bertusgeert 1 #1 October 29, 2010 At the end of my highschool economics class, the teacher said - now you know more about economics than 95% of all Americans. After a degree in finance and one in economics, there are still some things that I scratch my head about. A lot actually. Here's one... A friend asked me the other day - if rural China is so poor, why does the Chinese government keep on investing in U.S. securities, and not their own rural development? My answer was, they surely do, but have to balance their expenditures and investments. But surely, with billions in surplus, they can spend more on aid? here's an interesting read, at least a browse of the first few pages is enlightening: http://fpc.state.gov/documents/organization/99496.pdf Disclaimer: This is not posted in Speaker's Corner because I'm not on a soapbox, or seeking to cause any voicing of political opinion, simply to discuss macro-economics. If it turns to a shouting match, feel free to move it. --------------------------------------------- As jy dom is moet jy bloei! Quote Share this post Link to post Share on other sites
skyrider 0 #2 October 29, 2010 Quote At the end of my highschool economics class, the teacher said - now you know more about economics than 95% of all Americans. After a degree in finance and one in economics, there are still some things that I scratch my head about. A lot actually. Here's one... A friend asked me the other day - if rural China is so poor, why does the Chinese government keep on investing in U.S. securities, and not their own rural development? My answer was, they surely do, but have to balance their expenditures and investments. But surely, with billions in surplus, they can spend more on aid? here's an interesting read, at least a browse of the first few pages is enlightening: http://fpc.state.gov/documents/organization/99496.pdf Disclaimer: This is not posted in Speaker's Corner because I'm not on a soapbox, or seeking to cause any voicing of political opinion, simply to discuss macro-economics. If it turns to a shouting match, feel free to move it. Like they need your permission? Quote Share this post Link to post Share on other sites
bertusgeert 1 #3 October 29, 2010 Quote Quote At the end of my highschool economics class, the teacher said - now you know more about economics than 95% of all Americans. After a degree in finance and one in economics, there are still some things that I scratch my head about. A lot actually. Here's one... A friend asked me the other day - if rural China is so poor, why does the Chinese government keep on investing in U.S. securities, and not their own rural development? My answer was, they surely do, but have to balance their expenditures and investments. But surely, with billions in surplus, they can spend more on aid? here's an interesting read, at least a browse of the first few pages is enlightening: http://fpc.state.gov/documents/organization/99496.pdf Disclaimer: This is not posted in Speaker's Corner because I'm not on a soapbox, or seeking to cause any voicing of political opinion, simply to discuss macro-economics. If it turns to a shouting match, feel free to move it. Like they need your permission? permission for what? --------------------------------------------- As jy dom is moet jy bloei! Quote Share this post Link to post Share on other sites
skyrider 0 #4 October 29, 2010 Quote Quote Quote At the end of my highschool economics class, the teacher said - now you know more about economics than 95% of all Americans. After a degree in finance and one in economics, there are still some things that I scratch my head about. A lot actually. Here's one... A friend asked me the other day - if rural China is so poor, why does the Chinese government keep on investing in U.S. securities, and not their own rural development? My answer was, they surely do, but have to balance their expenditures and investments. But surely, with billions in surplus, they can spend more on aid? here's an interesting read, at least a browse of the first few pages is enlightening: http://fpc.state.gov/documents/organization/99496.pdf Disclaimer: This is not posted in Speaker's Corner because I'm not on a soapbox, or seeking to cause any voicing of political opinion, simply to discuss macro-economics. If it turns to a shouting match, feel free to move it. Like they need your permission? permission for what? The apart I underlined... permission from you to move a thread! Quote Share this post Link to post Share on other sites
ChrisL 2 #5 October 29, 2010 Quote Disclaimer: This is not posted in Speaker's Corner because I'm not on a soapbox, or seeking to cause any voicing of political opinion Good luck with that. I tried that in another thread today. Everyone made it political anyway and my non-political thread got deleted __ My mighty steed Quote Share this post Link to post Share on other sites
skyrider 0 #6 October 29, 2010 Quote Quote Disclaimer: This is not posted in Speaker's Corner because I'm not on a soapbox, or seeking to cause any voicing of political opinion Good luck with that. I tried that in another thread today. Everyone made it political anyway and my non-political thread got deleted Yeah, them fuckin "everyones", they are always causing trouble! Quote Share this post Link to post Share on other sites
Andy9o8 2 #7 October 29, 2010 Quote Quote Disclaimer: This is not posted in Speaker's Corner because I'm not on a soapbox, or seeking to cause any voicing of political opinion Good luck with that. I tried that in another thread today. Everyone made it political anyway and my non-political thread got deleted I don't get it. Why the heck was thread deleted instead of just moved to SC? It was an interesting discussion. Especially, you know, all the stuff I wrote. Weird. Quote Share this post Link to post Share on other sites
