China threatens 'nuclear option' of dollar sales

[bparker]

Dont make me bring up the old school Tonka Toys from back in the day - hell you could even try to destory them and you couldnt...

Originally Posted by DennisAJC

I kick my dog everytime I remember when I got an American made (Radio Shack) remote controlled car with 3 feet of attached wire and they only turned fawking left.

[BKLYNH2]

I have seen this same type of story several times now and most of the time it's written by a complete nut job, and when you research their sources you find out that the quotes have been distorted as well. You should all click the link at the top of BP's first post. It is a much more credible source with a completely oppisite viewpoint.
If China were to flood the market with dollars not only would they damage the US economy and currency they would also be shooting themselves in the foot and probably 70% of all the countries in the world. Japan has even larger reserves of dollars. The rest of the world including China have far too much interest in keeping the dollar afloat to do something as stupid as dump there reserves on the market.

[h2co-pilot]

Cheap manufacturing is one thing, good for all and yea for capitalism- unsafe is another and it was bound to happen.

Just a refresher: Petfood, Toothpaste, Seafood, lead painted Toys and now Tires.

The world is looking at their products in a different light. It must be frightening.

They have been cracking down on manufacturers and putting money into food and drug safety.

But they sure wigged out on our beef when we had that one mad cow.... from Canada.

Since my Google is still messed up I cannot find out what percentage of their exports come here but I assume it is large and any backlash ie: new tariff tax policy would be devastating for thier economy. no? We are still ranked above them in world currency rates right?

I have a hard time grasping big pictures of PPP and personal GDP rates so early in the morning.

[BKLYNH2]

We import from China almost 6 times what we export to them, measured in dollars. China has for years kept their currency exchange rate fixed at a lower rate than many countries believe it would be in a free market. They do it by buying buying us currency and bonds. The low value of their currency is what makes their products cheap and appealing. This has been a good thing for US consumers (quality issues aside) and they have been picking up the tab for the enormous amounts of debt americans have been running up in order to have things they can't really afford. Now things are starting to unravel and so the large reserves they hold have become more of a threat than we have cared to notice before. While some politicians are attacking China for the currency imbalance the real issue is the trade restrictions that they impose on us while enjoying far less restrictions here.

[CO Hummer]

If I can't buy cheapo stuff at Harbor Freight anymore, I'm gonna move to another country.

[BKLYNH2]

Found this after I wrote the first response to this. From B Berg says basically the same thing i did. Also the guy who was quoted is not an official of the Chinese treasurie or Central Bank. There are a lot of loose cannons in China and when the media puts this stuff out it usually creates a momentary panic in the market but you gotta sort through this crap and not get burnt.
http://www.bloomberg.com/apps/news?p...d=a9_E9yIQIBAU

[usetosellhummer]

The question is what kind of revolution will we have? We could have a spending push into debt with rebuilding infrastructure? another war? Tech is drying up. Housing is shot. What will be the next great economic push to keep this growth based spending going? If it stops growing we will feel th pinch in a recession right? Debt load (me included) is out of control on all levels

[bparker]

Dood, it was all over CNN yesterday. I think Lou Dobbs did a peice on it last night.

Originally Posted by BKLYNH2

Found this after I wrote the first response to this. From B Berg says basically the same thing i did. Also the guy who was quoted is not an official of the Chinese treasurie or Central Bank. There are a lot of loose cannons in China and when the media puts this stuff out it usually creates a momentary panic in the market but you gotta sort through this crap and not get burnt.
http://www.bloomberg.com/apps/news?p...d=a9_E9yIQIBAU

[BKLYNH2]

I was running around all day yesterday and then was out at a dinner. Please excuse me for not being up to speed.

[bparker]

hahaha Harbor Freight pwns

Originally Posted by CO Hummer

If I can't buy cheapo stuff at Harbor Freight anymore, I'm gonna move to another country.