China will do nothing to cause their investment in our country to depreciate. If you had a lot of money invested in a bank would you do something which might cause that bank to fail? Probably not.
Not suprising, i hear so many people complain the U.S needs to collect what other countries owe it but i always figured we had debt to that you don't hear about.
....... I have not heard this issue being talked about on the major national networks like CNN, Fox News or MSNBC, .......... what are Your souces that poses this as a question here?.......
No, Their economy is tied very closely to ours. If they deliberately try to deflate our currency they will lose tremendous amounts of value. It will create and already is creating inflation that could easily get out of control for them. It is by far in their best interest to see that we continue to be successful.
Just like Germany, Japan and all the other times people predicted our collapse. It ain't different this time. We are at $14T they are at $4T, and that is a generous estimate.
We only lose when we don't fight. There are many countries in debt. This is similar to the 70'2 except then there was high inflation. If B.0. continues his spending we will have it again. Then we will have to clone this man to fix it again.
Maybe, if Uncle Ben can unwind QE2 and 1 as the velocity of money increases, without causing rates to go up and slowing the economy too much, all s/b OK. But we have to slow spending and get the economy moving again so the revenue base can catch up.
It is a tall order and they way Paul Rand suggested doing it, would work, IF they stick to it. Historically politicians haven't been very good at keeping promises for the future.
... which is precisely why they wouldn't do it. If our economy collapses, they'd lose their biggest buyer of Chinese exports and their own economy would get screwed over too. They're perfectly happy to wreck American industry, but killing our ability to buy Chinese products (on credit, lol) would hurt them too.
Besides, they'd lose a ton of money if they called all those bonds in before they've matured. It'd be really, really stupid. Americans own much more of the national debt, but we'd all be pretty dumb if we cashed in our t-bills and bonds all at once too.
Today we are just peeing into the wind and it is getting all over us.
It is a tall order and they way Paul Rand suggested doing it, would work, IF they stick to it. Historically politicians haven't been very good at keeping promises for the future.
I don't know who said it, but someone said doing the same thing over and over and expecting a different result is a sign of madness!!!!!!
If our economy collapses, they'd lose their biggest buyer of Chinese exports and their own economy would get screwed over too. They're perfectly happy to wreck American industry, but killing our ability to buy Chinese products (on credit, lol) would hurt them too.
Besides, they'd lose a ton of money if they called all those bonds in before they've matured. It'd be really, really stupid. Americans own much more of the national debt, but we'd all be pretty dumb if we cashed in our t-bills and bonds all at once too.