New Hope for Haiti

[fightingquaker13]

China is the economy that would then collapse, not ours. We are the borrower, China the lender. When the borrower cannot pay, the lender is out of luck, unless of course they can repossess the property that the loan was used to purchase. That cannot happen with a country as we found out, and have been finding out since we've been giving money to most every country on the planet at one time or another since the dawn of time. We took the gas pipe on countless foreign loans. Perhaps now it's China's turn. We never seemed to wise up. Perhaps they will, that is assuming their economy can stand it. From what is being reported, it can't. So as we speak they should be more worried about our ability to pay, more than we should about paying it. If you really think about it, the more we owe China, the tighter we put their nuts in the financial vise.    Bill T.

You're mostly right. Their economy is export driven. We use their money to buy their goods. They profit on the sales plus the interest. If we default, they are screwed. But so are we, as the dollar would become the Peso and we would lose all foriegn investment in our capital markets and securities.
FQ13

[billt]

You're mostly right. Their economy is export driven. We use their money to buy their goods. They profit on the sales plus the interest. If we default, they are screwed. But so are we, as the dollar would become the Peso and we would lose all foriegn investment in our capital markets and securities.
FQ13

I don't think so, and here is why. Our trump card is that if we go down, the whole free world goes down with us. Everyone. For that reason that will never happen. The whole European Union, China, Japan, Singapore, Hong Kong, along with the rest of the Pacific Rim depends on the success or failure of our economy and monitary system. If our dollar collapses, it will be a domino effect throughout every foreign market world wide. As much as China wants to make their money the "New World Currency", and Europe beats the drum over the Euro, the Dollar is king, and always will be. They know it, just like the dems know Hussein Care is a turd. They just can't, and won't admit it. They don't have to.

All we have to do to totally sink China is have Geithner and Hussein call China's Economic Minister and say, "Sorry pal, but we're a little short this month, and probably next". It would send their entire economy into a death spiral they would not be able to recover from. Their whole economy is in it's infancy as a productive industrialized nation. About all they have going for them at the moment is a cheap, slave labor force that translates into a lot of cheap goods, and a currency they couldn't possibly devalue any further. Most of these goods we buy. Hell, if Harbor Freight closed their doors, who would pick up the slack and buy all of that crap? Europe? Doubtful. The Euro is in worse shape than the dollar, their unemployment rate is higher, and their people have even less disposable income than the broke idiot's who live here.

No matter how you cut the cake, they are walking a longer, higher, more dangerous financial tightrope than we are.  Bill T.

[r_w]

I don't think so, and here is why. Our trump card is that if we go down, the whole free world goes down with us. Everyone. For that reason that will never happen. The whole European Union, China, Japan, Singapore, Hong Kong, along with the rest of the Pacific Rim depends on the success or failure of our economy and monitary system. If our dollar collapses, it will be a domino effect throughout every foreign market world wide. As much as China wants to make their money the "New World Currency", and Europe beats the drum over the Euro, the Dollar is king, and always will be. They know it, just like the dems know Hussein Care is a turd. They just can't, and won't admit it. They don't have to.
...
No matter how you cut the cake, they are walking a longer, higher, more dangerous financial tightrope than we are.  Bill T.

And that is why they are trying to get the dollar out of the singular world currency.  They may be on a higher tightrope, but they have their eyes open.

[billt]

And that is why they are trying to get the dollar out of the singular world currency.  They may be on a higher tightrope, but they have their eyes open.

They will never succeed in that endeavor. China is overly ambitious in relationship to their abilities. Their industrial base is growing, but they are still a very much oppressed people. They all earn $h!t compared to the rest of the world, which is the main reason their goods are so cheap at the moment. That won't last. It didn't with Japan in the 50's and 60's, and it won't with China very much longer. Over a billion pissed off people are a lot to deal with. Don't worry, China has their hands full. They are simply ignoring it, and or are playing it down. That won't last.   Bill T.

[tombogan03884]

Bill, You are overlooking the triple digit inflation that would hit the $ . Think Germany after WWI or Zimbabwe.
$16,000.00 for a loaf of bread.

[Sponsor]

[billt]

Bill, You are overlooking the triple digit inflation that would hit the $ . Think Germany after WWI or Zimbabwe.
$16,000.00 for a loaf of bread.

That too would be worldwide.  ¥234,000,000,000,000.00 Yen for a can of pop.   Bill T.

[tombogan03884]

This is like when you were so certain "The lame duck Congress won't do that" .  

[JC5123]

Bill I can get behind your argument, except when I look at my own experience. Especially with groceries. A few years ago Wyo did away with sales tax on grocery items. Thus saving me 5% that I was paying in tax. When I still had to pay tax on my food I was averaging about $60 per week at the store, and eating pretty good. Today I'm cutting every corner I can at the grocery store, and not eating near as good as I was, but my food bill is close to $150 a week.

 The dollar is losing value and that is the worst place that I see it. Granted I don't see that kind of inflation in other areas, but I can account for that. First, I have personally cut back my entertainment budget, and second, in order to keep many products moving, and thus ensuring cash flow. Retailers and manufacturers are HAVING to keep the price down, even if it means lowering profit or in some cases taking a small loss.

[tombogan03884]

Both Moody's and Standard and Poor's are talking about possibly down grading the US triple A credit rating we have had since 1917 if the country does not cut spending and increase taxes.

[billt]

This is like when you were so certain "The lame duck Congress won't do that" .  

What did they do?  Bill T.