The Observation Deck

" BEIJING, Sept 8 (Reuters) - The U.S. Treasury's takeover of Fannie Mae and Freddie Mac is good news in the short term for China, the biggest holder of the giant mortgage lenders' debt, but Beijing's huge U.S. exposure still poses a serious risk, a prominent government researcher said on Monday.
China owned $376 billion of debt issued by U.S. government agencies, principally Fannie and Freddie, as of mid-2007."

http://www.guardian.co.uk/business/feedarticle/7781955

So the American government is going to borrow money from China, to bailout Fannie and Freddie, whose largest holder is China?

Am I missing something?


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it is necessary to give China and Japan and other U.S. debt holders some sense of security. This is so they will buy another few hundred billion dollars of debt every year in the annual reaganomics deficits and modern free-trade deficits.

Thomas Friedman was on sunday news yesterday morning. He told a story about a conversation he had on a golf course in China. The chinese person he was talking to told him the U.S. had 150 years of leeway to use coal fired boilers and furnaces. Thomas Friedman told him the U.S. was going to create all the great new Green Energy of the Future, and China was going to pay for it!

I don't know how much China will pay for it, if America even invents it. If China does pay for it, it will be with money we already owe them. The gist of the new Information Age is that its easier to learn how to recreate stuff. The effective lifetime of patents is always decreasing. If America does create the Green Energy of the Future, it will be China building the implimentations of it. Just like they make a lot of computer and cell phone stuff. Much of LCD technology was invented in Ohio. Are there any LCD plants in Ohio?

ryan costa wrote:it is necessary to give China and Japan and other U.S. debt holders some sense of security. This is so they will buy another few hundred billion dollars of debt every year in the annual reaganomics deficits and modern free-trade deficits.

Thomas Friedman was on sunday news yesterday morning. He told a story about a conversation he had on a golf course in China. The chinese person he was talking to told him the U.S. had 150 years of leeway to use coal fired boilers and furnaces. Thomas Friedman told him the U.S. was going to create all the great new Green Energy of the Future, and China was going to pay for it!

I don't know how much China will pay for it, if America even invents it. If China does pay for it, it will be with money we already owe them. The gist of the new Information Age is that its easier to learn how to recreate stuff. The effective lifetime of patents is always decreasing. If America does create the Green Energy of the Future, it will be China building the implimentations of it. Just like they make a lot of computer and cell phone stuff. Much of LCD technology was invented in Ohio. Are there any LCD plants in Ohio?

Ryan

Saw Tom Friedman, and it was interesting, except unrealistic as you point out. Even if we invent it, it will go to China to be produced, and they will have their version on the market months before the "patented" version.

To my knowledge no LCD plants in America. Meanwhile Japan using a Chinese plant has just created a factory that can make screens nearly any size. In the past you had to make LCDs in 6' x 6' sheets, that were cut down similar to computer chips. I think it was Toshiba that now sports a facotry that can make them 50' x 200'. This allows for much faster and cheaper LCDs, and is their technology.

Do not see the end game yet for getting USA out of the nightmare that has been dug for us since Nixon opened China.


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Jim O'Bryan wrote:
To my knowledge no LCD plants in America. Meanwhile Japan using a Chinese plant has just created a factory that can make screens nearly any size. In the past you had to make LCDs in 6' x 6' sheets, that were cut down similar to computer chips. I think it was Toshiba that now sports a facotry that can make them 50' x 200'. This allows for much faster and cheaper LCDs, and is their technology.

Do not see the end game yet for getting USA out of the nightmare that has been dug for us since Nixon opened China.


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if there had been plants and engineers manufacturing LCDs in America, perhaps they would have invented further breakthroughs in LCD technology and manufacturing processes. There is a much smaller talent pool working on things when production is outsourced. It is even possible children of factory laborers and technicians and machinists are more likely to become engineers.

Japan learned to make better cars than America by enforcing anti-monopoly standards, using protectionism, and producing for a much smaller market that could afford much less fuel and maintenance.