United States Sanctions China! Just in!

Interesting how things can be tied together..

After 9/11 what fixed the economy? ... war.. because war puts money into the economy (out of the government, but into the economy..) so now the wars run dry and we see things slowing and potentially collapsing.. and what do ya know! .. rumors of another war, with Russian intelligence saying troops are building up, 15 sailors captured and an easy fix to the economy (in the long run)..

Sanctioning China is also evidence our economy is hurting.. by putting trade regulations on China it shows we are going to rather desperate measures to help our own companies and trade.. much like in the 1980's.. The government however seems to refuse to allow another market crash, even though they are apart of a healthy market cycle.. ups and downs.. if you continue to artificially hold it up, the fall will just be harder..

If the US went for a war economy to combat China, it would crumble. I believe we are seeing China starting to test her economic power.

Taking risky decisions against China is going to back fire. Who do you think will win an economic battle? the declining economy or the growing, powerful, booming economy?

it seems this has gone "unnotice" too

Arab central banks move assets out of dollar

news.independent.co.uk...

Originally posted by infinite
Taking risky decisions against China is going to back fire. Who do you think will win an economic battle? the declining economy or the growing, powerful, booming economy?

I normally agree with you infinite but this I disagree with entirely. China is 'stronger' then it has been in years past. Sure.. However china still is a third world nation. Third world nations tend to grow at rather fast rates. (russia, brazil, india, china, etc) With the US growing at a modest 3-3.5%(which is a modest assumption) a year for the next 25 or so years, it would take a China, with an economy that would have to grow right now at 12% a clip for the next 25 years straight to equal americas same economic size by then. Which is faster than its current 9-10% growth rate, if even that can be sustained for so long (it isnt) Even then, this is just the total GDP, not per capita GDP, which would still be merely a fourth of America's by then. I think you underestimate the US economy. Sure we have our problems. The thing you need to remember is the interdependent world economy. When one country experiences a 'hiccup', chances are the world will know about it. Also chinas economic growth rates are constantly overstated by the corrupt officials in the provinces of china, who are just telling the elites of china what they want to hear. So I wouldnt put much stock into what they say.

China will be considered a developed nation in the year 2010. China will be where the US was in 1960 in the year 2010. By the year 2015 china will either become a democracy or they will suffer from a growth rate not much faster then the US.

China changing to the euro to buy oil from Iran who has changed to euros is not a huge shock. Higher oil prices affect china alot more then they affect the US economy because chinas industrys are tied to industrys even more dependent on oil than the US. Sectors like automobiles, steel, aluminum, airlines, and concrete are actually growth industries in china (as well as india). This really shows how immature chinas econnomy is. At the same time, US corporations such as Google, Yahoo, Goldman Sachs, Pixar, Citigroup, or Oracle (just to name a few) are much less vulnerable to high oil prices. Yet, these knowledge-based businesses are the ones that have created most of the new wealth in the US during the last 25 years, and are the industries in which America's dominance over the rest of the world is the largest. So if high oil prices actually increase the gap between the US economy and those that would seek to catch up to it. If oil hits $100/barrel, US GDP growth may drop from 3.5% to 2%, but China's GDP growth may drop from 10% to 4%.


Americas economy is declining? lets look at the facts shall we. Part of the argument is that we have completely lost our manufacturing infrastructure. Well check this out...

The index of the industrial production is up 30% over the past 10 years, its up 81% over the past 20 years.

Then we're told that china, japan and other countrys are stealing all of our high tech, well guess what? the index of production of high tech is up 735% over the past 10 years. its up 7000% over the past 20 years.

Then we're told that all of our jobs are being outsourced.... Well, guess what... Civilian employment in this country (which is at a record high) increased by 17.6 million over the last 10years, and 34.7 million over the past 20 years. And then finally, real GDP is up 35% over the last 10 years, and 83% over the last 20 years. ..

And what about our nations deficit?... The budget deficit now stands at about 1.4 percent of the nation's GDP, well below the 2.3 percent that's been the norm since 1970's. And in 2008, the US deficit as percentage of GDP is projected to be at 0.7%.. Safe to say I see a strong rapidly expanding economy...

Competition has never hurt this country. Thats all china presents. Is competition. Competition that we are currently blowing away..





[edit on 033131p://1603pm by semperfoo]

Sanctioning China is a step in the right direction for moral reasons. I make it a point to boycott Chinese goods because of their disgusting inhuman treatment of animals.

things are about to get worse..

China Calls U.S. Paper Duties `Unacceptable,' May Respond

Bloomberg

also to note

China is the second-largest U.S. trading partner behind Canada and holds more than $400 billion of U.S. debt.

$400 billion!!

[edit]

You have to remember now that the European Union is becoming China's main trading partner (the EU will be for 2007). The US has been trying to stay number one, but China are moving away from the United States. In 2003, China stated that it expects the European Union to become its main trade and investment partner. This is just going to make China dump America fast.

The main problem is this, the World understand and respects Chinese growth and its economy. United States doesn't. With China holding $400 billion of US debt, I wouldn't go playing politics over their economy.


[edit on 1-4-2007 by infinite]

Good find there Infinite ..

The last thing this economy needs right now is a trade war with our biggest trading partner! .. We have enough to worry about, like.. say.. housing market bubble that is about to collapse.. record number of foreclosures and an unstable market. If China retaliates by raising tariffs of their own on US goods.. that could hurt the economy even further.