China Threat to US $ Plays into Hillary Clinton's Campaign

[RAINBOW PONY]

Dude, the U.S. has a monthly trade deficit with China that is in the tens of billions. Also, banks and investors in China can buy debt. By buying or assuming a given amount of debt, they become the lender and stand to make money by collecting payments with interest.

Dude, I live in Canada, I don't really care what happens in US, I was just curious.

And why would people in China buy debt from USA? More importantly, can't they find a better use for their money, IE on themselves?

China just looks like a Retarded Rich guy in this.

 

[melchia]

What debt is this?

They bought things paid in full, and then they went and leased it to US people who are paying monthly for it, with interest?

very very simply, they're called bonds. they accrue interest. by buying one, you give the the seller money now for a promise of repayment later plus interest. china has become heavily invested in US Treasury bonds, essentially lending the US govt money now with the promise of repayment plus interest later.

 

[RAINBOW PONY]

very very simply, they're called bonds. they accrue interest. by buying one, you give the the seller money now for a promise of repayment later plus interest. china has become heavily invested in US Treasury bonds, essentially lending the US govt money now with the promise of repayment plus interest later.

Okay. Now why would they sell these bonds? Doesn't the US have enough money for themselves? I mean, it sounds like some of these bonds are old, meaning they were sold to China some time ago.

 

[melchia]

Okay. Now why would they sell these bonds? Doesn't the US have enough money for themselves? I mean, it sounds like some of these bonds are old, meaning they were sold to China some time ago.

to finance whatever spending bill is passed. and yeah, many were bought some time ago. it's been going on for a very long time.

 

[aria]

Complicated and destructive? Granted, but this sort of issue is also very far reaching, and fear is a pretty powerful motivator.

Conspiracy theories aside. Economies of all the various nations are heavily interdependent (as if you didn't already know this). Believe it or not, I favor this sort of interdependence because it promotes political and economic stability in the long term for all parties involved. Isolationist policy is a waste of time and would only serve to force our economy backward, to say nothing of technological advancement. The more isolated nations are, the more unstable things become politcally.

Interdependence is the reason I see this as a mixture of posturing and serious threat. I don't think China wants to pull its bonds, but they will if provoked (by way of heavily limiting China's ability to export to the US).

I think its interdependence that keeps it to simply rhetoric. China may be able to weather such a dramatic move, but it would cause itself a lot of damage --playing havoc on its new middle-to-high class citizens. If they have a lot of problems, then it's possible that the growing discontent in the rural areas could get more powerful support. There's too much economic love goin' on. Frankly, I guess many of the higher gov't officials have enough financial stakes in continual good economic relations.

 

[aria]

Still, I would love to see an American equivalent say: "Well, we could just one day up and decide to fire several intercontinental nukes at China, take out a few large cities to see if they really work as well as we thought they would on Russia... and then see what kind of irradiated hybrid-like creatures climb out of the crater. Now that'd be damn fascinatin'!"

 

[RAINBOW PONY]

to finance whatever spending bill is passed. and yeah, many were bought some time ago. it's been going on for a very long time.

Well Jesus, cutting back on some spending and start repaying the oldest debts, nobody thought of that?

It's the blind leading the deaf here.

China should demand all their debt, plunge USA into massive problems, and thus pull themselves down with USA.

No more USA doing heavily expensive dumbass shit, and no more Dollar Store shit.

Problem solved.

 

[melchia]

Well Jesus, cutting back on some spending and start repaying the oldest debts, nobody thought of that?

nope, can't say that's ever come up...

 

[RAINBOW PONY]

Dude, if Clinton left such a huge surplus, why was it not spent on the Debt?

 

[bloodhokuto]

The Chinese economy is the second largest economy in the world (give or take).

Their growth rate is spectacular by modern standards, but is a direct result of the scope of previous investment in infrastructure and access to their vast resources both human and material.

I don't believe that the rapid growth rate is a problem at all, in fact the spectacular momentum is ensuring the future of the economy as a whole and there is a reason.

The current economy as vast as it already is is especially volatile, during the early years of modernising the economy the chinese were faced with an unique task of trying to bring a vast (and fairly fractured) political and economic climate in step and moving forward in a single direction - yes there are dissenting voices and there always have been in chinas long history even during the peak of communism.

