China threatens 'nuclear option' without using the bomb!

[local 12 proud]

Any bets on what happens when China decides to invade Taiwan?

http://www.telegraph.co.uk/money/main.jhtm...cnchina107a.xml

 

[UAL_TECH]

Any bets on what happens when China decides to invade Taiwan?

http://www.telegraph.co.uk/money/main.jhtm...cnchina107a.xml

We put ourselves in this situation.
It is not unpredictable.

B) UT

 

[delta777]

It's a damn shame, that's what it is. China has us over a barrel, and i'm not talking crude, W. and the Saudis have already done that. China actually has the wherewithal and capability to defeat us without having to fire a single bullet. Who do you think has been buying up all the U.S. debt, mainly used to fund 2 wars in the Middle East. If they stopped buying our T-Bills, the Federal Funds Rate rates would jump at least 2 percent causing the bank prime rate to also jump 2 percentage points as it is fixed to 300 basis points above the Federal Funds Rate. We don't have the manufacturing capacity we once had when we used to manufacture our own products. Ain't capitalism great??? Well i say, if cheap labor is what China wants, then cheap labor is what they'll get, lets sick the Mexicans on them!!!

 

[UAL_TECH]

There is a ‘new’ dicomity festering in the works of our handlers (commonly referred to as our elected officials). That paradigm is known as ‘GLOBALIZTION†and the bag holders are the tax payers of the good ole US of A. If you listen to our ‘elected officials’, they will expound on the fact that we Americans are Lazy and in need of an infusion of Illegal Immigrants to do the job that we will not do.

Hell, ‘ALL’ parties are more than willing to reward these felons’ with a temp green card and a hug.
WTF? :blink:

B)UT

 

[NewHampshire Black Bears]

Any bets on what happens when China decides to invade Taiwan?

http://www.telegraph.co.uk/money/main.jhtm...cnchina107a.xml

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Who "gives a shet" !!!!

I,ve already got my passport, buying Canadian $$$$ as fast as I can, and Love the cold weather, especially in places like YYC/YEG ..Alberta.

Oh yeah,
Seems there is MORE "black gold" up there than anywhere in Saudi Arabia !!!!!!!!!!

NH/BB's

(Now where did I place that piece of paper, with the words to...."Oh Canada") ?

 

[local 12 proud]

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Who "gives a shet" !!!!

I,ve already got my passport, buying Canadian $$$$ as fast as I can, and Love the cold weather, especially in places like YYC/YEG ..Alberta.

Oh yeah,
Seems there is MORE "black gold" up there than anywhere in Saudi Arabia !!!!!!!!!!

NH/BB's

(Now where did I place that piece of paper, with the words to...."Oh Canada") ?

I'm with ya on heading North, but quite frankly Canada can kiss my A$$!

I got a little piece of ground way up yonder in our 49th state that has more elk and salmon than china has rats and I hope they come and try to take my little piece of heaven here on earth, Im loaded for 'Bears'! 😛

 

[Gilding the Lily]

Is that a dare from China? Heck, if they were too successful with their currency manipulation of the US dollar, they may start excepting more imports from the US than they export to the US. (hooray for manufacturing).

This is an empty threat being used as a baseless political chip. China's currency is holding hands with the dollar... China doesn't want to let market forces dictate its own currency appreciation. China would only contribute to a sell-off of the dollar if the two currencies started moving adversely to each other, which would apparently only happen once China chooses to stop artificially altering its currency rate. Otherwise, following through on the threat would stifle China's growing economy more than it would hurt the U.S. A quick thing to recognize, if those two currencies start moving adversely to begin with, we are already in deep waters and will be looking at the beginning of a recession, regardless if China begins a sell-off. (They just enjoy exporting too much I suppose).

It would be akin to China using its first and only pitcher of water just to throw it at the U.S. while we are bathing in Lake Michigan.

The thing that we should be pissed off about is the fact that China makes more money off of OUR investments than we do. That is a problem that we need to fix.

 

[delldude]

I've sat back and watched and I guess also contributed to the dilemma with China and the US trade imbalance....its not hard to do anymore with homemade goods rather few and far between.I fear somewhere down the road the Chinese gov't gets a bug up there butt (Taiwan)and tells 'US' go fly a kite...we're royally screwed...and you have to realize this.Suddenly all kinds auto parts,optical stuff,critical electronics and on and on and on.....we are so dependent on the country of China its not even funny...in fact i'd categorize it as strategically bizzare,stupid or what ever moniker you like......I find it hard to accept that our leaders from both sides have been blind with this issue....but i'm sure if you look into it.....theres money being made from these same US leaders.
Of course for China to do this has a reverse sword of damocles affect...it will cost them capitalistic dollars that they can't make up on the rest of the world any time soon.So we then have a stalemate?

I feel sick..... :angry:

 

[NewHampshire Black Bears]

I'm with ya on heading North, but quite frankly Canada can kiss my A$$!

I got a little piece of ground way up yonder in our 49th state that has more elk and salmon than china has rats and I hope they come and try to take my little piece of heaven here on earth, Im loaded for 'Bears'! 😛

////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

C'mon.."12", what's got your snout all twisted, about Canada ?

They're our neighbors, and as you know, neighbors don't always agree on everything.

