China controlling more of US economy

Feedback.pdxradio.com message board: Archives: Politics & other archives: 2007: Oct - Dec. 2007: China controlling more of US economy
Author: Vitalogy
Friday, December 21, 2007 - 2:54 pm
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http://www.msnbc.msn.com/id/22362982/

"Both Chinese private and government interests are controlling more and more of the U.S. economy, and this is a result of the big trade and budget deficits we have," said Alan Donziger, professor of economics at Villanova School of Business.

-So, forget the super secret technology that Clinton supposedly sold to the Chinese as being a threat, we are simply selling ourselves out because we can't live within our means. Once China has enough of a stake here in the US, they can start calling more shots and won't need nukes to take us over, as they'll already own us. Get ready to write your new mortgage check to the Bank of China.

Author: Vitalogy
Monday, December 24, 2007 - 12:40 pm
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Add Singapore to the list.

http://money.cnn.com/2007/12/24/news/companies/merrill/index.htm?postversion=200 7122414

Author: Newflyer
Tuesday, December 25, 2007 - 11:44 am
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I think China already owns us.

Author: Alfredo_t
Wednesday, December 26, 2007 - 10:02 am
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This is disturbing on two levels:

1) The first story states that some of the investment comes from foreign governments, rather than private sector entities. Are these governmental investors expecting things in addition to financial profit out of their investments?

2) Decades ago, American companies started contracting out their manufacturing to foreign locations where it could be done more cheaply. Now, foreign investors are buying significant amounts of shares in American corporations. Is it possible that some of the people reading this message board are going to live to witness a time when the U.S. is just not that relevant industrially or financially?

Author: Vitalogy
Wednesday, December 26, 2007 - 10:09 am
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Yes. But, Americans believe that deficits don't matter. As you can see though deficits do matter and require bailouts with capital from foreign governments who are looking for more than just a good return.

Author: Nwokie
Wednesday, December 26, 2007 - 1:17 pm
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So other countries see investments here as good business. This should cause other countries, that have large investments to think twice before doing anything that will disrupt the US economy, but these investments are only a very small percentage of the US economy, and at any time the US could take them over.

Author: Alfredo_t
Wednesday, December 26, 2007 - 1:33 pm
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True, there is the flip side that these large investments help to promote peace and good relations. I honestly do not know how this will turn out; my questions are not rhetorical. Do the governments that invest in the U.S. care what happens 20 or 30 years in the future, or are their investment strategies and plans purely short-term?

Author: Vitalogy
Wednesday, December 26, 2007 - 1:34 pm
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What these large banks are doing is no different than me accepting $25K cash from an investor in exchange for a 5% ownership stake in my house. Problem is, I need that $25K to pay off credit card debt that was run up at bars and cash advances to play video poker. I've got nothing to show for it. And I had to give up a 5% stake in my house to pay off my junk debt. In otherwords, my stupid decisions resulted in me giving up some of my ownership of my asset to someone else. These banks are doing the same thing, but on a much larger scale. Our government does the same thing when it sells T-bills to cover the budget deficits. It's an unsustainable financial shell game.

Author: Vitalogy
Wednesday, December 26, 2007 - 4:58 pm
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Alfredo, there is no good relations in regards to investments like this. They are making a good return, something like 9%, plus get ownership in the company. As EPMD once rapped, it's strictly business.


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