The volatility is countered by the growing later of wealth. Both by the government and indigenous industries in China have a vested interest in taking 'insurance' from their initial expanding wealth.

Fortunately the world economy has been pretty much stable despite all that hes befallen it (dot com bust LOL), so they have insured their current position. Buying currencies, gold and bonds are all extremely 'safe' investments in the long term. These 'blue chip' ensure a steady return or a guaranteed fund and also double as political bargaining chips in the world at large, these characteristics cannot be sniffed at.

China is the next empire, tempered by it's greatest rival India, which has grown in a similar way - but not on an exactly similar way to China as it has not been as ruthless in it's pursuit o become the most pow£rful nation in the world.

Oh yes, I suppose everyone has noticed Putin waking up to smell the coffee a few years back and re-nationalising their oil. They know what's coming and they are the third cog.

The US is going backward and is wasting their time at the top by taking loans from their competitor for a silly war in the desert, reminiscent of the fall of another great empire.

Better practise your Mandarin chaps.

 

[striderpunk]

Dude, if Clinton left such a huge surplus, why was it not spent on the Debt?

clinton left a budget surplus he did not alleviate the debt, but hey blame it on reaganomics

 

[Sex Machine]

I'll see it how it is, another political approval ploy.

 

[ferrarimanf355]

Hilldog!

No, no...

Obama is our only hope...

 

[galfordo]

The Chinese economy is the second largest economy in the world (give or take).

Their growth rate is spectacular by modern standards, but is a direct result of the scope of previous investment in infrastructure and access to their vast resources both human and material.

I don't believe that the rapid growth rate is a problem at all, in fact the spectacular momentum is ensuring the future of the economy as a whole and there is a reason.

The current economy as vast as it already is is especially volatile, during the early years of modernising the economy the chinese were faced with an unique task of trying to bring a vast (and fairly fractured) political and economic climate in step and moving forward in a single direction - yes there are dissenting voices and there always have been in chinas long history even during the peak of communism.

The volatility is countered by the growing later of wealth. Both by the government and indigenous industries in China have a vested interest in taking 'insurance' from their initial expanding wealth.

Fortunately the world economy has been pretty much stable despite all that hes befallen it (dot com bust LOL), so they have insured their current position. Buying currencies, gold and bonds are all extremely 'safe' investments in the long term. These 'blue chip' ensure a steady return or a guaranteed fund and also double as political bargaining chips in the world at large, these characteristics cannot be sniffed at.

China is the next empire, tempered by it's greatest rival India, which has grown in a similar way - but not on an exactly similar way to China as it has not been as ruthless in it's pursuit o become the most pow£rful nation in the world.

Oh yes, I suppose everyone has noticed Putin waking up to smell the coffee a few years back and re-nationalising their oil. They know what's coming and they are the third cog.

The US is going backward and is wasting their time at the top by taking loans from their competitor for a silly war in the desert, reminiscent of the fall of another great empire.

Better practise your Mandarin chaps.

The sky is falling! The sky is falling!

Oh wait, no it isn't. It isn't even close.

 

[Sex Machine]

 

[galfordo]

HAHAHAHAHAHA ... good shit.

 

[BoriquaSNK]

Dude, if Clinton left such a huge surplus, why was it not spent on the Debt?

The Federal Reserve was worried that with the surplus at the time, we were in danger of paying back our debt too quickly.

Having manageable debt is good, not just for political reasons (it makes the Chinese and Saudis look like they're our buddies), it also keeps a growing economy from stagnating. Clinton's surplus was meant to patch holes in Medicare and social security, which, had Bush not passed such sweeping tax cuts and then gone to war, we may have done to some extent.

Canada and the US have bonds invested in each other as well, it's the modern day version of marrying off a princess for political reasons.

 

[BoriquaSNK]

The Chinese economy is the second largest economy in the world (give or take).

Their growth rate is spectacular by modern standards, but is a direct result of the scope of previous investment in infrastructure and access to their vast resources both human and material.

I don't believe that the rapid growth rate is a problem at all, in fact the spectacular momentum is ensuring the future of the economy as a whole and there is a reason.

