Just to clarify I certainly do not suggest war as a solution to this economic problem as some have suggested. I just want our economic team to stand firm on insisting that the Chinese allow their Yuan to float and give the US the same access to its markets that China enjoys in ours. At some point it will have to happen as the cvurrent situation is untenable and the is creating major imbalances, hurting the US worker and businesses, and setting us up for a very nasty credit crunch not to mention making us very vulnerable to Chinese greenmail. To put things back in to balance the market needs toi be allowed to take care of these imbalances without government intervention. There will be some initial pain on both sides but in the long run the economic development will be sustainable and healthy and not the house of carsd we have at present. If you want to talk about war well if we don't correct the imbalances now if they are allowed to persist and grow when they finally do correct war will be far more of a possibility than it is now (virtually nil now).
those who say china wont do anything with their dollar reserves because they would lose money in the process forget that the US also loses money when it bombs other countries. just about any kind of offensive action will cause a country to lose money
PHUK CHINA! We should boycott all things China and set-up factories in Mexico to keep the illegals over there, give them jobs and buy their goods! Let the commies go back to the farm.
Admitting China to the global economic community was a huge mistake. No one in there wildest dreams thought china would enter western markets through such a screwed up currency regime and allow the imbalances to persist and get worse by th day for this long. The US should have had concrete rules about exchange rates and treasury purchases. Unfortunately, this whole system could be beyond the point of return. It only sustains itself through greater and greater imbalances. True, it has lasted much longer than its detractors ever thought, but that doesnt mean it wont end and really really change the world. The Chinese are using the global balance of payment system to bend there own economy at the expese of the whole system.
I say listen to Hillary. When it comes to getting money from the Chinese communists, no one in our government has the Clinton's wealth of experience.
This was my first thought. Wouldn't they be cutting their own throat by dumping all those bonds on the market. Plus, what would they do will all the money? Where else can they get a risk free return on 1T dollars?
Risk free? You dump a $1 million losing position into the Forex, you got a problem. If you dump a $1 trillion losing position into the Forex, the FED has a problem.
I don't think it's really a bluff- they seem to have the resources and the capablities to do it. I wouldn't underestimate it.
Hell yeah, I have already and know a few others that have as well. We create these giants only to allow them to bite us on the ass down the road. Go w/ out if it comes down to it, frig'em.
very true. the only thing a cheap yuan does is more product(from china) in circulation and the people in china at work. If you really, i mean really think about it. They are doing the everyday american a favor by not letting their yuan float. God forbid it took 10 USD tomorrow to buy what one usd bought today. Can you picture the average american in the factory? what about if they closed their borders and said," alright, we were trying to do good by you and you spit in our face, so have fun with your paper monies""you want to trade you can do it with europe, in euros, you guys are family after all, you are the same skin color, I am sure you will get a good deal". The truth is they are so big that they would be just fine doing business with themselves. and "if one is to leave a casino, who, tell me who, is to say I cannot cash in my chips"? I think I would agree with soros on this one. Freely floating exchange rates cause more harm than good. One thing really stumps me about america: why does everyone like to overpay and overcharge everyone? then, why does everyone think they are getting "a good deal" or perhaps getting away with what they have done to themselves? everyone does a half assed job anyway, just look at the so-called 'politicians'. They bleed their own public with malicious propaganda, their printing presses, and they point the finger at other countries and take the focus of them. Then take a salary nonetheless. The founding fathers were not illuminati or masons, they were rosicrucians. If they were around today they would pee on your wannabe statesmen. The pegged yuan is the antithesis to over pirinting by the Fed. another period.