The US should worry about its own Chinese debt: Asad Umar

[cloud4000]

Is US going to IMF to save its economy and replenish its foreign currency reserves? Unlike Pakistan, US can service its debt. End of debate.

 

[IceCold]

or maybe this fellows is dumber than khwaja asif and in his head it sounded like a good point, since he has to pretend to be master of economics, and as you see, it impressed the hell out of illiterate masses especially since it looks as if the mighty economist has challenged the USA

waste of time, can't say any more lest I trigger some non-Pakistani masquerading as all conquering Pakistan hero, or worst still some juvenile Pakistani jihadi.

And the only literate one here is you shredding his pearls of wisdom for the illiterate masses? The credentials of Assad Umar speaks for itself and are far more then anyone we had as Finance Minister in recent times. A piece of advise take your head out of your rear and see the reality.

 

[Hakikat ve Hikmet]

Great to see a resounding reply from the Pak side!!! The way the usual suspects are reacting to this change of guard is amazing!!!! Divine help may be quite near...

 

[doorstar]

And the only literate one here is you shredding his pearls of wisdom for the illiterate masses? The credentials of Assad Umar speaks for itself and are far more then anyone we had as Finance Minister in recent times. A piece of advise take your head out of your rear and see the reality.

yet he can't tell the difference between Chinese investing in US treasuries and Pakistan borrowing to survive and/or to enrich its elite, he thinks they both are the same

 

[IceCold]

yet he can't tell the difference between countries investing in US treasuries and Pakistan borrowing to survive and/or to enrich its elite, he thinks they both are the same

And how did you come to this brilliant conclusion? because some one told the US to learn to mind their own business?

 

[War Thunder]

The type of debt is very different.

Pakistan is taking physical loans from the Chinese at quite high interest, to deploy into things like infra.

US debt held by China is in form of bonds, and that is China's way of keeping its exchange rate low and its employment + investment levels subsidized...i.e basically a consumption transfer from China to US. Consumption and infra (investment) have very different Mx ramps/velocities to begin with (even if US and Pakistan were carbon copies economically)....i.e because investment is broken up into a series of consumptions with time delays (and thus ROI delays) whereas consumption is much more direct.

The grand difference however is the level of seigniorage (i.e defacto fiat currency credibility) between the US and Pakistan. The best way to perceive this real time is the degree to which the US can print the dollar without worry for its deficit spending compared to Pakistan (which takes far higher credit hit for each percentage of fiscal deficit)..and the sheer size of their currency liquidity use worldwide.

These are the reasons why the interest rates on these debts are quite different (7% versus 3% for the 10 year maturity ones I believe).

So no, the US does not really need to worry about its debt w.r.t China as much compared to Pakistan....given the large chasm of the ramps and seigniorage in play.

That said though, these statements are more political than deeply financial policy based.

@LeGenD @Jungibaaz @waz @Chak Bamu @farhan_9909

A debt is "money owed" regardless of whatever the difference is
And the statement stands valid in any case

So the point is?

 

[doorstar]

A debt is "money owed" regardless of whatever the difference is
And the statement stands valid in any case

So the point is?

when you deposit money in to your savings account, are you making a loan to the bank? does it make you a lender or investor? and does the bank become a borrower?

 

[BetterPakistan]

This is how sovereign countries respond.

 

[ghazi52]

 

[newb3e]

how concered indians are!!

if it was upto me i would befriend every indian walking on planet earth minus the rapist but that would leave me without any friends!

 

[Icewolf]

how concered indians are!!

if it was upto me i would befriend every indian walking on planet earth minus the rapist but that would leave me without any friends!

In soup power India, street shitting, raping, and eating rats is an integral part of their culture

 

[volatile]

Lol the Childlike approach continues for PTI first of all IMF has voting rights of US 15% in IMF and also issue and concerns are for Pakistan not US ,ALlah Hafiz for Pakistan and New Liberals