With China soo invested in US debt....

wouldn't it be in their best interest to see the US and their investment succeed, whatever that entails?

But if they recognize that we've implemented policies that can't succeed at some point they'll cut their losses.

The doom and gloomers certainly have a lot of points, some of them even valid, but there are also valid points like this which are always ignored. If the USD becomes worthless (especially when/if the yuan is disassociated from it as is nigh inevitable) then US debt becomes valueless. Not only that but we are, and are slate dto remain for the foreseeable future, the world's biggest consumer economy. China relies on selling to that market very heavily. If US consumers have no purchasing power, they lose an awful lot of their market.

So wjhat will they do? Probably act as a bank of last resort to prop up the dollar from a cataclysmic fall. Possibly invest in US companies both as takeovers and as joint ventures etc. Will it "save" us? Well I'm not of the opinion that a massive disaster is at all likely. In all the bad news the fact remains that the US is the world's second largest exporter and largest economy by a country mile. The weak dollar is already allowing our export markets to gain some further traction, and is bringing in investment ranging from corporate mergers to vacationing Germans flush with big-dollar euros. I suspect a recession IS in the cards in the next few years - it's par for the course after all - but I see it being softer even than the early 90s let alone the early 30s.

I was thinking that same thing just the other day.

as the world turns that is.

eom

they do yeild a lot of power over us today, money wise, products wise. What would happen if china all of a sudden took their ball and went home, their money too. thats what I mean. But if we go to bombing Iran I'm not so sure we won't have to deal with them in a military manner, russia too for that matter. I know this is o t :-)

"they do yield a lot of power over us today, money wise, products wise"
.........the power they allegedly yield over "money" and "products" came from somewhere. Where do you think that originated? Congress? Multinational corporations contributing to US politicians? Hmmm...



"What would happen if china all of a sudden took their ball and went home, their money too. thats what I mean."
..........Highly unlikely given the heavy investment China has made in buying US debt and whose manufacturing base depends upon cash heavy American consumers to purchase their poisoned, substandard, sweatshop labor goods.



"But if we go to bombing Iran I'm not so sure we won't have to deal with them in a military manner, russia too for that matter"
.........."dealing" with China and Russia militarily means getting your ass handed to you on a silver platter. The US could win a war with China and Russia? Yeah, okay, and my name is Eleanor Roosevelt.

I didn't realize I was saying anything like you are insinuating, wow
peace, have a good day and I hope your evening goes better for you

China is a bit more powerful than the rinky-dink countries we're used to threatening, thugging, cajoling & invading.

They are the last country of earth to welcome a run on the dollar. But supporting a weakening dollar is costing them billions. You can expect the Chinese to make a lot of noise encouraging the US to prop up the currency.

(...except where the environment is concerned, of course.)

But I would not be terribly surprised if they decided to take a financial hit now in exchange for a large improvement in their global position 5 years from now, due to one less global competitor.