Why China paid $1trillion to US but doesn't pay a dime to the Pak govt?

[RoYaL~GuJJaR]

Because......

China = Pure Business.

 

[Jade]

China did not paid US $ 1 trillion, China invested in US treasuries issued by US Fed. There lies the difference. Apart from China, UK and Brazil also have invested significant amount in US treasuries. In 2009, China, India and Russia announced that they would invest in Gold instead in US treasuries; however, latter China changed its mind.

 

[AZADPAKISTAN2009]

I saw a article on a news site it stated who owns US debt

CHINA 26%
Japan 20%
UK 6 %
Oil Exporters 4.8%
Brazil 4.2%
Russia 3.4%

Reference:
United States public debt - Wikipedia, the free encyclopedia

About 3 Trillion USD is owed to China!!!! when debt was 13 trillion now its probbly 20 trillion


The Interest alone from that debt will be able to fuel whole Chinese Airforce and Navy and Army

Lets put the number in prespective 20 trillion dollars


20,000,000,000,000 Dollars

vs Pakistan Debt

50,000,000,000 dollars (which is penuts)

 

[majesticpankaj]

I saw a article on a news site it stated who owns US debt

CHINA 26%
Japan 20%
UK 6 %
Oil Exporters 4.8%
Brazil 4.2%
Russia 3.4%

Reference:
United States public debt - Wikipedia, the free encyclopedia

About 3 Trillion USD is owed to China!!!! when debt was 13 trillion now its probbly 20 trillion


The Interest alone from that debt will be able to fuel whole Chinese Airforce and Navy and Army

Lets put the number in prespective 20 trillion dollars


20,000,000,000,000 Dollars

vs Pakistan Debt

50,000,000,000 dollars (which is penuts)

china holding is only 12 %

 

[pmukherjee]

Does not make sense either to invest in a country that has crossed the lending limits and headed towards bankruptcy only to find out someone bailed it out and and then fell into the same pit and got ready to borrow more loans except this time China did not lend.

I think China blundered over here by providing $1 trillion to US.
If your neighbor is doing well you are doing well, China did not follow this policy or atleast to say did not give it a try.

Lending limits of the US are self imposed and not carved in stone. This whole drama was enacted in the US Congress because the Republicans wanted to hold President Obama's feet to the fire and extract their pound of flesh for supporting the raising of the lending limits which they had to do in any case and in which ploy they failed but managed to tarnish the image of their country. Who says America is bankrupt? The financial depression started in 2007/2008 and affected the growth of most western nations. Depressions do not last forever you know? Countries like the US, Germany and Japan are the leading economies of the world, they are currently depressed but will emerge sooner than later. I know that some sections of the Pakistani media are so anti US that they love to portray the US as a basket case, but it is not. Highly industrialised and innovative countries have a way of bouncing back with vengeance.

China is a very wise and astute investor, it does not blunder.

 

[kewell333]

Pakistan has never asked china for any bail out or aid like things as Pakistan wants trade instead of aid.We have been asking the US for the same but they rather continued providing aid in place of trade.China on the other hand always listened to Pakistan wishes and the way Pakistan want a certain thing i.e Chinese investments in the areas that would generate employment for the youth similarly meeting our defense requirements on par our demands and that too with transfer of technology.thus china is helping us how to catch fish.they are making us to stand by our own feet and we are very much satisfied with our Chinese brothers sincere efforts.Long live Pak-China friendship

Yes, Pakistan and China are equal partner countries. All we do is benefit for each other.

 

[awanawan]

A THOUGHT TO PONDER UPON
WHY CHINA PAID $1 TRILLION TO US, WON’T PAY A DIME TO PAY PAK GOVT(S)​

Friend of Pakistan a time tested friend China; who happened to support Pakistan every time in all fields has anyone thought of why China does not support the idea of bailing out Pakistan.

China that is considered rivalry to the United States paid an astounding $1 trillion to bail out US on agreed terms but never have China ever considered a friendly Pakistan to bail it out of economic and poverty where Pakistan debt stands close to $57 billion compared to $1 trillion to be far less. I am forced to think and write what is wrong between China and Pakistani Govts that trust deficit remains strong when it comes to finances.

Is there any working group between China and Pakistan to resolve this debt crisis and Pakistan assures and gives China access to areas specifically mining projects that has a better return profitability to Chinese companies/Govt.

