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Senior Chinese Military Officers Join Iran In Delivering "Punch" To U.S., Propose Selling Treasuries As Arms Sales Punishment
And you were worried about Iran. China's People Liberation Army has come out and openly said that the nuclear option, i.e., selling US Treasuries, is now on the table and should be exercised as "punishment" for U.S.' arms sales to Taiwan. China undoubtedly realizes that this is a prime example of sado-masochism as the resultant plunge in Treasuries that would follow would hurt the US certainly, but also have a "mild to quite mild" impact on China's $700 (and likely much greater) UST holdings. Game theory 101 just got interesting.
From Reuters:
Senior Chinese
The calls for broad retaliation over the
The
The
While far
"Our
Not only that, but China is now openly escalating vis-a-vis Taiwan. Chinese has blasted the United States over
China
The PLA officers suggested that budget should mirror China's ire toward Washington.
"Clearly propose that due to the threat in the Taiwan Sea, we are increasing military spending," said Luo.
Last
Next question: will China follow through on the increasingly populist sentiment to hurt the U.S. If the U.S. is any indication of the strength of populist anger, now may be a good time to take some "profit", or book the loss as the case may be, in that 30 Year position.
military officers have proposed that their country boost defense
spending, adjust PLA deployments, and possibly sell some U.S. bonds to
punish Washington for its latest round of arms sales to Taiwan.
planned U.S. weapons sales to the disputed island came from officers at
China's National Defence University and Academy of Military Sciences, interviewed by Outlook Weekly, a Chinese-language magazine published by
the official Xinhua news agency.
interviews with Major Generals Zhu Chenghu and Luo Yuan and Senior
Colonel Ke Chunqiao appeared in the issue published on Monday.
People's Liberation Army (PLA) plays no role in setting policy for
China's foreign exchange holdings. Officials in charge of that area
have given no sign of any moves to sell U.S. Treasury bonds over the
weapons sales, a move that could alarm markets and damage the value of
China's own holdings.
from representing fixed government policy, the open demands for
retaliation by the PLA officers underscored the domestic pressures on
Beijing to deliver on its threats to punish the Obama administration
over the arms sales.
retaliation should not be restricted to merely military matters, and we
should adopt a strategic package of counter-punches covering politics,
military affairs, diplomacy and economics to treat both the symptoms
and root cause of this disease," said Luo Yuan, a researcher at the
Academy of Military Sciences.
the planned $6.4 billion arms package for Taiwan unveiled in late
January, saying it will sanction U.S. firms that sell weapons to the
self-ruled island that Beijing considers a breakaway province of China.
is likely to unveil its official military budget for 2010 next month,
when the Communist Party-controlled national parliament meets for its
annual session.
year, the government set the official military budget at 480.7 billion
yuan ($70.4 billion), a 14.9 percent rise on the one in 2008,
continuing a nearly unbroken succession of double-digit increases over
more than two decades.
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You do know Wings that one of the fast facts of the "Great Recession" is that those who end up with control of the initiative sold first and became the trend and with the initiative were able to wield tremendous influence upon the shape of the unfolding. I am sure this fact has not or is not lost on the Chinese and many others. The question acolytes of the current state of affairs always ask is; "What else besides the $US"? The answer that is developing from the tension between these two points appears to be "tangibles". Stay tuned as the eddies from the sovereign world are drawn ever more to the fore as the fog of peripheral loss gets burned away by the harsh sunlight of systemic limitation. Chris Whalen at the IRA has noted that this is the point in the Zombie dance party when the zombies begin to consume each other and themselves. I agree. It is now apparent that the monsters will be allowed to live full cycle.....
Thanks for taking the time to chew a bit that was constructed to deliver a bit more than usual.
Systemic limitation indeed! I imagine the natural resources of Australia are among the most coveted of the spoils of the upcoming food fight.
And ag land and the resources to make it ever more productive. And we cannot forget water resources as well. No wonder the Chinese are investing so heavily in Canadian pot ash production.
The migrant workers and farmers in China actually have homes unlike the jobless foreclosed serfs of america.
The better solution is to sell Taiwan to the Chinese for 2T. No messy/expensive war. We repatriate all those dollars and they finally get to spend all that money for something they really want. Win win. The best part is that we don't actually have to do anything, ...just have the fleet out for donuts and coffee that day.
