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Unemployment held close to a five-year high of 9.9 percent in December, the government said Friday. Households' purchasing power will probably grow more slowly in the first half than in the second half of 2005 because of higher payroll taxes to finance a reform aimed at plugging the national health-care system deficit by 2007, Insee said Dec. 16.
Originally posted by longbow
I don't understand the problems you have with this news. In fact for me it is excelent news. After China dumps the dollar, US can simply punish them by setting embargo on all chinese goods. This will completely criple chinese economy. And if the price of imported oil increase, it would be excelent news too. At least it will allow to extract hydrocarbons from domestic resources (from coal - US has largest coal reserves in world), oil shale (again there is more oil in US oil shales than whole world crude oil reserves1600 billion barrels)of couse in short term it can hurt US economy, but remeber that it will also cut US trade deficit and increase US imports = that means increase employment and revive domestic industry.
And that Chinese have cash and they could buy US? HAHA. In case the US govt feels threatened,.hey will simply not allow them to buy anything there
I only hope it will start soon.
Originally posted by NumberCruncher
This is argument is majorly flawed because you make it sound like the Chinese wholely rely on the USA economically, when infact every country has there shelves stuffed full with low cost Chinese product.
Would the USA even impose a trade embargo on another country for dropping its US cash reserves ? especially a country that can supply consumer products for 1/10th of the home made price ?