China keeps peg but diversifies holdings

[@rax7]

LOL did you draw those flags? look nice.

[@pravms]

Excellent explanation for a novice like me.... Hope to see more videos like this.

[@Bustah]

Excellent video thanks for the info!

[@tk2658]

Is it time update this edition?

[@paulceltics]

do an analysis on what you think china and the us can do to stop this. thanks a lot of for your videos

[@andypai]

@Cecelle8910 I don't know how to post the link to the treasury website. If you type "Foreign holdings of US Treasury" in Google, it should come up. It is impossible for what Sal is saying to be true by definition Current Account + Capital Account + Financial Account +/- Balancing item = 0. Sal just accidentally ignored the impact of the balance item (error) in his analysis. His final conclusions do hold merit using other analysis but the evidence he shows is inaccurate. Sal remains a genius!

[@HotPepperLala]

Sal, I think you missed like 20 stars on the American Flag....

[@PALLLLO]

i think china is a net-buyer of treasurys till today. the dramatic increase of the uk holdings of us treasurys is an indication for that. china decreased _direct_ buying of treasursy (which show up on the treasury website), but increased _indirect_ buying thru uk banks

[@shockingpinks]

Is there a site that shows what the U.S. Treasury is spending the Chinese borrowed money on?

[@dominikb12]

the commodity prices should fall and some kind of slower but more sustainable growth will be possible. Commodity prices have to come down, this will have a negative effect on Australia. Most of Australia exports go to China in a form of commodities for real estate and infrastructure development sponsored by mentioned hot money. America has had this stage, Japan has had it, China will have to go through with it also. Quite soon I think. Also, "dumping" of the treasuries and making the dollar

[@HolloMatlala1]

The fact that your videos are 12 years old (2011).🤔

[@peters972]

7 now, and not even taking purchasing power into ac

[@GanJinLan]

Before 1997 Asian financial crisis, Malaysia curreny is 1 USD = RM2.50, ..... Now is 1 USD = RM4.20..... despite of export do increase but not strong and the inflation is 4.1%...... Chinese maybe good at financial sector but when comes to technology like japan and Korea , they don't have creativity which is why Malaysia production is weak.... We Tamil men will make sure Malaysia production and export increase because of Tamil men and not Chinese..... We cannot control inflation because only government can control that but we Tamil can diversified investment around the world.....

[@dominikb12]

FED is keep on going with QE-s and in effect floods East and mostly China with hot money from USA via FDI, portfolio investments in China. This rises the inflow of capital in Chinese banks but also makes the CB of China to rise its interest rate and this is slowing the economy. USA has seen I think, that the only way to reverse the process and gain its former industrial base is to deplete China's. And this is quite normal and cyclical. Once China slows down and it will quite soon in terms of GDP

[@andypai]

Sal, I love your videos, but I believe your analysis on this is incorrect given updated data. Please see treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt The difference in the financial account and the current account balance results from a statistical discrepancy.

[@msol]

Is there any downside for China printing all this yuan? Inflation remains pretty low in China, is it because of price controls?

[@DanielRamBeats]

I think just from the simple fact of increasing the money supply of China, they are inflating the currency? I think the only way they can decrease inflation is by decreasing the cost of production of the goods manufactures make, either by increasing tax cuts, deregulation etc..

[@ericg4915]

Yes they are artificially keeping the Yuan at a set price to keep exports up

[@dominikb12]

"cheap" will after the first "destruction" reverse the economy upon cheaper exports, but now from USA! Also, stronger Yuan will make people in China wealthier and will import more and now from cheaper USA - until the cycle shifts again:) Oh yeah, I see this as a zero sum game. Number of people in the world rising, commodities being the same or being depleted(ok there is some offset by knowledge and technology but You cant replicate), the equation is quite simple. I am optimistic myself.

[@danielramirez8298]

That's why Adam Smith said the economy regulates itself.

[@DanielRamBeats]

oh my god lol..

[@cooolway]

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