china threatening to wreck US economy

[mikeb]

Proverbs 22:7 "The rich ruleth over the poor, and the borrower is servant to the lender."

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml

Looks like china is threatening some servitude to the US. War with China possibly on the horizion?

[46Tbird]

We've been sold. We're economically fucked, it's up to them what happens to us financially in the future. We are coming on some hard times, I'm afraid.

[91whitebttlehatch]

F@@k China wipe them off the map along with Iraq that what I think needs to happen there

[Mr Majestyk]

Wiping China off the map isn't going to happen....we had best learn to deal with China as an equal.

[BlackSnake1996]

We have always known that this could happen, but I think its just some blow hard over there trying to make waves. They are in need of us just as much as we depend on them. No worries. .................Yet!

[csierra]

F@@k China wipe them off the map along with Iraq that what I think needs to happen there

How can we wipe China off the map when everything that we buy is made by them. America needs to get back to making their own goods, so we do not have other countries dictating our economy.

[MrEd]

How can we wipe China off the map when everything that we buy is made by them. America needs to get back to making their own goods, so we do not have other countries dictating our economy.
x2 :D

[slow99]

Did a 4 year old write that article?

[MrEd]

Did a 4 year old write that article?
It was a little hard to read. :confused:

[Slo_Stng]

Did a 4 year old write that article?
X2...LOL :D

[fitzwell]

We've been sold. We're economically fucked, it's up to them what happens to us financially in the future. We are coming on some hard times, I'm afraid.


yep...wonder what the CEO of Wally World thinks about this



bastiges :mad:

[AL P]

Telegraph = Hustler

When it comes to journalistic integrity, anyway...

[98COBRA#770]

When the US and China comes to blows it will be long and bloody.

:(

[Muffrazr]

When the US and China comes to blows it will be long and bloody.

:(



More likely it will be short and nuclear.

[Denny]

Fuck it... I say we take a gamble and impose trade sanctions to force a yuan revaluation. China's going to eventually liquidate its holding of US treasuries to screw us over anyway. Might as well have some fun with it.

[SEB]

FUCK CHINA :mad:

[slow99]

Just more rhetoric and chain-rattling.

[shlby123]

if we get fucked econmically basically doesnt the whole world get fucked economically too though?

[slow99]

if we get fucked econmically basically doesnt the whole world get fucked economically too though?

They'd be trying to cut off our nose to spite their own face.

[Denny]

They'd be trying to cut off our nose to spite their own face.
Right. They can live in squander better than us, as a whole.

[Sean88gt]

It's an empty threat. Are they going to put it in the euro?

US needs to hammer Chinese goods with a 200% tariff if they pulled this garbage.

And shame on the US companies for sending everything over there to be produced.

I'm also pretty certain that bringing everything back over and producing US made goods again would act as a safety net for the economy. On one hand there would be an initial price spike, but on the other hand people would still have jobs.

Nationalize, go back to be an isolationist stance, stock pile arms and let the rest of the world consume itself. Ungrateful pricks:mad:

[black01gt]

I'm also pretty certain that bringing everything back over and producing US made goods again would act as a safety net for the economy. On one hand there would be an initial price spike, but on the other hand people would still have jobs.

Nationalize, go back to be an isolationist stance, stock pile arms and let the rest of the world consume itself. Ungrateful pricks:mad:
Si...gracias! :D ...Gringo pendejo.

I agree. End this American political civil war, get our shit together along with some strong freinds, and watch the world buttshow.

[Stevo]

More likely it will be short and nuclear.

Yes, unless we have some POS in office that rather have us in servitude than endure the fallout from a full scale nuclear war. Personally, if the United States is going to be destroyed, I would like the peace of mind of knowing that all other humans on this planet are getting destroyed as well, burn motherfucker burn.

Stevo

[jakesford]

I don't understand why everyone gets so upset with the idea of manufacturing goods outside of the united states.

Manufacturing requires large initial capital investments, and has extremely low profit margins; as in just a couple of precent in many cases. The real money comes from the reselling of these items where there can huge profit margins sometimes in the 1000's of a precent! Why should US companies deal with expensive, labor intensive, and in the end very low profit. I believe anything that makes US companies leaner and overall more competitive in the global market the better.

