Lik

Some people from bankrupt countries are jealous of Hong Kong's financial strengths.
Hong Kong govern ...
peter236 發表於 2011-8-5 18:42

As if Grandfather's debt records are flawless la. Let's see if you'll criticize PRC in the same way you do now when the truth about PRC's debt problem reveals itself.

-Lik

peter236

As if Grandfather's debt records are flawless la. Let's see if you'll criticize PRC in the same way ...
Lik 發表於 2011-8-5 22:07

Are you kidding? If anything happens, China can always dump their $3.3T foreign reserves.
The US and Japan will be pulled down first. Just stop you anti-China fantasies.

Lik

If China could even reduce their USD dependencies in their foreign reserves, do you think they wouldn't have done it already? Besides, who in the world is gonna buy those up if Grandfather were selling? If he were forced to sell, Grandfather would lose out just as much (if not more) than Uncle Sam.

And, contrary to your fantasies, there has been increasingly more evidence that Grandfather's financial strength (and specifically, the debt levels) are nowhere nearly as strong as what he claims.

-Lik

peter236

If China could even reduce their USD dependencies in their foreign reserves, do you think they would ...
Lik 發表於 2011-8-5 22:19

China has already reduced their USD as a % of their total foreign reserves.
Japan has $900B out of their $1.2T in USD.
China only has $1.2T out of their $3.3T in USD.

When China starts dumping their USD, the Japanese will be forced to panic sale their USD.
Japanese foreign reserves will be wiped out quickly.

Lik

Nobody can buy up Grandfather's USD investments unless he dumps them for cheap. And then who'd be hurting more? The US, Japan, or China?

Stupid moron...

-Lik

peter236

Nobody can buy up Grandfather's USD investments unless he dumps them for cheap. And then who'd be hu ...
Lik 發表於 2011-8-5 22:41

You stupid moron, when China starts dumping USD, the Japanese foreign reserves will be wiped out since $900B out of $1.2T is USD.

China has already reduced their USD as a % of their total foreign reserves.
Japan has $900B out of their $1.2T in USD.
China only has $1.2T out of their $3.3T in USD.

Even if you assume all USD become worthless, China still has $2.1T foreign reserves.
But the Americans themselves still hold the largest amount of USD debt.
So the US will be hurt the most, followed by the Japanese.

For now, China actually benefits from US downgrade rating, as the US now needs to increase the yields to attract people to buy US debt.
Therefore, China will receive more interests payments from the US.