China has the United States by the bawls

[EyeMaster]

I've said it before here in another post... and it's finally coming true. It scares me a little, knowing our economy is tied in with the US.

Read and see for yourselves.
http://www.prisonplanet.com/articles/september2007/190907_dump_dollar.htm

Not the best source of information, but this is real. Once I find a source less biased than prison planet, I'll post it.

[gOOCH]

how2incarceratedlabor?

[lefty]

I've said it before here in another post... and it's finally coming true. It scares me a little, knowing our economy is tied in with the US.

Read and see for yourselves.
http://www.prisonplanet.com/articles/september2007/190907_dump_dollar.htm

Not the best source of information, but this is real. Once I find a source less biased than prison planet, I'll post it.

no... just no. the word 'invasion' would make it to many many newspapers, not some random online news site.

[WiseGuy]

China holds $1.3 trillion of dollar denominated assets and leading Communist Party officials have repeatedly threatened to use what the London Telegraph referred to as "the nuclear option," the liquidation of US treasuries if Washington imposes trade sanctions to force a yuan revaluation, the result of which would be an almost certain and immediate collapse of the dollar.

If you know much about macro-economics or why China holds $1.3 trillion US dollars... you'd quickly realize that if they liquidated those funds it would littereally KILL China and their economy...

Their currency would instantly go through the roof, and all of their exports would become HUGELY expensive, thus stopping all exports out of China. If you know what the Chinese economy is like atm then you'd also know that China doesnt sell anythign it makes in China because the population doesn't spend.

Therefore, they would have incredible volumes of goods and no buyers. Instantly killing their economy. Not to mention it would shake the entire world, and every economy on the globe right now would tremble as well. Everythign is linked to the Shanghai market.

[gOOCH]

im with wise, but not in a gay way

[7900gs]

yeah world markets are funny like that. wise can you explain what you mean by that?

For example, I understand that if U.S. freezes Chinese investments in the States how that would impact China, but if China liquidated their funds, or in english, pulled their investments out of the states (I'm sure there are rules to prevent it from happening overnight), wouldn't it also negatively affect the U.S. economy? and the rest of the global economy in general? If China's exports go down, wouldn't the world run out of their #1 manufacturer of goods? And then companies will have less supply of products, demand would go up, prices will soar, too expensive for people to buy stuff really, sales go down, not to mention the impact of that liquidation thing in the U.S, I think everyone would be in the red there...

Yeah China is an economic threat, not only to the U.S. but also to itself and the rest of the world.

We shouldn't even get started with what would happen if OPEC freezes oil production and pulls its $ out of the U.S. and the U.K. Or just decides to hike up all the prices....don't say war, since that didn't help increase Iraqi oil production but in fact made the barrels of oil $$ soar...which made some people rich, the already rich guys that have investments in oil, but everyone else poor...but then again that would leave industries relying on oil for their products and services hard hit as they would have to pay the premium $ to run their companies and factory's and production lines etc etc.

Nobody has anybody by anything. That outlook into the global economy and international politics, although interesting from one perspective, and I'm sorry to say and no disrespect to you, Eyemaster, is in fact flawed.

If you keep taking a block from the bottom and you put it on top, you take a block from the middle and you put it on top, it wiggles and it...ends up falling in the very end. All of it, not just individual blocks.

wow, sorry for the long post.

Peace.

[EyeMaster]

China's money isn't in the trade market. The Yuan (if that's what it's called) is not publicly traded like other money markets. If you buy Yuan's in the market now, they are not real chinese money, it's a Promise fund from investors, sorta speak. Chinese's hold on the US money is in form of Bonds. That's how a Country finances things that they do not have money for. Everyone can buy Bonds.

China funded the US by buying lots of Bonds, way more than any other country has done, and that's where the US is taking it's money in parts for the war.

And last, China doesn't need the US, but the US needs China for economic reasons. China produces almost everything the US consumes. China's consumers are the world, where US's products mostly come from China.

Don't forget also that China, Russia, Venezuela, Cuba and more, form a tie just like the Allies do, Europe, Canada, US and others. It's a global market tug of war that people don't realise. We are basically led by the US, and China/russia leads the other camp.

Calling Prison Planet a random news site does not do it justice. It is not the best site for information, but it is a good source to get what's happening in the world today.

[WiseGuy]

The reason China is buying US dollars is to cheat their money system to keep it from inflating. Its kinda long story... i took a wicked macroeconomics course last term so im on top of this shit....

[EyeMaster]

The reason China is buying US Bonds (not US Dollars) is the same as every country that does so. Every country buys Bonds in other countries as a form of investment.

Now, China's investment is probably not just in monetary returns, but probably economic and war advantages, and more.

[silence]

http://upload.wikimedia.org/wikipedia/commons/thumb/4/45/Bawls_bottle.jpg/263px-Bawls_bottle.jpg

[gOOCH]

http://masklinnscans.free.fr/4chan/button_bacon_real.jpg
mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

[DeathSniper]

Bawls are pretty good. And certain female friends have told me how it's a neat bottle design...;)

[Mike-KT]

sure, sure, China is evil and everything, but they need to keep their currency artificially deflated. It's not just investment, they would do well to invest within their own country on capital goods. They need to push down the American dollar so that their exports are affordable, it's just like Peter said.