Our friends will spew, but 2T cuts a lot of mustard. Besides, who sent hospital ships to New Orleans for Katerina?
Now there's a stimulus package that reduces the debt - IF we could keep the politicians away from the pie.
-ME
Queen to queens level 3
Very close...
Iran....hostages...embasies...oil....up
We can counter punch China by withdrawling support of FNM, FRE & FHA bonds, then deport all illegal aliens and crater the housing, energy, and "imported Chinese stuff" markets without violating any treaties or trade agrements.
Let the party leaders then explain to "the people" (mob of angry Chinese wokers with no job or assets or pensions) why they invested "the people's" retirement savings in uncollectible home loans for illegal aliens in America?
Dear Mr Chin,
We regret to inform you your last 47 years of service to the nation, and 47 years of pension & healthcare contributions was lost on bogus investments in GSBs (Great Satan Bonds), we suggest you work until you can't anymore then move in with and rely on your kids and state for eldercare.
O wait, Mr Chin you aborted all your kids, didn't you, and the state invested your assets in FNM bonds, didn't they?
That is why China has been swapping out their worthless toxic debts to the Fed and buying treasuries in equivalent sums. The only mob would be in america, the chinese peasants actually have a place to live and are used to low living standards. The bankrupt homeless jobless americans have nowhere to go, their houses are the ones being foreclosed.
China needs to give up on its Taiwan claim, in much the same way that the US needs to give up on the Cuba embargo.
So much stupidity. How did the monkeys get this far?
So much stupidity. How did the monkeys get this far?
Ego
http://www.youtube.com/watch?v=a15KgyXBX24
As soon as america gives up its claim on independent Hawaii, Aztlan and hell the whole US. They should pack their bags and go back to europe.
That $700bn (not $700 bucks Tyler) gets thrown around a lot, but how much does China actually have at risk if they "damage" the value of their holdings? Certainly not the face value. An investment that can never be realized is worth nothing. Trashing it could be worth more in negotiating clout.
But ... if they simply stop buying, the Household Sector is really going to have to step up in future Treasury auctions.
Bingo. These securities were never meant to be HTM, nor is their inevitable "constructive" liquidation a foregone conclusion. Chinese-held debt is a bargaining chip, and a damned big one at that. What's $700b and a few trillion in currency if your largest competitor goes down in flames? It looks to me like our own little WWIII (fought with new and exciting weaponry, of course) may draw to a close with the nostalgiac nuclear option, only the Chinese will be the ones pulling this trigger.
Well if the genie comes out of the bottle GoodBanker all those brand spanking new cities that China built will be a very good example of a bad asset investment.Deflation would be total and no amount of money printing would add value to the remaining assets ,oh I mean ashes.
At least they would no longer have over capacity problem.
China exports more to non-US nations than the US itself. The bad investments would be in US asset bubbles for americans. China is building real productive infrastructure that actually has value.
Consider the goings on in Europe with the timing of this announcement. Looks like a move to undercut our attempt to push people out of Euros and into Dollars.
I think Globalization is dying this week. Everyone is fighting to be the last big currency standing.
Pure Gut Instinct after reading Zerohedge all day today.
An economic war just began...
Seems to me they might know something is going on with Iran, and are in a position to dump Tresuries as soon as the doo-doo hits the fan in the middle east. Sure would provide a nice exit for them. This Iranian 2-11 "announcement", might be nothing, but then again....
I like Denninger's suggestion. Declare all $1 trillion of Chinese-held bonds null and void, as payment for the technology they've stolen from us.
They stop buying our Treasuries, we cut a few government programs. If we stop buying their worthless junk, their people starve. I think I can see who holds the advantage here.
Why should Japan, Singapore or the Arabs feel any more safe? That idea sure sounds confidence inspiring. You would see a major capital flight out of US Assets. Say hasta la vista to the dollar.
Tyler, I have been reading zerohedge for over a year. In 2006 I wrote a novel, Papercut, the Apophis Conspiracy.
The novels plot is what happens when 20 countries conspire to ruin America's economy. Thought your readers might be interested.
www.paulkarcher.com
I say we apologize and get on with what we do best,
SOPM
I use to be sceptic about some here who writes negatively about Denninger,but only today in his blog about the Chinese threat,did he prove that he is a complete racist(just like the Chinese) and a completet idiot in economic matters.
