No suprise here! Would any sain people loan money to the USA? I say lets put San Francisco, CA. up as collateral for loans from China. Could you imagine seeing the Peoples Army establishing order at an exibishinist gay pride parade?
I say no problem, we don't want any more of your cheap made shit! On the other hand, this may be Great news though, Obama's spending spree will be cut by China!
I hope this will be the case. the USA is now an out-of-control spendahaulic with maxed-out credit cards glarore. If all countries that traditionaly buy treasuries say no more payday loans for you-Uncle SAm, then maybe we will be forced to live within our means.
If they boycott our treasuries, we'll put restrictive trade barriers on them, and watch the country implode. Who are they going to sell their garbage goods to....Laos?? It's a mutual dependency.
I'm not making a yay-or-nay judgement on this, but it should be noted that would cause an incredible dislocation in the US economy. Rioting and corpses in the streets kind of dislocation. 99% of Americans will be poorer - most a lot poorer - virtually overnight.
lets hope that never happens, china will be hurt but can withstand being cut off from the US. Chinese were living in poverty just 20 years ago and can certainly adjust, they also have much higher average savings per person (relative to living cost) than most countries. But if the chinese start dumping us treasuries, the us WILL crash. Then i guarantee china will be labeled as a financial terrorist, and there will be some sort of trigger to a war. If that happens, nothing else would matter anymore. So lets dial down on all this bullshit.
Breaking News... China wants collateral in the form of male children for manual labor. They promise to feed them well, provide good health care, and return them upon injury or old age, when they can no longer till the soil or haul bricks or cement. When asked if it was true that China will quit buying U.S. debt, the Prime Minister said, 'why, of course.' 'No tickie, no laundry.'