As far as we all know China is a reliable trusted partner and friend thus it leads me to believe previous and present Pakistani Govts are the cause that keeps Chinese economists and government not to bail out Pakistan who is suffering due to large sum of debt that is hardly payable due to less exports and all sorts of disasters upon her from WOT to earthquake to floods.

Let’s be fair here Chinese and Pakistan Armed Forces have the strongest ties and all sorts of business deals goes through but the same enthusiasm and helping hand is not available when it comes to dealing with every Pakistani Govt in power.

Bailing out Pakistan out of the debt may it be half of what it is currently would benefit and help not only Pakistan but China mutually investing in all critical projects that immensely benefit Chinese economy as well.

I’ve given a thought and introduced it over here gentlemen your thoughts, do participate..

I’ll ask moderators to keep the thread clean and under surveillance and remove all flaming posts.

ALL WRONG...if America falls into a financial crisis, everyone is heavily affected if we fall into a financial crisis, no one gives a crap..........WE HAVE BEEN IN A FIANANICAL CRISIS SINCE THE 70'S

 

[ephone]

political stability is essential. In addition, it has the biggest debt and equity market in the world. Even Pakistan is as stable as U.S., its market is just too small to consume all of China's surplus.

The key is political stability, If you do some research you will find that most of the countries prosper under a politically stable regime. Instituitions in a country are their biggest strength to make conducive atmosphere. You have to make them as strong as possible. West is so powerful is beacuse of that only. Their judiciary, parliament, press, law enforcement agencies and election commission are very powerful and accountable to nation. Business opportunities prosper in this kind of atmosphere.

Offtopic: If u see the current state of karachi who would like to invest in pakistan ? My friend I hope you get the message.

 

[Omar1984]

The reason is simple, U.S. is still the sole superpower and China can have its influence over U.S. policies with lending these trillion dollars loans.

Pakistan is a developing 3rd world country with many problems and can not dictate its terms to other countries, and already has so much loans to pay back.

And Pakistan really needs to stand on its own two feet. With all the untapped natural resources we possess in our land, and the majority of Pakistan;s population being under the age of 40...Pakistan can become another United Arab Emirates without the help of other countries.

 

[Super Falcon]

if they helped pak with money army and govt have taken 50 percent share

 

[Tshering22]

political stability is essential. In addition, it has the biggest debt and equity market in the world. Even Pakistan is as stable as U.S., its market is just too small to consume all of China's surplus.

These are the words of flattery my friend. We all know what it means in non-diplomatic sense. Even the Pakistani members here are not pleased with the situation and call it a hindrance to their economic growth prospects in the possible future. Why are you then conveying wrong meaning here with false and flattering words?

The talk is not about Markets. The focus is on stabilizing the institutional bodies of the country. In Pakistan's case, the military has almost entirely monopolized definition of power. This makes a very small room for other institutions to hold ground or offer potential alternatives. Which means judiciary, law enforcement, civic society etc have very little idea of the definition of core pillars or a country.

European countries are small too with tiny populations. Barring colonial plundering (long gone), they've used the wealth well enough to make sustainable and developed societies. Pakistani population is slightly more than a third of US population; which is quite significant from a market perspective. To strengthen themselves, they will first need to come out of the military thinking all the time. Contrary to what most Pakistanis wish to think, it is their star military that is becoming their biggest bane.

 

[ashok321]

I saw a article on a news site it stated who owns US debt

CHINA 26%
Japan 20%
UK 6 %
Oil Exporters 4.8%
Brazil 4.2%
Russia 3.4%

Reference:
United States public debt - Wikipedia, the free encyclopedia

About 3 Trillion USD is owed to China!!!! when debt was 13 trillion now its probbly 20 trillion


The Interest alone from that debt will be able to fuel whole Chinese Airforce and Navy and Army

Lets put the number in prespective 20 trillion dollars


20,000,000,000,000 Dollars

vs Pakistan Debt

50,000,000,000 dollars (which is penuts)

And you forgot the crucial factor of the world economy here - USD, which is printed by USA and not Pakistan.

It costs just 4 cents to print one 100 USD bill.
As long as 80 percent of the reserve banks-central banks of other nations keep USD in their FOREX kitty, and as long as 70% of the International trade IMPEX is quoted in USD and routed through the US banks, US is unperturbed.

 

[ashok321]

China has bought US treasury bonds which pay them 5% annually.

 

[Asian.Century]

China has bought US treasury bonds which pay them 5% annually.

China earns alot from the annual returns and interest, which Pakistan cant afford.