China’s View of US SubPrime Issues


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  1. CNBC Sucks commented on Aug 13

    Didn’t take long for racism to race his ugly head.

    I didn’t know John McCain participated on this blog.

  2. austincompany commented on Aug 13

    Don’t quite see the “racism” in the cartoon, though one can see whatever they wish in anything I suppose.

    What is important is that we are now (and have been for quite some time) slaves to our masters; China for its money and imports and (in Europe at least) Russia for its oil. These facts should be openly discussed in America, but are not.

  3. Pool Shark commented on Aug 13

    Please to stop racist criticism.

    I are serious!

  4. bsneath commented on Aug 13

    The irony is that by the time this recession is over, it will most likely be the Chinese who pull the rest of us drowning souls out of the water.

  5. constantnormal commented on Aug 13

    I still think we can raise capital (on a national basis) by selling off assets. Put the Grand Canyon, Yosemite, Yellowstone, etc on Craigslist, and all that fancy architecture in DC, whaddya suppose we could get for that?

    Think Cheney would put in a bid for the Grand Tetons?

  6. Hof Ju Din commented on Aug 13

    Things are NEVER what they appear.

    All political truth is built from lies as the basis is always monetary gain.

  7. CNBC Sucks commented on Aug 13

    Wasn’t referring to BR or the cartoon. Also, I didn’t realize I used “race” instead of “raise” in my comment. But as Americans fall behind the rest of the world in education, race seems to be even more – not less – embedded in the way that we perceive the world, and it will only hurt us in the long run. Thank goodness the “Chinamen” and those “Japs” are too good at math to dump their trillions of $ into the green toilet paper they intrinsically represent, but if a President McCain were to get unwisely meddlesome with future Russian affairs because of some perceived American superiority, Medvedev just might give us a judo economic kick in the testicles. It’s gonna hurt real bad!

  8. Wild Blue Yonder commented on Aug 13

    Yes, sir ” . . . irony is that by the time this recession is over, it will most likely be the Chinese who pull the rest of us drowning souls out of the water.” I believe you’ve seen the future.

  9. Apt Snook commented on Aug 13

    In Hemingway’s story, at the end the ‘Old Man’ (Uncle Sam) cut the US Economy carcass loose from the Ship of State, and let the vampiresharks have it….so an apt cartoon.

  10. patfla commented on Aug 13

    Um. US Economy? Last I looked recently, 45-50% of Chinese GDP was capital investment (think maybe: real estate and factories … throw in roads and oh yes one very large dam).

    And 30% was consumption.

    That’s about the most out-of-balance economy in the world.

    If you read the news only half-attentively you’ll see that Chinese exporters are screaming (Chinese exporters and/or Western firms who own or buy from Chinese factories). And so the Chinese govt has put the brakes on the yuan’s upward float.

    Oh and those massive Chinese (E Asian) dollar reserves. Repatriated profits. Yes, in part. But the larger part works as follows:

    Here in the US (one assumes Europe as well) we think of central banks have one of two modes: inflation or growth.

    Landscape changes completely in E Asia. Central bank functionaries run to work each morning and buy up dollars as fast as they can. They pay for these with yuan (yen, etc) that they’ve just printed.

    This is how they (Japan going back to the 50s) maintain their undervalued currencies without which the E Asia Miracle might have been the E Asian Improvement.

  11. Barack Obama commented on Aug 13

    Did I hear someone played the Race Card?

    I’m the only one allowed to do that.

  12. bsneath commented on Aug 13

    Did anyone else watch the opening ceremonies and think “holy shiat, we are in trouble”?

    There is nothing racist about recognizing that China is a nation of 1.3 billion motivated, disciplined and hungry (for success) individuals while we have bocme a nation of affluent slackers.

    The Chinese Govt has worked the undervalued currency/export model to perfection and they were smart enough not to get suckered into the USA toxic-mortgage debt game.

    While central control will not benefit their economy once it matures, it is very helpful at the moment. If exports slide and job creation is at risk, we will see aggressive interest rate cutting, reserve ratio declines, and domestic consumption incentives.

    The USA cannot pull the global economy out this time because of our indebtedness and need to save.

    It will be the healthy global economies that were not badly stung by USA toxic debt that will have to lead the way – whether they are aware of this today or not.

  13. Mich(^IXIC1881) commented on Aug 13

    What I’ve noticed here is, you’re expected to ignore those messages to starve the trolls. I believe one of the reasons there are meaningful discussions is because people here are very good at ignoring ignorant messages.

