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Originally Posted by Webby
Dunno whether it's realistic or not (never had the time to dig in deep and check)... but China was being asked to devalue their currency to make it easier for the US, but, least so far, they have refused. Suppose China is also thinking of the other markets they trade with and the effects on them.
At the same time, the US is borrowing between $2-$4 billion/day from the Central Bank of China which seems to be around 20+% of US international borrowings. It really does not take a braincell to see that this is unsustainable - especially when there has not been a trading surplus since the 60's.
It is absolutely vital there is some fiscal policy in place or else the whole economy will end up suffering badly. Sadly, right at this moment - there appears to be little prospect of that happening.
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I continue to find the size of the Chinese debt, that fact that it continues to grow and that the US government does not see it as a problem simply amazing. It's lucky that it's not like property and the Chinese can't simply call it in and sieze the assets i.e. the USA
However, as you know there are many other implications of owing that much. Amazing that not too long ago 'communists' were being hunted down and now the government happily borrows from them :0
Of course talking about facts and the US economy is 'bashing the USA' so perhaps we should stop? God forbid something that affects everyone is discussed by non-Americans. But then thankfully very few people in the USA are as dumb as Spludge or whatever the idiot's called.