Steve Posted November 16, 2010 Report Share Posted November 16, 2010 China is as likely to implode as it is to take over the world. We might be kidding ourselves. Yes, they have an overheated housing market in cities like Shanghai that will hit a bubble at some point (and they are addressing it with new laws making harder to get a 2nd mortgage and first mortgage). However, they resemble Industrial pre WW1 America than anything else. Large parts of the country prime for growth, a huge cheap supply of cheap labor. In America's ascent there were numerous financial bubbles. The same will probably happen to China but I don't see total collapes. I could be wrong but where is the evidence that they will collapse totally and if so, its likely to take all of us with it. Its the worse thing for America if they do for a myriad of reasons. They are financing our debt and supplying lots of products, etc. The old adage of 'when America sneezes the world catches cold' is going to replaced with when China sneezes. While we're in America arguing party rivalries with religious fervor, even though both parties are nothing more than proxies for the groups that own them, China are making strategic moves globally and beating us each and every time. Link to comment Share on other sites More sharing options...
LizardKing Posted November 16, 2010 Report Share Posted November 16, 2010 China owns...our debt. The reality is all we can do is talk. We don't have the power to tell China to change its currency valuation. Its the reverse if anything. Some Americans will say, if we go down they go with us. I'm not so sure. Sure they'll hurt but they have so much other things going for it globally, where they are increasing and we're either stagnant or retreating that you tell me who will survive if its economic warfare? That's actually a myth. Looking at the Foreign Holders of US Treasuries page, you would be hard pressed to come up with a total of more than $1.1-$1.2T held by Chinese private and public entities. Which is less than 10% of total 'Public Debt' (~$13.7T) and perhaps 13% of 'Debt Held by the Public' (~$9T of that). This is hardly an 'ownership' position... Debt numbers from the Treasury's Debt to the Penny web application. Link to comment Share on other sites More sharing options...
cavanami Posted November 16, 2010 Report Share Posted November 16, 2010 If history repeats itself, then China will implode as they have done every few hundred years or so...1450-ish, imploded...Chairman Mao, imploded...just to name two that I remember. I'm sure there are more in between 1450 and 1950. We will most likely not see the implosion as it may be another 100 or so years away. Link to comment Share on other sites More sharing options...
Steve Posted November 16, 2010 Report Share Posted November 16, 2010 China owns...our debt. The reality is all we can do is talk. We don't have the power to tell China to change its currency valuation. Its the reverse if anything. Some Americans will say' date=' if we go down they go with us. I'm not so sure. Sure they'll hurt but they have so much other things going for it globally, where they are increasing and we're either stagnant or retreating that you tell me who will survive if its economic warfare?[/quote'] That's actually a myth. Looking at the Foreign Holders of US Treasuries page, you would be hard pressed to come up with a total of more than $1.1-$1.2T held by Chinese private and public entities. Which is less than 10% of total 'Public Debt' (~$13.7T) and perhaps 13% of 'Debt Held by the Public' (~$9T of that). This is hardly an 'ownership' position... Debt numbers from the Treasury's Debt to the Penny web application. Technically right but I should restate my post another way. China is the largest foreign buyer of our debt currently and has been for a while. It is the lender of last resort on occasion at times. They are a very significant buyer. If they stop there is no one to make up the difference so, I still stand by the statement that they own us. http://www.getmoneyenergy.com/2010/01/biggest-foreign-buyers-of-us-debt/ Biggest Foreign Buyers of U.S. Debt #1 – China Link to comment Share on other sites More sharing options...
LizardKing Posted November 16, 2010 Report Share Posted November 16, 2010 Doubtful that too. They were recently buyers for $100 T-bills at $120 because there is so much demand and people are betting long that the $ is gonna recover. Not hard to find someone to buy US debt. Link to comment Share on other sites More sharing options...
TheCorinthian Posted November 16, 2010 Report Share Posted November 16, 2010 I have to agree with Lizzy. The thing that has saved the US and the world for that matter in all of recent history is the American Consumer. And that guy is currently on strike. Link to comment Share on other sites More sharing options...
Flashermac Posted November 16, 2010 Report Share Posted November 16, 2010 That guy is currently unemployed. Link to comment Share on other sites More sharing options...
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