When Push comes to Shove, Canada is there for us.
For Example;.....................WW2, Canada stood tall !.........Afganistan, Canada was with us.
Iraq, and Vietnam...(hell, they know a bad deal when they see one).

 

[UAL_TECH]

Is that a dare from China? Heck, if they were too successful with their currency manipulation of the US dollar, they may start excepting more imports from the US than they export to the US. (hooray for manufacturing).

This is an empty threat being used as a baseless political chip. China's currency is holding hands with the dollar... China doesn't want to let market forces dictate its own currency appreciation. China would only contribute to a sell-off of the dollar if the two currencies started moving adversely to each other, which would apparently only happen once China chooses to stop artificially altering its currency rate. Otherwise, following through on the threat would stifle China's growing economy more than it would hurt the U.S. A quick thing to recognize, if those two currencies start moving adversely to begin with, we are already in deep waters and will be looking at the beginning of a recession, regardless if China begins a sell-off. (They just enjoy exporting too much I suppose).

It would be akin to China using its first and only pitcher of water just to throw it at the U.S. while we are bathing in Lake Michigan.

The thing that we should be pissed off about is the fact that China makes more money off of OUR investments than we do. That is a problem that we need to fix.

I find your post to be very naive. The Chinese products are very much infused into our infrastructure that it would be impossible to play chicken. And they know that. One of the problems that the American culture has in our way of thinking is that Capitalistic decisions are economically biased as there is a belief that money buys power. Conversely, the Chinese (that have power) believe that power ‘creates’ money (er.. wealth, prosperity N’Chit). So to loose ‘money’ but enhance power would not be unthinkable.

JMHO,
B) UT

 

[UAL_TECH]

Of course for China to do this has a reverse sword of damocles affect...it will cost them capitalistic dollars that they can't make up on the rest of the world any time soon.
So we then have a stalemate?

Nope, we lost.

I feel sick..... :angry:

Me too!!!

 

[Gilding the Lily]

I find your post to be very naive. The Chinese products are very much infused into our infrastructure that it would be impossible to play chicken. And they know that. One of the problems that the American culture has in our way of thinking is that Capitalistic decisions are economically biased as there is a belief that money buys power. Conversely, the Chinese (that have power) believe that power ‘creates’ money (er.. wealth, prosperity N’Chit). So to loose ‘money’ but enhance power would not be unthinkable.

JMHO,
B) UT

If that was as simple as you suggest, China would have started a sell-off years ago (i.e. China has been bankrolling our wars -- err, military engagements -- since the 80's, and this isnt the 1st time our dollar has been susceptible).

The U.S. is essentially the only worthwhile market for Chinese exports. How many Countries do you think are willing to take the place of China as the major exporter to the U.S.??? 20... 30, maybe even 50. Does not seem like much of a power play to me. We already know the cards in China's hand... they cannot try to add a joker now. (The debt they own is the power play, not their threat of selling it).

This so-called "Nuclear Option" threat is simply hot air. If they dumped the dollar, the chinese yuan would rise very sharply and inflation on an entire market scale would rise ten-fold. You think the Tiananmen Square protests in the 80's were interesting... just think of the ramifications if China pulled this stunt!! I would imagine that it would be quite difficult to centralize power while you have a potential revolt on your hands.

And lastly, and probably most importantly ... after making such asinine comments, China has gone on the defensive and reaffirmed the dollar's importance as a reserve currency: "US dollar assets... are an important component of China's foreign exchange reserves as the dollar enjoys a major position in the international monetary system."

Of course, China only started its backpeddaling after the U.S. basically said "We dare you!"

BTW... I, as I assume you do as well, believe that China is on the verge of becoming the big super power in the years to come (teaching your kids chinese yet?). I however, am fairly certain that China is aware that this scenario cannot help them in any regard... be it monetary, political, or power gain.

 

[Gilding the Lily]

Now this is something that should really worry us:

It is patently obvious that our country has moved away from being a manufacturing country into being a professional country. (If you disagree with that statement I simply ask that you research the growing disparity between the haves and have nots and determine which side of the equation the majority of professionals fall).

Now China is attempting to attract some of our top professionals to tap their markets for the benefit of the Chinese economy. In other words, their is a huge demand for these types of professionals. Not only that, Western students, seeing the larger picture, are starting to study chinese in growing numbers.

"HSBC, UBS, and Goldman Sachs, three of the most active western banks in China, all declined to comment on their hiring strategies, but universities say most banks are targeting western students of Chinese and, more importantly, the growing number of Chinese studying overseas.

The number of westerners learning Chinese is tiny but growing. British universities received 841 applications to study the language in 2007, up threefold from the previous year."

Moreover, as I mentioned earlier, China owns a large portion of the U.S.'s largest PE fund (Blackstone) and now China is widely expected to begin buying overseas investment companies. There have also been unconfirmed reports that a Chinese bank was considering an investment in Bear Stearns.

When China starts to purchase alot of our American investment Banks, we will no longer have any financial tools neccessary to give the U.S. an advantage, while providing a disadvantage to China. If this occurs, our advantage will also be China's advantage.

China stuff
More China stuff.

 

[Gilding the Lily]

"China has more billionaires than any country except the United States, as soaring stock and property prices helped to boost wealth among the country's super-rich."

"The number of Chinese worth $1 billion or more jumped to 108, from 15 last year, growing much faster than in western countries."

Are you teaching your children chinese yet?