The yen, the dollar, the euro; and China as lender of last resort

[pscot]

This is a riff on the Greek financial crisis. There's a lot here to think about.

http://www.zerohedge.com/article/greece-china-usa-and-euro-all-connected

"If Greece is able to restructure its tax code and install a plan to reduce its deficits to 8% of GDP, then China will invest Euro 25 billion in Greek bonds."

"The issue of the Chinese investing in Greece was first raised on November 29 by the WSJ. I think it was one of those well placed rumors. If this were to happen, it would be of significance. It would establish that China is assuming a role as some form of 'lender of last resort'. The bilateral trade conditions that would be attached to a deal of this magnitude would re-raise the issue of China’s trade hegemony and economic muscle. For me, the most significant aspect of this is that it would represent yet another significant diversion of China’s investable funds away from the US." (more)

[jwirr]

1. Maybe a stupid question. Where does over populated and not so

long ago very poor China get the money they are lending the whole world? Does Communism/socialism work that well?

[A HERETIC I AM]

3. You don't think the US is the only country with retail stores stocked with Chinese made goods,...

Do you?

They send out container ships full of stuff and the rest of the world sends them money.

[jwirr]

4. So all those factories are not just fronts for American corporations?

We hear that they use "slave labor" and I cannot see a corporation outsourcing if they are not making the lions share of the money from the "slave labor". Exactly how does the provider of "slave labor" make money for the nation? Okay I answered my own question. China is selling slave labor to the outsourcers.

[lib2DaBone]

2. A sane " normal" person .. would question why the United States ...

..continues to send our critical manufacturing jobs to a country that is growing to become our military advesary. Especially in these hard economic times.

"Sane" and "normal" are not adjectives recognized in the halls of Congress these days.

Why can't we nation-build in the United Satates? As hard as I try...I can't see what Obama is waiting for?