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China has an expanding internal market....why should China take the risk of buying our debt....what is the benefit to them?
China's expanding internal market is predicated upon China's dramatic gains in international markets. China has significant economic interests in Africa, the US, the Middle East, Central Asia and Europe. Increasing exports have been one of the fundamental drivers of the country's fast-expanding economy and that, in turn, has led to increased domestic incomes and, therefore, increased internal economic growth. Remove the international ties, which the internal growth is a function of, and the whole economy will regress dramatically.
Too many people fail to realize how deeply interdependent the economies of the world's major powers are; FDI, trade, foreign reserves, etc are a function of continued engagement with the global economy. Its becoming more and more inappropriate to speak of a 'Chinese economy' or an 'American economy' - yes, they are still distinct but the lines between them and the larger global economy are becoming increasingly blurred.
A substantial economic setback in one economy now has the capacity to spread through the global economy like a disease; the Asian Financial Crisis of the late 1990s started in Thailand of all places and, within a few months, had spread like a wildfire throughout Asia and beyond. The current crisis had its direct roots in the US and has quickly come to negatively impact every single country in the world. Really, its as if we have a new form of mutually assured destruction...
China has an expanding internal market....why should China take the risk of buying our debt....what is the benefit to them?
Wouldn't it sort of be like buying stocks in a company, or investing money for the interest? Also, as stated many times, China benefits from a healthy US economy. We all still see "Made in China" on so many things in the stores.
Wouldn't it sort of be like buying stocks in a company, or investing money for the interest? Also, as stated many times, China benefits from a healthy US economy.
A company that is planning to run in the red for the rest of eternity,that has little to offer nowadays...the only thing that made the USA a good bet for the last decades or so was the selling of our real estate....
What can the USA offer?
Also what other choice would the USA have but to buy Chinese goods?
A company that is planning to run in the red for the rest of eternity,that has little to offer nowadays...the only thing that made the USA a good bet for the last decades or so was the selling of our real estate....
What can the USA offer?
Also what other choice would the USA have but to buy Chinese goods?
The USA is still largest manufacturer by far. China is catching up quickly though.
The USA is still largest manufacturer by far. China is catching up quickly though.
But the USA has no other choice but to buy from China,we have little of our own manufacturing base even if the USA is still the largest manufacturer in the world.
China's expanding internal market is predicated upon China's dramatic gains in international markets. China has significant economic interests in Africa, the US, the Middle East, Central Asia and Europe. Increasing exports have been one of the fundamental drivers of the country's fast-expanding economy and that, in turn, has led to increased domestic incomes and, therefore, increased internal economic growth. Remove the international ties, which the internal growth is a function of, and the whole economy will regress dramatically.
Too many people fail to realize how deeply interdependent the economies of the world's major powers are; FDI, trade, foreign reserves, etc are a function of continued engagement with the global economy. Its becoming more and more inappropriate to speak of a 'Chinese economy' or an 'American economy' - yes, they are still distinct but the lines between them and the larger global economy are becoming increasingly blurred.
A substantial economic setback in one economy now has the capacity to spread through the global economy like a disease; the Asian Financial Crisis of the late 1990s started in Thailand of all places and, within a few months, had spread like a wildfire throughout Asia and beyond. The current crisis had its direct roots in the US and has quickly come to negatively impact every single country in the world. Really, its as if we have a new form of mutually assured destruction...
EXACTLY right.
The world is increasingly inter-related and a major collapse of the US would drag down China as well (which would very possibly destabilize that country). One need only look at the current economic crises to understand that.
WASHINGTON - The Democratic-controlled Senate passed a budget drafted to President Barack Obama's specifications, voting a few hours after the House approved a similar plan.
The Senate vote was 55-43, along party lines.
The plan calls for spending of $3.5 trillion for the budget year beginning Oct. 1 and has a deficit projected at $1.2 trillion.
It provides for higher spending on domestic programs and clears the way for action later in the year on Obama's call for an overhaul of health care, a new energy policy and changes in federal support for education.
Oh, great! Now my kids crying...I can't understand her. It's something about not wanting to grow up in a has been third world socialist banana republic with stifling unmanageable debt, hyperinflation and an idiot at the helm. Hold on.....Oh no....I just told her we don't grow bananas in the US. Now she's really upset.
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