September 28, 2011
In August, No new jobs have been created.
A new report says the number of new jobs roughly equaled the number of jobs lost.
the length of the average workweek fell slightly to 34 hours.
This is the first time a jobs report has come in at zero since February 1945.
The AP reports that unemployment for young people is the highest since World War II, and they risk living in poverty more than others – nearly 1 in 5.
China has stated their plan to liquidate US treasuries.
Their central bank plans to down their portfolio of US debt as soon as possible.
Li Daokui at the World Economic Forum say that they intend to move from foreign reserve holdings to physical assets including stakes in Boeing, Intel, and Apple. He said Once the US Treasury market stabilizes they can liquidate more of their holdings..
All this after five of the world’s top central banks moved to flood the markets with dollars.
The European Central Bank said it will work closely with the Federal Reserve, the Bank of England, the Bank of Japan, and the Swiss National Bank.
Their plan is to offer 3 month loans to banks until the end of the year.
The FED has just launched their ‘Twist’ stimulus initiative….sure to be packed full of lemons…
They The Fed plan spend about 0 billion buying back bonds maturing withing 3 years and swapping this for longer-term debt.
They claim this will help boost loans and keep interest rates down yet this plan puts no money directly into the economy.
The sell-off followed news from the Federal Reserve, which said that it sees “significant downside risks” to the U.S. economy.
Australia’s dollar reached a 10-month low in response.
Gold investment demand in China is likely to top a record 200 metric this year.
China is stating that they are willing to Buy Euro Bonds From Sovereign-Debt-Crisis Nations.
This is their stated plan to move their foreign-exchange reserves.
China is stating their price for an Italian rescue.
China has called for major strategic concessions from Europe before agreeing to rescue the eurozone, This ended hopes for immediate purchases of Italian bonds.
Premier Wen Jiabao warned that China will not sign a blank cheque for states that have failed to carry out full financial reform and that countries must first put their own houses in order.
China has accumulated roughly 800bn euros of eurozone bonds over the last decade and holds about 1.17 trillion in US debt.
Following this event, the S & P downgraded Italy’s sovereign debt rating by one notch to A from A+. Credit Ratings in Spain, Ireland, Portugal, Cyprus, Greece, and the United States have also be cut.
China is also wooing the Caribbean with an offer of bln in loans.
This is to finance infrastructure projects as it deepens ties in a region historically linked with the United States.
The loans will be made available through the state-run China Development Bank
China’s wooing of the Caribbean is part of a global push by Beijing to promote loans and investment while seeking natural resources and political influence in the developing world from Africa to Latin America.
The Chinese are already involved in a .6 billion resort project in the Bahamas which broke ground earlier this year.
They’ve also invested more than billion in one of the country’s leading ports.
Simplifying the visa process for Chinese tourists, or eliminating it entirely, will be a major step for business relations between China and The Bahamas.
So with all this growth and only so much land…where is the new red china to go?
China is expanding its cities by building massive artificial islands
In 2014, when the chain of artificial islands in Longkou Bay is compete, they will comprise an area as big as Manhattan from its southern tip all the way to Central Park, but with vastly more ocean-front property, suitable for ports as well as seaside homes.
It will take 300 million cubic meters of earth and stone hauled from a nearby hill to build the islands, or enough material to fill the interior of the Empire State Building 30 times.
http://www.bloomberg.com/news/2011-09-14/china-willing-to-buy-bonds-from-sovereign-debt-crisis-nations-zhang-says.htmlIn August, No new jobs have been created.