China has 'canceled US credit card': lawmaker

[keep_it_real]

China, wary of the troubled US economy, has already "canceled America's credit card" by cutting down purchases of debt, a US congressman said Thursday.

"There will come a time where the lack of Chinese participation may have a significant impact," Kirk said.

http://rawstory.com/news/afp/China_has_canceled_US_credit_card_l_04302009.html

[Tangerine LaBamba]

1. This is where it all ends ........

We're screwed..................

[MUAD_DIB]

2. Then China will be screwed as well, but it is for

the best if America starts to live withing its means.


We cannot keep on borrowing without consequence nor should we have to begin with.

Remember: this all started under the glorious Ronald Regan, and it is an indictment of 25+ yeas of Republicanism run amok.


As long as we Democrats can frame it that way then all the better to hang the GOP while we re-build America to what it once was.

[TwixVoy]

4. No they won't

historically nations that have a large manufacturing base and actually produce goods do FAR better than nations that consume and produce little to nothing.

Take a look at Rome, for example. It was built up because the people were productive. During the final years of Rome ships came in to Rome FULL of goods. Every ship leaving Rome left EMPTY.

The BIGGEST mistake the powers that be in this country have made revolve around production. The focus for "recovery" should have been the creation of manufacturing jobs. Instead what have we seen? Hand outs to major banks while our last production centers (automotive) are told to file bankruptcy and break the unions.

Instead we should have been telling the banks to go to hell and have been using that money to build up manufacturing.

[MUAD_DIB]

6. China's economy has been slowing down as a result of the USA's

slowing down. If they have a high manufacturing base, yet cannot sell their plastic crap to the US, they can either find another buyer of be screwed right along with everybody else.

If Europe or South America or Asia fails to buy their goods, due to their own faltering economies, then who will China sell to?

Africa? Not a large market.

Themselves? A closed economy won't work for long.


Also on the Roman world... The Romans were great at expanding into neighboring countries, dividing-conquering, and taking their land and valuables i.e. silver mines on the Iberian peninsula. The Romans were productive at conquering other peoples, slavery and later at too much in-fighting and civil wars.


I agree with you on the mistakes the USA has made, but we will have to get ourselves out of it.

[TwixVoy]

7. Yes of course it has slowed down

but what you don't seem to realize is that China and many other nations have slowly been washing their hands of us the past few years. Your world revovles around the USA, but that doesn't mean the rest of the world has to. Believe it or not they will find ways to get along just fine with out us.

We do NOTHING but consume their goods. Now we can not pay for them.

I am reminded of the lazy 20 year old living at home scenario who won't hold down a job. He lives off of mom and dad as long as he can. Eventually he starts to bring mom and dad down with his expenses. Mom and dad have enough and kick him out. Who is in worse shape? The lazy kid of course.

Same thing is going to happen to us. We are going to be kicked to the curb by China. Sure it will hurt them to lose someone "buying" their goods (on money we borrowed from them remember).... but their are PLENTY of other people in this world who actually have cash to buy it... and don't need to take a loan from them to do so.

Your biggest problem with your argument is that you fail to realize just how big the rest of the world is outside of our borders.

[MUAD_DIB]

13. I love it when DUers always use that accusatory emotional tone.

"your world, your world..."


I stated the obvious. Who is going to buy China's plastic crap?

Europe, Asia and South America are all in the same economic bind. We (the USA) may be worse for the foreseeable future, but who else is going to buy China's plastic crap like the USA has?

Nobody will...at least not at the rate that China wants, and that means that they'll be screwed. You failed to even address that.


I would say that Everybody will be in for a world of hurt, as my original reply to you stated.


I'll re-state it.


"Then China will be screwed as well, but it is for the best >>>if America starts to live withing its means.<<<

We cannot keep on borrowing without consequence nor should we have to begin with."



You're right that "my world" is the USA, and that I want it to succeed in the long term.

Maybe you don't. :eyes:

[MUAD_DIB]

14. Here's a nice link to explain why China wuld also be screwed.

http://www.guardian.co.uk/commentisfree/cifamerica/2009/mar/30/us-economy-china-debt


China's empty threat

If Wen Jiabao stops buying US debt, China's currency will rise – which is what America has wanted all along


When China's prime minister, Wen Jiabao, expressed concern about the ability of the US government to repay its bonds, his comments prompted headlines everywhere. The newspapers were filled with gloomy warnings that China may no longer be willing to buy up US debt, which supposedly would have dire consequences for us all.

Unfortunately, too little thought was given to what these "dire consequences" might be, and who would end up suffering them. Suppose that China stops buying US government debt. That would mean that the dollar would plummet in value against the yuan. Chinese imports would suddenly become much more expensive for consumers in the United States, making domestically produced items far more competitive.

The opposite would happen in China. Goods and services made in the United States would suddenly be much cheaper. As a result, we would expect to export much more to China, and see many more Chinese come to the United States as tourists or for business purposes. The reduction in imports from China and the increase in exports would substantially improve our balance of trade.

[MUAD_DIB]

16. (sp) Would...

[Vinnie From Indy]

9. Yep

One wonders about the inevitablility of this phenomena in empires. Could it be that the same desire for personal wealth that builds superpowers is also the very same thing that kills them?

One thing is certain - the future looks to be as barbaric as the past in regard to the ups and downs of power and influence. Greed - the deadliest sin of all.

[TwixVoy]

3. Yup

All the while the powers that be have the masses distracted by the evil flu while the real moves are being played out. We won't even see the major full force of this move by China for another 2-3 years.... at which point in time it will make the economic down turns last year look like nothing.

[Tangerine LaBamba]

15. Our ticket has been punched, and,

yes, you're absolutely right. All this stuff - flu. torture, job loss, home foreclosures, money worth nothing - is, as you state, a great big distraction, ideally timed and perfectly orchestrated. And very few are going to noitce, or understand exactly what is happening.

The truth is, we're bankrupt, and now, with China shutting her pocketbook, we're finished.

I'm awfully glad I'm old. I, at least, saw the best days of this country ...........................

[BlooInBloo]

5. Does it matter if it's true or not? Or do you just wanna play the OMG! game?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x5574809

[Vinca]

8. Does this mean we get our jobs back??

[madrchsod]

12. it would if china went through with it`s threat....

[bridgit]

10. They should have known better than to issue one to g.w. bush in the first place

[madrchsod]

11. china will come to it`s own self interest and back down

they have much more to lose than we do.....

[Motown_Johnny]

17. Good, then maybe someone will take our trade deficit seriously and we can stop buying Chinese crap

for dollar stores while our unemployment rate skyrockets and our manufacturing base vanishes

[obliviously]

18. The most intelligent

voice I've heard on this thread. We don't need there money. We need to start manufacturing back up and make our own product or we will become their slaves. Besides chinese money doesn't last long. you fill up on it and a little while later you are hungry and you want more.