Obama, Change and China

Even though China is suffering in this crisis, as every major exporter is, they do not have the banking crisis that we do, so they are in a much stronger position than just about every other nation in the world.

C F Stewart,
Henry C K Liu is chairman of a New York-based private investment group. His website is at http://www.henryckliu.com He has written many excellent articles and predicted the global and Wall Street collapse several years ago.

Zbigy's strategic global strategy is a version of the classic Great Game for energy sources in the Middle East and Central Asia. He makes sense in that China has capital and the US needs to borrow to maintain its domestic economy and military. (Russia is much more limited. India may surpass China in wealth before mid-century. ) A US - China alliance that he suggests has problems as Liu writes.
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Why the US sub-prime mortgage bust will spread to the global finance system
By Henry C.K. Liu

This article appeared in AToL on March 16, 2007

On the pages of Asia Times on Line over the past two years, I have tried to put forth the rationale for the inevitability of a housing bubble burst, pointing out reasons why the resultant financial meltdown will be much more widespread and severe than had been generally acknowledged.....

Years earlier, when the debt bubble spread over to the housing sector, warnings from many quarters about the systemic danger of sub-prime mortgages have been categorically dismissed by Wall Street cheerleaders as Chicken Little – “sky is falling” hysteria. Even weeks before bad news on the housing finance sector was shaping up as a clear and present danger, adamant denial was still loud enough to drown out reason. Both Federal Chairman Ben Bernanke and Treasury Secretary Henry Paulson, two top officials in charge of US monetary policy, continue to provide obligatory assurance to the nervous public that the economic fundamentals are sound in the face of a jittery market. Days before being de-listed from the New York Stock Exchange, shares of the collapsed New Century, a distressed sub-prime mortgage lender, were recommended by a major Wall Street brokerage firm as a “buy”. The firm is now under criminal and regulatory investigation.

Thanks for sharing..

The Chinese government is much too arrogant to ever voluntarily help anyone else unless they gain an advantage (or real estate) by doing so.

China has said already that they cannot afford to keep funding America, if changes are not made in reality, to the Obama Party. Of the popints they stressed was Obama needed to make real changes, as he was doing more damage than good, that they (China) needed some sort of assurance that the money would be paid back, and they wanted the US to bow to them.

In this, Obama started on his second anti-stimulus bill, Showed Chinese officials property that he would make sure they got a good deal on, and has supported China sales of bad product to this country.

Dan R. You forget that your hero GWB is the one who indebted us to the chinese. Before 2001 they held little to none of our debt. But George sold the USA out lock stock and barrel. They essentially can destroy our economy with a simple statement.

One of the many reasons we are in such a horrible state is the last administration added another 7 TRILLION dollars of debt.

I am familiar with Liu, have read his articles, many times, over the last few years, and if there's one thing I know, it's that he has more sense in his pinky, than Brez ever will. China has us by the short hairs, thanks to Bush, and it's only a matter of the right timing, and we will find the costs rather high. In essence,we have succumbed to the same economic poison that initiated the fall of the USSR, and it only took eight years to unfold.

Dan has a selective memory, Kevin, always has.

"thoughtful piece
but degeneration has already started
chances are very thin"
devaa .(Debasish Sarkar)

Precisely. Liu puts Brez's "Great Game" strategy in perspective.

Why would China (or India), having the wealth, allow the US to determine their relations on the West's terms? They will cooperate in their interest.