It doesn't work like that when you've got the largest economy on the planet. If the US goes down, so does the rest of the world. If any individual is causing a problem they won't be in a position of influence for long.Of course they can.
1/ defaulting.... remember how we were warned that to do that as a country was unacceptable on world markets? Remember how we entered years of austerity to avoid that and how Greece and Eire did the same?
2/ If the US decided it wouldn't pay and the dollar was trashed would the dollar remain the international currency of trade? All major commodities like oil are traded in dollars - the Chinese would love to step in with the Yuan as the new international currency of trade and usurp the US.
3/ The US would run out of financial friend PDQ as a result
It doesn't work like that when you've got the largest economy on the planet. If the US goes down, so does the rest of the world. If any individual is causing a problem they won't be in a position of influence for long.
Right yeah.... a country living on credit can bully the rest?? Size of the economy doesn't matter if its in negative equity - the Chinese could and would pull it down for the prize of winning the financial Cold War. China owns so much of the world debt and also the world needs Chinese investment they'd sell the fucking Yanks down the river and declare them bankrupt as soon as look at them believe me. For starters here alone need the Chinese for say Hinckley Point - as a govt whats best - the Yanks in turmoil or no power in your own country - HS2 depends on Chinese investment - most of the roads and shit in Africa were built by the Chinese - they could offer to ferry African refugees to European ports in their navy ships to unsettle the EU for Christs sake. You need to stop thinking in old or current terms - China has used its position as the worlds producer of cheap goods to accrue wealth and then effectively "own" so much of the worlds finances.
So China would pull down the country to whom their own banks "own" all this debt and to whom their manufacturers export the majority of their goods ?
From where would they then reclaim this debt and to whom would their manufacturing industry export their stocks ?
You have not thought this through really.
Far from pull it down. Foreclose on the loans not close the country down. Reposess - they will own the means of recovering their debt by owning the US lock stock and financial barrel. The collateral put up for debt will be theirs to claim on default. You don't get loans without security and they would call in their loans that way. I am talking about astute financial "warfare" here not a financial nuke FFS - Its not just me who has thought this through pretty sure the Chinese have. Seems you have fallen into the Trump way of thinking.
I am not scared of anything because I have confidence that Trump won't win but if he does lets see what happens if he tries to talk to the Chinese - or the Mexicans for that matter - like they were some shit on the sole of his shoe Apprentice USA wannabe. He - and the US - will be eaten up and spat out in short order.There is absolutely no chance that China would call in the debt. The dollar would most likely collapse and the resulting global financial chaos would hurt Chinas economy as much as everybody elses.
In the future the Chinese want the yuan to replace the dollar as the global currecy. Fair play to them. I'm not sure what you are scared of.
Pretty much.Right yeah.... a country living on credit can bully the rest?? Size of the economy doesn't matter if its in negative equity - the Chinese could and would pull it down for the prize of winning the financial Cold War. China owns so much of the world debt and also the world needs Chinese investment they'd sell the fucking Yanks down the river and declare them bankrupt as soon as look at them believe me. For starters here alone need the Chinese for say Hinckley Point - as a govt whats best - the Yanks in turmoil or no power in your own country - HS2 depends on Chinese investment - most of the roads and shit in Africa were built by the Chinese - they could offer to ferry African refugees to European ports in their navy ships to unsettle the EU for Christs sake. You need to stop thinking in old or current terms - China has used its position as the worlds producer of cheap goods to accrue wealth and then effectively "own" so much of the worlds finances.
Pretty much.
If you owe the bank £100, you've got a problem
If you owe the bank £1bn, the bank's got a problem
That's the situation between the US and China.
The US needs the investment. China needs the world's largest market. If anyone tries to rock the boat too much,they won't be doing it for long.
It won't be the US that is eaten up and spat out if Trump fucks about, it will be Trump himself. And it won't be the Chinese that do it, the yanks will get rid of him in no time.