- This topic has 75 replies, 16 voices, and was last updated 17 years, 3 months ago by sdnativeson.
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August 8, 2007 at 11:52 AM #71865August 8, 2007 at 12:56 PM #72009crParticipant
China is balking.
If they do that, they can kiss 75-90% of their exports goodbye.
It is politics, and Congress is ignorant. If we stop buying from China people will have to pay more for nearly all commodities, and that will stifle our spending. Can you imagine that?
The dollar is about 5% down to the RMB from a year ago, and shows no signs of stopping. As China develops and the dollar continues to weaken we will buy less imports. Add to that the VAT reduction we just had and may have again before years end, China may start selling those bonds off anyway.
Either way, China US interdependence is fading, and it’s only a matter of time before we stop buying goods, they stop buying dollars, we both go to war and blow the entire planet up.
Enjoy it while you can.
August 8, 2007 at 12:56 PM #72017crParticipantChina is balking.
If they do that, they can kiss 75-90% of their exports goodbye.
It is politics, and Congress is ignorant. If we stop buying from China people will have to pay more for nearly all commodities, and that will stifle our spending. Can you imagine that?
The dollar is about 5% down to the RMB from a year ago, and shows no signs of stopping. As China develops and the dollar continues to weaken we will buy less imports. Add to that the VAT reduction we just had and may have again before years end, China may start selling those bonds off anyway.
Either way, China US interdependence is fading, and it’s only a matter of time before we stop buying goods, they stop buying dollars, we both go to war and blow the entire planet up.
Enjoy it while you can.
August 8, 2007 at 12:56 PM #71891crParticipantChina is balking.
If they do that, they can kiss 75-90% of their exports goodbye.
It is politics, and Congress is ignorant. If we stop buying from China people will have to pay more for nearly all commodities, and that will stifle our spending. Can you imagine that?
The dollar is about 5% down to the RMB from a year ago, and shows no signs of stopping. As China develops and the dollar continues to weaken we will buy less imports. Add to that the VAT reduction we just had and may have again before years end, China may start selling those bonds off anyway.
Either way, China US interdependence is fading, and it’s only a matter of time before we stop buying goods, they stop buying dollars, we both go to war and blow the entire planet up.
Enjoy it while you can.
August 8, 2007 at 3:33 PM #71936donaldduckmooreParticipantThe US politicians only know one thing-press other countries to satisfy the politicians. Can’t they use some other strategies? We are in a new world order now. Wake up, politicians!!!!
Are you sure we have 90% of chinese export market? There are many other countries that import chinese goods. We also need their cheap goods. It is not that they are fully dependent on us, it is vice versa.
August 8, 2007 at 3:33 PM #72054donaldduckmooreParticipantThe US politicians only know one thing-press other countries to satisfy the politicians. Can’t they use some other strategies? We are in a new world order now. Wake up, politicians!!!!
Are you sure we have 90% of chinese export market? There are many other countries that import chinese goods. We also need their cheap goods. It is not that they are fully dependent on us, it is vice versa.
August 8, 2007 at 3:33 PM #72061donaldduckmooreParticipantThe US politicians only know one thing-press other countries to satisfy the politicians. Can’t they use some other strategies? We are in a new world order now. Wake up, politicians!!!!
Are you sure we have 90% of chinese export market? There are many other countries that import chinese goods. We also need their cheap goods. It is not that they are fully dependent on us, it is vice versa.
August 8, 2007 at 4:15 PM #71948sdnativesonParticipantThe Boxer Rebellion? Our (the U.S.) actual involvement as far as troops in combat was a minor percentage. One could argue that our Navy stationed in the Phillipines did play a significant part later on but mainly as a deterrent. The most prevalent American presence before the “war” was that of Missionaries. The French, Germans, British, Japanese and “Russians” were the primary antagonist colonial powers. True, if you are not Chinese -you are a barbarian and with the history/mindset of China that point is semi-moot as to its revelency as is the history in Wills post (though he notes a important fact).
I am entertained by the opinions of some on this thread, reading comments from other threads I assumed there would be a meticulous approach to the study of foreign markets, economies and the properties with which the operate, my mistake.
My opinion is that many here give China far too much “benefit of the doubt” as to their overall economic (and therefore political)strength & stability. Even more so than the awe that was prevalent towards Japan in the 80’s. It’s pretty much impossible to and predict our own markets and economy which operate fairly transparently, much less the opacity which most of China’s is behind.
I doubt that China would take this route – while it would clobber our economy immediately it won’t destroy it, I opine that in the longer run it will hurt them far more. Still, no reason for them not to try, given the political atmosphere in the U.S. but, I digress. Too many tangents to go off on, too many variables to ponder, too many worthless opinions to express and ultimately, too much work to do.
I think it’s an opportunity for the U.S. if those in power have the cojones to call it and the strength of will to follow it through and think of the long term result. The “easy” way hasn’t worked for the overall good of our economy sooner or later real pain has to set in. Let it be on our terms.
