Posted on 08/05/2019 9:35:04 AM PDT by NRx
Maybe, but we represent less than 20% of their exports.
“What impact will this have on their economy?”
Since much of International trade is done with dollars and since the Yuan has been devalued it takes more of the Chinese currency to pay for imports.
Consequently the price of items imported from China will cost less (for us).
Suspending payment on our debt obligations would probably be the worst possible thing ever done.
The only reason anyone buys our bonds is because they are universally seen as the absolutely safest place to put money in the world. The minute you make a politically motivated “selective default” you destroy our national credit. Everybody will instantly realize that what we do to China we can just as easily do to anyone else. Since we are dependent on bond sales to finance the government (and our national debt) it would be tantamount to national political/economic suicide. In the blink of an eye we would be grouped with Argentina.
The stock market would crash as would the dollar. We would have to print money to finance even the most minimal functions of the government which would like precipitate hyperinflation.
Agree.
I'm thinking that their economy will implode, which will help us.
“OR MAKE IT HERE!!!!”
Making it here is the easy part. The problem would be SELLING it here. Not many people would buy a 60 inch TV made here and pay several hundred dollars more for it than the same one made in China, Japan, Taiwan, etc.
“I said quit paying Interest only on the what the Chinese Hold.”
Give the idea up. Failing to repay debt obligations for ANY reason and to any holder of debt would destroy our credibility. The message would be clear. Any Nation holding our debt who for some reason pisses us off would not get their money.
Result? No one would buy our debt and therefore interest rates on our Treasuries would sky rocket.
Then lets devalue the Dollar and see what happens.
China knows well the cowardice of Wall Street. Write a document and misplace a comma and Wall Street will take a dive. They often have difficulty thinking with reason. Our enemies use that sad trait to our detriment - and play havoc with our 401K’s and IRA’s. They are no dummies.
What will happen if we devalue the dollar is prices on what we import (which is almost everything) will go up because it will take more dollars to buy them.
Who lies more than the Chinese or Iranians?
And,of course,the Butchers of Beijing don't have to worry about elections.
DJT does have to worry about elections.
Every advanced industrial country should have done that 30 years ago. If they had China would,today,be dangerous only militarily. But it didn't happen and now China is a danger to the civilized world in every conceivable way.
Why stop at a couple of hundred? If US labor is used to make tv's they'd cost $55,000 - $60,000 per tv. You know they would.
I don’t GAF what happens to the chinks. I really don’t. I only care about the USA and its work force.
Fear mongering bull sh*t by the fake news media. We wont even feel it while it will still damage China. and anyway just start boycotting Made in China products. I would not knowingly buy their crap products anyway.
Democrats have been actively supporting China through all this. They, Dems and China, cannot give our President a win in ANYTHING. They would destroy our country first.
Well they have been trying that for years but you know what I mean.
How much do we owe China, as in bonds? Is the interest payment fixed per the value of the bond in US Dollars of China’s Yuan? Does the devaluing their currency make their bonds easier to pay off?
Boycott all Made in China goods
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