quotes Wang Zhaoxing, CBRC Vice Chairman.

"The CBRC has never, through any channel, issued a statement or told domestic commercial banks not to lend to or borrow from U.S. financial institutions," the China Banking Regulatory Commission said in a statement on its website. The South China Morning Post has reported that Chinese banks have received such instructions from the agency.

Wang Zhaoxing, CBRC Vice Chairman, said "if they are not willing to lend, this is the normal practice of risk control." Reuters writes that the CBRC has called the media report "irresponsible."

dunkelberg

flagged this story as Good Stuff

at 09:29 on September 25th, 2008

When fascism comes to America, it will be wrapped in a flag and carrying a cross.

When communism comes to America, it will be wrapped in IOU's and carrying repossession orders.

Rhonda J Mangus

flagged this story as Good Stuff

at 13:26 on September 25th, 2008

mtippett, I like this story. It's good stuff.

Christina 123

flagged this story as Good Stuff

at 16:17 on September 25th, 2008

mtippett, I like this story. It's good stuff. All only too true, mtippett! A specialist economist friend of mine has analyised the situation carefully and it is not just a couple of billion shortfall, as Bush would have us believe, it is a staggering TRILLION.