China Threatens To Trigger U.S. Dollar Crash

[Pabster]

Story here.

Report says China holds around a 1.33 trillion U.S. Dollar Reserve.

Just another reason why "Made In U.S.A." is more important than ever.

 

[Hacp]

Originally posted by: Pabster
Story here.

Report says China holds around a 1.33 trillion U.S. Dollar Reserve.

Just another reason why "Made In U.S.A." is more important than ever.

Just a bluff. If the US economy flukes, China will go into a recession.

 

[Strk]

Originally posted by: Hacp

Originally posted by: Pabster
Story here.

Report says China holds around a 1.33 trillion U.S. Dollar Reserve.

Just another reason why "Made In U.S.A." is more important than ever.

Just a bluff. If the US economy flukes, China will go into a recession.

It's the new MAD.

 

[1prophet]

It's called the Free Market, if you can't compete so sad to be you. :laugh:

Now off to Walmart to buy our cheaper made in China products because price is all we care about.

 

[Stunt]

Yup without the US consumer, the Chinese economy will take a huge blow...
Foreigners own over $3Trillion in US debt and with China pegging its currency to the american dollar by buying these assets; this isn't surprising. As long as America uses this debt to finance investments better than the interest rate; it's a good deal for Americans.

When the US borrows this money, they are investing in education, healthcare, R&D...all with much higher returns than a mere 5-6% that China is getting on its investment. I think I read somewhere that every dollar spent on education produces $40 in GDP...something ridiculous like that. As a side benefit to this cheap money, Americans get less expensive products making for an more efficient economy.

 

[IronWing]

Originally posted by: Strk

Originally posted by: Hacp

Originally posted by: Pabster
Story here.

Report says China holds around a 1.33 trillion U.S. Dollar Reserve.

Just another reason why "Made In U.S.A." is more important than ever.

Just a bluff. If the US economy flukes, China will go into a recession.

It's the new MAD.

That was the idea behind opening trade with China.

 

[Hacp]

Originally posted by: Stunt
Yup without the US consumer, the Chinese economy will take a huge blow...
Foreigners own over $3Trillion in US debt and with China pegging its currency to the american dollar by buying these assets; this isn't surprising. As long as America uses this debt to finance investments better than the interest rate; it's a good deal for Americans.

When the US borrows this money, they are investing in education, healthcare, R&D...all with much higher returns than a mere 5-6% that China is getting on its investment. I think I read somewhere that every dollar spent on education produces $40 in GDP...something ridiculous like that. As a side benefit to this cheap money, Americans get less expensive products making for an more efficient economy.

Actually, we're investing in tax cuts for the richest 5%.

 

[Jaskalas]

And why is this happening?

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.

What has Congress done?

 

[Hacp]

Originally posted by: Jaskalas
And why is this happening?

Its happening because Bush gave tax cuts to the richest 5%, spiraling us towards debt, and borrowing from China.

 

[Stunt]

Originally posted by: Hacp

Originally posted by: Stunt
Yup without the US consumer, the Chinese economy will take a huge blow...
Foreigners own over $3Trillion in US debt and with China pegging its currency to the american dollar by buying these assets; this isn't surprising. As long as America uses this debt to finance investments better than the interest rate; it's a good deal for Americans.

When the US borrows this money, they are investing in education, healthcare, R&D...all with much higher returns than a mere 5-6% that China is getting on its investment. I think I read somewhere that every dollar spent on education produces $40 in GDP...something ridiculous like that. As a side benefit to this cheap money, Americans get less expensive products making for an more efficient economy.

Actually, we're investing in tax cuts for the richest 5%.

I read an article by Dan Gross and it was estimated that the top 1% of income earners support over 150,000 service jobs. A large tax cut to the wealthy will stimulate the economy far more than a broad tax cut to the whole population. For example if you give the richest 1,000,000 people a tax cut of $20,000 each, they will buy more luxury goods made in the US or buy more services like vacations or massages or spa trips. Use that same money ($20B and you get a $70 tax cut for everyone. This will buy a couple more trips to McDonalds or a few more shirts from China or other non-R&D related products.

