Well there we have it - translation "Please buy our bonds & debt instruments because if you don't we are all stuffed". How deep are the Chinese pockets?SAN FRANCISCO (MarketWatch) -- Secretary of State Hillary Clinton wrapped up a state visit to China Sunday by urging her hosts to continue to invest in U.S. Treasury instruments and underscoring the two countries' interdependence, according to published reports.
"It would not be in China's interest if we were unable to get our economy moving again," Clinton said in an interview with a Chinese television journalist, according to reports.
"So by continuing to support American Treasury instruments, the Chinese are recognizing our interconnection. We are truly going to rise or fall together," she said.
No kidding Sherlock? Turning Japanese? Global deflation here we come, for a decade or 2? What do you expect when you give the world money at zero interest for 10 years, sowing the seeds of the GFC.After months of speculation about a sharp oil-driven rise in prices hitting the world's second largest economy, the rapid global economic downturn has rekindled fears that Japan may be slipping back into a deflationary cycle.
Such a cycle is likely to have negative implications for the broader economy in that it would lead to lower corporate profits, prompting firms to continue downsizing their operations and cutting their payrolls.
“Should these conditions continue, we could say that the Japanese economy is at risk of falling apart,” Finance Minister Kaoru Yosano said in the Diet in Tokyo on Feb. 18.Companies making things that nobody wants, or can afford. So the negative contagion cycle continues. GM filing bankruptcy could be the beginning of the end?The deal will likely serve as a blueprint for rivals General Motors Corp. and Chrysler LLC as both companies work to secure further federal funding and stay out of bankruptcy. The two domestic automakers, which already have received $17.4 billion, asked the Treasury last week for a total of up to $39 billion in low-cost loans.
GM and Chrysler, as part of their loan agreements, are required to get the union to accept equity payments in lieu of cash to fund the health-care trust. GM owes about $20 billion to its VEBA.