At 8/18/06 04:01 PM, Davious wrote:
At 8/18/06 09:51 AM, White_hole wrote:
At 8/18/06 04:46 AM, cellardoor6 wrote:
2. China, was once colonized by European countries. Almost all the money that China gets today comes from trade with white countries (mostly the US). If it werent for the US need for large amounts of cheap products, China's economy would almost be nonexistent.
WRONG! It was not colonized! And doesnt anyone ever mention botswana?
Yeah and it's not really fair to say that Chinese economy would be ruined without trade with white countries, because quite frankly the U.S (a mostly white nation) would go bankrupt if anything happened to either Japan or China, and is already $7 trillion into debt, yeah great leadership over here.
WRONG! Japan and China both hold large amounts of US treasury bonds, this prevents America from going bankrupt. But they do this for themselves because despite the fact that the US dollar has lost value in the last couple of years, it is still the most used and most stable form of currency in the world.
But if China and Japan no longer bought US bonds, some other country or countries would step in and do it for sure.
Now yes the US is 7 trillion in debt, but the US makes over twice that amount (15 trillion) in one year. The 7 trillion dollar debt has been accumulating for years.
THe US debt is actually low compared the the amount of the money the US takes in every year people just say "7 trillion" but leave out the fact that this is actually low compared to Americas income and is lower in proportion than many other countries.
Canada for example makes 1 trillion a year in GDP, but they have a national debt of 4 trillion which is 400% of their yearly GDP. The US debt is less than 50% of its yearly GDP.
Now with that said, the US income is largely coming from within itself because the US is the biggest host in the world Market, but if the US cut off China or Japan from trading with the US or in the US, they would be royally fucked considering almost their ENTIRE economy revolves around US investment, and the US buying their cheap electronics and such. Plus, Japan would never cut off relations with the US because they need the US to give them military equipment and to protect them from North Korea or pissibly in the future protect them from China.
Almost EVERY SINGLE major industrial country has MOST of their economy riding on their market cooperation with the US. To suggest otherwise is to distory reality in your head so that you can serve your "America sucks" thinking error.