CHINA'S MONETARY BONDS & FINANCE BONANZA WILL CAUSE PROBLEMS FOR THE WORLD & ITSELF

China owns about $1 trillion in U.S. Treasury securities, just about ½ of the $2.37 trillion stock of Treasury debt held by "foreign official" owners. The amount of U.S. debt held by China is even higher than that, with 70% of China's $2.4 trillion in foreign exchange reserves invested in $US treasury  bonds. That includes the over $400 billion in debt issued by U.S. government agencies, the likes of Fannie Mae and Freddie Mac, whose obligations are liabilities of the U.S. government. IMF also cautioned that one should add to the short term a US$500 billion deficit that the US administration is running, a further US$47 trillion in unfunded long-term commitments for US Social Security and the federally funded Medicare health program for the elderly and indigent. There were additional liabilities from cash-strapped local governments, forced to borrow to compensate for federal cutbacks. However the question is what will happen to China if demand for products slows down??

China is now the second biggest oil importer in the world - and needs massive coal imports. The China Bubble has expanded to a point where it will soon reach the sharp edges of infrastructural capacity and reckless over-investment to the point of over-production. That is when the bubble will burst as world demand will fall due to the present economic climate of unemployment is on the rise again. Standard & Poor's estimates could be up to $600 billion is needed to bail out the bad loans in China as Wall St Banks wait to get in on the big banking boom in China. But that little detail of bad loans won't stop Wall Street from rushing to buy if the banks are floated, as Beijing plans. China currently is lending the US the money to buy Chinese production & this leads to less jobs in the USA as China expands its auto industry that will far surpass the USA. More USA companies & others are following the exodus to China to set up companies or source to manufacture under cheaper labour costs etc and this just exemplifies the world situation as China will now make anything and everything far cheaper than can be made in the West.

China currently consumes one-third of the world’s aluminum and alumina & have over 150 steel mills. China's foreign exchange reserves have soared & in the second quarter of the current year, they rose by $178bn to $2.132 trillion to exceed $2 trillion for the first time. China is the largest foreign lender to the US government and at the end of April, China's holding of Treasury securities was $763.5bn (Japan was the second biggest holder, with $686bn). Its now August 2010 and their appitite has grown even more. US will need more capital inflows to deal with the financial crisis, the wars, the unemployment and in helping USA, China can see an unhealthy country trying to get back to normal but as the US keep on buying Chinese goods the American apetite on borrowing will increase getting them even deeper into debt. A high debt level can affect inflation, interest rates, employment, and economic growth. Having spent a fortune bailing out their banks, allowing CEOs to get giant salaries again without brakes, the West now is paying the price in terms of higher taxes & greed to meet the interest on that debt. In the case of countries (like UK, America & NZ ) that have trade as well as budget deficits, those higher taxes will be needed to meet the claims of foreign creditors like China whi is not silly in what they do. As China has just invested into Japan instead of places like Ireland/ Spain etc they see the advantages of better countries who can service loans. As the USA continues to fight wars and have troops in many countries like Germany, Korea. Iraq, Afghanistan, Guam, Colombia etc, they have stretched its resources too wide in being the watchdog of the world and must start looking after themselves instead of extending their failure tentacles to other countries where they have indeed failed. This has allowed China to sneek in underneath and offer these countries loans and funding in return for their raw materials as USA is unable to achieve these realities.

The catch is if China stops lending & recalls its loans what will happen to the world economy & themselves.

The People's Republic has quietly been taking stakes in virtually all the world's regional development banks. Like a mini-World Bank, China has helped financially troubled countries in Latin America, Africa and Asia & pumped $50 billion in the International Monetary Fund. Brazil, India and Russia, are happy to have an alternative to the US bond market. They buy Chinese bonds, and the Chinese in turn use this money to buy Russian, Indian and Brazilian bonds. This has created a second monetary circuit alongside the dollar. They are about to take over Australia’s Rio Tinto and assisted countries where oil & minerals are. The USA is bleating but they caused their own dilemma not the Chinese who now thrive on their exports and the USA can only sit back and watch. Putting it plainly the USA have been top dog in their International dominance and now must take second place.

COUNTRIES WHO CRASHED In the last 20 years:

• 1989 ARGENTINIAN

• 1997 THAILAND

• 1998 RUSSIA

• 1999 ECUADOR

• 2001 ARGENTINIAN

• 2009-10 GREECE, SPAIN, PORTUGAL so whose next!!!!!!!!!!!!!!!!!!!!!!!!!

Some of the world's largest hedge funds are even saying that the Euro currency will sink to trade at an even level with the U.S. dollar.

The most terrifying prediction for 2019 involves Nostradamus "Satan's arch of fury". Although the precise nature of this prediction is left open to interpretation -could it be a comet, a war but definitely a disaster??? eg. Russian drought; Pakistan flooding has started; TSUNAMI 7 mother nature not happy with what we are doing to our planet

Are we heading back to recession-SURE THING

[ World Population exploding ] [ China & Wikileaks move into Africa ]

"You believe me now that the world population needs to be addressed.

Don't tell anyone as most think its untrue & don't give a meow "

WORLD WILDLIFE [ Saving Wildlife species ] [ Primate Wildlife on Myanmar /Thai Border ]

International law help ask us

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