War with Iran: Chinese Implications

[LSK]

Do some googling of China, Iran, Oil. http://www.google.com/search?hl=en&q=china+iran+oil&btnG=Google+Search
http://news.bbc.co.uk/2/hi/business/3970855.stm

It appears that in 2003 China recieved 13% of their oil from Iran BEFORE they signed a deal for China to develop Iran's Yadavaran oil field.
http://en.wikipedia.org/wiki/Yadavaran_Field

The Yadavaran oil fields are in the Khuzestan Province which just happens to border Iraq.
http://en.wikipedia.org/wiki/Khuzestan

It looks like a war with Iran would mean war would be raging in the area where China is developing a major oil field.

I dont think China would be very happy about that.

What would China's response to this be??? They loan us a significant amount of money to finance our debt. What happens to our currency if they get demand payment on all the debt that we owe them which is around $600billion if I recall.

Would China finally decide to take Taiwan??

How many nukes does China have?

Has that fucking madman Bush thought of this angle?

[Itascapark]

1. Along with Iran dumping dollars

In favor of the Euro for their oil trade.

[Mojorabbit]

2. Proxy war eom

[ConsAreLiars]

3. See this two part series in Asia Times.

http://www.atimes.com/atimes/China/HJ19Ad01.html
http://www.atimes.com/atimes/China/HJ20Ad01.html

[aquart]

4. China only has to wait like a vulture and then pick our bones.

There will be nothing left of us except debt by the time George is thru.

[azurnoir]

5. Maybe geogrge2 did not think of this

but PNAC sure as hell has, why do you think we are really gunning for Iran nukes are just the excuse.

[Vexatious Ape]

6. I bet it never occurred to that dumb bastard.

But I have to believe that someone in the Pentagon or the State Dept, thinks about things like this.

[Selatius]

7. You can't "call in" debts with nation-states; you can only do that with individuals and companies.

China finances the US debt through the purchase of US treasury bonds. If China wants to hurt the US in retaliation for blowing up their oil supply in Iran, then it will decrease the rate of purchase of treasury bonds from the current rate, and it may even go so far as to offer up a percentage of its US treasury bond holdings on the open market to flood the market, thereby driving the value of the US dollar downward. The closest thing to "bankruptcy court" for nations is the currency exchange markets. If worse comes to worse, the US dollar will drop relative to other currencies in trading. The only question is how far the drop will be.

The shockwave generated from selling a significant percent of China's holdings would be devastating to the US economy. In the ensuing panic, other nation-states may decide to dump a percentage of their US treasury bond holdings to shield themselves from depreciation, starting a sort of stampede or chain reaction. Foreign-made goods would inflate in cost on US shelves.

In the end, this may end up hurting China as well, as we are now connected. The only difference is the factories are still on Chinese soil.

[NNN0LHI]

8. Israel has had diplomats in China schmoozing them for some time now over this

Google israel+china and see what you get.

Don

[cap]

9. japan gets a lot of its oil from Iran

I forget the percentage but it is much higher than 13%.

[LSK]

10. kick