Survey: Chinese army officers say military conflict betwn USA-China inevitable

Not a decade, they will wait 100yrs if necessary...but they will prevail..
I admire their patience...

 

Wouldnt that be great if china put an embargo against the US? Our manufacturing base would soar then and unemployment would go to 3%.

 

They own the dollar however. If the dollar collapses, then no one will buy treasuries and then :eek:

 

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February 9, 2010

SouthAmerica: Why a military conflict between USA-China?

China already has the United States government and the US economy on its knees.

China's central bank said Friday that its reserves of foreign currency, by far the world's largest, rose to $2.4 trillion at the end of December 2009.

Just a reminder: about 71% of China’s total foreign reserves are in US Dollars or an estimated $ 1.7 trillion US dollars - in cash, bonds, and treasuries.


*****


JANUARY 18, 2010
The Wall Street Journal
“China’s Reserves Expand”
By: Andrew Batson

BEIJING—Investors are pouring money into China at a rate of tens of billions of dollars a month, new official figures show, a trend that poses a challenge for a government increasingly concerned about the risks of inflation.

China's central bank said Friday that its reserves of foreign currency, by far the world's largest, rose to $2.4 trillion at the end of December, an increase of $126.56 billion since they were last reported in September. The reserves grow when the central bank buys foreign currency coming into the country, which it regularly does in order to steady the value of the yuan, the local currency. The yuan it spends to buy that foreign cash in turns adds to the funds sloshing around in China's banking system, which the central bank has started taking some steps to control.

Yet China remains a hugely attractive place to put money: the country is growing faster than almost any other in the world, has a booming property market and is widely expected to resume letting its currency appreciate some time this year. Foreign direct investment—the money that companies spend on their operations in China—more than doubled from a year earlier to $12.14 billion in December, figures released separately Friday show.

"As long as money comes in, it's my belief that it will be increasingly difficult for the central government to control the domestic money supply and inflationary pressures," said Logan Wright, a Beijing-based analyst with Medley Global Advisors. Aside from officially recorded foreign investment, he estimates that about $30 billion to $40 billion of unrecorded capital inflows —sometimes dubbed "hot money"—came into China in the fourth quarter of the year, a similar rate as in previous quarters.

The continued capital inflows risk complicating the government's recent efforts to dial back the record lending boom it unleashed to cope with the financial crisis. The central bank also published figures Friday showing Chinese banks extended a total of 9.59 trillion yuan (about $1.4 trillion) in 2009, nearly twice the 4.9 trillion yuan in new lending in 2008 and a figure equivalent to nearly a third of the country's expected economic output for the year.

Banks made 379.8 billion yuan of new loans in December—less than half the monthly average last year—but reportedly picked up their pace again as the New Year began. Along with a pickup in inflation and a faster-than-expected recovery in exports, that may have been one of the reasons behind the central bank's move this week to require them to set aside a larger share of their deposits, making less money available for lending. Yet the government has so far refrained from tougher moves like raising interest rates, and officials in their public comments still emphasize the fragile state of the global recovery.

"We expect more decisive policy tightening measures to be implemented in the coming months which should keep inflation at a reasonably modest level of 4% to 5% or less," Goldman Sachs economists said in a research note. "However, if the tightening measures are not forceful, there is a risk that we may see continuous rise in inflation."

China's reserves rose by $55.68 billion in October, $60.52 billion in November, but only $10.36 billion in December. Economists said the smaller rise in December mainly reflected a surge in the U.S. dollar—the euro fell 4.7% against the dollar that month—which cuts the dollar value of the central bank's holdings of other currencies.

http://online.wsj.com/article/SB100...5004501953577566.html?mod=WSJ_latestheadlines

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haha, I like this idea

 

China would not prevail in a confromtation with the west at this time. China does not even have a credible vtol aircraft-which
is absoluely neccessary for air superiorty. In the opening hours
of a military excahnge, China would eliminate all US ,Taiwan, Japanese airfeilds-using cruise missiles. The US, using sub and Ageis launched cruise missiles would do the same for China. Within a few hours all landing feilds neccessary to conduct air
operations for both sides would be cratered up and unuseable.
The side that would dominate the air has to have vertical takeoff and landing capability-which does not need runways to operate.
This is why the first two operational air wings of F-35 have been
based out of Okinawa.

For some reason unbeknown to me, the Communists (both USSR and China) have never been able to master this technology.


http://www.4wings.com/des/image/F-35.jpg