Quote:
Originally Posted by JP-pornshooter
The chinese are unloading dollars by the truck loads, but they are smart enough to know that if they dont invest the same $$ back into the US economy then the us consumer will no longer buy the chinese consumer products.. and so the world turns..
I used to live in Europe, with 60% taxation and on top of that europeans are not spenders, the prefer to save up for a rainy day, not yanks, we like to spend, and for the most part it keeps the entire world economy afloat.
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Sure... you don't want to bite the hand that feeds you. Last time the Chinese govt unloaded any amount of dollars was around 2003 tho they have been sliding some out constantly, prob because they are holding a disproportionate value in dollars. The danger is they may want do some substantial dumping if the dollar keeps the lowish value.
Other bit is China is actually fairly smart in their economic policy and aggressively expanding their commerical sphere. Seen this in a couple of places I've lived - they fund everything from water purification units, hospitals, bridges etc - they are not doing that for nothing
They also don't depend on the US for their economic well-being and are trading with almost every country on the globe, but still sending out trade missions to reinforce that - hardly a week goes by without another Chinese trade delegation.
Hehe.. sure, there are a couple of Euro countries with silly taxation rates - I opted out at paying 40% - enough is enough