.
Pure bluster.
The $6.4B arms deal is hardly transitioning Taiwan into an armed-to-the-teeth nation. The big ticket items included in the deal are: 60 Black Hawk helicopters, 114 Patriot air defense missiles (missiles, not missile batteries), two mine hunter ships, and some communications equipment. Hardly the ingredients of a blossoming offensive behemoth.
Maybe that's just cover for what Arms dealers are REALLY selling them?
It seems more than a little possible that those shipments will not be inspected by U.N. or anyone else who is not a principal in the transactionl.
Well, maybe the US MIL will sell CUBA that minor set of weapons and equipment since you feel it is not much.
One point about General Zhu Chenghu; he has a history of running his mouth in public.
He got a lot of publicity a few years ago for saying that if Taiwan defended themselves with American weapons that China should launch a Nuclear attack against American Cities.
Everything that hits the press in China is propaganda aimed at placating their own people by vilainaizing the west. The high level diplomatic talks have a different tenor, as in, buy more shit our people are getting restless and need crappy jobs to keep them from storming the moat.
Sure keep repeating that to yourself. Chinese peasants have places to live unlike the homeless bankrupt formerly first world american peasants. The real destruction will be in the usa
Look towards tensions near the DMZ in Korea - China may allow its little neighbour to throw a temper tantrum.
Watch out for a mass propaganda drive in China.
They know that if they dump treasuries, it will hurt them as well. They don't need nor want to spawn an uprising when their economy tanks, so I would expect a mass propaganda drive to prepare the people to basically hunker down and be a good commie so the motherland can defeat the USA economically, and maybe militarily for that matter.
When you start seeing that, then the lot is cast and they're halfway across the Rubicon.
Sure they can blame those evil Americans for destroying their savings - a perfect motive for war in these materialist times , religious or tribal differences is so 16th and 20th century.
That's true, IF the USA by way of an Executive order, declares all bonds held by China null and void.
However, a default is a default, and that can possibly set the curtains on fire, next thing you know Japan and Russia are running for the exits.
Another angle is that action of this sort will be the beginning of the end of ALL trade with china.
Pick up anything in your house. Turn it over, how many items are made in china? And that's just what you can see. What about the internal components? Many things are made for pennies on the dollar from China. Very quickly things that we once considered cheap are now pretty expensive.
If things go in that direction, there will be no recovery. Do you know what the new tech jobs will be in the USA?
We will be working 12 hours a day assembling pocket calculators and computer parts for $5.00 an hour.
be afraid, be very afraid†
Memo to China: By all means sell. I'm sure you'll find buyers at 60 or 70 cents. A little government debt crisis is just what America needs to wake up and get some fiscal disclipine religion
Agree.
The Chinese have not won very many wars--a militarily weakened or distracted "absolute leadership" will end in a break and the country will fly apart
--they need their best political minds and weapons aimed at their own people in order to survive. They maintain political power using the foreign markets to generate wealth and a higher standard of living --they will lose if they try to take the international market out and go xenophobic (BTW a very long tradition in China).
This is coming from America that is totally failed in it's post world war 2 military endeavors? LMAO The US couldn't even counter Mao's ragtag army in the korean war. The real weak distracted absolute leadership is the US power structure.
China is not our friend.
Only friends should be able to sell goods within our country.
Consider what is going on in Europe right now with the timing
of this chinese announcement.
I think they are trying to undercut the move out of Euros
into the USD.
There are no friendships among nations, only varying degrees of cooperation, competition, and antagonism.
We have had all three with many countries over the years. Right now with China, antagonism is gaining.
All the boys talking with their balls and toys.
Here's a woman's perspective; The US isn't owned by the citizen, its owned by the multi-nationals. They benefit from globalisation and don't want an import tariff on Chinese goods. So there won't be one. And that is why China will become the next super-power at the expense of the US.
The US has been shot in the foot by its own capitalist creation. The multi-nationals hope to survive, but under-estimate the People's Republic, who will nationalise.
What do you think would happen if the Yuan de-pegged?
I think that every US hedge trader would go long the Yuan because greed is more powerful than US Nationalism. This would be your killing blow.
