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Subject: China

The People’s Republic of China (PRC) (simplified Chinese: ???????; traditional Chinese: ???????; pinyin: Zh?nghuá Rénmín Gònghéguó listen (help·info)), commonly known as China, is a country in East Asia and the second largest country in the world by land area. It is the most populous state in the world with over 1.3 billion people, approximately one-fifth of the world’s population. China is a socialist state ruled by the Communist Party of China under a single-party system, and has jurisdiction over 22 provinces, five autonomous regions, four directly administered municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and two highly autonomous special administrative regions (SARs) (Hong Kong and Macau). The PRC’s capital is Beijing.
At approximately 9.6 million square kilometres (3.7 million square miles), the People’s Republic of China is the world’s third or fourth largest country by total area, and the second largest by land area. Its landscape is diverse with forest steppes and deserts (the Gobi and Taklamakan) in the dry north near Mongolia and Russia’s Siberia, and subtropical forests in the wet south close to Vietnam, Laos, and Myanmar. The terrain in the west is rugged and high altitude, with the Himalayas and the Tian Shan mountain ranges forming China’s natural borders with India and Central Asia. In contrast, mainland China’s eastern seaboard is low-lying and has a 14,500-kilometre long coastline bounded on the southeast by the South China Sea and on the east by the East China Sea beyond which lies Taiwan, Korea, and Japan. (Wikipedia Jan 2010)

US Bond Market 1995-2004

Bond demand exceeds supply for a decade

Supply & Demand: US Bonds

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion.

In most years, buyers had to go to the secondary market to get all the bonds they wanted. On the demand side, steady buying pressure, accounting for about two-thirds of the market, has come from foreign investors, insurance companies, federal, state, and local governments, and banks and savings institutions — each acting for difference reasons.

US Demographics

America grows with legal immigration

Fall of Saigon (1975): Vietnamese refugees landing on US aircraft carrier.

Legal immigration has resulted in solid growth of the US population, despite declining birth rates and an increasing number of old people. This is good news for investors in stocks and real estate . Despite loud railing against illegal immigration by Bill O’Reilly, Lou Dobbs, Michelle Malkin, and Pat Buchanan, the real story is the size and scope of legal immigration. Illegal immigration appears to be less than 5% of legal immigration, and legal immigration is at an all time high.

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2011-04-21 16:02