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To: RS
If China's goal is the collapse of the US, just what will they do with all those green pieces of paper we have been sending them in return for the VCR's ?

Perhaps they don't want collapse of the U.S.; perhaps they would prefer to supplant the U.S.

To accomplish that, they could simply quit extending credit to us, and maybe sell some of the debt on the open market. This would tend to drive the dollar down and interest rates up - it would, therefore, damage the U.S. economy.

We've given them a variety of weapons. They can choose the time and method most advantageous to them. Maybe that will be during a face-off over Taiwan.

36 posted on 06/30/2004 10:51:59 AM PDT by neutrino (Against stupidity the very Gods themselves contend in vain.)
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To: neutrino

"To accomplish that, they could simply quit extending credit to us, and maybe sell some of the debt on the open market. This would tend to drive the dollar down and interest rates up - it would, therefore, damage the U.S. economy."

??? so they sell the debt on the open market - dosen't that presume that they would find a willing buyer ?

... and the dollar going down hurts their own, as it it tied to the dollar - If they cut loose from the dollar and it sinks, their products become more expensive for us. Their VCR factories become idle, and no more green pieces of paper for them - unless they come back here and buy something we produce, they simply have green pieces of paper.


40 posted on 06/30/2004 11:04:53 AM PDT by RS (Just because they're out to get him doesn't mean he's not guilty)
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