+yin to the yang
please continue to comment sister
too many boys, too many toys, not enough joys
nice
actually yaun might go down if de-pegged, tough to know, also not necessarily fundamentals that matter with all this wealth sloshing around looking for yield, god only knows what various monied folks would do.
agree with corporations getting what they want but I'd add banksters to the group, I always figure any "reform" that passes thru congress is only reform that make money for corporations and only provides very lame, inefficient return to people, just enough to make said (very expensive) reform palatable...see Medicare Part D.
People's Repub, to me, is checked only by concerns of rebellion, revolution...but I can see the multi-nationals corrupting them as well, just like they have done in west, as long as they keep the population reasonably fat and happy...
Rebellion, revolution? That is what america should be worried about when their 70% consumer economy goes bust and the population is out of jobs, homes and can no longer afford to be such consumer goods. The dollar would go down for sure, but perhaps all currencies would decline against gold.
Don't worry, the dollar won't collapse. A couple of T is not much in the giant pool of money that will seek the safest haven if things heat up in the world. And that's the dollar. The US is still king of the mountain, and China isn't going to push it down anytime soon.
That's what the british kept on telling themselves even after they went bankrupt lol.
Oh Yeah!! I think we should cancel WTO amd orphan all your Treasury holdings!! Since Bush signed WTO, and he wasn't in his right mind, ever, although Obama hasn't found anything about Bush he doesn't like,(you aren't going to see Barry clearing brush. Nope to that photo op.)
There was a moment a year or two ago when Treasury printed a huge amount of cash, and the rumor was that they wanted to be ready in case China redeemed their UST holdings. The bluff worked I guess, the money was thrown out the back of some trucks to strangers in Baghdad, and we are back to square one. Just print it again, its the slowest way to put inflation back in the system, as those dollars take a long time to migrate back to the US.
Brings to mind this article War Is Not Far from Us and Is the Midwife of the Chinese Century
J_n_IL
they don't need to sell the Treasury holdings, they might exchange them for african notes. even if there was no point to these comments, at least it seems clear that has few intentions of delinking to the dollar.
Why is nobody questioning why the US is willing to put itself in this situation for some tiny island in the Pacific? How would the US react if China decided to arm Mexico and Coluumbia to the teeth??
Anyway, if China ever chose to invade, the US would of course back down. There's no way Washington is going to commit suicide to avenge Taipei.
To your point - if you get a chance, take a look at the topography of Taiwan. Short of nuking the entire island and leaving nothing of value in the wake, any sort of land invasion is doomed to fail unless there is a massive commitment on the part of the invader. Ever citizen of Taiwan has military service and the rocky, mountainous region is near impossible for land invasion.
Lots of luck with that one guys.
Why is nobody questioning why the US is willing to put itself in this situation for some tiny island in the Pacific?
because the US is the empire and all others are just vassals.
Some helicopters, anti-aircraft/ship missiles, surveillance aircraft upgrades, and aircraft parts is hardly arming them to the teeth.
all you have to do is disrupt the water and energy systems for a while.
Brings this article to mind....... http://www.theepochtimes.com/news/5-8-8/31055.html
War is not far from us and is the midwife of the Chinese century
Prince Talal Hussein of Jordan ''dirty bomb'' Iran reaction to coming attack. The BBC HARDTalk interview of the Prince is what will happen anytime now.
Ain't going to happen folks. The Chinese do not announce ahead of time what they plan to do and then execute. Not the way it's done there. Never has, never will.
great way to flesh out the true hidden feelings of the enemy though, ya?
some hacker for the CCP just got a nice intelligence briefing on this blog tonight.
The USA has been doing this to other nations for years.
Amazing. People still take the ChiComs lightly. The observation that they still believe in Communism at the statist level and wish to insure regional domination using our own greed against us is overlooked by people who fail to comprehend the depths and patience they will go to. The ChiComs will win if we keep playing by their rules. Imagine an auction on the 10 year going off at 118 then at 1:05 p.m. ET they decide to announce that they did not participate and will not until the U.S. rescends it's arms agreement with Taiwan. Then imagine what happens to hedge funds, banks, pension funds, etc. who were thought they were hedged when the price hits 114 five minutes after the announcement.
