Early this morning China let the idiots in Washington, and on Wall Street, know that it has them by the short hairs... The precarious position of the US dollar as reserve currency has been thoroughly ignored and denied. The delusion that the US is "the worldâs sole superpower," whose currency is desirable regardless of its excess supply, reflects American hubris, not reality... Strategic thinkers, if any remain who have not been purged by neocons, will quickly conclude that Chinaâs power over the value of the dollar and US interest rates also gives China power over US foreign policy. The US was able to attack Afghanistan and Iraq only because China provided the largest part of the financing for Bushâs wars. If China ceased to buy US Treasuries, Bushâs wars would end. The savings rate of US consumers is essentially zero, and several million are afflicted with mortgages that they cannot afford. With Bushâs budget in deficit and with no room in the US consumerâs budget for a tax increase, Bushâs wars can only be financed by foreigners. http://onlinejournal.com/artman/publish/article_2283.shtml
yes.. and those that warned of this mess a few years ago were kooks and conspiracy nuts. there is a simple answer to this.
If we could only get the america haters and the conspiracy theorists to worry as much about transfer payments as they seem to about defense spending, we'd stand a chance of fixing things. I guarantee you, it will never happen.
Not worry about totally out of control defense waste and lost billions of cash and materials in someone else's civil war? I hope to hell someone cares enough about the America we love to have stomach pains about this incredible waste. To simply allow an unchecked regime to continue indefinitely seems un-American to me. c
Asian hubris more likely. I recall when the Japanese mafia was buying all the real estate in the US. They got burned for trillions!! Now it's Chinese commies: "We pull big international stunt, people think we smart". I would wait to see how this plays out personally...
Typical bullshit. People like you can't think beyond your hate of americans and instead tend to focus on the doom and gloom for america without bothering to think about the negative implications it would have on other countries as well.
China could do a lot of damage to the dollar and US debt markets, but they would end up hurting themselves far worse. The more troubling aspect is that they have gained a measure of power over the US political process by being able to manipulate our economy. This power could be far greater than the power they previously exercized through their lackeys in the business community or through illegal campaign funds.
...continuing on the topic of American hubris.. absence physical force, for one party to "gain", the other party has to willingly "give". I can't purchase a foreclosed house at 0.50 to the 1.00 unless the bank is willing to let it go at that price. If you worked on rephrasing your comments correctly, only then will you be able to re-wire your neurons to think correctly.
If China crashes our economy who is going to buy their shit products? Speak to any economist, China's economy and financial system is a house of cards and they do not have the infrastructure to handle any shock. That's exactly why they don't let their currency float and let foreigners invest in their market. I pay extra to buy products made anywhere but China, they blame it on growing pains but products made in other growing economies like mexico etc. don't have these problems.
Spot on, 100% correct I believe. It's my opinion that we have created a national security risk to ourselves by allowing the Chinese and other potentially hostile nations to control so much of our economy though debt. I'm not worried about the War on Terror, in the end it serves them well to have us busy with it, and not only that Al Qada is as much of a risk to them as us. They won't stop funding that fight. However, what if they attack Tawain, or if Kim wakes up on the crazy side of the bed and decides to level Souel with artillery from his side of the DMZ. They definatly would not help us fund that defensive need. This puts us in a bit of a pickle. Overall though I would be inclined to tell them to go ahead and dump away if thats what they truely want to do. It would cause some serious intermediate term pain in America, maybe even a short term "Great Depression" type situation, but in the end AMERICAN citizans, corporations and the govt would be able to step into a collapsing market and pick up our debt for pennies on the dollar...putting us back EXCLUSIVELY in control of our own fate, a sitation we have not enjoyed in some time IMO. Brandon