China And Us Debt

[Gothmog]

I've been hearing about this issue for some time and wondered if its factored into anyone's planning for the future. Exactly what China does with all the US dollars it holds could have a major impact on the US economy ... so far they are spending them carefully and selectively.

 

What if they decide to pull the economic plug and sell off quickly?

[karlunity]

What if they decide to pull the economic plug and sell off quickly

CG.

 

 

If the person in the WH has any brains, he or she will let China know that the second that happens, there will be a trade tariff of 500% put on any goods that come from China and that the USA will make every effort to ensure that our "friends" follow suit. The economy of China will tank and the old men in charge may well find themselves on the way to the guillotine. The "coolie" has some money and perhaps for the first time in the history of China, the possibility of a good life.

If the "PARTY' can maintain that and expand the "Glory of the Middle Kingdom" well and good but if in the pursuit of the glory of the party, they endanger the "Chinese Dream"....they had best stand by.

 

Karl

[Horsefly]

If the largest part of China's new found economy is based on trade with us,wouldn't we have the power to merely stop trade with them and send them back to 50 years ago?Look at the jamb ragheads got us in by selling oil cheap.I saw a deal on China a few nights ago that was showing how they have come out of the dark ages recently and about to catch up with the rest of the world because of trade with the U.S.. Their downtown looked like Vegas,they were eating icecream and had fast food joints,and there were cars everywhere instead of folks walking or riding bicycles.You get a couple generations living that way that won't be able to go back to the old ways,and we'll have them by the ying yang. Jerry

[Gothmog]

From what I have been hearing for some time, the danger to the US economy is quite real. The people I am hearing it from are professional investors who know their stuff.

 

I don't believe China is prepared to allow the value of the US dollars they own continue to fall without doing something about it. It seems clear to me they want out, and this will have consequences. Lately they have been buying mineral production sites in Africa among other things and have not attempted to dump the US dollar directly. That would be an economic disaster for both nations, but a more dramatic loss for the US.

 

Your dollar has fallen in value from about $1.60 Canadian to almost par in the past year or two ... if this trend continues you might find international products tripling in cost without the addition of any tariffs!!

 

Karl, one problem with adding tariffs as you suggest is that would likely trigger a massive world wide depression as in the 1930's. I've been hearing speculation about this scenario for the past two or three years. Here's how its supposed to go:

 

1. uncontrolled and massive debt in the economy

2. devaluation of currency followed by a 'race to the bottom' in order to obtain a trading advantage vis a vis other countries

3. imposition of tariffs to deal with the foreign trade imbalance

4. loss of jobs and economic confidence at home and complete economic collapse

[karlunity]

Hello CG.

 

loss of jobs and economic confidence at home and complete economic collapse

 

We have already lost so many jobs over the last 30 years, I am given to wonder how many are left?

 

In any case a tariffs on China is part of an economic "MAD" strategy.

 

What we should do is over the next ten years, is slowly rebuild our industrial base and convert to nuclear power.

Solar and coal power as it comes on line ,that and reexamine many of our alliances.

 

As for China, I think that they are more worried about a reemerging Japan and I don't think that a Japan without the USA to restrain them is seen by China as in their best interests.

 

Karl

[fritz]

I'm not sure if maybe this article would be better on the "alternative fuels" discussion, but I shall put it here since Karl mentioned we need more reliance on nuclear energy (uranium). This issue has gotten me and mrs fritz on different sides. She goes to the uranium information meetings (aka propaganda meetings) and I stay out of it since my land is not for lease for uranium (even though it may someday be)-----

 

 

Facts about uranium mining are available

August 05, 2007 - Posted at 12:00 a.m.

When we hear words such as "uranium" and "groundwater" mentioned in the same sentence, concerns from the public are expected. When Uranium Energy decided to explore a mining program within a small area in northern Goliad County, we decided to meet with county officials. The company was not required to contact and inform the county of its presence, anymore than an oil and gas operator is required, but did so nonetheless because its management believed it was the right thing to do.

 

This first meeting was met with swift county opposition, a resolution opposing the mining industry before any facts could be presented. County officials were told at that initial meeting that the permitting process would take years and there would be ample time for them to take a position if they had continuing concerns. What should not be expected or tolerated are people in public positions irresponsibly playing upon these concerns, in the appearance of the public interest, until perceived legitimate concerns become irrational fear. Unfortunately, this situation is exactly what has occurred in Goliad County.

 

Everyone has a right not to take things at face value, to investigate claims and judge for themselves. But not everyone has the time or resources to do it. So often, we look to elected community leadership to verify and validate information using creditable, unbiased experts and advise us as to the "pros" and "cons on the issues." If people in public positions make up their mind in advance, without the benefit of corroborated data - or worse - in spite of reliable information, the public good is not well served. In that case, we, the people, are only presented with misinformation, however distorted, and manipulated to fit a pre-determined picture of "reality" with which to form our opinions.