August 8, 2007 at 4:15 PM #72066sdnativesonParticipantThe Boxer Rebellion? Our (the U.S.) actual involvement as far as troops in combat was a minor percentage. One could argue that our Navy stationed in the Phillipines did play a significant part later on but mainly as a deterrent. The most prevalent American presence before the “war” was that of Missionaries. The French, Germans, British, Japanese and “Russians” were the primary antagonist colonial powers. True, if you are not Chinese -you are a barbarian and with the history/mindset of China that point is semi-moot as to its revelency as is the history in Wills post (though he notes a important fact).
I am entertained by the opinions of some on this thread, reading comments from other threads I assumed there would be a meticulous approach to the study of foreign markets, economies and the properties with which the operate, my mistake.
My opinion is that many here give China far too much “benefit of the doubt” as to their overall economic (and therefore political)strength & stability. Even more so than the awe that was prevalent towards Japan in the 80’s. It’s pretty much impossible to and predict our own markets and economy which operate fairly transparently, much less the opacity which most of China’s is behind.
I doubt that China would take this route – while it would clobber our economy immediately it won’t destroy it, I opine that in the longer run it will hurt them far more. Still, no reason for them not to try, given the political atmosphere in the U.S. but, I digress. Too many tangents to go off on, too many variables to ponder, too many worthless opinions to express and ultimately, too much work to do.
I think it’s an opportunity for the U.S. if those in power have the cojones to call it and the strength of will to follow it through and think of the long term result. The “easy” way hasn’t worked for the overall good of our economy sooner or later real pain has to set in. Let it be on our terms.
August 8, 2007 at 4:15 PM #72074sdnativesonParticipantThe Boxer Rebellion? Our (the U.S.) actual involvement as far as troops in combat was a minor percentage. One could argue that our Navy stationed in the Phillipines did play a significant part later on but mainly as a deterrent. The most prevalent American presence before the “war” was that of Missionaries. The French, Germans, British, Japanese and “Russians” were the primary antagonist colonial powers. True, if you are not Chinese -you are a barbarian and with the history/mindset of China that point is semi-moot as to its revelency as is the history in Wills post (though he notes a important fact).
I am entertained by the opinions of some on this thread, reading comments from other threads I assumed there would be a meticulous approach to the study of foreign markets, economies and the properties with which the operate, my mistake.
My opinion is that many here give China far too much “benefit of the doubt” as to their overall economic (and therefore political)strength & stability. Even more so than the awe that was prevalent towards Japan in the 80’s. It’s pretty much impossible to and predict our own markets and economy which operate fairly transparently, much less the opacity which most of China’s is behind.
I doubt that China would take this route – while it would clobber our economy immediately it won’t destroy it, I opine that in the longer run it will hurt them far more. Still, no reason for them not to try, given the political atmosphere in the U.S. but, I digress. Too many tangents to go off on, too many variables to ponder, too many worthless opinions to express and ultimately, too much work to do.
I think it’s an opportunity for the U.S. if those in power have the cojones to call it and the strength of will to follow it through and think of the long term result. The “easy” way hasn’t worked for the overall good of our economy sooner or later real pain has to set in. Let it be on our terms.
August 8, 2007 at 4:29 PM #71951GoUSCParticipantImagine what would happen to their population if we engaged in a huge trade war with China. The Shanghai index would TANK and all the millions of peasants savings that have been dumped into the market would vanish. The Chinese would have a real political mess on its hands. They are worried about it already as you can see by the increase capital gains taxes, etc. they are implementing on almost a weekly basis to cool down the stock market.
August 8, 2007 at 4:29 PM #72077GoUSCParticipantImagine what would happen to their population if we engaged in a huge trade war with China. The Shanghai index would TANK and all the millions of peasants savings that have been dumped into the market would vanish. The Chinese would have a real political mess on its hands. They are worried about it already as you can see by the increase capital gains taxes, etc. they are implementing on almost a weekly basis to cool down the stock market.
August 8, 2007 at 4:29 PM #72069GoUSCParticipantImagine what would happen to their population if we engaged in a huge trade war with China. The Shanghai index would TANK and all the millions of peasants savings that have been dumped into the market would vanish. The Chinese would have a real political mess on its hands. They are worried about it already as you can see by the increase capital gains taxes, etc. they are implementing on almost a weekly basis to cool down the stock market.
August 8, 2007 at 4:35 PM #71953bsrsharmaParticipant“I doubt that China would take this route”
I think if you read the main story carefully, you can see that China wants to achieve its ends, not by any action but by the threat of action. I think it is indicative of their relative strength (and US weekness) when all China has to do is threaten and the bonds go down. I think that is why that economist in China used the phrase “nuclear option” – not so much to harm as much as merely threatening unimaginable catastrophe. If it causes our treasury and Congress to back off, they have achieved the purpose without moving a finger. Now that is real power. Not dropping bombs.
August 8, 2007 at 4:35 PM #72081bsrsharmaParticipant“I doubt that China would take this route”
I think if you read the main story carefully, you can see that China wants to achieve its ends, not by any action but by the threat of action. I think it is indicative of their relative strength (and US weekness) when all China has to do is threaten and the bonds go down. I think that is why that economist in China used the phrase “nuclear option” – not so much to harm as much as merely threatening unimaginable catastrophe. If it causes our treasury and Congress to back off, they have achieved the purpose without moving a finger. Now that is real power. Not dropping bombs.
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