Re: What could China do to the American economy if they traded their dollars for Euros?
- From: "The Trucker" <mikcob@xxxxxxxxxxx>
- Date: Sat, 28 Oct 2006 15:31:31 -0700
"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.
The US holds a gun to the head of OPEC. Oil will be sold for dollars to
China who does not have sufficient oil. The US need not produce anything
because the US controls the supply of oil and will bomb any nation that
would sell oil for euros. Iraq illustrates just how serious this sort of threat
to dollar hegemony is taken by an imperialistic United States government.
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.
True enough, but you must focus on what we need as opposed to all
the video games and hoola hoops. The US has more than adequate
natural resources and that is all that really matters. The conservation
of transportation fuels and the conversion of homes to be more energy
self sufficient would place the United States in a position of true
self sufficiency. It is truly unfortunate that so much of our resources
have already been sold off to dollar holding and bond holding foreigners
by the Republican thieves.
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?
Is it not obvious that the huge tax breaks given to unearned income are
a major part of the rising problems? The "supply side" theory
claims that the dollars pushed to the top will be invested and that this is
what makes the economy grow for the good of all. But the dollars are
not being invested in the USA; they are being invested elsewhere and
the "investors" are quite rapidly leaving the USA for tax havens offshore
where they will not need to pay even the diminished taxes.
Is it not obvious that not only are the factories moving offshore they are
also being owned more and more by offshore owners; Indians, Chinese,
and Japanese as well as the Americans. The increased taxes and debt
that are and will be shouldered by the American labor force will exacerbate
the already serious problem of wage competition with foreign workers. It
is amazing to me that this is not obvious to someone who claims to be
an economist.
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.
That is because you are a neoconomist (otherwise known as a
glorified accountant).
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.
BWAHAHAHAHAHAHAHAHAH!!! We have the best Congress that
money can buy and who do you think has all the money, chump. And then
there is the little technicality to which I have already alluded: They will
buy US assets with their money and then they will not pay any US taxes
at all. Sooner or later the US military will fall from lack of wealth
to prop it up.
The neoconomist has little, if any, understanding of anything other than
political power. Wealth in the form of natural resources, education,
and the ability to produce what is needed are, to the neoconomist, only
a "commodity" to be used for political gain; to be used to fund a military
to rob the rest of the world. It is always about power and greed.
Especially for Republicans.
--
"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
.
- References:
- What could China do to the American economy if they traded their dollars for Euros?
- From: Robert Miller
- Re: What could China do to the American economy if they traded their dollars for Euros?
- From: Zerge
- Re: What could China do to the American economy if they traded their dollars for Euros?
- From: Nospam
- Re: What could China do to the American economy if they traded their dollars for Euros?
- From: Zerge
- What could China do to the American economy if they traded their dollars for Euros?
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