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  1. #106

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    Quote Originally Posted by Myzery View Post
    In response to your last line, yeah we very much are. We're one of China's biggest trading partners and propping us up makes a fair bit of sense. The Chinese government is extremely fearful that if it doesnt keep growth above 8% it could face serious resistance at home. Losing the USA as a trading partner(what effectively happens if we default on our debt) would ensure that the Chinese economy doesn't continue to grow, and in fact would shrink. So while it might not be in the interest of the Chinese people to prop up our economy in the long term, it is certainly in the interest of the CPC to do it in the short term. As we've already passed the point at which China could stop lending us money without costing the CPC power, it will be in their interests to lend us money as long as they can continue to do so. Path dependency FTW.
    Why can't the Chinese sell their products to their own people and other people in the world? Is it that hard to believe?

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  2. #107
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    Quote Originally Posted by Myzery View Post
    Time to feed the troll:

    -The US dollar is not going to be "worth pennies" any time soon, in fact it has strengthened during the economic crisis.

    -China is our bitch, not the other way around(sorry Chinese people). China lends us money so we can continue to buy their stuff.... think about that. More importantly China will continue to lend us money, since it has so much to lose by refusing to do so. Unlike most countries, when the US borrows money it agrees to pay it back in US dollars. If the US dollar somehow tanked, all of China's investment would be worth nothing.
    Incorrect, Chinese economy rised enought for it now to be fororming from export to internal market, as consumation rised rapidly - and own market is now a focus of large part of industry and its rising all the time.

    China is NOT lending you money, and they are not paying you to support the trade - they are BUYING your assets as a form of investment, thus they litteraly OWN a lot of US.

    Also most of the countries in the world buy US assets atm, as due to crisis they falled in price, and noone seriously expects US to crumble in near time. Its a decline in power, absolutely. But its a slow one, thus everyone intends to make money on it.

    US atm is basicaly living not because of industry but foreign investitions, as most of the countries in the world invest in it, being so far the economical "leader".

    But while it supports your economy, in the ends its those countries profiting from that as they essencialy "own" your assets and industry.
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  3. #108
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    They already do Vessol, but the US makes up a large part of their foreign trade and as previously mentioned the communist party cant afford to lose it, even temporarily. Also while the Chinese economy is doing quite well, its GDP per capita is about 1/8th of the US's so its people are relatively poor. A person with $5400 demands different goods than a person with $45000.

  4. #109
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    There is one empire that has never fallen. Its a group of families that control the banking system accross the globe.

  5. #110
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    the chinologist is right.

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