Main US Creditors Rubbing Shoulders Together

Sunday, December 14, 2008

Having been burned by premature investments in ailing US companies the three biggest creditors of America are teaming up in order to push their agenda for a new financial world order since most European and American banks are trending towards bankruptcy, only held alive by irresponsible government guarantees these days.

PHOTO: Chinese Premier Wen Jiabao (L), Japanese Prime Minister Taro Aso (C) and South Korean President Lee Myung-bak shake hands after signing a joint statement for Tripartite Partnership. Photo: Xinhua
According to official Chinese media,
The tripartite cooperation will not only contribute to create a peaceful, prosperous and sustainable future for the region and international community, but also be crucial to address the serious challenges in the global economy and the financial markets, said the statement.
The statement also said the tripartite meeting in Fukuoka will pave the way for a new era of tripartite partnership which will lead to the peace and sustainable development in the region.
The single biggest commonality between the 3 powers are their gigantic holdings of US debt and other US assets. Faced with the danger of exploding losses from these holdings because of America's nosedive into depression share a common problem they can only influence to a certain degree. As all other holders of US securities a stampede out of FRNs would wipe out a good part of these national savings.
Chinese Premier Jiabao said on Saturday that
China can not only maintain a steady and relatively fast economic growth through efforts and getting over difficulties, but also elevate its economy to a new level by overcoming the ongoing financial crisis.
China has repeatedly voiced its concerns with a dominant Western style financial system that is now failing on a wide scale. In the recent past China has tabled the future of the debt-ridden US economy, swinging widely between options.

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