posted on Aug, 8 2007 @ 12:56 AM
Great Thread, thanks for posting this.
FredT If someone says here take this gun and shoot that person, will you then do so because they told you too? No, of course not. And if you were too,
would you need to take responsibility for the shooting, or the person telling you to shoot? The one that squeezed the trigger is responsible.
And from an economic standpoint, the US squeezed the trigger on itself by forcing the Chinese economy to open up (into what they themselves called an
open market) in order to purchase cheap goods, move labour outside the US and drive consumption within US borders (consumption is 70% of US GDP). The
demand came from the US, the Chinese supplied like any country would in order to strengthen itself.
So why you would imply that the blame may not lie with the US somewhat surprises me. You don't want to bleed? stop cutting yourself. You don't want
a huge debt, stop buying consumable crap that satisfies your wants but not your needs. Perhaps I misinterpreted your comments, please correct me if I
What most US citizens don't want to acknowledge is that the US has been a diplomatic bully in the global arena for a long time (no disrespect, it's
just a fact), so anytime that another country can create some leverage, of course they will take it, isn't that how the US became so strong in the
Another pointer is that most people think that if the US economy collapses that the chinese will follow suit. Sure, it will not do them any good, but
at least they can stop buying US Dollars with their profit margins and invest that money into its country, infrastructure, people etc, instead of
financing continued US consumption (which is the real reason the US economy is in such debt). Many chinese companies will go down, but on the grand
scale of things, China will come out in a better position than the US financially.
I predicted in another thread that the Chinese would throw their weight into the fight when their currency reserves outsized that of Saudi Arabia,
which is USD1,6trillion. Now that they are doing it sooner is probably to ward of the increasing pressure from the US to revalue the Yuan, combined
with the sudden increase in negative reports about chinese products (the quality was no better 3-4 years ago, did anyone hear anything then?)
I have been in chinese factories, I have helped set up production lines there, and they are as interested in increasing the quality of the product as
the sale price of the product allows them to be. You want better quality, no problem, just pay for it instead of expecting the best for the cheapest
price. You can't have it both ways...
The fact that the Chinese are threatening to sell their dollars should be a given, if they are smart they will either invest most of it in commodity
markets overseas or use as much as possible to sink the dollar (even if this means that their 1,33trillion becomes worthless). Why sit on a stockpile
that is shrinking in value daily anyway?