Except for the fact that China's economic growth is almost entirely dependent upon America's debt. Without the trade, China would go back to a poor communist state and be extremely unstable (Just like the USSR breakup)
That's not how it works. It's true that the U.S. owes the most to China but it's hardly something unique to the U.S. to owe money to many countries. The global economic system consists of many countries investing (read: LENDING) in other countries. Canada does the same.
Have you ever bought (invested) in bonds? That's how it is with international investing. Bonds have a fixed payment date that is contractually created. Unless there are certain provisions in place China just can't say "oh we want our money back" they will get paid on the time indicated on the bond. Indeed, the debt to China continues to grow because China continues to be **willing and eager** to spend their own money and invest in the United States.
Also, if you are smart, you would never want to see an "economical crash" of the U.S. (and I'm not saying that you do, as I assume you are one of our friendly northern neighbors...) So much of Canadian stability and security relies on the well-being of the U.S....
...(...but in case you do secretly hope to see the U.S. fall into distress) or would you rather see us be taken over by China, our natural resources annexed and our government stripped away, our industrial capacity harnessed, and our army, navy, air force, coast guard and arsenal of nuclear weapons, all be at the command of a foreign power whose 6 largest provincial capital cities contain the same number of people as all of Canada....right at your doorstep?
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"It is unwise to battle the Power Cosmic." - Silver Surfer
it was planned by the fed, it was realised{unwillingly} by the greedy gamblers at wall street. BOTH of which are respresentatives of the concentrations of corporate power in the us. so this doesnt even count as a conspiracy.
The US, however, has a massive population and a strong GDP. In terms of debt per person that US isn't in the top five, in terms of percentage of GDP the US is number five (if you count only major nations) or number fifteen (if you count all of them).
A large national debt isn't good, certainly, but it's always good describe the data in a more meaningful way.
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Graffiti outside Latin class.
Sed quis custodiet ipsos custodes?
A juvenal prank.
Its not recession but planned demolition so it means things aren't getting better; they're getting worse.The basic problem is that consumers are buried beneath a mountain of debt and have no choice except to curtail their spending and begin to save.
KMC Community Forums
Nov 4th, 2009 05:03 AM
