Clinton Urges China to Keep Buying U.S. Treasury Securities


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We don’t need China or anyone else to buy our securities to finance our stimulus plan. And acting like we do and going on the defensive like this is radically counterproductive at best.

And isn’t she pledged on record to helping US jobs rather than increasing exports? Yet here she’s pushing the notion that China should buy our bonds to help us resume buying their imports?

The informed position is to first recognize that imports are real benefits and exports real costs, and therefore we benefit by foreigners net saving $US financial assets of any type, as it allows us the benefit of more imports and improved real terms of trade.

And this is what happens when you are hopelessly out of paradigm:

Clinton Urges China to Keep Buying U.S. Treasury Securities

by Indira A.R. Lakshmanan

Feb 22 (Bloomberg) — Secretary of State Hillary Clinton urged China to continue buying U.S. Treasury bonds to help finance President Barack Obama’s stimulus plan, saying “we are truly going to rise or fall together.”

“Our economies are so intertwined,” Clinton said in an interview today in Beijing with Shanghai-based Dragon Television. “It would not be in China’s interest” if the U.S. were unable to finance deficit spending to stimulate its stalled economy.

The U.S. is the single largest buyer of the exports that drive growth in China, the world’s third-largest economy. China in turn invests surplus earnings from shipments of goods such as toys, clothing and steel primarily in Treasury securities, making it the world’s largest holder of U.S. government debt at the end of last year with $696.2 billion.

China’s leaders understand that “the United States has to take some very drastic measures with the stimulus package, which means we have to incur debt,” Clinton said. The Chinese are “making a very smart decision by continuing to invest in Treasury bonds,” which she called a “safe investment,” because a speedy U.S. recovery will fuel China’s growth as well.


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Clinton thanks China for buying US Treasury Securities


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US, China Agree to Broaden Strategic Dialogue, Clinton Says

by Indira A.R. Lakshmanan and Eugene Tang

Feb 22 (Bloomberg) — Clinton thanked China for its continued purchases of U.S. Treasury notes, demand for which is needed to pay for Obama’s $787 billion stimulus plan.

No it isn’t. It will be a very different world when our leaders somehow come to realize how the monetary system works.

Yang said China, the world’s largest holder of Treasuries, will invest its almost $2 trillion in foreign-currency reserves based on the principles of ensuring liquidity and protecting value.

‘Appreciate Greatly’

“I appreciate greatly the Chinese government’s continuing confidence in U.S. Treasuries,” Clinton said. “I think that’s a well-grounded confidence.”

At an earlier meeting, State Councilor Dai Bingguo told Clinton that she looked “younger and more beautiful” than she appears on television.

Chuckling heartily, Clinton said, “Well, we will get along very well.”

Glad to see the US not saying anything negative about China’s new export subsidies announced last week.


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Clinton trying to get Asians to increase demand


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A once in a lifetime opportunity to increase the US standard of living squandered.

Increasing domestic demand unilaterally and letting the rest of the world grow via net exports to the US is in our best interest.

Clinton begins Asia trip, calls for Global Economic Cooperation

by Indira A.R. Lakshmanan

Feb 16 (Bloomberg) — Secretary of State Hillary Clinton kicked off the start of a weeklong trip to East Asia by calling for more cooperation from the region in alleviating the worldwide recession.


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