Tax cuts with the intent of stimulating the economy (which is what Bush wanted to do) is most effective with the richest consumers. It's actually not well reported but over the last several years, with the tax cuts implemented; luxury items have had inflation rates 5-10 times more than the general population.

I seldom defend Bush but he did give the economy a needed boost with his tax policy and education funding was doubled under his reign. If he didn't pander to the Neocons, he would have been known as the "education president". Ever wonder why he was reading a children's book to kids on 9/11? His focus up until 9/11 was education and the sheer number of patents liscenced in recent years is a clear indication of his initiatives.

Personally I think the tax cuts implemented and education spending was well worth the 4-6% the Chinese are getting for their investment.

 

[Stunt]

Originally posted by: Hacp

Originally posted by: Jaskalas
And why is this happening?

Its happening because Bush gave tax cuts to the richest 5%, spiraling us towards debt, and borrowing from China.

You blame tax cuts, I blame spending. If he would have made modest cuts to other programs; there wouldn't have been deficit spending either.

 

[Hacp]

Originally posted by: Stunt

Originally posted by: Hacp

Originally posted by: Stunt
Yup without the US consumer, the Chinese economy will take a huge blow...
Foreigners own over $3Trillion in US debt and with China pegging its currency to the american dollar by buying these assets; this isn't surprising. As long as America uses this debt to finance investments better than the interest rate; it's a good deal for Americans.

When the US borrows this money, they are investing in education, healthcare, R&D...all with much higher returns than a mere 5-6% that China is getting on its investment. I think I read somewhere that every dollar spent on education produces $40 in GDP...something ridiculous like that. As a side benefit to this cheap money, Americans get less expensive products making for an more efficient economy.

Actually, we're investing in tax cuts for the richest 5%.

I read an article by Dan Gross and it was estimated that the top 1% of income earners support over 150,000 service jobs. A large tax cut to the wealthy will stimulate the economy far more than a broad tax cut to the whole population. For example if you give the richest 1,000,000 people a tax cut of $20,000 each, they will buy more luxury goods made in the US or buy more services like vacations or massages or spa trips. Use that same money ($20B and you get a $70 tax cut for everyone. This will buy a couple more trips to McDonalds or a few more shirts from China or other non-R&D related products.

Tax cuts with the intent of stimulating the economy (which is what Bush wanted to do) is most effective with the richest consumers. It's actually not well reported but over the last several years, with the tax cuts implemented; luxury items have had inflation rates 5-10 times more than the general population.

I seldom defend Bush but he did give the economy a needed boost with his tax policy and education funding was doubled under his reign. If he didn't pander to the Neocons, he would have been known as the "education president". Ever wonder why he was reading a children's book to kids on 9/11? His focus up until 9/11 was education and the sheer number of patents liscenced in recent years is a clear indication of his initiatives.

Personally I think the tax cuts implemented and education spending was well worth the 4-6% the Chinese are getting for their investment.

What makes you think the rich are going to buy only US goods and go on vacations in the US? They might spend the money on computers made in taiwan, bags designed in paris and made in China, and cars designed and made in Germany. Similarly, they might have gone on trips to foreign countries.

The tax cuts did one thing though, and that was fuel the housing market, making housing unaffordable for many in the middle class.

Also, there are so many patents because everyone is trying to patent every obscure thing. An example would be the buy now feature ebay has. Some obscure company sued Ebay over something as simple as that because they patented the common sense idea.

 

[Jaskalas]

Originally posted by: Hacp

Originally posted by: Jaskalas
And why is this happening?

Its happening because Bush gave tax cuts to the richest 5%, spiraling us towards debt, and borrowing from China.

The rich in this country pay a greater share of taxes than at any other point in history.

It is the government spending that is our problem, but more to the point:

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.

What has Congress done?

