Its simplier than that...They easily have taken the most illiquid debt position in market history..if they stop the price would crumble and they would crush themselves essentially.
you ignorant idiot. A huge number of high tech it equipment is manufactured in China. While those are made by US or Japanese or German companies China makes sure to acquire the know-how and skills to produce them on their own soon, if they dont already know. In a few years China will pump out cars that will be surperior in quality and price to any Detroit BS. 80% of the world's LCD displays are now manufactured and assembled in China (yes, the display itself is now made in China not anymore in Korea or Japan). The second proof of your ignorance is that the U.S. makes up the larges share of imports from China as SINGLE COUNTRY, however, as a global % share it is A LOT LOWER. Not negligible but a lot lower. May I remind you that the world is larger than just your holy country? A quick pointer, Japan's largest trading partner is not the US anymore its China. So, take my word for it, before you put up any barriers China will shut off your light in no time. By the way, where will you then take the money to purchase all the goods you then have to buy that are made in USA? Take out another home equity loan? Sorry buddy, no more credit extended to you buddy!!! So, wake up and grasp reality, you are light years behind
banks only lend money to countries and people with good fiscal responsibility and good credit. US economy is still the strongest in the world.
As bad as things are in the U.S., and they are very, very bad indeed, the world lives or dies, recovers or not, based on U.S. actions and inactions. We own all the trump cards. And everyone with half a brain knows this as a fact.
The US trump card has been the willingness to mortgage its own future to essentially support everybody elses exports. That can't go on forever - and if this is indeed the beginning of the end of that era, the trump card is losing its value by the day. This isn't 1945 with only one industrial power still standing. Americans would be hurt by this every bit as much as everyone else.
Did anyone think about WHAT you can use to collateralize UST? Real estate in Las Vegas? Or, better yet, some nice subprime RMBS? This is a total absurdity...
It's not quite the mutual dependency that you appear to think it is. The Chinese have the remainder of the world who will buy their products, that is approximately 4.75 billion people, not forgetting that the Chinese themselves with a population of over a billion are quite partial to the occasional purchase of novelty goods too. The US financial system in its current form will be instantly crippled the very day China decide to pull the plug on purchasing US debt and that is why they are in a position to ask for collateral, therefore the Chinese are clearly in complete control of this situation. From a philosophical perspective it certainly raises the question as to who "really" is the master architect pulling the global strings.
An LA docks crane driver reportedly earning $160,000 and Joe the Plumber $250,000 plus (assuming that's from his pot alone,without a huge amount of subbing out) is living too high on the Hog.It can't last. Copied from an article at ' LiveLeak.com' 060 February 26, 2009 FEDS GRANT EMINENT DOMAIN AS COLLATERAL TO CHINA FOR U.S. DEBTS! Beijing, China -- Sources at the United States Embassy in Beijing China have just CONFIRMED to me that the United States of America has tendered to China a written agreement which grants to the People's Republic of China, an option to exercise Eminent Domain within the USA, as collateral for China's con More..tinued purchase of US Treasury Notes and existing US Currency reserves! The written agreement was brought to Beijing by Secretary of State Hillary Clinton and was formalized and agreed-to during her recent trip to China. This means that in the event the US Government defaults on its financial obligations to China, the Communist Government of China would be permitted to physically take -- inside the USA -- land, buildings, factories, perhaps even entire cities - to satisfy the financial obligations of the US government. Put simply, the feds have now actually mortgaged the physical land and property of all citizens and businesses in the United States. They have given to a foreign power, their Constitutional power to "take" all of our property, as actual collateral for continued Chinese funding of US deficit spending and the continued carrying of US national debt. This is an unimaginable betrayal of every man, woman and child in the USA. An outrage worthy of violent overthrow. I am endeavoring to obtain images or copies of the actual document but in the interim, several different sources both in the US and in China have CONFIRMED this to me. More details as they become available. . . . . spread the word ASAP.
So the Chinese would buy the same stuff we buy on their 25 cents an hour wage? I wouldn't think they could buy much with that. Maybe a trinket or two once in awhile.