 

Some well-intentioned residents of Goliad County (along with some from outside the community) have wrongly painted today's uranium mining methods, technology, and its effects on the community.

 

What are the facts?

 

The recent study performed by Daniel B. Stephens and Associates at the request of the Goliad groundwater district does not demonstrate "that uranium mining cannot be done safely in Goliad" as certain individuals and local groups have represented. Stephens and Associates did not make that statement, and their report certainly does not reach that conclusion. The report actually concludes that "capture of injected fluids within the mined zone . . . is feasible . . . ." (Report at p. 20.) In fact, the study was extremely basic, and with the level of information they currently have, Stephens and Associates could not responsibly make a judgment about safety even if they wanted to do so. Ask them - get the facts.

There is no reliable data to support the claim that in situ uranium mining hurts property values. In reality, there is data to the contrary, and if anyone is truly interested, we have it. Ask us - get the facts.

There is no reliable data to support the claim that in situ uranium mining injures livestock. In fact, there are decades worth of data that prove the contrary, and we have it. Ask us - get the facts.

And finally, some individuals have made claims that the exploration process has influenced their wells. They are wrong, and to be honest, it is difficult to see how some of these claims could be made with a straight face by representatives of the Groundwater District. In order for some of these wells to be influenced, groundwater would have to flow uphill. Gravity, of course, prevents this from happening. You don't have to ask anybody on this one - it's a fact.

Regardless of what you think now or come to believe in the future, we are here to recover uranium safely because America needs it. Uranium Energy is committed to preserving the environment, water, health, and safety of Goliad County while providing an economic engine to create jobs, a tax base for the school district and county. Furthermore, Uranium Energy's operation will provide opportunity for local businesses to provide the services and provision that this industry will require.

 

Harry L. Anthony is the Chief Operations Officerof Uranium Energy Corporation.

 

 

As I said, this has me and mrs fritz on different sides. I claim the local opposition to this mining company amounts to a vigilante committee. If you have uranium under your land, it will show up (in small amounts) in your water wells. These people who complain about bad water from their wells have had bad water way before the uranium company started drilling a few test holes (about 150' deep, the same depth as the water table). And maybe it came from the numerous oil wells in the area. The Texas Railroad Commission has the final word on this anyway, much to the dismay of the local vigilantes.

 

 

fritz

 

 

 

[Gothmog]

Well, well ...look what made the news!

 

China threatens 'nuclear option' of dollar sales The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.

 

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.

 

Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.

 

It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds.

 

Xia Bin, finance chief at the Development Research Centre (which has cabinet rank), kicked off what now appears to be government policy with a comment last week that Beijing's foreign reserves should be used as a "bargaining chip" in talks with the US.

 

"Of course, China doesn't want any undesirable phenomenon in the global financial order," he added.

 

He Fan, an official at the Chinese Academy of Social Sciences, went even further today, letting it be known that Beijing had the power to set off a dollar collapse if it choose to do so.

 

"China has accumulated a large sum of US dollars. Such a big sum, of which a considerable portion is in US treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency. Russia, Switzerland, and several other countries have reduced the their dollar holdings.

 

"China is unlikely to follow suit as long as the yuan's exchange rate is stable against the dollar. The Chinese central bank will be forced to sell dollars once the yuan appreciated dramatically, which might lead to a mass depreciation of the dollar," he told China Daily.

 

The threats play into the presidential electoral campaign of Hillary Clinton, who has called for restrictive legislation to prevent America being "held hostage to economic decicions being made in Beijing, Shanghai, or Tokyo".

 

She said foreign control over 44pc of the US national debt had left America acutely vulnerable.

 

Simon Derrick, a currency strategist at the Bank of New York Mellon, said the comments were a message to the US Senate as Capitol Hill prepares legislation for the Autumn session.

 

"The words are alarming and unambiguous. This carries a clear political threat and could have very serious consequences at a time when the credit markets are already afraid of contagion from the subprime troubles," he said.

 

A bill drafted by a group of US senators, and backed by the Senate Finance Committee, calls for trade tariffs against Chinese goods as retaliation for alleged currency manipulation.

 

The yuan has appreciated 9pc against the dollar over the last two years under a crawling peg but it has failed to halt the rise of China's trade surplus, which reached $26.9bn in June.

 

Henry Paulson, the US Tresury Secretary, said any such sanctions would undermine American authority and "could trigger a global cycle of protectionist legislation".

 

Mr Paulson is a China expert from his days as head of Goldman Sachs. He has opted for a softer form of diplomacy, but appeared to win few concession from Beijing on a unscheduled trip to China last week aimed at calming the waters.

http://www.telegraph.co.uk/money/mai...nchina107a.xml

[karlunity]

Hum...Those commie rats what they are!!!!!!

 

Them commie don ben readen our posts.

 

 

Outraged karl