I throw this in the same category as people worrying about the US trade deficit... Trade deficits are a good thing, it means we as US citizens are getting all the stuff we want, and foriegn entities are taking the US dollar in exchange for goods, and most of this money gets reinvested in the US economy.

[Yale]

The problem isn't that the goods are made in another country, it's that the Fed likes giving US treasury bonds in LARGE chunks to other countries to make them ignore the fact that we're trying to give 'em the high hard one. We've given too many away, now, and America owns too little of its industries to compete anymore.

The other thing is that there's nothing more federal about the Fed than there is about Federal Express, and they'll always do what serves their interests first, which is taking as much wealth out of the economy as possible to line their pockets. The central bank/fed system can only create inflation, and was actually one of the main reasons we rebelled to begin with.

[mikeb]

I don't understand why everyone gets so upset with the idea of manufacturing goods outside of the united states.

Manufacturing requires large initial capital investments, and has extremely low profit margins; as in just a couple of precent in many cases. The real money comes from the reselling of these items where there can huge profit margins sometimes in the 1000's of a precent! Why should US companies deal with expensive, labor intensive, and in the end very low profit. I believe anything that makes US companies leaner and overall more competitive in the global market the better.

I throw this in the same category as people worrying about the US trade deficit... Trade deficits are a good thing, it means we as US citizens are getting all the stuff we want, and foriegn entities are taking the US dollar in exchange for goods, and most of this money gets reinvested in the US economy.

IMO losing our industrial base weakens the country. Jobs are lost and in the case of emergency (like in ww2) we won't have the ability to make tanks, airplanes, ships, bullets, etc by converting over existing manufacturing facilities like we did back then. Keep in mind that these unemployed people suck up unemployment and pay no payroll taxes. Also, at a local level an idle plant uses no water or electricity and probably pays a smaller amount of property tax. The local businesses get no business from the plant (sandwich shops, gas stations, grocery stores) and local parts plants that might supply the larger plant also go away.

[Fox466]

It could be said that the most prosperous country in the world will be felled by the very thing that made it as great as it once was...

[slow99]

It could be said that the most prosperous country in the world will be felled by the very thing that made it as great as it once was...

It could also be said this treasury selloff threat is nothing but a bunch of horseshit. :)

[Denny]

It could also be said this treasury selloff threat is nothing but a bunch of horseshit. :)
It could also be said that some would see it as a profitable opportunity.

[Muffrazr]

IMO losing our industrial base weakens the country. Jobs are lost and in the case of emergency (like in ww2) we won't have the ability to make tanks, airplanes, ships, bullets, etc by converting over existing manufacturing facilities like we did back then. Keep in mind that these unemployed people suck up unemployment and pay no payroll taxes. Also, at a local level an idle plant uses no water or electricity and probably pays a smaller amount of property tax. The local businesses get no business from the plant (sandwich shops, gas stations, grocery stores) and local parts plants that might supply the larger plant also go away.



Yep, if we lose the trickle down economy, then we widen the gap between rich and poor. This will cause more economic strife, leading to a civil war in which the other countries will be sitting atop the trees like vultures waiting on us to die.

[Sean88gt]

Yep, if we lose the trickle down economy, then we widen the gap between rich and poor. This will cause more economic strife, leading to a civil war in which the other countries will be sitting atop the trees like vultures waiting on us to die.


If China pulled this garbage the US would have no choice but to hit them with such a high tariff that companies would have no choice but to come back to the US to produce goods, because it just wouldn't be feasible otherwise.

[01WhiteCobra]

China ain't gonna do shit.

[Slowhand]

Did a 4 year old write that article?

did one of them chinamen write it?

[Sickpony]

The U.S. has become too fat and lazy from playing ruler of the world. Like tha manager of a business that sits in the office and does paperwork but has no idea whats going on ou in the shop.. Russia is starting to pull shit with oil and we're mad.. Why??? Because we should've thouhgt of it first. This world was built on people claiming s**t as their own. But you can't do it anymore?? We sub out everything else we need to other countries and then don't want to put up with their s**t?? What happened to the foundation that this country was built upon with hard work and perseverence? I don'y guess it matters when the only people to vote for come from generations of politicians. We the people>> Does this mean the upper crust or the average joe who keeps this country moving? Somethings gotta give.

