Is There Nothing That Obama Can't Do?

Now why would they do that? Could it be that Mao and his ilk who currently run China,also own over half the US debt,and may recall it?
Always,always follow the money.

"the new policy is part of the Obama administration's larger effort to develop a more cooperative relationship with Beijing."

"Pleasing your enemies does not turn them into friends." That about sums it up.

"The current situation with China is that they are cheating on trade agreements, aggressively pursuing military capabilities and aggressively conducting cyber-attacks."

These cyber-attacks which the Americans are certain came from Chinese government ARE an act of war if I understand correctly.

"A Chinese government spokesman in September stated that "we urge the United States to discard its Cold War mindset and prejudice,"

Yes we wouldn't want to have a cold war mentality whilst in a cold war. That wouldn't benefit our enemies now would it?

Clinton sold technology to the Chinese and now this. Word to the wise: never, EVER vote a Democrat into office.

Re my above...sorry...latest figures available show they only own 44% of the Yanks debt.
That's what 19,500,000 hits on bing for China/US debt show

I see no evil, hear no evil.

nanana a boo boo.

lalalalalala (covering ears)- I can't hear you!

Where's Sgt Schultz when you need him?

CBCpravda on the propaganda trail again.

http://www.cbc.ca/documentaries/passionateeyeshowcase/2009/obama/

"Can America Save the Planet?"

Did Micheal Jackson end racism?

Justthinkin 7:00PM: The ChiComs only want a return on their investment. What better way to give it to them than to allow their spies, ...oops, sorry, students to steal more technology?

When you are the one owed, you do the bitch slapping'

Obama just shuts up, gets slapped and does what he is told.

For Justthinkin ,

Cause I'm a giver .

The Wundeful Wun is beginning to build up a bit of a track record.

1.Dash to Copenhagen to get the Olympic Games for Chicago. Result: Failure.

2. Re-dash back again to Copenhagen to get a climate change deal with the Chinese. Result: Failure and ridicule; cleary some "world leaders" have little respect for the individual that is Obama (including Sarkozy).

3. Dash to Boston to get a Democrat elected to a traditional democratic senate seat. Result: Failure

I think if I were in trouble, Obama would be the last person I would want dashing to my aid.

Nothing like showing your hand. It would be a hoot to play poker with this community organizer if he wasn't in charge of the most powerful (?) country in the world. Trouble is he would probably take his cards and chips if he didn't get his way.

In a similar vein, the big wigs of US intelligence today admitted to those interested that the big intelligence gathering group hadn't got their act together after a year. Nothing like telling everyone your weakness.

Speaking of the ongoing theme about "is there anything BO can't do?" I'm waiting for his greatest trick yet - to be a shorter one term POTUS than Jimmah Cartah.

The winds of Bo's early departure from office are swirling around bailout improprieties and key administrating personnel as we speak. I think he's smart enough to resign before it all explodes and let his Wall Street "czars" hang alone.

Grab the popcorn Kids the show is just getting started.

Don't tell me you want Biden to step in . . .

Obama has a classic case of DICKtator Envy.

Justthinkin and Bill D Cat - on the news today - China is tightening up lending standards. That should be very concerning to the US. What if the US can't sell enough of its debt? I still really don't understand the intricities behind the Federal Reserve previously buying some of the treasurys (not sic, I think that's the way it's spelled) - to support prices? I don't know. Wish I had more time to understand international finance. I guess I should be happy in my ignorance.

The Americans are scared of universal healthcare. This new senator is going to push for more tax cuts. Americans really are stupid and superstitious.

Eric ,

Honestly , I have no clue either . To me this looks like it's going to look like some kind of huge international drug deal . You have your suppliers (China) , dealers (Obama et al) and your junkies (taxpayers) . The only reason I use taxpayers as junkies is because they , as well , have a choice . Bad deals in either case usually end poorly , especially for innocent bystanders .

David Walker, Former comptroller of the USA.
His new book Comeback America,
(Watch!) Jan 19 010, segment #5
http://www.therightscoop.com/category/glenn-beck/glenn-beck-tv/
It has to do with Americas debt.

And the Russians are bailing on the greenback and buying canuckbux and aussie dollars...

Bill D.Cat and Erik....but what are the Yanks using to back up the printing of all this new money? I thought FDR outlawed the use of the gold standard in 1933.So are they using oil? Gas? Unicorns and fairies? Or just the Zero?
And IMHO....the ChiComs trust the Zero as far as they can throw him.

Given a choice between skittles and lots of inflation ....... I'll take Mugabe for a gazillion Alex .

Justthinkin - well, they have nothing to back up the USD. All that follows is my opinions - the USD has been the world's reserve currency since Bretton-Woods in the 1940s. Which led to the US being the "petrodollar" - so all oil was sold (NYMEX, IPE) in USD. This led to a comfortable relationship between the Saudis and the US. The US provided security for oil sold in USD, and the Saudis lived the way they wanted, and got USD for their oil. So, no need for a gold standard, because effectively the USD was the new "gold". Not quite as fungible as gold, but still used around the world.

