'Pay China First' -- Republicans' Wild Plan To Avoid U.S. Debt Default

[redfox]

The only thing US fears is her European friends and Japan, not you, Sam does care about his image to his friends. For you, default everything (nicely orchesttrated, nobody can just say "I default")and start another currency is not totally out of the option. What you going to do about it? If China stops lending, and United States cares so much about China and Sam won't???

The wishful Chinese thinking of US would volunteerily release the US dollar status as world reserve currency is simply, in president Jiang's vocabulary to the Hongkong journalists, naive.

The US default will likely be hyper-inflation. Many view the Fed's previously mentioned QE2 progam as the opening salvo in an implicit default. Any default directly to China or thru hyper-inflation in the end will only result in further declining US economy.

Since a hyper-inflation is likely the course, the free floating US dollar will mostly have lost its value. This would cause the world to drop the US dollar in bilateral trade. And further would lead the US economy into chaos.

China has continued piling up a massive exchange reserves holdings with $3 trillion in largely US dollar denominated assets and counting. If this was dumped along with US default, China would will win without firing a single bullet. So this no wishful thinking!

 

[Tigershark]

Riots? US has rock solid political foundation based on world-known principles, even though few are practiced. Whereas the Chinese side practicing capitlism by a communist party (in name name only?).

Technology? The only modern technology is the chips, to be able to manufacture/design. The leaders are US/Germany/Japan, I don't see a true friend of Chinese. And Chinese pulled the plug on their own effort of indigenous chip design (LOOON chips?), If I were Chinese leader, I would shoot that decision maker on site. However, I am also willing to give you some condolences, some chiip manuaturing technology in the world is ineed in the hands of chinese, Taiwanese, that is. And also the Intel foundry in Dalian seems to me more of a political stunt than a mere commercial judgement.

Chip technology to the Chinese is Nukes to them in the 50s & 60s. In mao's words, it must happen even if it's 10,000 years. Now you still want to say wow to your great leaders dressed up in western suits.

These comments have nothing to do with the currency issue. All Mr. Gibberish here wants to is trash China. He's a big fat drooling Troll.

 

[Nomenclature]

I thought it's common sense to pay your external debts first, or do Americans truly have no concept of honor?

 

[Obambam]

I thought it's common sense to pay your external debts first, or do Americans truly have no concept of honor?

This is all they know:

 

[CardSharp]

^^^^^

haha

 

[gambit]

I thought it's common sense to pay your external debts first, or do Americans truly have no concept of honor?

Keywords search 'china intellectual property theft' regarding concept of honor.

 

[no_name]

Is it in China's interest if US repay it's debt too fast?

China is not putting USD into their own markets, they need to divert the money flood elsewhere in the world. Then what about discontent about inflations issues etc?

More blaming to come.

 

[CardSharp]

Is it in China's interest if US repay it's debt too fast?

China is not putting USD into their own markets, they need to divert the money flood elsewhere in the world. Then what about discontent about inflations issues etc?

More blaming to come.

Then it would be perfect time to bailout potentially profitable Euro zone countries with the USDs China gets. I see some of them doing much better than the US in the next couple of years (better returns). US treasury yield are not so great and it's suspect to further manipulation by the geniuses at the Fed.

 

[NmHqh2JbVo]

Is it in China's interest if US repay it's debt too fast?

China is not putting USD into their own markets, they need to divert the money flood elsewhere in the world. Then what about discontent about inflations issues etc?

More blaming to come.

I guess not. Then where does the Chinese throw that money? Besides, that atronomical amount of money can't simply be "repaid". The world wide inflation is the ripple effect with Iraq war being the root cause (war sustained by budget deficit). The Chinese has an option, either buck the trend or ride with the wave and pass their partial loss to the rest of the world. The Chinese obvious has chosen the alternative route.

 

[redfox]

I guess not. Then where does the Chinese throw that money? Besides, that atronomical amount of money can't simply be "repaid". The world wide inflation is the ripple effect with Iraq war being the root cause (war sustained by budget deficit). The Chinese has an option, either buck the trend or ride with the wave and pass their partial loss to the rest of the world. The Chinese obvious has chosen the alternative route.

The last time I had check, I could not Yugoslavia anywhere on the map.

 

[below_freezing]

I guess not. Then where does the Chinese throw that money? Besides, that atronomical amount of money can't simply be "repaid". The world wide inflation is the ripple effect with Iraq war being the root cause (war sustained by budget deficit). The Chinese has an option, either buck the trend or ride with the wave and pass their partial loss to the rest of the world. The Chinese obvious has chosen the alternative route.

Burying it into the ground would be a far better option than buying US bonds.

Burying the money would attract innovators who will buy or build the latest and most high tech drilling equipment to get to the money. They will also be forced to stay around the areas which the money buried in, and add to the local economy which in turn attracts more people, more consumption, etc etc.