[kangol]

China expresses confidence in U.S. dollar
By MarketWatch
Last Update: 5:51 AM ET Aug 12, 2007

TEL AVIV (MarketWatch) - China said on Sunday that dollar-denominated assets form an important part of its foreign-exchange reserves and that the dollar has a "major position" in the global monetary system, Reuters reported.

The comments, expressed by an anonymous central-bank official via the Xinhua news agency, were a vote of confidence in the dollar, Reuters reported.

The remarks follow last Wednesday's suggestion by the U.K. newspaper Telegraph that China might sell its dollar holdings if the U.S. imposed trade sanctions against the country.

The comments also come after the effort Thursday and Friday by a number of central banks to inject liquidity into the markets and ease investors' fear that the losses from U.S. subprime mortgage investments could prompt a worldwide credit crunch.

The Chinese central-bank official said the country's priorities in managing its $1.33 trillion of foreign-currency reserves were safety, liquidity and investment returns, in that order, Reuters reported.

[Casper]

The U.S. has become too fat and lazy from playing ruler of the world. Like tha manager of a business that sits in the office and does paperwork but has no idea whats going on ou in the shop.. Russia is starting to pull shit with oil and we're mad.. Why??? Because we should've thouhgt of it first. This world was built on people claiming s**t as their own. But you can't do it anymore?? We sub out everything else we need to other countries and then don't want to put up with their s**t?? What happened to the foundation that this country was built upon with hard work and perseverence? I don'y guess it matters when the only people to vote for come from generations of politicians. We the people>> Does this mean the upper crust or the average joe who keeps this country moving? Somethings gotta give.

Please. Fat & lazy? Leading the world in pharmaceutical and medical technology, defense technology, information technology and putting-a-fucking-robot-on-Mars technology is not exactly fat and lazy.

[ayzo]

It won't happen, China owns about 10% of our treasury notes but we are 20% of their economy. Yes we would take a hit but they would take an even bigger one and China knows this.

[FreightTrain]

Please. Fat & lazy? Leading the world in pharmaceutical and medical technology, defense technology, information technology and putting-a-fucking-robot-on-Mars technology is not exactly fat and lazy.


Yep we are fat and lazy. Even though we rank highest in the world with medical treatment we are still a long ways back when it comes to life expectancy because we as a society are over weight and lazy.

[Casper]

Yep we are fat and lazy. Even though we rank highest in the world with medical treatment we are still a long ways back when it comes to life expectancy because we as a society are over weight and lazy.

You may be but I'm skinny and lazy :D

Check Europe out if you really want to see lazy.

[Mr Majestyk]

Yep we are fat and lazy. Even though we rank highest in the world with medical treatment we are still a long ways back when it comes to life expectancy because we as a society are over weight and lazy.

That reminds me, I'm ready to pig out on some Arby's

[Duncan]

Over the past several weeks, there has been a steady gathering of news articles concerning the importation of defective or unsafe products from China into the United States and other western nations. From toothpaste poisoned with antifreeze to pet food laced with plastic chemicals to Thomas & Friends™ wooden railway toys decorated with toxic lead paint, the beat of these stories has been the same: Chinese products are potentially dangerous, if not life threatening, and consumers should be on guard.
I wonder if this is some sort of attempt to "turn the tables" :D

[mikeb]

I see it as just a sign of growing pains in china's corrupt manufacturing industry. The industry is missing some of the controls that we have here, and some have taken advantage of that to line their pockets, assuming that they will not get caught. China's food quality guy thought that and he had his date in the Chinese execution van not too long ago. IMO with the growing focus on china's quality problems with their exports by the international community they'll have to tighten up quality or face bans on importation from countries.

[Trip McNeely]

Over the past several weeks, there has been a steady gathering of news articles concerning the importation of defective or unsafe products from China into the United States and other western nations. From toothpaste poisoned with antifreeze to pet food laced with plastic chemicals to Thomas & Friends™ wooden railway toys decorated with toxic lead paint, the beat of these stories has been the same: Chinese products are potentially dangerous, if not life threatening, and consumers should be on guard.
I wonder if this is some sort of attempt to "turn the tables" :D
You know I never thought of that, but thats a great theory. I wouldnt gamble on it, but its certainly not something out of the ordinary. I read this early this morning and it had me thinking all day. haha.

[kenny c]

Anyone else affected by the VAT change?