 

[Stunt]

Originally posted by: Hacp

Originally posted by: Stunt

Originally posted by: Hacp

Originally posted by: Stunt
Yup without the US consumer, the Chinese economy will take a huge blow...
Foreigners own over $3Trillion in US debt and with China pegging its currency to the american dollar by buying these assets; this isn't surprising. As long as America uses this debt to finance investments better than the interest rate; it's a good deal for Americans.

When the US borrows this money, they are investing in education, healthcare, R&D...all with much higher returns than a mere 5-6% that China is getting on its investment. I think I read somewhere that every dollar spent on education produces $40 in GDP...something ridiculous like that. As a side benefit to this cheap money, Americans get less expensive products making for an more efficient economy.

Actually, we're investing in tax cuts for the richest 5%.

I read an article by Dan Gross and it was estimated that the top 1% of income earners support over 150,000 service jobs. A large tax cut to the wealthy will stimulate the economy far more than a broad tax cut to the whole population. For example if you give the richest 1,000,000 people a tax cut of $20,000 each, they will buy more luxury goods made in the US or buy more services like vacations or massages or spa trips. Use that same money ($20B and you get a $70 tax cut for everyone. This will buy a couple more trips to McDonalds or a few more shirts from China or other non-R&D related products.

Tax cuts with the intent of stimulating the economy (which is what Bush wanted to do) is most effective with the richest consumers. It's actually not well reported but over the last several years, with the tax cuts implemented; luxury items have had inflation rates 5-10 times more than the general population.

I seldom defend Bush but he did give the economy a needed boost with his tax policy and education funding was doubled under his reign. If he didn't pander to the Neocons, he would have been known as the "education president". Ever wonder why he was reading a children's book to kids on 9/11? His focus up until 9/11 was education and the sheer number of patents liscenced in recent years is a clear indication of his initiatives.

Personally I think the tax cuts implemented and education spending was well worth the 4-6% the Chinese are getting for their investment.

1) What makes you think the rich are going to buy only US goods and go on vacations in the US? They might spend the money on computers made in taiwan, bags designed in paris and made in China, and cars designed and made in Germany. Similarly, they might have gone on trips to foreign countries.

2) The tax cuts did one thing though, and that was fuel the housing market, making housing unaffordable for many in the middle class.

3) Also, there are so many patents because everyone is trying to patent every obscure thing. An example would be the buy now feature ebay has. Some obscure company sued Ebay over something as simple as that because they patented the common sense idea.

1) Most jobs even when it comes to imports are domestic; sales, marketing, distributing, etc. Manufacturing jobs make up a very small portion of workforce not just in the US but Germany and everywhere else. This gets back to my point that the ideal number of manufacturing jobs is none as labour is a major cost in manufacture of goods. Sure some people will buy BMW's, but what happened to all the Liberals complaining about the rich in their hummers and suv's? Most of those are domestics. Half of all vacations profit domestic companies; travel agencies, airlines, buying goods for trips, etc. Face it, on a per dollar basis a concentrated tax cut for the rich is far more effective for the economy. Is it morally just? Maybe not...but sounds like you didn't want any economic stimuation at all after the tech bubble.

2) During the housing boom, most people owned their houses; therefore while some couldn't afford houses in some areas of the country, almost all people saw their houses appreciate fantastically. Americans are much more wealthy today because of the appreciation of housing values. This is a positive and a negative all in one; just like a massive budget surplus with government. Sure they have lots of money, but the people are being heavily over taxed.

3) I think you are marginallizing the facts presented...to say today's patents are less valuable than yesterdays is a very naive way of thinking. You must have little faith in the human race if you think they have hit a roadblock in creativity and innovation...or even worse...think that Bush/Republican rule had an effect on the quality of new discoveries/R&D efforts by the world's best and brightest.

 

[jackace]

Originally posted by: Jaskalas
The rich in this country pay a greater share of taxes than at any other point in history.

