Kim's Cash Squeeze (WSJ Editorial)

Wall Street Journal & Dow Jones Newswires ^ | 8-27-06

[LadyNavyVet]

I agree that China is a very important mention. I've always believed that if Kim got too uppity, the Chinese would slap him down, but good. They let him be a burr in our saddle to a certain point, but there's a limit on how much they'll let him anger us and the Japanese. Looks like he's being taken to the woodshed for his recent shenanigans.

[Fred Hayek]

So then where does International A.N.S.W.E.R. get their funding from now?

[darth]

With a single presidential order, we can zero the value of bonds held by any foreign power or individual. Its the U.S.A. that has THEM by the huevos! What are they going to do? Attack their largest market?

[jwh_Denver]

No, it all boils down to economics. The US economy is the biggest in the world and if we go into a recession or depression the whole world would suffer with most countries suffering a lot worse than we would. There has already been selloffs of our T bills by Japan, Russia, China, and many other countries but these selloffs have been measured to not cause any kind of panic in the US dollar. They sold off because our dollar is dropping and they probably put their money into stronger curriencies like the Euro.

Politics and "diplomacy" are one thing, economics is another. You hear about some country b*tching about us but it doesn't change one thing economically between the two except in rare circumstances. That's why this possible economic sanctions against Iran is such a big deal.

American presidents have been kissing Saudi ass for decades now and since China was put on the UN Security Council back just after WWII there's no chance of removing them from that position. "Religion of Peace." Another massive brain fart from Bush.

[308MBR]

With such an order, no one else will be willing to buy our bonds unless they carry exorbitant interest rates.