china buying oil & spdr gold trust, page-22

Pug,

you are of course correct - they both have a problem.

And yes I have read both the articles. What I noted, however, is that in j6's second article - it is written from a USA centric point of view - NOT a chinese one.

Imagine how a chinese article could and perhaps would look -- look at it from their pov.

Their biggest loaner is deeply in the doo doo. They just happen to also be their biggest customer -- hmmm, what to do?

Also, the play money that they have been saving up from dealings all over the world (in doo doo money) is turning into just that - play money- bugger.

You are correct - there might and probably will be large political repercussions from this - but what, I have no idea.

I will stand my ground saying that china has a problem - and I tell you what, I will bet from a chinese point of view -that they think they have the bigger problem.
Unless they have some future hope for gaining something concrete from the negotiation table if things fizz for the states.

Now as to how these things can go pear shaped - ie. I suppose war is the last resort.

I would have thought the situation should be handled just like how a good debt collector handles it -

Negotiate a way out.

Bad debt collectors use force - bash em and take their stuff.

Doesn't worka too good in reality - and would be a lose lose situation in this case.

Far better for china and the US to talk it through. The problem I could see here would be the large loss of face for the US - if we think Asians have a problem with loss of face - wow, imagine how hard it would be for the yanks!

But I think that is a way off yet - the chickens are merely flying around - they are threatening to come home to roost, but really, until things in america get seriously stressed, nothing much will happen - at the moment they are still in denial I suspect.
And yes, I do think the chooks will come home - but the thing is, it is what we don't know that might be the key(s)

have a good arvo Pinto