CHINA THREATENS TO TRIGGER US DOLLAR CRASH
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml
China Threatens To Trigger Us Dollar Crash
- Thread starter wavefinder
- Start date
Time to call their bluff is now.
The stronger their economy gets the less of an impact the US economy will have on theirs. We need to call their bluff and deal with this now while we still have the relative economic clout to do so. If we don't their $ surpluss will continue to grow and the US economy will lose importance relative to the Chinese economy and we will be even more vulnerable to Chinese greenmail.
We need to ween oursleves off the teet of easy Asian credit while we still can and if we do it now it will be painful but we will be able to weather it (indeed you could make a strong arguement for the easy Asian credit having been responsible for many of the imbalances in our economy, housing bubble and subprime fiasco an obvious example, all these private equity deals being done at irrational prices because of cheap credit another). If we don't we will soon be China's bitch.
Guys like Paulson are appeasers with an agenda. They are selling the US population down the tubes to keep the multinational corporate profits flowing for another few years.
The stronger their economy gets the less of an impact the US economy will have on theirs. We need to call their bluff and deal with this now while we still have the relative economic clout to do so. If we don't their $ surpluss will continue to grow and the US economy will lose importance relative to the Chinese economy and we will be even more vulnerable to Chinese greenmail.
We need to ween oursleves off the teet of easy Asian credit while we still can and if we do it now it will be painful but we will be able to weather it (indeed you could make a strong arguement for the easy Asian credit having been responsible for many of the imbalances in our economy, housing bubble and subprime fiasco an obvious example, all these private equity deals being done at irrational prices because of cheap credit another). If we don't we will soon be China's bitch.
Guys like Paulson are appeasers with an agenda. They are selling the US population down the tubes to keep the multinational corporate profits flowing for another few years.
Wow,what a surprise. So entering into business ventures with Communists could be risky. Inconceivable!!!!
Exactly.
Bretton Woods II needs to end. The pain will be awful, but the end result will be far better than what will happen if we follow the road of people like Paulson who have, to put it bluntly, "gone native".
The first item on this Admin's economic agenda should have been China and their peg to the dollar. But that presupposes intelligent life in the White House.
Bretton Woods II needs to end. The pain will be awful, but the end result will be far better than what will happen if we follow the road of people like Paulson who have, to put it bluntly, "gone native".
The first item on this Admin's economic agenda should have been China and their peg to the dollar. But that presupposes intelligent life in the White House.
The US gave up the control of their own destiny (militarily excepted) a long time ago by letting the consumer have anything they wanted at LOW,LOW prices. It has caused your manufacturing base (excepting military, high tech) to be crushed and destined many millions to a subsistence stanard of living all the while allowing the rich ruling class to become obscenely wealthy.
What bluff?
China has over 1T of USD exposure that they need to sell. I'd say China is cornered successfully by the U.S. Look at it this way, US had been able to sell to China papers and numbers they print or increment in the banking system, while getting real commodities from China at bargain prices. Now it realized that China has accumulated enough of USD based assets, and it's time to let USD drift... What a wonderful plan! With the 9% appreciation of CNY China has already lost 120bln's worth of the foreign reserve in CNY terms ...
Well done, USA!
China has over 1T of USD exposure that they need to sell. I'd say China is cornered successfully by the U.S. Look at it this way, US had been able to sell to China papers and numbers they print or increment in the banking system, while getting real commodities from China at bargain prices. Now it realized that China has accumulated enough of USD based assets, and it's time to let USD drift... What a wonderful plan! With the 9% appreciation of CNY China has already lost 120bln's worth of the foreign reserve in CNY terms ...
Well done, USA!
China usually doesn't make threats just action. Sounds like positioning and economic deterence, nothing more.
Akuma
Akuma
Hillary Clinton needs to shut her damn mouth. She's the one who keeps attacking China for buying the dollars. She doesn't understand what would happen if the Chinese stopped buying our bonds, let alone sell them.
Walked through Walmart or Target lately???
Try to find something NOT made in China. Its a two way street and we both know it. China must sell us products or face another revolution (and not on the ruling party terms) and we must buy the products or there simply wont be anything to buy for a LONG while.
The good news is that we are selling more and more products to China at the same time we are finding other low cost places to produce goods (vietnam, Malay, S. America, Mexico)
While all you read about in the papers is how great China is doing the real facts are that most of the country is a few iron bowls of rice away from starving, protests over pay and work and government abuses are everywhere (except big cities) and they are led by a group of self interested government workers that are just like ALL worthless government workers (without a clue)
The problem may be not that they are too big but that they may not be able to maintain stability with so many landmines in front of them. This could prove to be our biggest problem of not being able to get goods / materials and having our economy shut down due to a crisis there. After all China is 1.3 billion + people. They SHOULD be the biggest player, the fact that they are not shows how poorly they are doing.
Try to find something NOT made in China. Its a two way street and we both know it. China must sell us products or face another revolution (and not on the ruling party terms) and we must buy the products or there simply wont be anything to buy for a LONG while.
The good news is that we are selling more and more products to China at the same time we are finding other low cost places to produce goods (vietnam, Malay, S. America, Mexico)
While all you read about in the papers is how great China is doing the real facts are that most of the country is a few iron bowls of rice away from starving, protests over pay and work and government abuses are everywhere (except big cities) and they are led by a group of self interested government workers that are just like ALL worthless government workers (without a clue)
The problem may be not that they are too big but that they may not be able to maintain stability with so many landmines in front of them. This could prove to be our biggest problem of not being able to get goods / materials and having our economy shut down due to a crisis there. After all China is 1.3 billion + people. They SHOULD be the biggest player, the fact that they are not shows how poorly they are doing.