China could collapse the US Dollar

marine1 said:
Says he who makes out like the US is this evil empire but yet eats its food and watches its movies and probably dresses like they do as well.
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Um, so I'm accepting Americas gifts to the world or something??? By eating a Kentucky Rounder while watching 300, I'm wallowing in complicity?

[/QUOTE]By the way, the US does not make all the cars in the world. What about Japan, Europe, Italy etc? They could also be researching "green" cars.[/QUOTE]

No, really? I always thought that the Volkswagens, Fiats and Nissans I have driven were American.

I'm not saying its up to America to gift the world with environmentally friendly transport. I'm saying they have a responsibility to stop burning up the worlds resources faster than the rest of the world combined.

And for the record Japan is by far the worlds leader when it comes to green cars.
 
The other threat to the US is the sale of Oil in other currencies like the Euro for instance. Countries like Iran have made these threats on more than one occasion.

China may threaten, but will they act?
A great proportion of China's market is in countries like the US.
If the Dollar devalues then it will be cheaper to produce goods in the US rather than import them from other countries like China.

IMHO the Chinese have more to lose by this happening, but on the other hand a small devaluation of the Dollar may have adverse effects on certain sectors of the US economy, but Exporters will be smiling.
Think back to when the Rand was R11 to the Dollar. The Exporters in SA were having a field day, but the cost of Petrol was taking it's toll although the low price of Oil at the time cushioned the blow.

For every action there is a reaction.
Don't fix what aint broke.
I am not saying what China is thinking is not a bad idea, but don't complain when it goes against you.
Put it another way, I would prefer the Yanks batting on my side than against.
 
Nick333 said:
I'm not saying its up to America to gift the world with environmentally friendly transport. I'm saying they have a responsibility to stop burning up the worlds resources faster than the rest of the world combined.

And for the record Japan is by far the worlds leader when it comes to green cars.
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What about China? So Japan is the leader in green cars? So what is your point? :rolleyes:
 
Without US IP the rest of the world dies and no-one wants that.
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No-one else innovates as much as the Americans or develops new technology.
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They happen to have become a center of research. This research is not done entirely by people born in the country. If the country were to go into serious decline not only would the foreign researchers go elsewhere, but those born within the United States would seek greener pastures.

One thing the US definitely is not is self-sufficient.
 
This is my point exactly:

The US was able to attack Afghanistan and Iraq only because China provided the largest part of the financing for Bush’s wars.

If China ceased to buy US Treasuries, Bush’s wars would end. The savings rate of US consumers is essentially zero, and several million are afflicted with mortgages that they cannot afford. With Bush’s budget in deficit and with no room in the US consumer’s budget for a tax increase, Bush’s wars can only be financed by foreigners.

No country on earth, except for Israel, supports the Bush regimes’ desire to attack Iran. It is China’s decision whether it calls in the US ambassador, and delivers the message that there will be no attack on Iran or further war unless the US is prepared to buy back $900 billion in US Treasury bonds and other dollar assets.

The US, of course, has no foreign reserves with which to make the purchase. The impact of such a large sale on US interest rates would wreck the US economy and effectively end Bush’s war-making capability.
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Quoted from Xarog's link above.

If you think about it carefully then you have to realise that the US taxpayer is currently not paying a dime for the American wars of agression in the Middle East. How so? Well, the annual growth is US foreign debt almost equals exactly the annual cost of the US military expanditure in the Middle East. The USA is effectively borrowing the money to wage these wars from China!
 
The US Dollar is declining at this moment.
The Sub Prime Mortgage Crisis in the USA has effected the whole international monetary system.
The Stock Markets are reeling as a result of some dudes in the US who shouldn't have qualified for a Mortgage in the first place using his home as a bank.
 
Death & Resurrection of the US$

Been trying to figure out what the US is up to. Sure, all empires crumble, usually from within, but they haven't seemed to be taking any extreme measures to get out of their (now very deep) hole. Just what do the masterminds of their economy have up their sleeves?

