Economy by engaging in a bond War.



A senior advisor to the Chinese government has called for an attack on the Japanese bond market to precipitate a funding crisis and bring the country to its knees, unless Tokyo reverses its decision to nationalise the disputed Senkaku/Diaoyu islands in the East China Sea.

Jin Baisong from the Chinese Academy of International Trade – a branch of the commerce ministry – said China should use its power as Japan’s biggest creditor with $230bn (£141bn) of bonds to “impose sanctions on Japan in the most effective manner” and bring Tokyo’s festering fiscal crisis to a head.

Writing in the Communist Party newspaper China Daily, Mr Jin called on China to invoke the “security exception” rule under the World Trade Organisation to punish Japan, rejecting arguments that a trade war between the two Pacific giants would be mutually destructive.

Separately, the Hong Kong Economic Journal reported that China is drawing up plans to cut off Japan’s supplies of rare earth metals needed for hi-tech industry.

http://www.telegraph.co.uk/finance/china-business/9551727/Beijing-hints-at-bond-attack-on-Japan.html

Love the A's, by the way. Go A's.

Giants are my first team though.

Hoping for an All-Bay series!

Ah. Let’s give thanks to Rob Portman, who offered a nice break from all the lies in Tampa, and instead offered us some good old-fashioned bad macroeconomics. Obama won’t take on China, Portman said, because

Obama could not run up his record trillion dollar deficits if the Chinese did not buy our bonds to finance them

How is it possible that we’re borrowing much less from foreigners when the government deficit has gone up so much? The answer is that the private sector is deleveraging, having moved into massive surplus as consumers try to pay down debt and corporations hold back on investment in the face of weak consumer demand. All those government deficits have only partly offset this move, so that overall national borrowing from overseas is down, not up.

So who’s actually financing the US budget deficit? The US private sector. We don’t need Chinese bond purchases, and if anything we’re the ones with the power, since we don’t need their money and they have a lot to lose. In fact, we don’t want them to buy our bonds; better to have a weaker dollar (a point that the Japanese actually get.)

http://krugman.blogs.nytimes.com/2012/08/30/fear-of-china-syndrome/

We build fire stations in poor neighborhoods.

We build schools in communities that could never raise enough money on their own to construct them.

I do not hunt or fish, but my tax dollars still go to state and federal fish and wildlife agencies.

Present and future tax dollars from poor, middle and wealthy Americans have gone to bailout private banks that were in trouble.

I am very healthy and expect to live a long life -- my life insurance premiums will go to pay-off the widow and children of the guy who suddenly died at 40 years old.

The examples of redistribution by government and private enterprise could go on almost forever -- it is a part of social and economic reality for human beings.

This latest effort by Rmoney and the Repuglicans to turn Obama into a Marxist because he used the word 'redistribution' in a fourteen year old discussion is about the lamest thing yet that they have tried.

We can defend government assistance programs without using that word.