China Threatens USD

[jaybone]

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml

This is way bad, if they were to make good on this threat, we can expect at least a 20-30% haircut on the USD overnight, and soaring interest rates.

I like that they singled out Hillary's tarriff legislation as prompting this.
Goes to show you what happens when politics trumps sound economic policy.

Got GOLD?!?!?!

 

[SeanEdwards]

China needs us way more than we need them. Without us as an export market, their whole game is gonna explode in their face. Tianamen square^10000

 

[ShaneC]

That's actually a valid point.

If China cuts us off, they lose Wal-Mart, etc.

 

[Man from La Mancha]

The power of trade over war. We are so entangled trade wise and monetarily with china it is interesting

 

[jaybone]

Nobody wins in warfare, economic or otherwise.
I think you underestimate China's capability to survive on domestic and regional demand.

So, what happens if they sell treauries, tank the market, then buy ALL of the top energy companies on the planet?

Do you really think the Chinese ruling class give a crap if they lose walmart?

 

[ghemminger]

I attended a Port Meeting and spoke with a guy from one of the China Ports....
80% of there frieght comes thru west coast Long Beach, etc.

They are very sensitive to US developments...evironmental, political....in fact...I'm going to send him an email....maybe we can get some ROn Paul Support

 

[ghemminger]

Foreign Fundrasing for RP GrassRoots

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[ChooseLiberty]

They realize the US is in a bind with the debt market problems and they're turning up the heat.

Don't expect anything to really happen that would disturb the Olympics. The leaders don't want to lose face.

 

[SeanEdwards]

Nobody wins in warfare, economic or otherwise.
I think you underestimate China's capability to survive on domestic and regional demand.

So, what happens if they sell treauries, tank the market, then buy ALL of the top energy companies on the planet?

Do you really think the Chinese ruling class give a crap if they lose walmart?

China's leadership has ALWAYS been motivated by one overriding factor: domestic order.

They are deathly afraid of anything that disrupts state authority. They know intimately the power of an enraged Chinese population. It's how they built their communist state in the first place.

They will be exceedingly cautious about any economic policy that threatens to put their millions out of work.

 

[hard@work]

A challenge to American business leaders to invest in local manufacturing would shure put a damper on this.

And how about them hard asset backed dollars? Shure would be nice to spend a note backed by a real asset on a hamburger made with American beef or a t-shirt made from American cotton. I don't mind paying a higher price for a higher quality hamburger or a t-shirt that won't be ruined after three washed like the stuff I get from Walmart.



(I don't really shop at Walmart)

 

[beermotor]

China needs us way more than we need them. Without us as an export market, their whole game is gonna explode in their face. Tianamen square^10000

Not necessarily true. They export to Africa and Asia as well. I was just reading in Clash of Civilizations that nearly all markets in Asia are Chinese dominated. Chinese corps account for something like 50% of the GNP of several COUNTRIES ...

Don't be fooled. I think the Chinese have been around for a hell of a lot longer than we honkeys have; I would place my bets on them to come out on top of a currency war. They're not stupid. And the fundamentals favor them, not the US.

 

[jaybone]

I think an important thing to consider is that their threat is in reponse to Hillary's (and others) threat of punitive tarriffs on chinese goods.
If tarriffs are imposed it will decimate the chinese export economy as much or even more than if they were to strike the dollar.

Faced with shooting themselves in the foot or having Hillary shoot them in the foot, I think they choose the former.

 

[LibertyGuy2008]

The Chinese Own Us

I think you would have to agree the Chinese own us. Bernake is stuck in a hard place because the Fed Reserve can't go either way on interest rates.

Click here to get your high quality inexpensive Join The Ron Paul Revolution business cards at the Ron Paul Forums website!

 

[ghemminger]

As I've been reading more about this China Nuclear Option this morning, I stumbled onto this interesting tidbit:

"The (protectionist) threats on Capitol Hill last week prompted a group of in excess of 1000 economists from both sides of the political fence to implore politicians not to go down the protectionist path. The last time such a group took such measures was to campaign against Herbert Hoover's intended equivalent actions. He ignored the advice and went ahead anyway. Therein followed the Great Depression."

 

[rp4prez]

Here's what the US Treasury rep, Mr. Paulson, says about this.

http://www.forbes.com/markets/feeds/afx/2007/08/08/afx4000465.html