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ORIGINAL: Lordandmaster

Actually, I think we're threatening our own economic future, but I agree that blaming China for our problems is an easier concept for the simple-minded to grasp.

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ORIGINAL: cyberdude611

Like I said in another thread....China cannot crash the economy because they don't even hold a majority of the debt. The nation holding the most US treasury bonds is Japan. Plus the economic blowback China would recieve would cause their growth to practically stop. Doing such a thing would not be pretty, but it isn't doomsday.

The debt is still manageable. Our GDP is around $12 trillion a year. And the national debt is about 65% of the GDP. China holds only about $1.3 trillion in US treasury bonds. So at this point at least....China can't crash the dollar. They may cause a recession....Al-Queda caused a small recession after 9/11. But there is no collapse on the horizon and this should be viewed as a warning sign that the US needs to become more self-reliant when it comes to production.

China cannot sustain the status quo forever though. Unless the Chinese make specific economic reforms and progress....They will max out in 2015 I believe and will begin to decline just as fast as they are currently growing.
Here is an article that highlights some of China's problems and why it will never be a world superpower
http://articles.moneycentral.msn.com/Investing/Extra/BrokenChinaADysfunctionalNation.aspx

Keep in mind also that the US Dollar has survived through much worse threats. It stood strong against the Soviet Union, and China is nothing compared to the Soviet Union.

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After WWII, Britain had a huge debt held by us.After Eisenhower used that debt to leverage the British out of the Suez-Sinai War in '56',the British knew they had to end that shit, bit the bullet and did what they had to do,to get out of debt.Now they are one of the biggest "creditor" nations in the world.The US went from the biggest creditor nation (in 1980ish) to one of the biggest "debtor" nations,today.It`s threatening out economic power and independence.
We need to address this.It`s heady and eye glazing,but the next president needs to start a new path to American competitiveness.

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The debt is still manageable. Our GDP is around $12 trillion a year. And the national debt is about 65% of the GDP. China holds only about $1.3 trillion in US treasury bonds. So at this point at least....China can't crash the dollar. They may cause a recession....Al-Queda caused a small recession after 9/11. But there is no collapse on the horizon and this should be viewed as a warning sign that the US needs to become more self-reliant when it comes to production.

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ORIGINAL: sophia37

To me, this is the most interesting line in the article. "...could trigger a global cycle of protectionist legislation" Hmm. What? Like Before NAFTA? 

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ORIGINAL: UtopianRanger

Where do you think all the money has been coming from that's financed these purchases by middle-class folks for SUV's, lavish vacations, consumer goods, etc? It's all loans and credit.

A whole lota people are gonna start to fizzle out real soon.

- R

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ORIGINAL: cyberdude611

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ORIGINAL: UtopianRanger

Where do you think all the money has been coming from that's financed these purchases by middle-class folks for SUV's, lavish vacations, consumer goods, etc? It's all loans and credit.

A whole lota people are gonna start to fizzle out real soon.

- R

You know the old saying....you can't get good credit without some good debt.

When I was buying a house, my advisor told me beforehand that banks like to see credit cards holding a balance of 30% of their limit. And they like to see a nice savings account. They like to see this MORE than a verified income. And it is true. In fact, the bank I went with never verified the income. They never called my boss to ask how much I make. But they scrutinize my credit cards and my other loans. They wanted to make sure I was paying on-time and what the balance was. And by holding a balance on my credit cards and not paying them off, my credit score actually increased significantly and I got a lower interest rate on the mortgage.

It sounds messed up because it is. Banks are weird. If you have ever bought a home....you know how screwed up banks can get...

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ORIGINAL: Owner59

We need to address this.It`s heady and eye glazing,but the next president needs to start a new path to American competitiveness.

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ORIGINAL: Owner59

While I agree with you ,you`re mentioning the
"micro",where I`m trying describe the "macro".

We not only do business w/ banks,but with nations.For example,the  value of our money compared to theirs,trade debt,real debt(in dollars),etc.This is more than a banker and a mortgage.

One truth about your analogy works though.If your bank wanted to fuck w/ you,and leverage their will onto you by calling in your loan,they could.Because its they ,that actually own your house.You`re just paying the bank to live there.It`s win/win deal,but if your bank was as nasty as China,it would be win/lose deal,if you pissed them off.


Our issue isn`t our credit worthiness,it`s that we`re losing our autonomy and financial prowess.We can`t do what we wish(like protecting jobs,our economy)as we once did,because our position is weaker.We went from a creditor nation(and shot-caller),to a debtor nation(and begger).We can turn that around,in time,and we should start now.

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ORIGINAL: Sinergy

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ORIGINAL: Owner59

We need to address this.It`s heady and eye glazing,but the next president needs to start a new path to American competitiveness.

Kinda sad the Republicans got rid of the last President, with the stones do to exactly this, over something as silly as an office blowjob.

Sinergy

p.s.  I read yesterday that John Edwards has indicated if he is elected he will pull the US out of NAFTA and the World Bank.   The man has my vote.

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How did the Republicans "get rid" of him?

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ORIGINAL: Sinergy

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How did the Republicans "get rid" of him?

Was speaking euphemistically, suppose a more accurate say of putting it would be investigating him to death, impeaching him, refusing to agree to his recommendations, dragging his personal life through the mud while he endeavored to do his job.

I have problems with his behavior, like the next person, however, he did usher in the largest economic expansion of the United States economy in history, evened out the trade deficit, and made dramatic strides in balancing our budget.

When I hire somebody to do a job, I really dont give a good gawd damn if they like to get flogged naked while humming the theme from Petticoat Junction on their time off, as long as they do their job.  He was getting the job done, imagine how effective it would have been without the animosity towards him by the Right wingers.  And for all you out there who might be upset by that, look how effective you people have been doing since you took control.

Sinergy