It is the government spending that is our problem, but more to the point

The rich in this country are also making a greater share of the profit than at any other point in our countries history. I do not have any numbers but I would bet the % increase in profits heavily outweighs the % increase in taxes. The top CEOs last I heard make 450 times the salary of the average employee working for the same company.

 

[Whoozyerdaddy]

Originally posted by: jackace

Originally posted by: Jaskalas
The rich in this country pay a greater share of taxes than at any other point in history.

It is the government spending that is our problem, but more to the point

The rich in this country are also making a greater share of the profit than at any other point in our countries history. I do not have any numbers but I would bet the % increase in profits heavily outweighs the % increase in taxes. The top CEOs last I heard make 450 times the salary of the average employee working for the same company.

Annnd they're still paying a greater share of the tax burden than ever before. What's your point?

 

[Stunt]

Originally posted by: jackace

Originally posted by: Jaskalas
The rich in this country pay a greater share of taxes than at any other point in history.

It is the government spending that is our problem, but more to the point

The rich in this country are also making a greater share of the profit than at any other point in our countries history. I do not have any numbers but I would bet the % increase in profits heavily outweighs the % increase in taxes. The top CEOs last I heard make 450 times the salary of the average employee working for the same company.

CEO's pay is heavily tied to shareholder value. The stock markets have done well and as a result their salaries have gone up. At the same time these companies have share purchasing plans, and employees own mutual funds in their retirement accounts. Normal people are able to get the same returns as some of the CEO's out there. Besides the amount a CEO makes is highly irrelevant as the board of directors decide the person's pay and they are cheap...they aren't going to spend more than they have to. That's the going rate for an effective and influential leader. Take that CEO's entire pay and spread it across all the company's employees and you get very little out of it. Take Exxon for example; CEO got $6.3m last year after a huge run up in the stock 25% rise in the stock and 10% increase in dividend. Spread that CEO's pay to all 106,400 employees and that's a raise of $60 a person or $40 after tax...woopee...

 

[theeedude]

They are threatening us with the exact thing we are asking them to do, which is letting the dollar sink wrt their currency?
Yeah, that makes sense. Sure, they can go ahead and sell their treasuries for pennies on the dollar, but then who is it going to hurt most? Their own economy that relies on strong dollar for exports. Weak dollar is good for the US, because it's the only thing that will offset our high labor and benefit costs.

 

[jackace]

My point was their pay has increased exponentially over the last 10-20 years so they SHOULD be paying the most in taxes.

Oh and about the board of directors deciding pay. I remember reading an article about that a couple years ago. The boards are made up of CEOs and top execs from other corporations so it's basically become a good old boy system anymore. I'll vote you a raise if you vote one for me. Not to mention those pay structures for most CEOs pay out HUGE for the CEO whether he succeeds of fails at his job. (re: golden parachute, they even have a name for it because it has become so common)

Edit- here is a quick article I got from google about specific instances of CEOs and top execs making huge salaries and perks meanwhile they failed at their job. It also states the rate at which CEO pay has increased in the last 20-30 years.

http://www.thetrumpet.com/inde...p?page=article&id=2190

Edit2 - to get things back on topic I do agree with the OP. We need more of those labor jobs that so many of us refuse to do. We became a wealthy country by creating goods. If we stop creating goods we will eventually loose our wealth. It's that simple.

 

[imported_Tango]

Originally posted by: Hacp

Originally posted by: Pabster
Story here.

Report says China holds around a 1.33 trillion U.S. Dollar Reserve.

Just another reason why "Made In U.S.A." is more important than ever.

Just a bluff. If the US economy flukes, China will go into a recession.

Exports to the US represent 20% of China's total exports. It's a very high figure, but not big enough to be considered critical to an economy survival, especially an economy growing at a 10% annual rate.

 

[Blain]

Don't you all remember back when Japan was the evil villin in the US Bond movie.
Today the villin is China. Tomorrow the villin will be India.

