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bkkandrew

Also posted here:

http://teakdoor.com/us-domestic-issu...tml#post764418 (A note of caution for those with deposits in US Banks)

BEIJING, Sept 17 (Reuters) - Threatened by a "financial tsunami," the world must consider building a financial order no longer dependent on the United States, a leading Chinese state newspaper said on Wednesday.

The commentary in the overseas edition of the People's Daily said the collapse of Lehman Brothers Holdings Inc "may augur an even larger impending global 'financial tsunami'."

The People's Daily is the official newspaper of China's ruling Communist Party, and the overseas edition is a smaller circulation offshoot of the main paper.

Its pronouncements do not necessarily directly voice leadership views. But the commentary by a professor at Shanghai's Tongji University, as well as an essay in a Party journal, underscored official alarm at the turmoil in world financial markets.

China's central bank earlier this week cut its lending rate for the first time in six years, a move analysts said was aimed at bolstering the economy and the battered stock market.

"The eruption of the U.S. sub-prime crisis has exposed massive loopholes in the United States' financial oversight and supervision," writes the commentator, Shi Jianxun.

"The world urgently needs to create a diversified currency and financial system and fair and just financial order that is not dependent on the United States."

From:

UPDATE 1-China paper urges new currency order after tsunami | Currencies | Reuters

gjbkk

The Euro?

jim1176

Chinese are greedy twats

Mid

for some reason a Virginia Slims ad comes to mind ................

Jesus Jones

Nah, just clever and waiting their turn.

pai nai ma

The Chinese don't cue. They will take/buy what they want when they want it. After all, they are the center of the universe.

Jesus Jones

Can't blame the Chinese for their greed when the west over the last 30 years has injected them with manufacturer and production and cheap labour, just so the corporate companies can make a few extra dollars at the expense of employemt in our own countries.

Only ourselves to blame.

__________________
Pilger’s law: ‘If it’s been officially denied, then it’s probably true’

The way of life can be free and beautiful, greed has poised men’s souls, has barricaded the world with hate, has goosed stepped us into misery and blood shed. We have developed speed, but we have shut ourselves in. Machinery that gives us abundance has left us in want. Our knowledge has made us cynical, our cleverness hard and unkind. We think too much, and feel to less. More than machinery, we need humanity

bkkandrew

U.S. Meltdown Reflects Regulators' Failures, Wu Says (Update1)


By Li Yanping and Nipa Piboontanasawat

Sept. 18 (Bloomberg) -- U.S. regulators failed to manage the risks of new financial products and China needs to learn the lessons to avoid its own meltdown, former central bank deputy governor Wu Xiaoling said.

``The U.S. crisis reflects regulatory problems in the U.S. and innovative financial products that ignored basic economic rules,'' Wu told a financial conference in Beijing today. ``The U.S. crisis today would be China's tomorrow if financial products such as securitization are introduced without proper risk-control measures.''

China has resisted years of pressure from U.S. Treasury Secretary Henry Paulson to open its financial system more quickly and add new products. Those barriers helped the nation limit its losses and writedowns from the credit-market crisis to less than 1 percent of the $516 billion global total.

``Now is the time for the Chinese to say that `you didn't do it quite right either,''' said David Cohen, an economist at Action Economics in Singapore. ``The world is very dependent on China to help cushion the downturn.''

Bloomberg.com: Worldwide

The blame game starts...

plorf

Well, no need to accuse the Chinese of greed, they were simply more conservative, and thus, correct, and had to listen to many arrogant lectures on economy from the US before. And now that the US has (hopefully) learnt its lesson and should start to be a bit more quiet when it comes to lecturing others, it's only correct to reasses certain bad habits from the past. Swiss banks heavily relied on the functioning of the american credit system as well, despite many warnings, and weren't as prudent as they are in their home market, but sought to copy american bankers.. Can't blame the americans for your own mistakes, but it's certainly correct to question your engagement in that market.

panama hat

That's far too simplistic . . . the Chinese government kept the Yuan at an artificially low rate for just this purpose; attracting manufacturing contracts and selling themselves as the lowest-cost manufacturer, even outdoing the likes of BanglaDesh and Indonesia.

Now that there are problems they are, as usual, placing the blame firmly at the feet of the 'west' while proclaiming their 'helpless' situation.

Texpat

I wish more second-rate economies would strike out on their own and create their own financial orders.

Then we could ride on their coattails for awhile. And wouldn't have to listen to them whine all the while.

Bugs

Yea, and China is so well known for being the world leaders in corporate transparency, and they have done such a swell job of managing the market that the Shanghai composite has gone from over 5,000 in Jan, to below 2,000 currently (and folks have been bitching about the 4% DOW loss the other day). If the sky is falling in NY it must have already fallen in Shanghai.

China should better blend there foreign currency deposits - Dollar, Yen, Pound, Euro. Especially consdering China's biggest trading partner is the EU and their third biggest is Japan. However, even with EU companies China still does quite a bit of business in US dollars, and oil trade is in US dollars.

We saw some of the same type of comments not so long ago when the dollar seemed to be in a never ending dive against the Euro and Pound. Now the dollar has gained much of those losses back, and all that talk died down, as will this once the financial markets in the US stabilize. Problem is the talk should not die down, China should have a better balance - but will they?

__________________
"Religion is an insult to human dignity. With or without it, you'd have good people doing good things and evil people doing evil things. But for good people to do evil things, it takes religion" - Steven Weinberg

Texpat

Zactly.

Much like the efforts in Iraq. When the fighting was going on, all these wankers were up in arms. It was a huge issue. Now that Iraq appears to be making some headway and successes are piling up, the issue has gone cold. Completely.

Next ...

jandajoy

..........

Spin

Donno about loopholes, more like blackholes. The securities and exchange commission under Mr Cox have made some blinding fock ups. Naked short selling and uptick rule being two of them, not to mention comoatose at the wheel.

Butterfly

good point, and it's not like this is the first time, recovery happens. Some takes longer, some are fast. The SubPrime is a big fuckup, we all saw it coming, and yet nothing could have been done to stop it.

Just have to wait for the storm to pass,

watterinja

I wondered for how long the US could carry on financing a lost cause in Iraq & Afghanistan. The $ billions lost each day had to eventually erode the nation's bank-balance.

Coupled with the years of negative savings rate in the US, something was bound to give.

The US has always been good at 'smoke-&-mirrors' - this time, the mirrors began to crack & the smoke lifted. Wonder quite how they're going to fix the mess without putting their hands in their own pockets - for a change?

__________________
"Education is the ability to perceive the hidden connections between phenomena."
- Vaclav Havel, Oct. 2000

"One component of what we call "mathematical genius" is the ability to recognize a simple phenomenon masquerading as an apparently complicated phenomenon."
- Chris Hillman, 2007

Texpat

Have you been living under a rock Wat? Pick up any paper and read up a little about Iraq, hardly a lost cause.

If you don't like how the US markets and financial system is operated ... get lost. Nobody's forcing you to play.

Grow a pair, Man!
Quit stewing around whining and start your own.
Don't be followers your whole lives.

watterinja

Now, where's that 'under the rock' emoticon when you need it?

panama hat

In a thread about China's position vis-a-vis corporate collapse in the US . . . now I know why people refer to a drinking problem.