I hope you are aware that places outside of the US buy Chinese goods? If trade between US and the PRC ended, China would be set-back, America would be fucked.Commie Killer wrote:
I doubt that losing our trade with them would hurt us as much as them, we would bounce back as other countries took up the slack. Cutting trade between the PRC and the USA would hurt us but it would kill them.GorillaTicTacs wrote:
$1.4 billion is absolutely nothing, Bill Gates could write the check himself without breaking a sweat. I'm not saying its even close to right though.Commie Killer wrote:
Cheap labor is in abundance there, thats for sure, the trade deficet is amazing, also, which is even more amazing is this:
http://en.wikipedia.org/wiki/Foreign_aid_to_China
China is the big 800-lb gorilla though, but we have each other by the short-hairs. If they start dumping their dollars, they'll devalue their own currency as the yuan has been pegged solidly to the dollar since 1998 (pegged = relatively proportional at all times). If they don't start dumping their dollars, and the dollar keeps sliding anyways (against the GBP or Euro, for example), they still lose. If they start calling in their debts and snapping up hard American assets (not the liquid stuff like stocks, like factories and real estate), they'll still lose as the deflationary spiral hits in the US.
Basically, China and the US are now in a strange sort of tightrope walk holding hands, and it sucks to be a citizen of either one, as they could start falling at any minute. War spending and easy credit made this happen, god bless the neo-cons.
Small hourglass island
Always raining and foggy
Use an umbrella
Always raining and foggy
Use an umbrella