Posted on 02/10/2011 11:50:50 AM PST by FromLori
People are making a big stink about this but the reality is that even if China lost the entire $2T, it wouldn't be such a big deal. Buying up USD to keep the yuan low was the price of 10% annual growth for 30 years, and a continued grip on the reins of power for the Communist Party. Divide $2T over 30 years, and we're looking at $66B per year, or just over 1% of China's current $5.7T annual output. Ask the average Chinese whether he is better off today than he was 30 years ago, and I suspect the answer for most would be in the affirmative. And that improvement in living conditions is at least partly the product of parking trillions in USD assets to keep the yuan's value down.
The Chinese central bank's primary interest is in keeping the yuan weak. The method is to hoard USD handed to them by Chinese exporters (so that these exporters can pay their workers their yuan salaries). Since USD holdings in themselves don't earn any interest, the Chinese central bank buys bonds.
America, we hardly knew ye...
I agree. But what do we do? I haven’t heard a single Republican hopeful address this issue or mention any concerns towards it. This ought to be front and center in the public debate.
I got the $hit scared out of me when I learned about this issue. Made me physically ill and overly stressed. I am frightened for my future, my family, my children, and America as we know it.
This is so huge I’m not sure that anyone can do anything to stop it. I don’t believe that there are any public leaders who are willing to talk about this and offer up a position on how to deal with it.
Shutter a few Federal Agencies. FairTax. Term Limits. Shut down K St.
If Congress can't/won't get their act together...We the People will just have to show up on the steps and do their job. It should be easy as more and more of us will have nothing else to do. No "public leader" has the ability to do any of this. We the People, however, certainly do.
I get what you’re saying, but do you really think our elected officials will make these radical changes to save our country?
Sadly, I don’t.
No one is willing to change the tax code. The “progressive” tax code is what is considered “fair” by our officials. The public on the other hand, thinks a fair tax makes sense.
Have you heard a single politician incorporate any of the things you mention in their platforms?
I think only the Huckster talks about changing the tax code.
Term limits - won’t happen.
Shutter agencies, boy this makes sense, but the only ones that talk about this are long shots, at best.
You want egg roll wit dat?
reducing the government’s footprint in the U.S. mortgage industry.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Should have happened 15 years ago, and we wouold not have this messed up economy, or these idiots in the WH either.
lol remember that video SNL Presidential Mockery: Hu Jintao Asks Obama “Why You Not Kiss Me Before You Do Sex To Me”
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.