China Threatens To Cripple U.S. Economy

Discussion in 'Economy' started by sparky, Mar 22, 2010.

  1. sparky
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    sparky VIP Member

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    China Threatens To Cripple U.S. Economy
    by Thomas Heffner on March 21, 2010 - 11:58am
    China now has accumulated trillions of U.S. dollars of currency reserves, of which nearly $800 billion are in U.S. treasury bonds. This has happened through their escalating balance of trade surpluses with America – they sell to us much more than we sell to them. In the process, China has been instrumental in putting many of our American manufacturers out of business.

    Now with this huge stockpile of money and the leverage it gives them, they are threatening to dump these bonds and our U.S. dollar on the market. If they take this irresponsible action, it would immeasurably devalue the worth of our money, send the cost of goods skyrocketing, and cripple our economy.

    This condition has been building up for a long time and puts America in a precarious and vulnerable position, as we have been producing less each year and have increasingly been surviving on imports.

    Most of us don’t realize these dramatic changes are taking place. America is becoming a much different country then it was when you grew up in it. You will be leaving your children with a legacy that they had not expected and will be very disappointed with.

    These are the issues our political leaders should be attempting to resolve. We must do something about this now.

    Send this article to your congressional representatives and demand that:

    1. A crash program to re-industrialize America be developed
    2. Free trade agreements with foreign countries are changed to a tit-for-tat trade policy

    3. We create conditions that will allow us to get out of our massive debts and once again become a productive, self-sustaining nation.

    These economic issues affect us all and should take precedence over present “wedge” issues that are often concocted to gain votes. America needs a change in direction, and our political representatives need to start fighting for sound economic policy that supports the American worker.


    comments?

    ~S~
     
  2. editec
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    editec Mr. Forgot-it-All

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    The kid oughta get a medal from Congress for pointing out the weaknesses of our energy grid.

    China didn't threaten us, BTW.

    They warned us.
     
  3. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Oh, just to be clear: Obama and the Dems have just cost China tens of billions in losses on the US Treasury portfolio.
     
  4. uscitizen
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    uscitizen Senior Member

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    China could not have done anything without the cooperation of US business, industry and consumers.
    The author of the opening post is either a whiner or does not understand how the US/China business relationships developed.
     
    Last edited: Mar 22, 2010
  5. Neubarth
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    Neubarth At the Ballpark July 30th

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    If they want us to buy their product, they have to support the strength of the dollar. They peg their currency to the dollar for that reason. That way there is no wiffle waffle in the value of the dollar. It is backed by the strength of the Yuan. It is also backed by the strength of the United States. Remember, we are still the leading Industrial country in the world, twice the economic size of China. And to think, that is with manufacturing being only one tenth of our economic value. Service Sector is seventy percent.

    Right now, the Euro is crashing against the dollar. China will not get rid of their dollars now as they are increasing in value against the Euro and the rest of the world.
     
  6. william the wie
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    william the wie Gold Member

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    China does not have much choice in the matter it is a bubble economy with idiocies of economic planning leaking out:

    The new ghost town capital of Inner Mongolia not to mention sky high vacancy rates in all major Chinese cities is an avoided writedown at unknown multiples of GDP.

    Total laborforce for China peaks this year due to the one child policy.

    China 2010 = Japan 1991-2.
     
  7. eagleseven
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    eagleseven Quod Erat Demonstrandum

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    Too late. We've already gimped ourselves.
     
  8. uscitizen
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    uscitizen Senior Member

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    Yep china will cut off our supply of atheletic shoes :eek:

    and without their TV's we could not even watch Fox!
     
    Last edited: Mar 22, 2010
  9. sparky
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    sparky VIP Member

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    interesting.....

    seems the Chinese have painted themselves in a corner being so interconnected with the world economy , have subsequently created their own bubble, and happen to be holding a good share of the poker chips

    any conjecture on how that'll sugar off for the USA if China goes ....errr Japan?

    ~S~
     
  10. william the wie
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    william the wie Gold Member

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    No one knows, it depends on what else is happening at the time.
     

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