[Duncan]

You know I never thought of that, but thats a great theory. I wouldnt gamble on it, but its certainly not something out of the ordinary. I read this early this morning and it had me thinking all day. haha.

lol. I've seen it every morning on Fox and freinds for a little over two weeks now.

[TexasDevilDog]

Proverbs 22:7 "The rich ruleth over the poor, and the borrower is servant to the lender."

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml

Looks like china is threatening some servitude to the US. War with China possibly on the horizion?

We (US) do a pretty good job of wrecking the US economy. We are the biggest debtor nation in the world. We consume half the world's savings at the tune of over $2 Billion a day.

Too bad the world is tuning away from the USD. People in the US will have to learn to save again, because cheap money is not going to be around to borrow.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/bcnsaudi119.xml&CMP=ILC-mostviewedbox

Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.

http://www.kitco.com/LFgif/au0030lnb.gif

[TexasDevilDog]

http://www.bloomberg.com/apps/news?pid=20601083&sid=aDBegmV7h0cU&refer=currency

Sept. 20 (Bloomberg) -- Canada's dollar traded equal to the U.S. currency for the first time in three decades, capping a five-year run on the back of booming demand for the nation's commodities.

[Cooter]

How can we wipe China off the map when everything that we buy is made by them. America needs to get back to making their own goods, so we do not have other countries dictating our economy.

wow, that sounds great!!! now go and find a billion people that'll work their asses off for $50/day and don't think they're owed a spot on MTV Cribs because they're young and cool, and you're in business!

[MouseKiller]

It's an empty threat. Are they going to put it in the euro?

US needs to hammer Chinese goods with a 200% tariff if they pulled this garbage.

And shame on the US companies for sending everything over there to be produced.

I'm also pretty certain that bringing everything back over and producing US made goods again would act as a safety net for the economy. On one hand there would be an initial price spike, but on the other hand people would still have jobs.

Nationalize, go back to be an isolationist stance, stock pile arms and let the rest of the world consume itself. Ungrateful pricks:mad:

We are to blame. Shame on us for for wanting to buy so much cheap ass made in China junk. Wal-Mart, Home Depot, Target are all reflections of what the American public wants.

I think the solution with China is simple. Impose a Tax that offsets the undervalue of the yuan. If we are going to trade, we should at least be on a level playing field.

[Cooter]

Over the past several weeks, there has been a steady gathering of news articles concerning the importation of defective or unsafe products from China into the United States and other western nations. From toothpaste poisoned with antifreeze to pet food laced with plastic chemicals to Thomas & Friends™ wooden railway toys decorated with toxic lead paint, the beat of these stories has been the same: Chinese products are potentially dangerous, if not life threatening, and consumers should be on guard.
I wonder if this is some sort of attempt to "turn the tables" :D

more like "wag the dog"

[Cooter]

We are to blame.

YUP! buy American

[Sgt Beavis]

Several people seem to have taken leave of any common sense.

China will never exercise the so called "nuclear option" of selling off all US currency or Bond holdings. It would be economic suicide and they know it.

Right now the Chinese government manipulates its own currency to keep it significantly below the dollar. This is to insure that Chinese products always remain cheap in the US market. This continues to encourage manufacturing growth in China so those goods can be imported to the US. Right now, the dramatic drop in the dollar is making US goods cheaper in the rest of the world except China because they are continuing to drop the Yuan. However, they are putting themselves into a much worse boat than we are getting into. Inflation is going to start killing the Chinese. Right now, most oil contracts are done in Dollars but that is quickly changing to the Euro (and Yen) The Yuan is falling to those currencies and oil is getting more expensive for them. If it continues, the inflation in their own country will cause a depression.

The REAL problem for us is that WE are causing the current dollar devaluation. The fed dropped the prime rate by a half point. That was STUPID. They are tying to make it cheaper to borrow dollars to investments can continue and the tide of the mortgage mess is somewhat contained. However that isn't the answer. The answer is to let the mortgage mess play out so the economy can eventually absorb it. Yes a lot of people are going to get hurt but that's what you get when you fuck up or take financial risks you shouldn't. GW's mention of a mortgage bailout isn't helping things either.

IMO we are going to hit a real recession within the next year. The Chinese won't do anything to exacerbate the issue. They just want our people, in Congress, to STFU and deal with them instead of talking down to them.

[slow99]

Dear God, this fuckin' thread is back again?