foreigner Posted August 8, 2007 Report Share Posted August 8, 2007 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. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml this is the issue for americans & if china does choose to fiscally bring down america the entire exporting world is in poo poo. Ross Peroit was right. Link to comment Share on other sites More sharing options...
drogon Posted August 8, 2007 Report Share Posted August 8, 2007 Yes and how to shoot themselves in the foot I am trying to imagine a world without the US$ and China without the US market.......empty threats Link to comment Share on other sites More sharing options...
foreigner Posted August 8, 2007 Author Report Share Posted August 8, 2007 the problem is the us has allowed china to hold $1.5T in treasury bills. china has let the us dig itself into a huge hole. the us could pay it's debt to china on time & end this. the balance of trade deficit is actually an 'off the books' loan to the us government & it is the us congress that is doing the sabre rattling / threatening, while allowing GM to close us factories & open chinese factories. how much NYSE GM $s investment ends up as a Treasury Note held by china? in effect NYSE GM investment, which ends up building a chinese factory, is actually a loan to the US government through increased T Bills held by china ross peroit was right Link to comment Share on other sites More sharing options...
chuckwoww Posted August 8, 2007 Report Share Posted August 8, 2007 I'm not too worried. I read thai360.com so I knew about it yesterday. Link to comment Share on other sites More sharing options...
foreigner Posted August 8, 2007 Author Report Share Posted August 8, 2007 > NYSE GM investment, which ends up building a chinese factory,< GM investment in Chinese factories does become a treasury bill loan when the balance of payments ledger is not 0ed out.. & any effect NYSE stock value has on GM's line of credit or assets for investment does in effect facilitate a chinese loan to the us. simultaneous loss of jobs & increased balance of payment deficit. Link to comment Share on other sites More sharing options...
Hugh_Hoy Posted August 8, 2007 Report Share Posted August 8, 2007 I'll take thai360 before The Guardian any day :smirk: Aside from that, all the U.S. has to do is revert back to the old "column 2" duty rates on Chinese imports and Walmart will be out of biz...small mom and pop stores will once again prosper, jobs will return to the U.S., etc. HH Link to comment Share on other sites More sharing options...
chuckwoww Posted August 8, 2007 Report Share Posted August 8, 2007 Good theory Hugh. But what will you do with an army of angry overweight unemployed Walmart greeters? Link to comment Share on other sites More sharing options...
OCgringo Posted August 8, 2007 Report Share Posted August 8, 2007 the West has sold its soul to the Chinese, Walmart etc has killed off many small companies that originally supplied them , just sent the product to China to be knocked off and sold cheaper There was a good PBS show that had the President of a Lawn Mower company telling Walmart to go away, because the price they wanted to sell his Lawn Mowers will kill all sales the local Garden shops would sell... It was real interesting to see how Walmart "negosiated" with the suppliers, Does anyone here EXPORT something to China ? OC Link to comment Share on other sites More sharing options...
cavanami Posted August 9, 2007 Report Share Posted August 9, 2007 The USA should tell China to f' off! China is holding $1 T of US currency...the USA should change the currency and tell China, oppps, sorry, what you are holding is worthless :grin: What's China going to do? close all the Chinese restaurants in the USA, 55555555555555. Fun to think about the USA taking a tough position but dollars to donuts, the US politicians will wimp out Link to comment Share on other sites More sharing options...
OCgringo Posted August 9, 2007 Report Share Posted August 9, 2007 The USA should tell China to f' off! 10 years too late for that, What would happen if China decided to have "port inspections" or something like that and closed the ports for 6 weeks , The Western economy would be on its knees ! Think of all the junk that now ONLY comes from China, We have closed our manufacturing plants and sent the work to China . So China is really the one with the power these days , Ohhh and lets talk about Russia holding Europe by the balls with their oil and gas.... OC Link to comment Share on other sites More sharing options...
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