Dollarihymyä

Eurooppa hohoi kirjoitti:

China is a great worry for the Bush White House, not at all in control, the sleeping dragon awakened. China has been buying immense amounts of US bonds, and holds an immense amount of US dollars as a result. If they stopped buying these bonds, even at the reduced rate they have assumed, or started dumping dollars, they would devastate the US in a dropping dollar. Where this makes US manufactured goods cheaper worldwide, it makes US stocks and bonds worthless, and panic would set in. Bush knows this, but is smug in his knowledge that the Puppet Master does not want such a financial crisis. Thus, he antagonizes China like a little dog japing at a bound and caged bear. We have the pet food fiasco, which they chose to blame on China food imports, when it was clear that only pet food was involved and this with a US nod in fact! Food shortages are to be disguised, no one to notice, and the bad food is thus not to be wasted. Little tit for tat games have begun, with China claiming some US foods or products are not safe, and the US continuing to make claims about Chinese products like toothpaste. All of this is exagerated if not frankly made up. So given this scenario, what are China and Bush talking about, face to face? How it will go down, when the spiral starts. They know what territory China considers theirs - Iran, Brazil, and Russia as trading partners. Where Bush has not given up on S America, there is no way he can press an advantage so has put this on the back burner. What was open ended was how the financial spiral would affect the US and China. At some point banking failures will result, but as with the many bank failures during the Great Depression, if no one calls them on their failure, they struggle along, the public none the wiser. Banks will have limited hours, limited withdrawals, and those trying to sell stock simply finding no buyers. For China, this means the dollars they hold will become worthless, the US refusing to exchange them for anything of worth, and likewise with the rest of the world. The dollar, like the Stock Market, may reflect on paper a value higher than it has, but no one will want to exchange anything of worth for dollars, a similar reaction to US stocks. What you hold is worthless, regardless of its face value. Given what is expected to happen during the pole shift, during the weeks preceeding the pole shift, that all paper money will lose its value, this is not deemed a problem. It is the short term that Bush worries about, how quickly he will have to move to limited banking within the US, how he will have to react to demands from other countries to cash in US bonds for something of worth, like Gold. He wants other countries to suffer but not him, as usual. He did not find a sympathetic ear! As China is squeezed, it will stop buying US bonds, forcing the US to print money faster, higher inflation, and the spiral they wish to delay starting early and accelerating.

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