Old Kingfish Lee Wrote:
Northern Soul Wrote:
just you wait until the chinese really turn the screws and start making you americans pay back your massive debt.
Unfortantely our massive debt to China is based on interdepence of us importing all their goods. So don't hold your breath. And the dollar is still consider pretty resillent despite the losses it's taken in the last two years, so if China doesn't feed our debt, somebody else will.
unfortunately, this isn't entirely true. while there is some amount of interdependence between the US and China between their exports and our debt/purchasing habits, China is only one of several Asian countries that have been financing our debt. China has equally financed our debt/spending by keeping its currency artificially low and tied to the dollar, a practice it has now been pressured into changing (albiet slowly). Secondly, the major holders of US debt (China, Japan, Korea) have all recently started lowering their holdings of US dollars in exchange for other stronger currencies. This in itself is a major policy shift, and when the full effects of it our felt in the next few years, it's going to hurt the US economy in big but necessary ways.