What are we going to do in retaliation? Send that little f'ing Elf Geithner to Beijing with a "stern" note telling them that Obama is displeased by their action? A 20% reduction in their standard of living isn't jack shit to their leadership. Hell a 20% reduction in POPULATION means nothing to their leaders so screwing us over to insure that the Pacific, Asia, and Africa becomes their exclusive quasi-capitalist economic playground would be not just brilliant but a win-win for them and the end of our hegemony in the world.
I would suggest people stop assigning so much self-importance on our military abilities and start to review history. They have been at the warfare game for 3000 years while we are a zit on an elephant's butt by comparison. The Chinese know they have the ability to launch a knock out blow and with our nation so dependent on their manufacturing capacity the idea that we could, would or might retaliate is infantile and laughable. There are some who think Obama is capable of such a move; bullcrap. He would protest, send a delegation there and given the cancel the deal or else option. If we bow down and agree, we lose face and our allies abandon us. If we stand fast, the dollar index drops to 61 and we enter into the Greatest Depression in history with a commodity inflation that will boggle the mind and an asset deflationary spiral that will create bargains for those with a little cash who want a farm or buildings galore. I'm amazed at some of the statements made by those who think we are on a level playing field. It shows a complete disregard of history, logic and worse, an understanding of how the mindset of their leadership implements policy.
If our citizens object to a declining standard of living we protest, we vote or we whine to talk shows.
If their citizens object, they get steamrolled by tanks.
Gee, which method of opposition gets silenced first?
Duh.
your scarily right†
The Russians are the key. If the Chinese can persuade the Russians to deploy SA 300 and SA 500 systems in Iran that would about do it. Further the Chinese could make things very, very difficult for us in Afghanistan. Afghanistan and China share a border you know. As an Aside I am dumbfounded by the US provocation of the Chinese. I used to have a very dim view of Mr. Obama but now I am actually questioning whether he is genuinely evil. This turn in policy could result in many deaths.
Actually,
If China really wanted to hurt us, they would sell all of their less than 3 year notes and bills and buy 10 and 30 year bills. And make sure that the demand for those 10 and 30 year bonds made the yield %0.00. It would instantly vaporize every bank left standing.
explain to someone stupid why that takes out banks...
Basically, the Fed is literally giving away free money at 0% for paper junk yet paying face value for this collateral. The banks, now dumping their junk to the Fed yet at full face get full $$$$ for the paper junk and said banks buy debt at 3%+.
So basically banksters get FREE money, full face for their paper junk AND they get free and easy 3%+ 'profit' to re-inflate their books with cash reserves.
Moneymutt,
From what I understand banks are currently borrowing fund from the Fed at the Fed's Overnight rate 0% to .25%. They do this borrowing by giving the Fed CDOs, stocks, bonds, etc at a 20% haircut (Or less). They then take this money and buy the long bond with it (Producing what 3 to 4%).
Selling all the short term stuff would jack up the Fed Overnight rate, thus forcing banks to pay more for their overnight money (That they now have to borrow every night for however long they have the proceeds from them invested for).
Buying the 10 and 30 year bonds with enough overbid to drop the yield to 0% then means that the banks have to borrow money at 3 to 4% (Over night rate), but then they earn 0% with that money.
Boom, instant liquidity crisis on top of the insolvency crisis.
The sad part is that the Government would probably cheer this result as it would instantly reinflate the housing market... until their masters told them that this was a Bad Thing (tm).
thanks much, nice explanation...
so why doesn't GSacs do this first?..I know it hurts them on free lending end, but if they short some things and buy the right CDSs first...they could make more than enough to counter their losses, and it seems appropriate they would try to profit by nuking the world...
This is a lot of hoopla over the comments of 2 relatively junior officers.
Anyway, it's probably a reasonable reflection of the attitudes prevailing among the more aggressive cadres. I think we could do without their cheap plastic consumer goods afterall. Let them go ahead and sell. They'd be doing us a favor.
Just in case, the airstrike code is "Almighty".........
Why even go to war with China? Set up a naval blockade in the Indian Ocean. Poof. No resources No Rice No Exports. What are they going to do in exchange? Occupy Taiwan? That will really hurt America. [I guess it will suck that HTC cell phones will no longer be available]
China is even more fucked than the Soviets were in the 80s. Once you get integrated in the world economy, and the other guy has a Navy capable of blockading your resource points 1000 miles away from your naval basis its game, set, match.
