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Originally posted by AnAbsoluteCreation
Don't forget that CHINA needs USA to continue importing their products, which help keep China's growing economy stable.
China needs USA as much as USA needs China. They both know it, so they have resorted to playing games.
Originally posted by OldMedic
It is a very GOOD thing that the dollar is falling in value.
It drives up the costs of imports, so more U.S. made things will be sold both here and abroad. Over time, this will result in more jobs hers, and profits that do not flow to foreign countries.
Lets post the facts again, since you are unable to do so.
Also, China owns very little U.S. debt as a percentage of the GDP. China only owns less than 6% of all of the U.S.'s outstanding debt.
U.S. Treasury website:
Also, the debt is not at historic levels as a percentage of the GDP. Also, the debt to GDP ratio is currently declining. And many other first world countries have far greater debt to GDP ratios.
If China had owned a lot of U.S. debt then they would have drove up the price of treasury securities (bonds, etc). That didn't happen. Currently the price of treasuries have been increasing because people are taking their money out of the stock market and investing in treasuries.
Many U.S. investors want China to sell off the U.S. debt because in the long term it will decrease the trade deficit (improve the stock market, boost home prices, increase consumer spending, increase job growth, etc.)
Why does china buy so much US debt? China only buys our debt to devalue its currency so it can create an artificially created trade deficit. So china buying US debt is in Chinas best interest, if china wants strong economic growth, that is.
Embarrassed yet? I am pretty much thrashing your original "arguments." Though i will not continue to beat you when you have been thoroughly beaten down.
About the "Micky mouse dollar." Japan is thinking about selling off its yen to boost the value of the dollar so Japan can sell more Japanese cars in the U.S.. "Japan sold the yen on the four occasions since 1995 when the currency approached 100 to support exporters including Toyota, the world's second-biggest automaker." ...
Contrary to what most people think, a weak dollar is not bad for America. It helps U.S. automakers and manufacturers. It also reduces the trade deficit which reduces unemployment and the national debt. The dollar is fine. The falling dollar helps the economy.
A weak dollar does not make foreign car makers happy. Each time the Japanese yen increases to the dollar by one yen, then Toyota's profits drop by 35 billion yen
Global economics 101. The country with the weakest currency wins. And the country with the most innovation (the U.S.) keeps alive the countries that only know how to copy ( through the use of a devalued currency) .
The countries with the weakest currencies have the fastest economic growth. Japan purposefully devalued its currency for decades to gain U.S. marketshare in our automotive sector and our electronic sector.
China and India are currently devaluing their currencies. China had over a 10% GDP growth rate last year. And Russia's devalued currency is hurting the EU steel mills.
The key to America's future is spending money in research and development and at the same time preventing other countries from artificially devaluing their currencies. Those actions alone will increase job growth, improve the standard of living, reduce the need of social programs, reduce the national debt through tax revenue growth, etc..
In the long term a low dollar is actually good for America (as long as other countries don't artificially peg the dollar). A low dollar decreases the trade deficit, improves the economy, and increases tax revenue to lower the budget deficit. China has been enjoying the benefits of a weak currency for a decade. That is the only reason why China is doing so well. It actually sucks at productivity.
China Is Against Free Trade. They are taking what we are allowing. I am in agreement that something needs to be done about this.
How is it you can say that China does not need the US, when China needs the US in order to devalue its currency, which makes china lucrative to begin with? Chinas economy is totally reliant on the US and EU economys, it is not a self sufficient first world economy, it is a third world economy with 1.3billion people and a crappy infrastructure. I am seeing things quite clearly. I happen to know the facts, whilst many ill informed illiterates spout the latest fashion fad.
And More freedoms? Tell that to the Tibetans who have had their land invaded ILLEGALLY and ruled by an iron fist for 50 years.
Also tell me why China feels the need to filter what its people can see, and cannot see over the internet?
I will take statistics over your ill informed, maligned opinion.
Originally posted by HimWhoHathAnEar
That's all fine. I used to buy the same crap.
Your basis of 9 Trillion is ridiculous. Funding Medicare, Medicaid, Social Security, etc. is in excess of 60 Trillion.
We have banks in this country that hold TEN TIMES that amount (9 Trillion) in 'derivatives' based on Real Estate Inflation. That's 90 Trillion,
The Govment will not let these banks fail. Can you imagine trying to print your way out of tens of Trillions? You may want to study Weimar and early 90's Yugoslavia to see what inflation of a money supply can do.