Now, there was noise that Saddam Hussain was going to move to euros in selling his oil rather than USD. You can see that would destabilize the world - because all of this fiat currency has gone away from gold, but really, the USD (linked to oil provided a degree of stability).

In any case, because the US has overextended herself, and sourced out so much of "real" economic activity, the USD losing its star status - *not good* for them!!!

What caused the fall of the Roman Empire? Rot from within.

American needs to wake up and take heed.

Massachussetts is a wake-up call if only they do wake up.

Assuming I understood question essentially the Fed is an independent institution and really answers to no one. Also the Chinese haven't really bought any US debt in a about a year and are holding steady at about 800 billion.

To quote the Chinese govt. We haven't any more greenbacks so we can't buy anymore debt.

Sooooo what has been happening in reality is the Treasury department has been creating IOU's in the 2,3,5,7,10,15, and 30 year range. An auction is held every week and some mix of the above is sold.

The main buyer has of course been the Federal Reserve who controls the printing presses.They simply expand the money supply from 1 trillion to 1 trillion 100 billion.

Now from a purely the mechanics point of view what happens is there are 18 primary dealers in US debt. These primary dealers are required to buy the debt for re-sale or they don't get to be primary dealers anymore. However of late they too have been balking at buying the debt so the Fed stepped in and said you buy hold it for a few weeks, then we will take off your hands through the discount window. Think really flashy teller wicket.

Now the banks come to the discount window with their portion of US debt plus some of those crummy Mortgage backed securities and voila they get to leave with a big bag of money.

Then they head back to the bank and directly to their prop desks. Proprietary trading desks, drop the big bag of money on the desks and the traders begin buying the S&P and it's components and you have instant a large run up in the market.

Now Goldman Sachs has one of the most infamous prop desk on the planet called sigma x.
No one knows what they do or how they do it but it is thought they control the world.

Bond trading made easy.

Jeff.

Several considerations here.....small to medium loans----a default is a problem for the borrower-------a big default (like millions/billions) is a grave problem for the lender.
Thus OBOZO is a threat to China's wealth.....
China knows this and is tightning up credit...
The best way to stop a charging elephant is to take away his credit card....

a different bob @ 11:07, unfortunately, when you look at the history of previous great nations, when the rot sets in, the nation never recovers.

BTW, this should make the US haters happy.

Jeff Cosford @1108 - thanks for the thoughtful post

My understanding is that the Federal Reserve is owned by private banks. Independent - yes - from the government - but not from the banks particularly . . . .

Jimmy cracked corn and I don't care.

The obamnation now plans to take over every ones 401K plans and force them to buy U.S Treasury notes for their retirement. Can't borrow no more cash, so screw the sheeple. Nothing like a Government takeover for everyone and all business concerns. Plus the unemployment tax has risen in some states (Hawaii for instance) from $90.00 to $1090.00 for every business to pay to the state for every employee, to be able to pay for the people drawing unemployment checks for 90 months. Spread the wealth as he pledged in his run for president and also spread more unemployment. I'm ashamed to realize what my Ancestors, (family came from Holland to New Amsterdam in 1626) Grandfather, my Father and I have served my Country, for this travesty to happen in my lifetime. The United States isn't the Country that they worked for or ever dreamed that this would happen. The people here in the US really need to realize that Leftists have silently wormed their way into the institutions of this Country with willful intent to destroy the US. By the spending the Country into bankruptcy and the Euro style of kissing the a** of PC. Rant said. So sorry. I've been reading this post for a couple of years now and have never commented but I really have to say to you Canucks, that the sacrifice your Country has given in the World Wars is not forgotten by the people here in the States.

Eric yes that is correct it is owned by the banks participating in the Federal Reserve System.

Congress has over site and can alter what the Fed does by changing statute.

The POTUS appoints the Chairman.

As for the Feds independence or not it's a hard call no can see into the Fed. The shares that the banks own are severly restricted.

Finance in the US is so incestous any way. Robert Rubin is the best example one time Chair of Goldman Sachs the Treasury Sec, the off to Chair Citi.

Half of the bank regulators at least those that have direct power in the US are ex Goldman Managing Directors.

Jeff...good post.But now you have me wondering....what should I be investing in? USD,or CDN,yuan or zen,or little magical beans like Jack?In the barter system,the beans would work the best.

Well Justthinkin your prob right the way it's looking right now magical beans maybe the way to go.

This is going to end with what is known as a Black Swan event.

To really understand the concept there is a book written by Nassim Nicholas Taleb. Black Swan the Impact of the Highly Improbable.

Jeff Cosford - sadly - familiar with the term Black Swan. Justthinkin - I've never been much of a survivalist - view that as sort of tin foil hat - but I've been thinking myself - need to stock a bit of non-perishable food, etc. Just in case.

Was up too late last night to be posting. I meant 36 months of unemployment checks instead of 90!

Joe O, I'll take 90 months of EI, UI or pogey. It sounds like a great way to get back all the money I've been shoveling into that gaping hole for the past 40+ years. Then I could afford to retire before I croak in a hospital EMERG hallway, next to the vending machines.