  14. patfla commented on Aug 13

    This business one hears about the world economy simply returning to the old order of things seems to overlook a few important details.

    The older order of things included only Eurasia. The big new factor that missing is the Americas. Where there are now a billion people and 4 $1+ trillion economies (out of what: 13 all told?).

    Not to mention a disproportionately very high endowment of fundamental natural resources. Say, fresh water.

    I don’t see that there’s an old order to return to.

  15. Mich(^IXIC1881) commented on Aug 13

    As for China and olympics, I did not say “hs, we’re in trouble”, what I am seeing is China is mostly fake.

    They fake electronics (sony, sanyo, etc.)
    They fake dvds, cds
    They fake cars
    They fake Olympics opening fireworks
    They fake singers (1 girl lip-synching for another)
    They fake gymnasts (that girl is 16? please!)

    It all seems a big shiny wrapping with not much inside.

    On the other hand, US has its own problems for sure. Greed, corruption, etc.

  16. patfla commented on Aug 13

    > healthy global economies that were
    > not badly stung by USA toxic debt

    Yes. But if global consumption (the US and Europe) implodes. Or even simply withers at the margins, I think your list of countries shrinks to zero.

    I lived 6 yrs in Japan (and speak Japanese) – and worked in the finance industry. My wife is Chinese from Malaysia (and I learned some Mandarin).

    I don’t see that the E Asia has, as yet, figured out how to transition from export driven economies to standalone. And clearly it’s a difficult issue – no one has every done it before. The Europe and Am economies bootstrapped themselves from tabula rasa (as it were). Oh yes – I’m sorry. They grew as they did by fcking the rest of the world. Except how does something like Newtonian dynamics figure into that equation (heh)? Well they both figure in, except none of that shows a way forward for either the E Asians or any of the other developing nations.

    Again, Chinese consumption is 30% of GDP. This is more shocking on the downside than that US consumption is > 70%. Other countries (the usual suspects, such as the UK) are also over 70%. And every advanced, industrialized economy is over 60%. Look it up.

    So who’s the outlier? And where’s the demand to come from that keep this list of zero chugging along?

  17. Mike in NOLa commented on Aug 13

    Even Bloomberg Asia now discussing the 16 year old gymnists with baby teeth.

    Bloomberg hosts need to watch the open mics. Just had Bloomberg Asia running and that sorta crazy younger oriental guy’s voice came through saying something to the effect: “H____ sh_t, this place is a f___ing abortion.” Pretty weird.

  18. Mike in NOLa commented on Aug 13

    I’m don’t know if this link got posted here, but there was an interesting article in the WaPo about some of the serious problems China faces despite its rapid growth, including the unintended consequences of the one child per couple rule:

    A Long Wait at the Gate to Greatness

    Did anyone else see “China Prep” on PBS? It ran here last night with Aaron Brown as the narrator. Wondered what had happened to him. Followed some top high school students about to take their university entrance exams which will largely determine their futures. Stood out like a sore thumb that each of the non-rich students mentioned that their parents were spending everything on their education and that they were expected to support their parents once they make the big time since there is no social security and almost no one has a pension. And these were the ones with a bright future, probably a small minority.

  19. J in LA commented on Aug 13

    Why does it stand out like a sore thumb? Keep in mind that for all its recent growth and advancement, China is still largely a third world country. Most third world countries have no social safety nets. The elderly must either save enough for retirement or live with their children.

  20. Mark E Hoffer commented on Aug 13

    ” …In Hemingway’s story, at the end the ‘Old Man’ (Uncle Sam) cut the US Economy carcass loose from the Ship of State, and let the vampiresharks have it….so an apt cartoon.

    Posted by: Apt Snook | Aug 13, 2008 5:35:35 PM

    as a reference to how spot-on that take is:

    ” …In all, this classic deserves it’s praise as one of Hemingway’s finest works. It is a model in the structure and power of simplicity in language, the depth of characters without extended use of dialogue, and above all, a very enjoyable read. If you haven’t read this novella, pick it up today. If you have read it, it might be time to re-visit the small skiff, the old man, and the grand noble marlin in their journey through the waves and remember simple storytelling at it’s best.”
    Title: The Old Man and the Sea
    Author: Ernest Hemingway

    by Jeremiah Gould

    BR can you (who does?) broker prints of this for framing?

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