America Owes China
You must be logged in to reply to this topic.
@cristinelizabeth, is it suppose to be scary or funny? I don’t get it lol do people really fear this?
Greatness will come and go. Its time the US falls and people see the mistakes our government has made as well as our ideologies. Soon, after, China will fall – as they eat themselves alive with post-production, post-growth and their slow learning curve gets the better of them.
And then… we’ll all ride around on our horses half naked in the sun with wild flowers everywhere and everyone always hugging and being all lovey-dovey.
A few issues with this video: although China is our biggest creditor, they only own about 10% of our treasuries. They owned 12% two years ago (http://www.cnbc.com/id/49468424/Who_Owns_America_s_Debt). Besides that, simply holding US debt does not give a nation the kind of control over another nation this video suggests. The US debt is a problem, but it is a long-term problem. Currently, interests rates for the government to borrow are so low we are not really incurring that much additional interest, only principle. This is actually a not bad time to borrow. Additionally, as the article states briefly, the US market is absolutely vital to China. China’s growth has already started to slow, and they have not developed a strong domestic market. The Chinese economy, as it exists today, is founded on massive, cheap exports of manufactured goods. If their primary market, the US, stops buying from them, the whole economy falls out from beneath them. Simply put, the American economic system is far more robust than China’s and it will take China a long time to develop to the point where they can survive a significant drop in the US market for their goods.
Really though, this commercial is just a scare tactic to convince the American people that Keynesian economics is nothing short of treacherous and neoliberalism is the only way to go. Any idea requiring fear mongering to purport itself isn’t worth listening to.
@ijesuschrist, I just don’t know why it’s like a commercial I saw on TV it’s kinda like saying to lose hope in America , I dunno just shocked me to see such a message played on tv. usually things on tv are like filtered and what not idk
Outsourcing Unemployment: Vanguard
“As American manufacturing went into decline, factories rose in China, and it quickly became the manufacturing center of the world. In some ways, China’s workers were our employees, since they were making stuff for us. That is, until our economy collapsed. Adam Yamaguchi travels to China to look at how we’ve outsourced our unemployment.”
@cristinelizabeth, Interesting video! Thanks for posting! What people forget is that if the US did suddenly collapse, there really wouldn’t be a nation in the world that isn’t affected by it. Though to what extent, I’m not certain of. But I know that with the US dollar being the world’s reserve currency, it would carry some serious consequences.