The fact is that to keep other countries out of our bond market, we'd need to either...
A. Become a more unstable economy or
B. Cut interest paid on US bonds or
C. Both A & B

As long as the US is viewed as a stable and rewarding (bond interest), place to park surplus, other countries will continue to buy our bonds.
When someone, anyone buys your bonds... You are in their debt. As long as the US government spends more money than takes in, it will continue to issue bonds.

Issuing Bonds = Going into debt to bond holder
Issuing Bonds = Paying interest to the bond holder

 

[BigRig04]

not that it makes a huge difference in the scheme of things, but I wanted to point out that the article says that 900 Billion of the 1.33 Trillion is actual US funds...the 430 Billion is various other funds from other countries.

 

[Genx87]

Originally posted by: Hacp

Originally posted by: Jaskalas
And why is this happening?

Its happening because Bush gave tax cuts to the richest 5%, spiraling us towards debt, and borrowing from China.

Your one track mind makes a fool of you everytime.
This debt we have didnt magically appear after the 2003 tax cuts. And these tax cuts went to anybody who paid income taxes. That is how a tax cut works, for the simple minded.

 

[Genx87]

Originally posted by: Hacp

Originally posted by: Stunt

Originally posted by: Hacp

Originally posted by: Stunt
Yup without the US consumer, the Chinese economy will take a huge blow...
Foreigners own over $3Trillion in US debt and with China pegging its currency to the american dollar by buying these assets; this isn't surprising. As long as America uses this debt to finance investments better than the interest rate; it's a good deal for Americans.

When the US borrows this money, they are investing in education, healthcare, R&D...all with much higher returns than a mere 5-6% that China is getting on its investment. I think I read somewhere that every dollar spent on education produces $40 in GDP...something ridiculous like that. As a side benefit to this cheap money, Americans get less expensive products making for an more efficient economy.

Actually, we're investing in tax cuts for the richest 5%.

I read an article by Dan Gross and it was estimated that the top 1% of income earners support over 150,000 service jobs. A large tax cut to the wealthy will stimulate the economy far more than a broad tax cut to the whole population. For example if you give the richest 1,000,000 people a tax cut of $20,000 each, they will buy more luxury goods made in the US or buy more services like vacations or massages or spa trips. Use that same money ($20B and you get a $70 tax cut for everyone. This will buy a couple more trips to McDonalds or a few more shirts from China or other non-R&D related products.

Tax cuts with the intent of stimulating the economy (which is what Bush wanted to do) is most effective with the richest consumers. It's actually not well reported but over the last several years, with the tax cuts implemented; luxury items have had inflation rates 5-10 times more than the general population.

I seldom defend Bush but he did give the economy a needed boost with his tax policy and education funding was doubled under his reign. If he didn't pander to the Neocons, he would have been known as the "education president". Ever wonder why he was reading a children's book to kids on 9/11? His focus up until 9/11 was education and the sheer number of patents liscenced in recent years is a clear indication of his initiatives.

Personally I think the tax cuts implemented and education spending was well worth the 4-6% the Chinese are getting for their investment.

What makes you think the rich are going to buy only US goods and go on vacations in the US? They might spend the money on computers made in taiwan, bags designed in paris and made in China, and cars designed and made in Germany. Similarly, they might have gone on trips to foreign countries.

The tax cuts did one thing though, and that was fuel the housing market, making housing unaffordable for many in the middle class.

Also, there are so many patents because everyone is trying to patent every obscure thing. An example would be the buy now feature ebay has. Some obscure company sued Ebay over something as simple as that because they patented the common sense idea.

Apparently there is no end to the sillyness from you.

1. You dont have to buy US only goods to stimulate our economy. Unless these rich are traveling to these foreign lands to purchase goods. They are buying it from somebody within the United States.
2. That is why a record % of people in the United States own houses? Because they are unaffordable?
3. Need a little more proof than one case between ebay and a 3rd party.

 

[Butterbean]

This is why people should not buy Lenovo stuff (Chinese government - erm mafia - is main owner)