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Do not give in to Evil, but proceed ever more boldly against it

Friday, February 13, 2009

Communist China's Bankers to US: "We Hate You Guys"

Gotta love it when your banker is saying that -- twice -- about your and your deadbeat ways in a public forum, per FT.

Money quote:

...Mr Luo, speaking at the Global Association of Risk Management’s 10th Annual Risk Management Convention, said: “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.”

However, Mr Luo said Chinese officials would encourage its banks to finance domestic mergers and acquisitions rather than provide rescue finance to distressed financial companies in other countries: “There will be no bottom-fishing of financial institutions, particularly in the US, because there is a lot of uncertainty about the quality of the books”...

Per the latest US Treasury info, Mr. Luo and his ChiCom pals hold $681.9 billion in US Treasury promissory notes, as of November, 2008.

What was Dr. Franklin's quote?

"Neither a lender nor a borrower be."

Alea iacta est.


Anonymous Anonymous said...

As soon as another financial instrument becomes an 'option' for the Chinese, lookout, they'll dump our T-Bills el pronto. And the Stuff will hit the rotating device in an unimaginable way...


February 14, 2009 at 4:25 PM  

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