China now has two options with all the monster surpluses - firstly investing in more gold and silver that can be kept at home and secondly continue extending loans to countries to build infrastructures. What can go wrong?
Why is the West troubled by all the trade surpluses that China earned, saying that China must produce less and export less? This would probably not have arisen if China just continue to invest in Treasuries and other assets in the USA. The USA would then be laughing all the way to the bank. But that is no more and that is why they are sore.
Anonymous
When thieves are desperate and looking at your assets placed with them to earn some returns, they will start having ideas about seizing them by fabricating reasons to justify their greed when the time comes. Therefore, not only China, but other countries must learn something to make sure that their assets are not jeopardized when the time comes to asking 'Who is next'? Even some European countries are nervy and asking for the return of gold placed at Fort Knox for safekeeping. It is just like placing your money with thieves, telling them not to touch them. Or placing a fish in front of a cat and telling the cat not to eat it, lol.
ReplyDeleteThe seizure of assets belonging to Russia and Iran, floating the idea of even taking over countries like Greenland and Cuba should tell countries what to do if they have investments even over there. Of course, some colonies and allies like Japan, South Korea and UK can continue to buy USA Treasuries or build factories in USA, assuming that they will be safe despite using arm twisting tactics. But nothing is cast in stone, just like Greenland belonging to Denmark, a Nato family member, now letting the devil into the house. China should never trust the Anglo-Saxon clique, not even Canada. Just doing business deals at arm's length is justifiable.