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China Has $3T of ‘Hidden’ Currency Reserves, Setser Says

bloomberg.com

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Re: China Has $3T of ‘Hidden’ Currency Reserves, Setser Says

#51

Post by petre »

mandmandam wrote: post #14
isykt wrote: post #8

Earlier quoted context omitted.

Which country’s values do you prefer influencing the developing world: China’s, or the United States’?

It's the wrong question. Developing nations will take the support they can get - just ask the predatory lenders who've been dicking them over for hundreds of years. Values don't really come into it, unfortunately.

Montenegro did it and the country ended up with $1b debt for 25% of the planned project that was built. Now they are doing it again.

https://www.rferl.org/a/montenegro-chinese-highway-debt-cont...

Re: China Has $3T of ‘Hidden’ Currency Reserves, Setser Says

#52

Post by [deleted] »

viraptor wrote: post #34
bugglebeetle wrote: post #24

Earlier quoted context omitted.

> They manipulate their currency. They interfere with foreign owned businesses. They steal IP. They're seeking to upset the global money standard. They entrap other nations with predatory loans for infrastructure. They trade with our other enemies and flaunt sanctions, etc, etc. Aside from the money standard and zero COVID bits, every part of this is true of the US. This conflict just boils down to “the hegemon doesn…

Can you provide the examples for US part in pervasive IP stealing, predatory infrastructure loans, trading with sanctioned countries? Not single issues (every country will have some examples here and there), but actually using those as long term strategies?

[deleted]

Re: China Has $3T of ‘Hidden’ Currency Reserves, Setser Says

#53

Post by taneq »

vkou wrote: post #2

So what? TFA keeps repeating that this is bad, but fails to explain why. Is countries actually having money a problem now?

It's not just 'having money', it's 'having a huge amount of money in foreign assets'. One entity controlling that much capital is able to manipulate the global economy in some interesting ways. For example, they could strategically pump or dump other countries' currencies, and probably even crash most other countries' economies at will.

This is naturally pretty scary to other competing entities that historically are used to being the ones doing the controlling.

Re: China Has $3T of ‘Hidden’ Currency Reserves, Setser Says

#55

Post by FreshStart »

The problem is that China does not want to become the US, they want to become colonial great Britain or France. The goal is classic mercantilism-all raw material have to go through them to become a product. It's barely disgused Manchester allover.

The US by comparison has been quite dedicated to free trade. They abandoned there own production base, imported more culture then they exported and overall been quite friendly an empire.

Re: China Has $3T of ‘Hidden’ Currency Reserves, Setser Says

#56

Post by senttoschool »

viraptor wrote: post #34
bugglebeetle wrote: post #24

Earlier quoted context omitted.

> They manipulate their currency. They interfere with foreign owned businesses. They steal IP. They're seeking to upset the global money standard. They entrap other nations with predatory loans for infrastructure. They trade with our other enemies and flaunt sanctions, etc, etc. Aside from the money standard and zero COVID bits, every part of this is true of the US. This conflict just boils down to “the hegemon doesn…

Can you provide the examples for US part in pervasive IP stealing, predatory infrastructure loans, trading with sanctioned countries? Not single issues (every country will have some examples here and there), but actually using those as long term strategies?

Just curious, if China sanctions the UK, would the US stop trading with the UK?

What is your opinion?

Re: China Has $3T of ‘Hidden’ Currency Reserves, Setser Says

#57

Post by cbilson »

Simorgh wrote: post #43
superchroma wrote: post #22

Earlier quoted context omitted.

I mean it's the gigantic elephant in the room. The reported narratives have aligned over the years as if they were our enemy. Here are some: Economically, they're an adversary; they undercut western manufacturing and all our manufacturing went there. They manipulate their currency. They interfere with foreign owned businesses. They steal IP. They're seeking to upset the global money standard. They entrap other nation…

I think this is an issue of perspective. I know someone who quite recently died of Covid. There is no longer a pandemic, but the virus is still deadly. Their concern is justified. Economically, the US is critically dependent on China for facilitating consumer demand. The US cannot afford an adversary in China. Ethically, the US is not offering a compelling framework or alternative that alleviates the issues you raise…

If the CCP were so concerned with COVID why did they have a victory concert in August 2020[1]? Obviously the virus is still deadly, but it seems at least inconsistent for CCP COVID policy to be “we did it!” in August 2020, then lock downs in 2022.

Regarding “lifting people out of poverty”, did hundreds of millions of people’s hard work have anything to do with lifting _themselves_ out of poverty or does the CCP get all the credit? If CCP gets the credit, there was certainly a lot of “trial and error” before they got it right. Was it worth the lives of 30 million people?

[1]: https://www.businessinsider.com/wuhans-mask-less-pool-party-...

Re: China Has $3T of ‘Hidden’ Currency Reserves, Setser Says

#58

Post by oneTbrain23 »

Why is this a problem? If a seller want to sell you something or buy something from you, do they need to dig thru your safe and whatever secrets you have in order to make the transactions? The only concern is USA couldnt gauge how much of economic weaponry they need to unleash on China to destroy it. Japan did that in the 70s-90s and basically economically subservient to America. Same goes with EU. Russia, China and India not doing that to give American wallstreet vultures any advantage of raids.

Re: China Has $3T of ‘Hidden’ Currency Reserves, Setser Says

#59

Post by frankreyes »

oneTbrain23 wrote: post #58

Why is this a problem? If a seller want to sell you something or buy something from you, do they need to dig thru your safe and whatever secrets you have in order to make the transactions? The only concern is USA couldnt gauge how much of economic weaponry they need to unleash on China to destroy it. Japan did that in the 70s-90s and basically economically subservient to America. Same goes with EU. Russia, China and…

Except that they're selling cash. China doesn't sell you USD, they keep the USD in their safe and give you their own currency in exchange.

That hidden money is overly leveraged, ie debt, and you'll never know if tomorrow you'll get your original value back. China is the most indebted country in history.

How do you know that for each $1 hiding in accounting magic is not being resold twice? We don't, because of what the article says.

Re: China Has $3T of ‘Hidden’ Currency Reserves, Setser Says

#60

Post by [deleted] »

Simorgh wrote: post #43
superchroma wrote: post #22

Earlier quoted context omitted.

I mean it's the gigantic elephant in the room. The reported narratives have aligned over the years as if they were our enemy. Here are some: Economically, they're an adversary; they undercut western manufacturing and all our manufacturing went there. They manipulate their currency. They interfere with foreign owned businesses. They steal IP. They're seeking to upset the global money standard. They entrap other nation…

I think this is an issue of perspective. I know someone who quite recently died of Covid. There is no longer a pandemic, but the virus is still deadly. Their concern is justified. Economically, the US is critically dependent on China for facilitating consumer demand. The US cannot afford an adversary in China. Ethically, the US is not offering a compelling framework or alternative that alleviates the issues you raise…

[deleted]
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