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Originally Posted by SaintessHeart
China shores up US with its finances and buys their debt because it aids in their export-dependent economy : USD is still pretty much the official currency, and having it to fail will destroy buying and selling because there is no actual currency, like in the African nations where diamonds are looked upon as the natural currency rather than paper money. With so much USD, China is pretty much in control of the US economy and in short, it is controlling the world largest economy indirectly.
It won't be long before the USD is revalued in according to China's terms, and probably, a standard electronic credit unit will be used in the near future, courtesy of China.
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Where are you getting this stuff from? China is as dependent on the US as the US is dependant on China. Perhaps more so. US companies making their products in China can always relocate their factories to another country. China can't simply find a new market with over 300 million customers to sell their products. Plus China doesn't have as much of the US debt as people seem to think, and what they do have is in the form of bonds. As such, it's the US dictating the terms of that debt, not China. All China can really do is hold them until they come due and cash them in, or try to sell them to someone else on the open market. When you hear threats of China dumping US debt, it's referring to the latter. It's not that the US would then have to pay back the bonds, but that the bonds China is selling second hand lower the value of the new ones the US is trying to sell. It's not the knock out blow to the American economy that a lot of people seem to think it would be. Plus that would lower the value of the other bonds China has, costing them money too, and probably trigger a US response to impose large tarrifs on Chinese goods so China would get hurt by it too.
Quote:
Originally Posted by autobachs
It was not a war. It was an insurgency.
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So you're saying we're not at war right now then? After all, Iraq and Afganistan are insurgencies too.
