Quoted:
Quoted:
This is the problem though- The only reason China is still buying debt is because they hitched their wagon to our economic horse. When the horses die, their wagon won't go anymore, but they are VERY concerned and bothered by US debt. A better indicator is Russia, who just stopped buying US debt. They weren't a huge player and they are still buying IMB bonds (which are nearly 50% US bonds anyway), but they are limiting money supply to the US. If and when more countries stop buying US debt there will be a vaccum of currency in the US system...... Meaning deflation. The Federal Reserve is printing in the basement like crazy to head this off, which imo means we will be in for a period of severe deflation, followed by super/hyper inflation with worthless US currency flooding the markets.
The America of 1900-1950: Production based, gobbeling up rescources all over the world, growing quickly, generating massive wealth, buying up large debt from nations in the midst of on-going wars.....
Sound familiar? That what we did to Europe to become a superpower.... Thats what China is doing to us to become a superpower.... We left Europe behind on the bench, the new B team... China is doing the same to us, because our govt can't turn on the lights anymore without China backed $$$....
The part in red.. America is 5% of Chinas export market.. If our horse dies, they have thier own set of water buffalo to hitch on to.. Thier only conscern for us stems from weather they can divest in us fast enough without compleatly trashing the U.S. bond market, thus ruining thier investment befor we ruin thier investment...
I'm just sayin''
Not as I understand it. Here is the 2008 trade balance for China-
Table 7: China's Top Trade Partners 2008 ($ billion)
*Percent change over 2007
Source: PRC General Administration of Customs, China's Customs Statistics
Rank Country/Region Volume % Change*
1 United States 333.7 10.5
2 Japan 266.8 13.0
3 Hong Kong 203.7 3.3
4 South Korea 186.1 16.2
5 Taiwan 129.2 3.8
6 Germany 115.0 22.2
7 Australia 59.7 36.1
8 Russia 56.8 18.0
9 Malaysia 53.5 15.2
10 Singapore 52.4 10.5
Here is the same chart for 2006
United States = $162.9 (+30%)
Hong Kong = $124.5 (+23%)
Japan = $84 (+14%)
South Korea = $35.1 (+26%)
Germany = $32.5 (+37%)
Netherlands = $25.9 (+40%)
United Kingdom = $19 (+27%)
Singapore = $16.6 (+31%)
Taiwan = $16.6 (+22%)
Russia = $13.2 (+45%)
http://internationaltrade.suite101.com/article.cfm/chinas_top_trading_partners#ixzz0IblEG9cJ&D
It appears that China ships about 30% of is lead-based garbage to the US. Furthermore China is the holder of over 20% of the debt in the US.
http://en.wikipedia.org/wiki/File:Foreign_Holders_of_United_States_Treasury_Securities-percent_share.gif
With a single country holding over 20% of our monsterous debt and selling 30% of their junk, in addition to buying the huge share of their machinery and production facilities from the US, I'd say that China not only hitched their wagon to the US, but is also now feeling increasingly betrayed and vulnerable. Haters of the US and China are now in a great position to topple two giants for the price of one, and that price is beinig paid for by the giants in the first place.
Interesting parallel with China and the growth of the US in the 50s- but the difference is that the US prospered when Europe prospered. We didn't take off financially until the Marshall Plan really kicked in, and the growth in Europe caused Europeans to spend money and new wealth on American stuff. With the collapse of the US, there won't be anyone anchoring China's rise, hence the betrayal. Like President Regan said, the rising tide raises all ships. Well, we have a falling tide dropping all the ships- China included. Wealth (monetary) in the world is being drstroyed- China will not prosper from that either.
Anyway, good discussion-