DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Rudd's $42billion NationBuilding and Jobs plan

**Jjfotqse** · 02-04-2009, 08:45 PM

Unfortunately, that's what the Yankees have made all of you believe. Just look at the G7 nations, they are all countries with debts. I wouldn't be suprised if they were to get China as one of the G7. If that happens, the Yankees could just go back home and sleep.

at this date there is no way that China can stop buying US treasuries despite some misguided opinions of some nutters out there, the chinese govt simply needs to continue to buy up US treasuries to maintain the RMB peg, where else are they gonna put their USD? some pple say they will dump them, but dump them and CHina's economy which is export driven will be completely fucked, rmb/USd rate will go to 4to1! . they tried to buy up some indon banks for exmaple paying in USD, but that acccounts for very little of it, they have no choice but to pump it back into the USA.

much has been talked abt china and japan's holding of US treasuries, but whats the bigger picture?foreign holdings only account for 25% of all US debt. most of it is held by the federal reserve as dictated by monetary policy, mutual funds pension funds liek calpers are HUGE holders. as long as the USd is the de facto reserve currency, they can simply print money and buy up their own debt. everything commodity of significance is denominated in USd, OIL, sugar, corn wheat, everything!

not accounting for the US consumer, the USA is still a nation of vast natural resources. Australia produces wheat? but usa is still by far the largest producer of wheat, not only wheat, but corn soybeans the entire midwest is the bread basket of the world!
as for oil, they cant drill on the continental shelfs and alaska because of environemntal concerns, but if they lift that and congress is debating this right now, recoverable oil reserves is 100 billion over barrels, same as iran!
china is the largest producer of coal int he world, but who has the largest reserves by far? they have not even begun to tap it because there is no need for that...yet.

i could go on and on, but it is not the new world for nothing.

the only way for china to overtake usa, is for chinese consumption to rise so high as to absorb all its manufactured goods and for the usd to lose its reserve currency, but that wont happen in the immediate future.

02-04-2009, 08:45 PM	#16
Jjfotqse Join Date Oct 2005 Posts 332 Senior Member	Unfortunately, that's what the Yankees have made all of you believe. Just look at the G7 nations, they are all countries with debts. I wouldn't be suprised if they were to get China as one of the G7. If that happens, the Yankees could just go back home and sleep. at this date there is no way that China can stop buying US treasuries despite some misguided opinions of some nutters out there, the chinese govt simply needs to continue to buy up US treasuries to maintain the RMB peg, where else are they gonna put their USD? some pple say they will dump them, but dump them and CHina's economy which is export driven will be completely fucked, rmb/USd rate will go to 4to1! . they tried to buy up some indon banks for exmaple paying in USD, but that acccounts for very little of it, they have no choice but to pump it back into the USA. much has been talked abt china and japan's holding of US treasuries, but whats the bigger picture?foreign holdings only account for 25% of all US debt. most of it is held by the federal reserve as dictated by monetary policy, mutual funds pension funds liek calpers are HUGE holders. as long as the USd is the de facto reserve currency, they can simply print money and buy up their own debt. everything commodity of significance is denominated in USd, OIL, sugar, corn wheat, everything! not accounting for the US consumer, the USA is still a nation of vast natural resources. Australia produces wheat? but usa is still by far the largest producer of wheat, not only wheat, but corn soybeans the entire midwest is the bread basket of the world! as for oil, they cant drill on the continental shelfs and alaska because of environemntal concerns, but if they lift that and congress is debating this right now, recoverable oil reserves is 100 billion over barrels, same as iran! china is the largest producer of coal int he world, but who has the largest reserves by far? they have not even begun to tap it because there is no need for that...yet. i could go on and on, but it is not the new world for nothing. the only way for china to overtake usa, is for chinese consumption to rise so high as to absorb all its manufactured goods and for the usd to lose its reserve currency, but that wont happen in the immediate future.
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