This article explained exactly what they could do.

http://www.globalresearch.ca/index.php?context=va&aid=3490
 
Shame another the 'U.S is going to collapse' thread. Please oh please let it be true this time. The imperialst pig empire just has to collapse *yawn*

Every 'empire' runs it's course but it just can't seem to happen fast enough :D. Yeah the economy goes up and down but every dip and you lot wet yourselves with glee.

Counterpunch :cool:


So sad :o
 
Too many countries are too heavily invested in this 'pyramid scheme' for China to allow it to collapse. 65% of foreign currency reserves are held in USD. Imagine it's all worthless overnight - do you think China wants to 'bankrupt' their trading partners?
 
Re: Counterpunch article

Paul Craig Roberts credentials are impressive. Surprised that he used such emotive language "idiots, fools" an his closing line too!

At first made me dismissive of the article, thinking he was another full-on leftist extremist, who are almost as dangerous as the right-wing & neocons! :)

One thing's for sure, all the articles I read on alternative sites make it seem like another 1929 is at hand. Yet, markets' don't seem too troubled just yet. Guess it must be reports like the one alluded to in the article that's assuaging any fear:
"This hubris is so extreme that only 6 weeks ago McKinsey Global Institute published a study that concluded that even a doubling of the US current account deficit to $1.6 trillion would pose no problem. "
Gotto find it!

Let's see what happens. Yday, central banks had to inject BIG money into their markets to prevent possible meltdown caused by the subprime woes - 1st time since 9/11 this has happened.
 
Dollar to collapse?

I thought I'd get an article to balance this debate out, since it has seemed to be hi-jacked by the usual liberals/US-haters/left-wing supporters

Disregard all hysteria. The ailing Greenback will not collapse this year, not in ten years, not in twenty years, not in half a century. There is no credible currency against which it can collapse. (Unless you count gold). None of the world's rival power blocs have the economic and demographic depth to challenge American dominance.

....

As for China's current boom, you need only know three things so see where this is going: credit is being channelled for political purposes through Communist state banks that are not subject to market discipline; almost half of GDP is going on investment, leading to a glut of factories; return on that investment, measured by the incremental capital output ratio, is 4.4. Much of it is being wasted. Compare that to Japan (3.2), South Korea (3.2), and Taiwan (2.7) during their growth spurts. China is not going to take over the world economy, now or ever. The window will close shut before they get there.

No, the 21st Century will be the American century, just like the 20th Century. Americans may have to tighten their belts a bit after all the sins of Alan Greenspan and the Clinton-Bush debt generation. But the dollar will still be the world's reserve currency long after the euro has disappeared and the yen has been forgotten... Now, the Indian Rupee? Hhm. Another day.
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Source: UK Telegraph - Blog
 
Dominic Rooney said:
I thought I'd get an article to balance this debate out, since it has seemed to be hi-jacked by the usual liberals/US-haters/left-wing supporters
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It's the possie desperately clinging again :o

:D
 
Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration.
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Tell me, Alan, which political party would that make him part of?
 
Dominic Rooney said:
I thought I'd get an article to balance this debate out, since it has seemed to be hi-jacked by the usual liberals/US-haters/left-wing supporters

Disregard all hysteria. The ailing Greenback will not collapse this year, not in ten years, not in twenty years, not in half a century. There is no credible currency against which it can collapse. (Unless you count gold). None of the world's rival power blocs have the economic and demographic depth to challenge American dominance.
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Source: UK Telegraph - Blog
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I guess those guys never heard of the Euro.

Edit : Becoming the defacto currency for oil trades is all the Euro needs to replace the dollar in every sense of the word. Watch it happen.
 
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Xarog - Just last year there were rumblings of countries within the Euro bloc wanting to disband. The euro is probably more of a volatile creature than the greenback given the fact that the political influences that affect it are not homogenous.
 
Xarog said:
I guess those guys never heard of the Euro.

Edit : Becoming the defacto currency for oil trades is all the Euro needs to replace the dollar in every sense of the word. Watch it happen.
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Why hasn't it happened yet? Accepting euro instead of USD for transactions is not the most difficult thing to achieve.
 
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