Trump speaks with Taiwanese president, risking diplomatic crisis with China

[Tom Joad]

My question is who the FUCK do the "People's Republic of China" think they are, that they think they can dictate who the PRESIDENT OF THE UNITED STATES OF AMERICA may, or may not talk to?

I have a message for them:

THE PRESIDENT OF THE UNITED STATES OF AMERICA CAN TALK TO WHOMEVER THE FUCK HE FEELS LIKE TALKING TO!

http://theweek.com/5things/665316/tr...c-crisis-china

President-elect Donald Trump spoke with Taiwanese President Tsai Ing-wen on Friday, a move critics said would infuriate the People's Republic of China. While the phone call between the U.S. president-elect and the Taiwanese president appeared to be mainly congratulatory, it broke over three decades of precedent: The last time leaders of the two countries spoke directly is believed to be 1979, and the U.S. doesn't formally recognize the Taiwanese government. China considers the island a breakaway province, and so the call was expected to create an uproar in Beijing.

[bobabode]

I wonder where Cheetolini is going to get his crappy ties from now?

[CarlV]

Because they own us. Too bad, we didn't owe them one penny before GWB took office, they are loaning us for all the wars we are starting. Your boy want to rebuild infrastructure with tax cuts. how Republican.

Updated November 21, 2016

The U.S. debt is more than $19.8 trillion. Most headlines focus on how much the U.S. owes China, which is one of the largest foreign owners. Fewer people know that the Social Security Trust Fund, aka your retirement money, owns most of the national debt. How does that work, and what does it mean?
The Debt Is in Two Categories

The U.S. Treasury manages the U.S. debt through its Bureau of the Public Debt.

It's broken out the debt into two broad categories: Intragovernmental Holdings, at $5.491 trillion, and Debt Held by the Public, at $14.406 trillion (Source: Debt to the Penny, U.S. Treasury, as of November 21, 2016.)

Intragovernmental Holdings— Nearly 30 percent of the Federal debt is owed to 230 other Federal agencies. Why would the government owe money to itself? Some agencies, like the Social Security Trust Fund, take in more revenue from taxes than they need right now. Rather than stick this cash under a giant mattress, they buy U.S. Treasuries with it.

By owning Treasuries, they transfer their excess cash to the general fund, where it is spent. Of course, one day they will redeem their Treasury notes for cash. The Federal government will either need to raise taxes or issue more debt, to give the agencies the money they will need.

Which agencies own the most Treasuries? Social Security, by a long shot.

Here's the detailed breakdown (as of December 31, 2015):

Social Security (Social Security Trust Fund and Federal Disability Insurance Trust Fund) - $2.786 trillion
Office of Personnel Management Retirement - $873 billion
Military Retirement Fund - $601 billion
Medicare (Federal Hospital Insurance Trust Fund, Federal Supplementary Medical Insurance Trust Fund) - $267 billion

All Other Retirement Funds - $187 billion
Cash on Hand to Fund Federal Government Operations - $508 billion. (Source: Treasury Bulletin, Monthly Treasury Statement, Table 6. Schedule D-Investments of Federal Government Accounts in Federal Securities, December 2015)

Debt Held by the Public—Foreign governments and investors hold nearly half of the nation's public debt. One-fourth is held by other governmental entities, like the Federal Reserve, and state and local governments. Fifteen percent is held by mutual funds, private pension funds, savings bonds or individual Treasury notes. The rest is owned by businesses, like banks and insurance companies, and an assortment of trusts, companies, and investors. Here's the breakout:

Foreign - $6.175 trillion
Federal Reserve - $2.461 trillion
Mutual Funds - $1.056 trillion
State and Local Government, including their pension funds - $803 billion
Private Pension Funds - $403 billion
Banks - $515 billion
Insurance Companies - $293 billion
U.S. Savings Bonds - $174 billion

Other (individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts and estates, corporate and non-corporate businesses, and other investors) - $1.198 trillion. (Sources: Federal Reserve, Factors Affecting Reserve Balance, May 12, 2016. Treasury Bulletin, Ownership of Federal Securities, Table OFS-2, as of June 2015)

This debt is not only in Treasury bills, notes, and bonds but also TIPS and special State and Local Government Series securities.

As you can see, if you add up debt held by Social Security, and all the retirement and pension funds, nearly half of the U.S. Treasury debt is held in trust for your retirement. If the United States defaults on its debt, foreign investors would be angry, but current and future retirees would be hurt the most.
Why Does the Federal Reserve Own Treasury Debt?

As the nation's central bank, the Federal Reserve is in charge of the country's credit, so it doesn't have a financial reason to own Treasury notes. So why did it double its holdings between 2007 and 2014?

That's when it ramped up its open market operations, purchases of Treasuries. This Quantitative Easing stimulated the economy by keeping interest rates low, escaping the grips of the recession.

Is the Fed simply monetizing the debt? That's one of the effects. The Fed purchases Treasuries from its member banks, using credit it created out of thin air. It has the same effect as printing money. By keeping interest rates low, the Fed helps the government avoid the high-interest rate penalty it would usually incur for excessive debt.

