Quote:Yu Yongding, an economist and former member of the monetary policy committee of the China central bank, said: "I do not know whether there will be enough demand for new issuances and hence I am worried about the direction of the prices of US government securities."

Wang Jian, secretary-general of the China Society of Macroeconomics, agreed. "Prospects for the US dollar and US Treasuries do not look good at the moment, and even worse in the long run."

That could be a disaster to the US economy if China stops buying our debt.

Geithner looks to sell safety of US bonds

I think Geithner might have more success selling GM cars here in the US than what he's peddling overseas.

China's economy would collapse if they did that. We have the best infrastructure, and the "safest" society. People want to be here.

(06-02-2009 06:57 AM)egoboss407 Wrote:  China's economy would collapse if they did that. We have the best infrastructure, and the "safest" society. People want to be here.

Yes, you are quite right ....



And the Above Poster and Ad Campaign Image the National Tourism Agency's Czar has posted in all the International Trades and MSM/MSP Outlets to draw all those "People Who Want To Be Here", actually here, is helping immensely .....

Even the Illegal Mexicans have stopped coming it is so gotten bad here ...

Now that is pathetic when the Mex's are running the other way in fear Americans are about to trample them under running feet as We Abscond to Mexico to Escape Hussein's Insanity.

.

Mexico is so wonderful. (Where is the rolling eyes emocon?)

(06-02-2009 06:57 AM)egoboss407 Wrote:  China's economy would collapse if they did that. We have the best infrastructure, and the "safest" society. People want to be here.

Why would their economy collapse? Walk me through.

(06-02-2009 07:49 AM)Owl 69/70/75 Wrote:  

(06-02-2009 06:57 AM)egoboss407 Wrote:  China's economy would collapse if they did that. We have the best infrastructure, and the "safest" society. People want to be here.

Why would their economy collapse? Walk me through.

Who is going to buy all those goods that you have all over your house? I would bet over 60% of the goods in our houses are from China. It's not like India, Brazil, or England are going to step up and purchase those goods. When we sneeze the whole world gets a cold.

(06-02-2009 08:39 AM)egoboss407 Wrote:  

(06-02-2009 07:49 AM)Owl 69/70/75 Wrote:  

(06-02-2009 06:57 AM)egoboss407 Wrote:  China's economy would collapse if they did that. We have the best infrastructure, and the "safest" society. People want to be here.

Why would their economy collapse? Walk me through.

Who is going to buy all those goods that you have all over your house? I would bet over 60% of the goods in our houses are from China. It's not like India, Brazil, or England are going to step up and purchase those goods. When we sneeze the whole world gets a cold.

Since we're essentially paying for those goods with money we borrow from China, the quick answer is whoever they choose to lend money to.

There are a number of options.
Their own domestic economy (very popular among students, like those who laughed at Geithner).
Emerging economies in places like Brasil and Russia and India (together with China, the BRIC countries, where many feel the majority of worldwide growth will occur in the next 10-25 years).
The EU.
Their newfound allies in Africa, with whom they are building budding commercial relationships.

China needs cheap oil to keep their economy going. Cratering the US, with the obvious effect on oil demand, would be a good thing for them on that front.

Moreover, they have some serious ambitions, starting with Taiwan. They are still a communist dictatorship, so at some point they are at least in theory willing to concede some on their economy in order to achieve their military objectives.

Remember, they're loaning much faster than they're getting repaid right now, so in theory they could write off those debts and still survive.

(06-02-2009 12:56 PM)Owl 69/70/75 Wrote:  

(06-02-2009 08:39 AM)egoboss407 Wrote:  

(06-02-2009 07:49 AM)Owl 69/70/75 Wrote:  

(06-02-2009 06:57 AM)egoboss407 Wrote:  China's economy would collapse if they did that. We have the best infrastructure, and the "safest" society. People want to be here.

Why would their economy collapse? Walk me through.

Who is going to buy all those goods that you have all over your house? I would bet over 60% of the goods in our houses are from China. It's not like India, Brazil, or England are going to step up and purchase those goods. When we sneeze the whole world gets a cold.

Since we're essentially paying for those goods with money we borrow from China, the quick answer is whoever they choose to lend money to.

There are a number of options.
Their own domestic economy (very popular among students, like those who laughed at Geithner).
Emerging economies in places like Brasil and Russia and India (together with China, the BRIC countries, where many feel the majority of worldwide growth will occur in the next 10-25 years).

Brasil has been an "emerging" economy for as long as I can remember. It hasn't happened, and it ain't happening anytime soon.

Russia? Their population is expected to drop by 1/3 in the next generation. Hardly the conspicuous consumers that China would like to court.

India? Maybe, however their production capacity is not much less than China's. I'd be surprised if they become a big importer from such a disliked neigbor.

Quote:The EU.

The EU is in worse shape than the US. But, with a large population and some resources tucked away, this could work for a few years.

Quote:Their newfound allies in Africa, with whom they are building budding commercial relationships.

Even Salvador Dali recognized the futility that is Africa. China's efforts here are admirable, but for the Chinese, nothing productive will come from them.

Quote:China needs cheap oil to keep their economy going. Cratering the US, with the obvious effect on oil demand, would be a good thing for them on that front.

An interesting point. The US has succeeded when there's been cheap energy. What are we going to do about that?

Quote:Remember, they're loaning much faster than they're getting repaid right now, so in theory they could write off those debts and still survive.

The advantages of tyranny, I suppose.

I heard the Chinese openly mocked and laughed at Geitner. The world's Economy is a huge ShitSandwitch, and everyone is going to have to take a bite.

(06-02-2009 08:39 AM)egoboss407 Wrote:  Who is going to buy all those goods that you have all over your house? I would bet over 60% of the goods in our houses are from China. It's not like India, Brazil, or England are going to step up and purchase those goods. When we sneeze the whole world gets a cold.

As I understand it, the EU is a bigger market to China than the US.