Economic punches. 1) USA slaps immediate 300% tariff on all Chinese goods, even if partial Chinese content. Seems they rely on our market a lot more than we rely on theirs. 2) USA gives Taiwan 50 nuclear missiles 3) USA declares all Chinese held American notes as null and void. suspends trading in US bonds/notes for 90 days. Only non-Chinese nations may contact USA and redeem debt. After the 90 days, all notes are replaced with new ones. 4) USA prints $1 trillion worth of Chinese currency and floods the world with it. 5) The USA gives Mongolians unlimited quantities of handheld sophisticated weapons, and recognizes Mongolia as a sovereign state... Two can play at that game.
I believe this is the "plan" in Beijing Continue to be the second class "your the best America" country while they buy greater amounts of our debt and assets. As another stated "frog in the water" type of attitude with us. They sit back and just let it all happen slowly while they continue to invest and work deals in countries with none of that American bulls*t strings attached. You want to be a totalitarian government? no problem we want to buy your resources and we don't give a damn what your internal politics are and you can expect to not get any of that inconvenient pressure to change your ways with a deal with us. You see this happening in the middle east and africa. While we borrow money from China to pay our bills and send troops in Iraq, China has investments in Iraq being protected by our troops http://www.chinamining.org/Investment/2010-01-28/1264641105d33834.html China doesn't give a damn so they don't spend their time worrying about Iran and other fun places to visit. The biggest problem as I see it is this false fantasy that China "will never dump US treasuries because if they do they will be the biggest losers". This misplaced false sense of security fails to understand the bigger picture. It WILL be in China's interest at some point to dump them. How can this be so?? easy - The people running the show the "Central Committee" do not have their own money at stake. For them its simply numbers on paper. They didn't work for it and their goal is about power so the point is moot anyway - By dumping (as I use this term in relative terms, they don't need to "dump" in the sense of half at once or something crazy. They could simply stop buying and start selling at a pace to have all sold in a period of 12-24 months. This would cause interest rates to go higher. If you think we are in bad shape now just try to think about interest rates going to 18% for a home loan like in the 70s) - once interest rates go higher we have to monetize the debt as there is no way we could pay our bills with sky high interest rates - around 2017 Medicare starts to blow up. http://www.washingtonpost.com/wp-dyn/content/article/2009/05/12/AR2009051200252.html and this of course assumes that the economy gets better. - The aging population (the ones that want to have Medicare and SS and the large state and federal pensions) become the largest voting block and they will make it very difficult to get anything changed. - 2020 China no longer views us as anywhere near the importance for exporting as they do now. Indeed some companies in China quote products in Euros and not in dollars. The Yuan lost its peg to the dollar I think in July 2005. while some in DC where busy high fiving each other for all "the pressure" they applied they forgot to understand that europe becamae a larger marketplace than the US and the Euro had gained so much on the dollar that China could afford to keep the "frog in the water" by "floating" the yuan as the euro became that much more valuable. In the end of the day the Chinese where able to keep the same amount of true wealth coming in and make it appear that they gave something up. So China dumps the Ts and in the process takes a 20-30% haircut but for that they get to send America to the back of the bus relative to their newly undisputed strongest superpower status. They won't even think of it as a loss, they will look at it as an investment to regain their number one superpower status that they enjoyed for hundreds of years (many reading this may not know that not long ago China was the number one super power in the world) Maybe they won't even need to make any one great move in order to make us blink. Give the Chinese five more years at the rate they and America are going. Then see what happens when they say if we sell any more arms to Taiwan they will be busy the day the Treasury auctions are taking place. What if they say they are going to inspect all cargo for contraband leaving the ports of Shanghai for a period of three months? There are a hundred ways to make this happen and maybe one to stop it and the one includes a major spending cut in the federal budget. Which way do YOU think it will play out??? I don't think DC knows what to do and I don't think they are even asking the questions as they are to busy working on carbon footprints and giving out 'free health care' to even work on trying to lower the CURRENT 9+% unemployment rate. So they sure as hell don't care about something that is at least 6 or more years away Anyway you look at it its going to be ugly and its going to end badly. Hopefully history will not repeat itself this time and guns will not be used. Maybe we can get off cheaply with the president doing a few Kowtows but I doubt it.....
Wallstreet builds enemies so the Defense Industry can bomb them. Funnel taxpayer money to Corporate Masters on the way up, and down. The Defense Industry needs another Emmanuel Goldstein in it's repertoire. Bin Laden is old hat. China is the new "Red Scare". And the idiot American sheeple will suck it right up, evidently. You think the CIA, NSA, Military, Treasury Dept, Commerce Dept, State Dept, FED, Nixon, Reagen, Bush, Clinton, Bush2 and Obama didn't see this coming??? ~10% GDP YOY growth for 25 years, with no tariffs?!?!? You're an idiot if you think that. Wallstreet and mega-conglomerates bought off Government to drop tariffs, and the DOD gave the nod knowing we'd planted the seeds for our next cold/hot war, 20 years down the road. Now it's materializing and once again, the American sheeple are dumbfounded a new enemy has "sprung out of nowhere" !!!!
I didn't believe those numbers; no way do we export that much to China. I thought all we sent them were busted TV's and T-bills. Turns out it's even more. 71.5 billion in 2008. Wow. http://www.uschina.org/statistics/tradetable.html
Moron. Mongolia IS a sovereign state. Unless you mean Inner Mongolia, which has a demographics of 80% Han Chinese. You truly know shit abt world geography.
Americans seem to have forgotten this point. Or maybe the corpratists have just sold us down the river.
People always think of economy. People forget to think of military developments which can destroy the world economy.