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Termyn8or -> RE: In short, right now America has China over a barrel, not the other way around. (3/17/2010 12:12:44 AM)
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No, I think what the OP means is that they are not as almighty as they seem. See if we default on our debt, which is likely to happen in the next decade or less, they are screwed. They are not going to come here and take the desks out of governmant buildings, no matter what.
And if the yuan is still pegged to the dollar it will kill China, or at least financially ruin them back to the stone age. They will survive and the dollar will be worth a penny, but they will lose the biggest market on the planet. They will hurt either way. Our help and friendship (like MFN status) is not the best thing to have. We will bring you down with us. And a financial connection can become a military one quite easily. That affects the balance of power quite a bit. Right now China can go either way, get rid of us and have the rest of the world as a market, or sit and wait until they have a similar set of problems. The yuan is helping to prop up the dollar right now, but that is done with money we largely spent there. Now we owe it to them. What happens when they don't get paid ? and believe me they will not be paid.
China is sitting on the fence right now. They are not fond of Israel and neither is Russia. Therefore they are not fond of us. In China's situation they are quite logical in not making a move at this time, to see how the game goes. They don't know who to trust, and don't really care much about anyone else. So they sit on their hands for now and wait and see. Actually I see that as the proper course of action and wish our politicians would learn a thing or three from them, except for their oppressive policies.
I think both will see the error of their ways, that China does not treat it's people well enough and we treat our's too good, at least some. The predictions I made twenty years ago are now coming true.
T
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