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2007-09-20 Home Front Economy

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Posted by lotp 2007-09-20 00:00|| || Front Page|| [12 views ] Top

#1 There's always INFOWARS > US FINANCIAL ANALYST > believes China may use "nuclear option" vv mass dumping of China-held US treasuries unless US allows China to invade Taiwan.

Posted by JosephMendiola 2007-09-20 04:38|| 2007-09-20 04:38|| Front Page Top

#2 How would that work, anyway? The only way to dump those Treasury Bonds is to find someone to buy them - simply offering them for sale will not do a real dump, a temporary drop in the value but not a true dump. A true dump would be a worldwide selloff at pennies a dollar for US T-Bills and that ain't gonna happen. Way too many countries with lots of money but not enough troops, law and order, population, unfriendly neighbors, etc hold T-Bills and would approach the Chinese selloff as a money-making deal for themselves.

Posted by Shieldwolf 2007-09-20 22:32|| 2007-09-20 22:32|| Front Page Top

#3 And besides which, in order for the Chinese to initiate a true dump of T-Bills, they would have to be willing to subtract several hundred BILLION dollars of hard currency from their economy in a very short period. That would have the impact of throwing China into a depression, as they would lose the ability to pay hard currency for resource imports like oil. Sort of self-inflicting the Great Depression of the 1930s on yourself, as a way to punish your enemies.
The US could wind up in a recession but China would be in a true depression, and considering the history of Chinese revolts and splintering, we could then wind up with 2 or 3 Chinas fighting each other -- and that does NOT include the independent nation of Taiwan.

Posted by Shieldwolf 2007-09-20 22:39|| 2007-09-20 22:39|| Front Page Top

#4 #3 Shieldwolf - I'll stock up on popcorn. ;-p

Posted by Barbara Skolaut">Barbara Skolaut 2007-09-20 22:42|| http://ariellestjohndesigns.com/]">[http://ariellestjohndesigns.com/] 2007-09-20 22:42|| Front Page Top

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