Posted on 08/18/2004 6:58:47 AM PDT by TigerLikesRooster
Ping!
Such a crisis may well drive them to action. With such a totalitarian regime they have will to have something external for the people to focus on as opposed to their own inernal problems.
Can you imagine the number of bill collectors they can send, to collect that US $169BILLION debt?
He said the state used such tactics as giving out news to stimulate the market, restricting the number of investors, and splitting shares to inflate the issue price of companies that have privilege of forfeiture so they can raise funds from floating shareholders.
“By doing so, they have turned our stock market into a huge administrative factory that lacks investment value,” Wu said.
(snicker) How different is this from the way our stock market operates? (i.e. PPT, automatic trading, etc.) One thing is for sure...if China goes down economically, we go down as well; be it for a short period of time or longer...depending on how long we can find another cheap labor/cheap currency plaza nation to buy all the cheap stuff at Walmart. Something tells me the central planners in Bejing will not let this happen.
Our part will be in a bloody fight to contain them should they decide they can stand to lose a few million of their young men who have no hope for marrying anyway. In order to deflect blame and unrest from the financial crisis, they very well could send their fodder to the meatgrinder.
It's almost like the scenario from Tom Clancy's novel The Bear and the Dragon.
For once we'll be happy to hear the word, "India." Their labor is cheap, so our toys will remain cheap. Meanwhile, China will have to grow up and learn some Western ways, such as business ETHICS! India was developed by the British, hence they are miles ahead of the Chinese when it comes to Western banking practices, etc.
...which I began writing 3 1/2 years ago.
Yep, a double edged sword. If they have a strong economy they build more weapons, if it collapses they could strike out.
It seems that communist agrarian/hand labor economies just can't survivie.
WHat is scary is that Asian countries such as China own alot of the US's debt. If they start to view us as a "bad credit risk" the manure will hit the wind moving machine.
Indeed, how are we going to live without all of the Chinese Buffets that have proliferated here? Is this part of their master plan, do you think?
Our debt isn't a risk, it's their debt.
I am afraid we would find out just how many sleepers and sappers we have within the perimeter.
Hmm, I suppose I need to read the article again. But that does bring a question, how are they buying some of our debt if they are in trouble themselves?
They invest in our debt with their "safe" money.
For over a year in class I have been talking with students about whether China is a bubble waiting to pop. If everyone knew for sure that it was, it never would have become a bubble in the first place, so it's an interesting problem.
Hate to seem like a novice (in macro economics at this scale I am) but what is safe money?
If we all stopped buying Chinese goods for 30 days would it bring them down?
Their conservative rather than speculative funds.
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