The Fed ended QE in October 2014. As a result, interest rates on the benchmark 10-year Treasury note rose from a 200-year low of 1.442% in June 2012 to around 2.17 percent by the end of 2014. For more, see Relationship Between Treasury Yields and Mortgage Rates.
What About Foreign Ownership of the Debt?

China owns $1.157 trillion U.S. debt. As of September 2016, it was the largest foreign holder. Japan is next, holding $1.136 trillion. Both Japan and China want to keep the value of the dollar high when compared to their currencies. That helps their exports to the United States seem more affordable, which helps their economies grow. That's why, despite China's occasional threats to sell its holdings, both countries are happy to be America's biggest foreign bankers. China replaced the United Kingdom as the second largest foreign holder on May 31, 2007. That's when it increased its holdings to $699 billion, outpacing the United Kingdom's $640 billion.

https://www.thebalance.com/who-owns-...l-debt-3306124

[Tom Joad]

Originally Posted by CarlV

Because they own us. Too bad, we didn't owe them one penny before GWB took office, they are loaning us for all the wars we are starting. Your boy want to rebuild infrastructure with tax cuts. how Republican.

I can solve the China debt problem.

When the next payment is due we just send then a note that says : "Fuck You"

[finnbow]

Originally Posted by CarlV

Because they own us. Too bad, we didn't owe them one penny before GWB took office, they are loaning us for all the wars we are starting. Your boy want to rebuild infrastructure with tax cuts. how Republican.

https://www.thebalance.com/who-owns-...l-debt-3306124

Originally Posted by Tom Joad

I can solve the China debt problem.

When the next payment is due we just send then a note that says : "Fuck You"

China already owns Trump in that Trump's businesses owe $950 million to the Bank of China. What's interesting/humorous is that Trump initially said that Taiwan initiated the call to congratulate him, but both the Taiwanese and a Trump campaign staffer later said the call had been arranged in advance by both parties. It seems that the hawks around Trump have gotten in his ear already.

[Oerets]

China is paying Chess and we think it is Checkers on the world stage. This country is lucky if we plan anything for more then the next election cycle where China is already thinking fifty hundred years ahead.


They will easily play this new guy like a Chinese Fiddle.



Barney

[nailer]

Originally Posted by finnbow

China already owns Trump in that Trump's businesses owe $950 million to the Bank of China. What's interesting/humorous is that Trump initially said that Taiwan initiated the call to congratulate him, but both the Taiwanese and a Trump campaign staffer later said the call had been arranged in advance by both parties. It seems that the hawks around Trump have gotten in his ear already.

The hawks have all the neat toys and Donald loves saying Mad Dog.

We have a SECDEF known as Mad Dog.

This is going to be surreal.

[finnbow]

Originally Posted by nailer

The hawks have all the neat toys and Donald loves saying Mad Dog.

We have a SECDEF known as Mad Dog.

This is going to be surreal.

I can't wait for Trump to be fitted for his Idi Amin uniform and sunglasses.

[finnbow]

In addition to being used by Taiwan, Trump now is being used by the butcher in charge of the Philippines.

Philippine President Rodrigo Duterte’s plan to “kill all” the country’s suspected drug users and dealers has many foreign critics, including the United States, the European Parliament and the International Criminal Court. It now has at least one high-profile supporter: President-elect Donald Trump, at least according to Duterte.

In a statement Saturday, Duterte shared details of a seven-minute conversation that took place Friday. He said that during the call, Trump endorsed his campaign against drug users and dealers — a campaign that has left at least 4,500 Filipinos dead in about five months. Trump told Duterte that he was doing it the “right way,” according to Duterte’s account.

https://www.washingtonpost.com/news/...-as-right-way/

The world's autocrats and tinpot dictators of the world all seem to be relishing the Trump victory.

[Tom Joad]

I love the way this woman writes.

http://www.newslogue.com/debate/166/Caitlin%20Johnstone

The Democrats, who have spent the latter half of this year loudly blaming Russian President Vladimir Putin for everything from the DNC leaks to Hillary Clinton’s defeat to Arrested Development’s mediocre fourth season, have all of a sudden transformed from a mob of screaming, frenzied Joseph McCarthys into a bunch of tender-hearted grandmotherly diplomats now that Donald Trump has broken with executive tradition and accepted a phone call from Taiwan President Tsai Ing-wen.

Why is such a phone call so outrageous, you may ask? Why, because that might offend the Chinese, and we can’t just go around offending the leaders of large, powerful Asiatic nations now, can we? The very idea!

Type the word “Taiwan” into Google and then click News and you’ll see what I mean; article after article, editorial after editorial about “China’s wrath” and what a colossal “gaffe” and “blunder” it was for Trump to have a ten-minute phone call with the leader of a… well it wouldn’t be diplomatic to call them an ally, so let’s just call Taiwan a nation that the United States currently sells weapons to, trades prolifically with, and would definitely defend if it were attacked or invaded. Let’s call it a schmalliance, to avoid offending China. Yeah. Taiwan is a major longtime schmally that America would never dream of communicating with, until that crazy political neophyte Donald Trump picked up the phone instead of letting it go to voicemail.