The current economy as vast as it already is is especially volatile, during the early years of modernising the economy the chinese were faced with an unique task of trying to bring a vast (and fairly fractured) political and economic climate in step and moving forward in a single direction - yes there are dissenting voices and there always have been in chinas long history even during the peak of communism.

The volatility is countered by the growing later of wealth. Both by the government and indigenous industries in China have a vested interest in taking 'insurance' from their initial expanding wealth.

Fortunately the world economy has been pretty much stable despite all that hes befallen it (dot com bust LOL), so they have insured their current position. Buying currencies, gold and bonds are all extremely 'safe' investments in the long term. These 'blue chip' ensure a steady return or a guaranteed fund and also double as political bargaining chips in the world at large, these characteristics cannot be sniffed at.

China is the next empire, tempered by it's greatest rival India, which has grown in a similar way - but not on an exactly similar way to China as it has not been as ruthless in it's pursuit o become the most pow£rful nation in the world.

Oh yes, I suppose everyone has noticed Putin waking up to smell the coffee a few years back and re-nationalising their oil. They know what's coming and they are the third cog.

The US is going backward and is wasting their time at the top by taking loans from their competitor for a silly war in the desert, reminiscent of the fall of another great empire.

Better practise your Mandarin chaps.

I really disagree, firstly, the Chinese economy is not even in the top ten. Japan has the second largest economy, followed by Germany, the UK, France, and now South Korea.

It is the fastest growing, that is true, but that means little in the way of stability. You simply cannot build infrastructure fast enough nor can you produce enough educated middle class fast enough to steward an economy that grows by ten percent a year.

Remember, most of China still does not have running water. It is still a developing country.

And faced head to head, the US could still defeat China militarily as well as economically. A lot of people would die, but we would still win. The American Empire isn't one of occupation (in most cases), it is cultural. The three most valuable items in the world are Marlboro, Coca Cola, and Levis...American products and concepts have become the vernacular of the world.

If you have to have a bleak view of the future, something like Firefly is more likely to happen, where the US (i.e. the West) and China merge in some kind of cultural conglomerate.

 

[galfordo]

I really disagree, firstly, the Chinese economy is not even in the top ten. Japan has the second largest economy, followed by Germany, the UK, France, and now South Korea.

It is the fastest growing, that is true, but that means little in the way of stability. You simply cannot build infrastructure fast enough nor can you produce enough educated middle class fast enough to steward an economy that grows by ten percent a year.

Remember, most of China still does not have running water. It is still a developing country.

And faced head to head, the US could still defeat China militarily as well as economically. A lot of people would die, but we would still win. The American Empire isn't one of occupation (in most cases), it is cultural. The three most valuable items in the world are Marlboro, Coca Cola, and Levis...American products and concepts have become the vernacular of the world.

If you have to have a bleak view of the future, something like Firefly is more likely to happen, where the US (i.e. the West) and China merge in some kind of cultural conglomerate.

Thank you.

 

[norton9478]

I really disagree, firstly, the Chinese economy is not even in the top ten. Japan has the second largest economy, followed by Germany, the UK, France, and now South Korea..

I'm pretty sure that China's economy is #3 or will be soon.

 

[BoriquaSNK]

I'm pretty sure that China's economy is #3 or will be soon.

There was an analyst from the FT a few months ago who estimated it would be at least 20 years before China's economy caught up to France and the UK.

I wish I still had the link, it was actually pretty interesting.

 

[melchia]

I'm pretty sure that China's economy is #3 or will be soon.

#3 in what measure?

http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm

 

[Fighter123]

And in 20 years they'll be more capitalistic than communist.

But then again if China ever becomes a full capitalistic nation that will be its downfall.

There was an analyst from the FT a few months ago who estimated it would be at least 20 years before China's economy caught up to France and the UK.

I wish I still had the link, it was actually pretty interesting.

If you can find the link I would read it.


Then again India is coming up the capitalistic scale very fast.

 

[norton9478]

#3 in what measure?

http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm

Nominal GDP...

 

[norton9478]

And in 20 years they'll be more capitalistic than communist.

But then again if China ever becomes a full capitalistic nation that will be its downfall.



If you can find the link I would read it.


Then again India is coming up the capitalistic scale very fast.

I guess you don't read the news much...

China is "communist" in name only...... They are Capitalism at it's "Finest".

India is probably headed in the other direction as of late.