How long until China hangs us out to dry?

[Tweed]

So China continues to buy our debt. The more debt they own, the more and more we get closer to hanging in the noose. Any thoughts on this?

[xray s]

1. I want to be at the meeting when Bush tells them the bonds are worthless

That should be an interesting day

[signmike]

2. Maybe when the * tells them to lay off of Taiwan

[Deja Q]

3. Anybody else feel like a cue ball being cornered?

Like Bush must feel right now? :scared: He's already started his gambit and the public ain't with him by any true or genuine measure. His next gambit had better be convincing or he'll lose even more support. (not that it would matter. Bush is in power and so are his corporate buddies.)

[Old and In the Way]

4. We are so deep into each other, neither can let go.

The more bonds they buy to cover their dollar exposure, the more dependent they are on maintaining their trade relationship with us and supporting the dollar Yuan parity. If they float the Yuan, that cuts their bond holdings value by 30% or so right? And then those new production costs get passed to the US consumer who'll be shocked by both the drop in the USD purchase power and the increasing prices. It would take many, many months to bring new factories online here (assuming businesses would make that investment). Meanwhile....?

[htuttle]

7. All they need is a new market to replace us

They just need a few billion other people to sell crap to and we are history.

Now where would one find a few billion people who need crap around China (and India)? Oh, China and India, I guess.

[queeg]

5. 3-6 weeks.

[LeftistGorilla]

6. In my life time...

mos def...


unless they collapse....

[bobthedrummer]

8. It's coming sooner rather than later.