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Russia to declare war on Canada (pg. 6)
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| SkyHigh |
| quote: | Originally posted by VDub
Are you kidding???
Any conflict with the Chinese and we're doomed...
Do you know how easy it would be for China to destroy the whole of the western world with even firing 1 bullet???
That country scares the out of me... |
Please explain |
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| VDub |
| quote: | Originally posted by SkyHigh
Please explain |
I'll give you my take...
Please someone correct if I'm wrong...
They call it the nuclear option...
China has 2 TRILLION US dollars in cash in its possession...
If they decide to us up, they take all of that money and flood the market crashing our economy into the ice age...
The reason that they don't do that is of course because if we crash, they crash, since we buy everything we use from them...
It's like a nuclear deterrent...
I launch on you, you launch on me, we all die together...
This is why we have to keep them happy... |
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| The Highroller |
| quote: | Originally posted by VDub
they take all of that money and flood the market crashing our economy into the ice age... |
What does "take all of that money and flood the market" mean exactly?
Also, you make it sound like any sort of hostile action taken by Chinese against the US in the money market or in the bond market would have an isolated affect on the US or North America. The global economy is so integrated that any sort of hostile action like this would have severe negative impact everywhere including on China and their key trading partners. |
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| SkyHigh |
| quote: | Originally posted by VDub
I'll give you my take...
Please someone correct if I'm wrong...
They call it the nuclear option...
China has 2 TRILLION US dollars in cash in its possession...
If they decide to us up, they take all of that money and flood the market crashing our economy into the ice age...
The reason that they don't do that is of course because if we crash, they crash, since we buy everything we use from them...
It's like a nuclear deterrent...
I launch on you, you launch on me, we all die together...
This is why we have to keep them happy... |
We dont have to keep them happy...they decide to crash us and themselves.
Thats like saying.America got nuclear rockets and decide to launch on China.China loses America loses. |
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| DigiNut |
| quote: | Originally posted by The Highroller
What does "take all of that money and flood the market" mean exactly? |
I was wondering that too. Yes, China owns a lot of U.S. cash. So? What are they going to do?
Sell it at market? That's basically a wash for everyone, especially if they're selling it back to the U.S. No different from a company buying back its own common stock - it's actually a frequent occurrence.
Sell it below market? Yeah, that might temporarily destabilize the U.S. currency, but only temporarily - whoever buys it below market is going to try to flip it at a much higher price. A few days, a few weeks maybe and it would be back to normal. Plus it would obviously kill China's economy, they'd basically be throwing away money.
Actually, probably the worst thing China can do to the U.S. is hold onto that cash forever. I'm sure that the Americans don't want that money to stay foreign-owned, it's 2 trillion dollars less in active circulation, meaning that they're more likely to have to print more money as long as China keeps it. But it's not to China's benefit to hold onto it indefinitely if the U.S. economy starts to go downhill; they're now invested in the U.S., so they want the U.S. economy to do well, otherwise they're screwed.
I don't know why this notion of China owning U.S. cash seems to freak people out. It's a good thing. It means China thinks that the USD is undervalued right now. |
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| Jayx1 |
| quote: | Originally posted by VDub
Are you kidding???
Any conflict with the Chinese and we're doomed...
Do you know how easy it would be for China to destroy the whole of the western world with even firing 1 bullet???
That country scares the out of me... |
it wouldnt be that easy... remember that the US still has a good nuke arsenal that would wipe them out. Which by the way, the softie left is trying to get obama to dismantle. Sometimes i wonder if the chinese are subversively affecting our policies somehow. They are pretty stealth like that |
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| Jayx1 |
| quote: | Originally posted by VDub
I'll give you my take...
Please someone correct if I'm wrong...
They call it the nuclear option...
China has 2 TRILLION US dollars in cash in its possession...
If they decide to us up, they take all of that money and flood the market crashing our economy into the ice age...
The reason that they don't do that is of course because if we crash, they crash, since we buy everything we use from them...
It's like a nuclear deterrent...
I launch on you, you launch on me, we all die together...
This is why we have to keep them happy... |
thats about right... which is why bush was stupid for going back into debt and obama is an idiot for tripling the deficit |
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| VDub |
Source
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Lots more if you Google Chinese nuclear option...
Are you guy's saying that if China sells 2 TRILLION in treasuries, it won't be a big deal to us??
And yes I did say that they probably won't do that because it would harm them as well..
But war is hell and crazy ppl do crazy things... |
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| rabbitjoker |
| quote: | Originally posted by VDub
This is why we have to keep them happy... |
You seem to be omitting the fact that that China exports 70+% of their economic output.
Until they are able to sustain their own economy (unlikely considering 750 million people in China are poverty line farmers) the West doesn’t have to keep them as happy as you make it seem.
One sustained blip in China's exports and the whole Communist "pseudo" free-market experiment comes crashing down around them (mind you this is also likely if they can't raise the income levels of their own citizens or somehow deal with the fact that agricultural production is done by people who are too old to be doing it [youth move to cities/old people left to farm, looming food crisis]).
The reignited talk of Western protectionism and tariffs hopefully won't make this a reality - but who knows, there is a strange sentiment that has been brewing in the West for quite some time and the current economic situation has done nothing to improve it.
(Don’t forget that central banks control M; China has a lot more to be worried about holding the $2 trillion US debt than you describe above [forget about China devaluing the currency, the central bank could do much more deliberately themselves])
(Lastly, it's easy for a country that manipulates it's currency to feel that it is in a strong position. If anything, South America in the 80s and 90s proved that type of nonsense doesn't work)
China is not in an enviable/invincible position. Sure, if one believes what the CPC tells you – everything in China is fantastic, growth is great, China prospers above all, the world is behoved to the “great red power of the East” (sounds like the same old communist rhetoric if you ask me). |
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| Jayx1 |
At the rate china is growing they will be self sufficient very soon. Having been there last year i can tell you that they are light years ahead of us in some aspects and seriously lacking in others. But they are already working on their short comings. They were in what they called a recession last year. It was only 8% growth instead of 20%!!!
I was standing in a city that went from 30,000 to 12 million in less than 30 years. Think about that. Thats 3 torontos in 30 years. They literally tore down mountains and filled in the sea with them to make whole new boroughs and districts. Its unreal what they are doing over there.
What has happened since Deng Xiao Ping opened up the markets in China in 1979, 30 years ago, took the western world 150 years. And you better believe that the momentum is getting stronger by the day!
So saying that CURRENTLY china is being held at bay may be true. But you have to account for the vast amounts of wealth that they are creating for themselves. Already China has become the #1 market for automobiles. And thats with half their population being dirt poor!!! Just wait till even a quarter of the poor move into the middle class!
Resting on our laurels and making excuses for ourselves has got to end now if we even have a hope in hell of competing with china and the rest of asia. |
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| VDub |
Again.... I am acknowloging that them destryoing us financially would be suicidal...
But I'll repeat...
War is hell..
The whole thing (the thread title) is a moot point as it won't happen anyway... |
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