US Financial Crisis/Bailout, China's Role

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When Assets are uncertian, Laibilities prohibative and Brands contaminated, there is only one thing left that Chinese Corporations may want, and that is something they can get for free - Market Share - or more precisely the void of market share created by the collapse of major banks and the nervousness surrounding the survivors

China does need to buy US banking brands, it simply needs to open branches for its own in Mainstreet. With Capital to lend and to safeguard deposits they will be assured of business.

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Maybe buy a little bit more of financials if they get cheap enough but since it looks increasingly likely resources prices will fall more in the short term due to the current demand destruction to the world economy, I think a golden opportunity is coming soon for China to convert much of its US$ into resources be it oil/minerals etc, good time to build up the strategic reserves of these resources.

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Either pure madness or concocted with ulterior motives.

Me thinks that the US and Wall Street just lost their "brand name" as an investor safe haven. That's why I don't see any more Chinese or Arab money going to come in. The Japanese is now taking a bath on this one too.

Value is a perception. If you don't have good perception, you won't get investment.

On the mortgages, maybe its a bit of exaggeration I said earlier that they have no value, or its zero sum. The value of the mortgages themselves are an overall reflection of the economy. Economy down, value of land will also go down as well and it will stay down unless we see some fundamentals improve in the US economy.

Putting money in, putting investment in, the bail out, I perceive this to be short term balms to quell or correct symptoms. I believe the problem we have is structural and long term. The bail out will only prevent you from falling into the brink, but it does not solve the structural problems we have on the economy.

Also I don't see that 700 billion to be enough. It maybe just the tip of the ice berg, and the total cost may be up to 2 or 3 trillion. The US dollar is also going to take a major hit after this, and this may create a double whammy in rising inflation at the worst time.

This is Black Monday, and 9/29 may go down in history with the same notoriety as 9/11.

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A lot of astute military minds on the forum, but I can see that few are familiar with the art of the "soft war," that is, money.

I'll try to keep this as brief and subdued as possible, lest I give some old, American sailor moderator an excuse to delete my post and rob my fellow CDF members a glimpse of the current score.

China wants out of the USD (this includes all USD based assests).

So no, China will not be "buying in" anytime soo.

So no, should the US Treasury decide to issue more T Bonds, the Chinese will not be buying anymore, which will send a signal to the rest of the world to abstain from US T Bonds as well, with the possible exception of Japan, as the Japanese have no choice but to do as the US tells them to.

What China wants to buy now is gold and oil, and only gold and oil. But if it was to announce it's plan to buy, gold will shoot up to $1300 before the week ends, so China must do so under the table, through its many private agents across the globe.

Already, all the gold mined in China, EVERY SINGLE OUNCE, has been spoken for, and IT IS A CRIME TO CARRY ANY GOLD OUT OF CHINA WITHOUT GOVERNMENT APPROVAL. With the exception of the jewelry on your person, gold is basically locked in the borders of China.

THE SAME IS TRUE WITH INDIA! No gold export (and silver too, I THINK) out of the country. Try it and you'll be in jail before you can ask why.

What's the moral of this post? Nobody will be buying into the USA anytime soon. If ever again.

Unless it's Alaska. But is the US ready to sell Alaska?