Chinese mindset (Laughing at Geithner)

[JamesButabi]

I found it quite humorous that Chinese students laughed at Geithners proclamation that dollar assets are safe. Yet, their knowing how phony our system of operation is poses some contradictions in my mind.

As the US currency gets weaker, the market for their cheap production is diminishing. How is China preparing to offset this effect in the case of a currency collapse?

 

[Kraig]

Uh I think they have more than enough people in China itself to market towards. Yes they will face hard times but nothing like what we are looking at. Manufacturing too much doesn't really compare to not being able to manufacture much of anything while the world doesn't trust your currency enough to let you consume.

 

[dannno]

They are figuring out that they don't need us as a market to produce goods. They can produce their own goods, have their own local market and be much better off overall because they are keeping what they are producing rather than exporting. The currency manipulations caused them to be better off by exporting their products, but now that it is going in the other direction they are better off keeping what they make.

 

[slamminshaun]

I found it quite humorous that Chinese students laughed at Geithners proclamation that dollar assets are safe. Yet, their knowing how phony our system of operation is poses some contradictions in my mind.

As the US currency gets weaker, the market for their cheap production is diminishing. How is China preparing to offset this effect in the case of a currency collapse?

They have budget surpluses, are a creditor nation, largest trade surplus on the planet, and a personal savings rate of between 20-30%. Like other nations, their government will "stimulate"...the difference being, their stimulus is paid with cash instead of borrowed money. It's like the difference between two guys who lose their job....one has mega cash in the bank, the other only has mega debt. Who can survive until the job market improves? The guy with the cash.

 

[moostraks]

They are figuring out that they don't need us as a market to produce goods. They can produce their own goods, have their own local market and be much better off overall because they are keeping what they are producing rather than exporting. The currency manipulations caused them to be better off by exporting their products, but now that it is going in the other direction they are better off keeping what they make.

On the plus side, their landfills can fill up with all the cheap, poorly made products, and I venture a guess they will be sitting on a mound fairly quickly with the size of their population....

 

[Minarchy4Sale]

On the plus side, their landfills can fill up with all the cheap, poorly made products, and I venture a guess they will be sitting on a mound fairly quickly with the size of their population....

Their ecology is already a disaster. I cant even begin to imagine what happens when they add landfills to the problem.

 

[shenlu54]

They have budget surpluses, are a creditor nation, largest trade surplus on the planet, and a personal savings rate of between 20-30%. Like other nations, their government will "stimulate"...the difference being, their stimulus is paid with cash instead of borrowed money. It's like the difference between two guys who lose their job....one has mega cash in the bank, the other only has mega debt. Who can survive until the job market improves? The guy with the cash.

No! China also has huge deficits,they are near broken too,however,it is still much better than U.S now because China hasn't engaged in any war in recent two decades.

Now they are going to build aircraft carrier,with the rapid expand in millitary spending,the collapse of China will also come soon.

 

[not.your.average.joe]

Is there a video of this anywhere? Would love to see a clip of it...

 

[heavenlyboy34]

I found it quite humorous that Chinese students laughed at Geithners proclamation that dollar assets are safe. Yet, their knowing how phony our system of operation is poses some contradictions in my mind.

As the US currency gets weaker, the market for their cheap production is diminishing. How is China preparing to offset this effect in the case of a currency collapse?

I suspect that the Chinese will dump the dollar eventually and build up the yuan and their own industrial/financial base while the US is declining. JMHO, of course.