What is Ron Paul's plan re: Taiwan?

[Tom228]

That is sort of like saying that the peasants depended on the feudal lords to consume their products or they'd be poor.

Not really, it's simple supply and demand. If you keep increasing supply with no demand, price level decreases and they make no/less money.

Peasants grow food so they can live, despite crappy conditions anyway, China produces goods so people will buy them and so they make profit.

 

[Brutus]

Yes, but we pay them with money we have no intention of making good on. We have no choice but to default eventually, so they are accepting nothing in return for something.

 

[Brutus]

Green pieces of paper aren't wealth. Wealth is consumer goods. When the dollar collapses we won't have much to trade with people, but China will have TVs and computers and toys to offer in exchange for raw materials.

 

[Brutus]

I'm not saying that it wouldn't hurt them -- it would. But it would crush us. At some point they are going to have to decide if it is worth throwing good "money" after bad.

 

[MicroBalrog]

Green pieces of paper aren't wealth. Wealth is consumer goods. When the dollar collapses we won't have much to trade with people, but China will have TVs and computers and toys to offer in exchange for raw materials.

To whom? If America goes broke, a lot of Western countries will follow suit, you can't be made wealthy by bankrupting others.