Discussion in 'Current Affairs, News and Analysis' started by NEO_CON, Nov 22, 2005.
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All the chinese need to do is stop buying T bonds at the current rate. It would cause as miuch strategic damage as a nuclear strike.
I just posted the article to show what some of the attitudes in Asia are about China. The closer you get to China the more nervous some people are getting.
That's probably true.
However, the damage would by no means be confined to the USA.
1. If the US Treasury were unable to find a replacement for Chinese purchases, US interest rates would soar to nosebleed heights. It would wreck our economy. Chinese export industries would be clobbered by a collapse in US demand.
2. The US dollar is still the international reserve currency. Abrupt, drastic curtailment of Asian purchases of US Treasury securities could easily progress into a full-scale run on the dollar as every nation tried to salvage some value by selling dollar-denominated assets. If the dollar thus became worthless, a big part of the world's reserves of foreign exchange would necessarily become worthless.
I am not sure there would be any winners in a war against the PRC. Recently PLA general officers stated that they would go nuclear very early on. Their comments were of course downplayed but the fact that they are strategizing a nuclear scenario is cause for concern. The US has a limited ABM defense but the PRC has none. While no one wins a nuclear exchange the PRC will be destroyed.
Does China have military bases in any other Country? How many does the US have in Asia?
Make your own mind up who's the 'bully boy'.......
The US has defense treaties with a number of countries in asia.
Great nay sweat, we are back ta a form of Mutual Assured Destruction and my generation learned to live with that years ago.
John, sleeping sound.
Very true, its a form of Financial MAD. But under these circumstances exactly how useful would the promise of US military aid be to its asian allies. If a confrontation with China leads to a collapse of the US economy, how safe does that make Taiwan?
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