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alstry (36.00)

China Has ZIPPO influence on America

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January 08, 2009 – Comments (14)

America owes China about $1 Trillion dollars.

America could write one check tomorrow and pay it off.  To put things into perspective...we have already committed over $7 Trillion to this bailout.

We have written much bigger checks than that recently and things are still ticking.  Yes, ticking much slower, but ticking nonetheless.  You don't think China is ticking a little slower too?????

Think.  Don't Despair....Prepare!!!!

14 Comments – Post Your Own

#1) On January 08, 2009 at 2:40 PM, jesusfreakinco (28.93) wrote:

I disagree with you...

Read this story:

http://www.economicpopulist.org/?q=content/end-american-empire

In the first part of the story, replace US with China and Britain with US.

OK.  Both China and Japan have us by the balls, not just China.

Who will blink first - Obama (not likely), China, or Japan?  Last one out will be holding worthless paper...

 

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#2) On January 08, 2009 at 3:17 PM, alstry (36.00) wrote:

What if we just wrote a check and paid them off tomorrow???

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#3) On January 08, 2009 at 3:30 PM, djemonk (< 20) wrote:

What if we just wrote a check and paid them off tomorrow???

 

With what?

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#4) On January 08, 2009 at 3:35 PM, alstry (36.00) wrote:

With the same checking account we just wrote to the banks of course...and the same one we have been using for the past five years for lots of other things....like thewar in Iraq ect....

I am not sure what all the hulabaloo is all about.  There is lots of money in that checking account.

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#5) On January 08, 2009 at 3:47 PM, FreeMarkets (89.66) wrote:

You can only print the money and pay off all your bills ONCE!  After that, you will be out of debt, but you have created two giant problems - 1) a near worthless dollar and 2) no one will lend you money EVER again, because you just paid them with worthless paper.

I don't think you understand how the Federal Reserve works.  It is 11 private banks that LEND us money when we run a deficit.  We pay interest on that fake money (usually called fiat money).  If this sounds unConstitutional, you're right - the Constitution says all debts must be paid in GOLD or SILVER.  Jefferson, Jackson, Polk and others fought hard to keep a central bank from existing in this country.  In 1913 you can thank Woodrow Wilson for bringing the FED into existence.

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#6) On January 08, 2009 at 3:51 PM, kaskoosek (36.41) wrote:

"There is lots of money in that checking account."

The problem is not if there is or isn't money in the checking account, it is how they decide or on what they decide to use it on.

The only viable alternative for them should be equity or gold.

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#7) On January 08, 2009 at 4:00 PM, probity101 (< 20) wrote:

Ben "The Man" Bernanke was asked about this at his first congressional appearance in his new capacity at the Fed.  He said that the U.S. would be unable to pay it if the debt were called and that we count on it being in our debtors' interest not to do that.  It does no good to write a check if the only way it could be cashed is if we can borrow the amount written from the person we're writing the check to - and they've decided not to lend to us anymore. For anyone other than the government, that's called bankruptcy.

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#8) On January 08, 2009 at 4:28 PM, alstry (36.00) wrote:

What do you think 5% of Alaska's mineral rights are worth? 5 Trillion or 10 Trillion?????

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#9) On January 08, 2009 at 5:02 PM, jesusfreakinco (28.93) wrote:

China cooling to continuing debt purchases...

 http://www.iht.com/articles/2009/01/07/business/yuan.php

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#10) On January 08, 2009 at 5:11 PM, jesusfreakinco (28.93) wrote:

China to curb investments in the US

http://uk.reuters.com/article/marketsNewsUS/idUKSHA4669620090107

What impact will this have on treasuries and the dollar, do you think...???

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#11) On January 08, 2009 at 5:26 PM, alstry (36.00) wrote:

The dollar will get stronger......much  stronger!!!!!

 

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#12) On January 08, 2009 at 11:11 PM, jesusfreakinco (28.93) wrote:

Al,

What in the world makes you think the USD will be getting stronger - relative strength of the US economy versus other countries?  Why?

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#13) On January 09, 2009 at 1:13 AM, DaretothREdux (36.68) wrote:

The dollar could get stronger if everyone prints faster than we print, but none of it is really worth anything as it has no backing. And if you think we would trade 5% mineral rights in Alaska for debt, then your insane. Of course, I know you wouldn't suggest that, you would say that we could just bomb them first.

Our money is backed by our GDP. Our GDP is 70% consumer based. If we quit buying, then our money loses value and will get weaker. That's why all the Keynes economists want to force us to spend more money than we have and they figure we can work out the debt problem later (or never depending military might or the collapse of other countries).

Russia has one of the lowest debt to GDP ratios, and one of the worst "1st World" economies, and one of the weakest currencies. If they had a free market society, I suspect this might reverse itself.

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#14) On January 09, 2009 at 2:15 AM, starbucks4ever (94.06) wrote:

Deretoth,

call me an exhuberant optimist, but I feel Russia has pretty good prospects. I draw my optimism from the two facts that you consider disadvantages: 1. the bursting of the oil bubble removes the resource curse, which was really the main reason Russia has performed so poorly in the past, and 2. Russia does not have excessive foreign currency reserves, just enough to pay off its debts, and this makes it immune to the American default that will ruin China and Japan. Paradoxically enough, Russia has the most sound macroeconomic policy out of all major countries. The crisis will be getting worse for a while, but I think  by the next year, things will be looking up.

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