America, Host or Parasite

[Denarius]

Learn about the Empire of Debt

 

http://altbuzz.org/mp3s/clips/michael_hudson_america_host_or_parasite_20070314.mp3

[rickfarang]

IMHO, this is cr@p.

[HeartThais]

China just set up an investment company to invest about $200B of it. I wonder what they'll buy. If I were them, I'd start buying services while the money is still worth something. I'd hire teachers, doctors, professors and get them over here by offering 3X the going rate.

[Denarius]

GUATEMALA CITY, March 20 (Reuters) - China will stop stockpiling its massive foreign exchange reserves, China's central bank governor Zhou Xiaochuan said in an interview published on Tuesday.

 

"Many people say that foreign exchange reserves in China are (already) large enough," Zhou told the Emerging Markets magazine, whose latest issue was released at a meeting of the Inter-American Development Bank in Guatemala.

 

"We do not intend to go further and accumulate reserves," Zhou said, adding the government will "cut a small piece of reserves" for a new agency to be set up by China's central bank and finance ministry to manage its massive foreign reserves, which have swollen because of the trade surplus.

 

He did not say how much money would be passed to the agency.

 

China's premier, Wen Jiabao, said last week that plans to form a new agency to invest part of the country's swollen foreign exchange reserves, the world's biggest at more than $1 trillion, would not have an adverse impact on the U.S. dollar.

 

China's central bank also said last week it would not significantly adjust the composition of those reserves. A large part of them are denominated in dollars.

 

As the reserves have ballooned on the back of China's record trade surpluses, demands have grown for part of the hoard to be invested more aggressively.

 

Investors have long fretted over Beijing's plans to diversify its foreign exchange investments because of their potential impact on global markets.

 

Studies have shown investment by China and other Asian countries in U.S. bonds has reduced long-term American interest rates by as much as 2 percentage points.

 

[HeartThais]

A trillion sounds like a lot. In the US alone, there was $660B in corporate buyouts by private equity firms last year. These firms already have $750B more that needs to be spent. Private equity firms are basically a bunch of rich people getting together to buy companies outright because they think they can get better returns than through the stock market.

 

When does it end? Trees don't grow to the sky.

[Denarius]

If the US does not want China to spend dollars in the USA then China will spend them in Africa and elsewhere. Better spend it while it is still worth something.

 

 

Covec of China to Invest $300 Million in Congo Copper Mines

2007-03-27 07:15 (New York)

 

March 27 (Bloomberg) -- China Overseas Engineering Corp., known as Covec, will invest $300 million in two copper and cobalt mining projects in the Democratic Republic of Congo, said Min Guowei, the company's vice-president.

 

Covec, a unit of China Railway Engineering Group, the Asian nation's biggest construction company by revenue, plans to produce 20,000 metric tons of copper and 1,500 tons of cobalt annually by 2009, Min said in an interview yesterday from the capital, Beijing. The company will also build a copper refinery in the central African country.

 

``China is the second-biggest country for copper demand,'' Min said. ``It needs 3 million tons every year, but it only produces 500,000 tons.''

 

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