Re: What could China do to the American economy if they traded their dollars for Euros?

"Zerge" <zerge@xxxxxxxxxxx> wrote in message
news:1161470164.458663.159990@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Nospam wrote:
Zerge wrote:

China is not the only economic force out there. The moment they start
dumping dollars, the dollar loses value vs. other currencies, so other
countries start to pick up those dollars dropped by the Chinese, and
the market reaches a new equilibrium. At what equilibrium point, I
don't know. But it would reach it.

Well, yes and no. The problem is that one need to have dollars if they can
buy something with it. That means US is producing smtg. to sell.

That seems not to be the case anymore. All US corporations are moving their
manufacturing facilities offshore. From clothing (where US produce only 4%
of it) even to high technology (in 2005 US become a bigger importer of
HighTech than it exported) US currently it is 100% dependent by offshore
producers since our industrial base has been decimated by the
corporate-libertarian-republicans-neocons gangs of greed.

It doens't matter where the products are manufactured; the earnings of
a US business enter the US for the most part. Is this not obvious?

If the corporate tax rate and the income tax rate are chopped to nothing
then it does not matter who gets the "earnings". The government buys
more guns and the rich people buy more land. The rest of us get
the wrench. And even this assumes that the folks getting the "earnings"
are Americans. The Chinese and the rest are owning more and more
of America and these "earnings" are not taxable by the US government
in the current tax scheme. IS THIS NOT OBVIOUS?



US dollar has been artificially kept high by Chinese crediting us and buying
bonds. If they decide to wage an economic war against US, they have all
what is required to bring US to it knees in a mater of few months.

No, it's the other way around, I insist. They could certainly cause
waves in the currency market if they wanted, but so could many other
large countries. If China where to try something like that, US could
shut down China completely in a month by imposing trade barriers.

Bull***. The Chinese OWN us. They will trade the bonds for dollars
and buy all these wonderful businesses you seem to think are the
God given province of American rich people. It will get down to
ownership of land (natural resources) when the dust settles. Lest we
forget: We have the best Congress money can buy.

--
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org


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