skyrider 0 #8 October 29, 2010 Quote Quote Quote Disclaimer: This is not posted in Speaker's Corner because I'm not on a soapbox, or seeking to cause any voicing of political opinion Good luck with that. I tried that in another thread today. Everyone made it political anyway and my non-political thread got deleted I don't get it. Why the heck was thread deleted instead of just moved to SC? It was an interesting discussion. Especially, you know, all the stuff I wrote. Weird. Actually "deleted"???? Not moved, WOW....that is strange.... Quote Share this post Link to post Share on other sites
turtlespeed 226 #9 October 29, 2010 Quote Quote Quote Quote Disclaimer: This is not posted in Speaker's Corner because I'm not on a soapbox, or seeking to cause any voicing of political opinion Good luck with that. I tried that in another thread today. Everyone made it political anyway and my non-political thread got deleted I don't get it. Why the heck was thread deleted instead of just moved to SC? It was an interesting discussion. Especially, you know, all the stuff I wrote. Weird. Actually "deleted"???? Not moved, WOW....that is strange.... It's a vast conspiracy by the Chinese government.I'm not usually into the whole 3-way thing, but you got me a little excited with that. - Skymama BTR #1 / OTB^5 Official #2 / Hellfish #408 / VSCR #108/Tortuga/Orfun Quote Share this post Link to post Share on other sites
Andy9o8 2 #10 October 29, 2010 Quote Quote Quote Quote Quote Disclaimer: This is not posted in Speaker's Corner because I'm not on a soapbox, or seeking to cause any voicing of political opinion Good luck with that. I tried that in another thread today. Everyone made it political anyway and my non-political thread got deleted I don't get it. Why the heck was thread deleted instead of just moved to SC? It was an interesting discussion. Especially, you know, all the stuff I wrote. Weird. Actually "deleted"???? Not moved, WOW....that is strange.... It's a vast conspiracy by the Chinese government. Which, as irony would have it, supplies the answer to the OP's main question: Because, just like Pinky and The Brain, the Chinese are trying to take over the world. Quote Share this post Link to post Share on other sites
turtlespeed 226 #11 October 29, 2010 Quote Quote Quote Quote Quote Quote Disclaimer: This is not posted in Speaker's Corner because I'm not on a soapbox, or seeking to cause any voicing of political opinion Good luck with that. I tried that in another thread today. Everyone made it political anyway and my non-political thread got deleted I don't get it. Why the heck was thread deleted instead of just moved to SC? It was an interesting discussion. Especially, you know, all the stuff I wrote. Weird. Actually "deleted"???? Not moved, WOW....that is strange.... It's a vast conspiracy by the Chinese government. Which, as irony would have it, supplies the answer to the OP's main question: Because, just like Pinky and The Brain, the Chinese are trying to take over the world. Exactamundo!I'm not usually into the whole 3-way thing, but you got me a little excited with that. - Skymama BTR #1 / OTB^5 Official #2 / Hellfish #408 / VSCR #108/Tortuga/Orfun Quote Share this post Link to post Share on other sites
Andy9o8 2 #12 October 30, 2010 QuoteExactamundo! No, that would be the Mexicans, who people think are trying to take over. The Chinese actually are. Quote Share this post Link to post Share on other sites
turtlespeed 226 #13 October 30, 2010 QuoteQuoteExactamundo! No, that would be the Mexicans, who people think are trying to take over. The Chinese actually are. báiI'm not usually into the whole 3-way thing, but you got me a little excited with that. - Skymama BTR #1 / OTB^5 Official #2 / Hellfish #408 / VSCR #108/Tortuga/Orfun Quote Share this post Link to post Share on other sites
Niki1 1 #14 October 30, 2010 Well, it looks like nobody around here knows about macro-economics which was the original question. I can keep my checking account up to date and know I can't spend more than I make. (Even though I have checks left ) This may not have been the best place to ask such an esoteric, academic question. Most of the things worth doing in the world had been declared impossilbe before they were done. Louis D Brandeis Where are we going and why are we in this basket? Quote Share this post Link to post Share on other sites
mccurley 1 #15 October 31, 2010 A famous quote of Chairman Mao "We will bury the west" A lot of people thought this was a militaryt threat?Watch my video Fat Women http://www.youtube.com/watch?v=eRWkEky8GoI Quote Share this post Link to post Share on other sites
bertusgeert 1 #16 November 1, 2010 Quote Well, it looks like nobody around here knows about macro-economics which was the original question. I can keep my checking account up to date and know I can't spend more than I make. (Even though I have checks left ) This may not have been the best place to ask such an esoteric, academic question. Yeah I was wondering if I'd get an actual answer...I'll just keep on going along in ignorance for now. And maybe buy some Teach Me Mandarin Rosetta Stone for when I'm old. --------------------------------------------- As jy dom is moet jy bloei! Quote Share this post Link to post Share on other sites
Andrewwhyte 1 #17 November 1, 2010 The answer should be elementary. The Chinese government is investing in American paper rather than rural economic development because they have decided that, on the margin, the return is better. Although that sounds like a standard micro answer it is in fact a macro calculus. In order to maintain a good marginal product of capital on economic infrastructure they must tend to the demand side of the equation; the American consumer. See WW Rostow on economic development, particularly the bit about the build up of capital prior to takeoff. The Chinese labour force is so large the will have to be in a continuous state of capital build up even while part of their economy is "taking off." Quote Share this post Link to post Share on other sites
bertusgeert 1 #18 November 1, 2010 Just what I was looking for. --------------------------------------------- As jy dom is moet jy bloei! Quote Share this post Link to post Share on other sites