We dont even need aircraft carriers. And what costs to us? So some Chinese boats sink some Greek/Panamanian tankers. Big fucking deal. There is a world oversupply of those anyway.
China would disable concentrated US fleets quite easily. This is 21st century warfare against a modern power that you are talking about. They would use emp-armed cruise missiles, surface-surface missiles, etc. They don't even necessarily need to use ballistic missiles in this case.
Oh yeah, let's not forget those angry bankrupt homeless americans who are seeing even more of their tax dollars wasted on non-entities like Taiwan and Israel. You think they are going to take it lightly once the consumer bubble collapses?
If you want to see what kind of fire we are playing with - with China - here you go
http://www.meetup.com/RLCNF-org/pages/China_-_The_Red_Dragon/
If you do Facebook join me there
http://www.facebook.com/wgpitts?ref=profile
Has Leo weighed in on this yet?...this has to be bullish in some way...want to hear how...
no, and no postings on robo page is void, curious for him. probably cause it doesn't have the most hits today.
Some of you China-bashers need to realize something: China's $800 billion or so in T-bills isn't the issue. The problem is that the US has to sell $3.8 trillion of debt over the next year, and comparable amounts in 2011 and 2012. If noone wants to buy this debt, interest rates spike and this place falls off a cliff. Think Russia 1990-1998, only worse -- no dachas in the countryside to feed us or state-owned housing to keep us warm.
And if we're going to denounce stupid war-mongering governments, we should start with the good old USA -- we're the biggest war-mongers on the planet, with our insane $1 trillion annual war machine and nutty permanent Terror War and our multiple failed colonial wars on countries that never attacked us.
i am not a china basher quite the opposite. i have studied these people and their culture especially in the arts. i learned chinese brush painting and calligraphy, i named my daughter asia and she is 30yrs old. i find everything fascinating about their dynasties. it is just the government that sucks.
If noone wants to buy this debt, interest rates spike and this place falls off a cliff...
I've read that every day for the last five years. Amusing.
I'm the first one to criticize US imperialism and our many bad acts...but I will also be critical of their govt doing similar things...sure US govt calling out China govt on invading other countries is a pot/kettle thing, in both cases, I think its wrong. I think it was wrong what our CIA/govt did in Nicaragua, that CIA took our Iran's nationalistic leader Mossadeq and replaced him with repressive Shah etc...I think China's invasion of Tibet was wrong too.
And I also think what the general population wants in US and China is different then our respective regimes do and persuade us to go along with.
Also, what is wrong in Chinese people is wrong, even if US people do similar bad things. Chinese people can be racist in regards to ethnic minorities, as can US people be. I reserve the right to bash things I see as wrong in US and China and will not, not criticize other countries because US is also bad on these or other things.
Racism is alien to Chinese. You seem to confuse racism and ethnocentrism. The people composing Chinese are ethnocentrism with Han leading the way. A Han disregards stronglier a Mongol or a Manchu than he disregards a black person. In the US, no matter what, a member of the white race is held in higher consideration than a member of the black race. It is how the US works. The US society was built on racism and racism is and will stay pivotal to the US society. Dont project on other countries, especially China.
As to China invading countries, which was the late one? When, with the US, you have to admit the question is who is going to be the next?
China and the US do not play in the same courtyard when it comes to invasion of countries.
Consider if Iran decides to only accept oil payments in Rimbini. It would be a punch that would definitely hurt the USD and threaten the USD's position as the reserve currency.
> The problem is that the US has to sell $3.8 trillion of debt
Just what do you think quantitative easing is all about?
And interest rates aren't going to go up until there is growing
private demand to lever up private balance sheets. I wouldn't
hold my breath on that happening anytime soon.
Where is the private sector supposed to get the capital to lever up their balance sheets to begin with? All that has been happening so far is that the public sector is leveraging their balance sheets while the private and corporate sectors have barely de-leveraged if not slightly leveraged up. I thought they were bankrupt. Are they going to stop spending in consumer related services (which is 70% of the economy) and cause equivalent if not greater shortfalls in government revenues?
I am constantly amused by those that insist China "would never.....". First off, NEVER say never. Secondly, while it might cause quite a bit of damage to their trade position, employment and economy, the Chinese have a completely different culture and pain threshold.
