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Originally posted by SeekerofTruth102
The threat issued by China is nothing more than propaganda to the untutored masses in which they are specialized at and a ROTFLMAO joke to those who understand macro-economics.
1. China would have carefully scrutinized the various stocks and options before dumping its earned reserves in. As such, those selected stocks and options would be the best, profitable and fundimentally strong types.
Thus, if it pull its money out, after a short correction, other nations and fund managers would gladly take its place and make up the shortfall, for who doesnt want to make a profit out of fundimentally strong stocks or options?
The guy who issued the threat would be nuts to pull out and oughta be shot by its own masses who are hoping to see its national reserves grow more, but once pulled out, aint making a dime or placed in much more riskier stocks
2. Who stands to lose more if the US dollar falls?
MOST definately China with its undervalued yuan!!
When it happens, american exports to China would be cheaper for its masses
and chinese exports to america would be more expensive to buy by americans, thus curbing american consumer spending.
So whats to fear of China??!!! Petulant economic baby China should start growing up and play by international rules.
Nobody wants to humble China. The world only wants an equitable trading system,
if not a fair one,
amongst every nation so that the people will benefit on a win-win system instead of 'live and let others die' economic management style.
Originally posted by edsinger
It would not be in China's interest to watch the dollar fall. It would have been a poor investment. Look at the chart and you can understand just who owns the debt.
As for the 50 trillion - that is the great burden left by the socialists, entitlements promised for votes.
btw - these socialists are both democrats and republicans.
Originally posted by StellarX
I am going to presume that you understand macro economics?
FOR CHINA. Do you understand the difference?
There is nothing special about 'strong fundamentals' in a world where speculative forces can attack whatever they want; i am not sure why China's 1.3 trillion dollar reserve would be employed in the stupid way you are suggesting.
So for some reason we are just assuming that the country who is managing such growth by control of it's currency will shot itself in both legs? You don't see the contradiction there?
The United States of America?
There was a time when that still mattered but at this point the US lacks the industrial base to compete with China however 'realistic' the exchange rate. China holds the aces is evident by the fact that they can force the US into the trade situation it's currently facing.
There are few consumer goods that China can not manufacture itself or import on the cheap from Japan or Taiwan. China does not 'need' the US but there is no reason to break of a relationship that is overwhelmingly in favour of Chinese growth.
China's consumer market is fast growing and it could easily create friendlier local export markets with the 1.3 trillion dollars it controls. To suggest that China is more dependent on the USA than the USA is on China is showing a vast ignorance of international affairs.
It long has and it's more successful than the majority of players and it tends to try break as many of the rules, that prevents further growth , as possible.
No it does not and i would be more than surprised if you can find evidence that the IMF/World bank have done much related to 'equity'.
There is NOTHING fair about the globalised capitalism the powers that be wants to force on us.
So then we should probably be getting rid of capitalism altogether.
China has $1.4 trillion (and counting) in its pocket, and has to put it somewhere. For years, the investment of choice has been the drab solidity of U.S. Treasury bonds. But as the dollar drops, and higher returns can be gained elsewhere, China has begun to eye more alluring places to stash some of its cash.
Originally posted by SeekerofTruth102
I am not about to be dragged into a senseless debate
with you or any other red book waving commies ,
even though you are obviously rude. Let the market show and prove to you how wrong you are, then you will probably disappear into hiding,
common amongst your kind and will pretend that you never say what you wrote here.
Originally posted by marg6043
reply to post by mad scientist
Actually they do not have to too, just a littler bit of it will be enough to kill the dollar, that is already in a very precarious situation.