We Americans have gotten fat & lazy....we can't even think past next Tuesday (Mardi Gras, BTW). China has developed quite a history of thinking "strategically" (= short/med/long term). So don't be so sure they would not sell those precious UST's if it furthers their goals.
Besides which, politically, I seriously doubt they really care about the unemployed and are not exactly shy about using tanks to crush the opposition (literally).
So, I am not so sanguine about the probabilities of them using the financial weapon of mass destruction we have gladly handed them....indebtedness.
China, with it's fondness for females, could easily get Taiwan to surrender by informing that government that China intends to begin transporting 200,000 women a day to Taiwan and, will not stop transporting women until it has transported 40 million of them. That should just about end it for Taiwan.
http://manybooks.net/titles/tzusun132132.html
The Art of War by Sun Tzu
Isn't this 'threat' just what would be the idea to do... capture your enemy without killing?
And the US think that they would never do it.... oh yeah? I would not want to bet against that! Friendo... is this your lucky quarter?
What Chinese should do:
1. stop buying US T
2. Help Iran develop Nukes as much as possible, secrectly.
3. Gradually sell their US debt holdings.
4. Sell arms to Iran, N Korea, and all other countries which have guts to challenge US
the sad reality of all this is that the majority of chinese people are as blind to the positive aspects of american culture in the equal but opposite way that the majority of the american people are blind to the positive aspects of chinese culture.
wanna change that?
then dismantle Chimerica Inc. and replace it with the Art of the Tao.
there is a way for our peoples to work together in peace.
the problem is the TPTB on both sides of the pacific.
and they wish to keep us divided with envy and ignorance.
chiamerica = niall ferguson, right?
agreed, all regular folks around the world suffer under, to varying degrees, tyranny of their regimes and we are in league together in our fight against these parasites...their/our regimes often do aggressively imperialistic things the regular folks don't agree with or only agree with when they have been played by regimes media manipulations, playing security fears, racism etc...We all some type of domestic parasites, such as the Party in China or banksters, and corrupt congress in US, sucking our life blood, injecting toxins in us that make us violent and foaming at mouth...the ticks on our backs tell us to fight the other guy, but truth is, we should reach out to the other guy and help each other rip off our respective ticks that we can't get off our backs on our own...and then go on with our healthy lives..
pretty animal
considering how many Chinese students you can meet in US universities, starting learning their language wouldn't be a bad idea.
in 10-15 years when Chinese create the most powerful war machine in the world, payback will be a bitch for the US for all those wars and debt holes.
In case no one has yet pointed out the typo, I should state that $700 is very small compared to China's GDP...
Professor Niall Ferguson has stated that when we lost WW2, meant that Asia was victorious. Thanks FDR. Thanks Stalin.
What I believe many fail to realize is that economic downturns nearly always end in war, and that war is usually equal in veracity to the downturn. It is a component of the boom bust system of serf f*^&% ing.
That is SEVEN ALARM spicy - I need a drink of milk after your post. I don't care if it makes it worse.
You dont understand Obama? Well allow me to explain: axelrod , emmanuel, summers, bair, shapiro, feinerg, cass sumstein, bernhake, summers, volker, barofsky oszag. Must I go on?
The arms sold to Taiwan were on the table for 6~7 years. During the DPP rule (2000~2008), the anti-democratic KMT, who still controlled the legislative Yuan (the real power center of Taiwan), nixed purchasing the arms 63 times just to spite the DPP. (and perhaps because they could not get their hands on the juicy kickbacks ~ala the Lafayette Frigates and Mirage Jet fighters).
Now with the KMT back in power and basically sucking up to the CCP, they bring this issue to the table. Me thinks it is their intention to destabilize the US/Taiwan relationship on purpose.
interesting...always a lot of behidn scenes manuevering that can be counter public-knowledge
I don't believe China or the U.S. would do anything to harm their financial relationship. Both are so intertwined it would hurt both sides. This is probably posturing by the U.S. to get something from China. Maybe floating their currency, to stop the selling of arms to our enemies, siding with Iran, there are several possibilities.
It is certainly not an equal relationship. The 70% US consumer economy and the purchasing power of the dollar would decline dramatically. Whereas the Chinese are used to low living standards and are more likely to adapt.
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