China threatens 'nuclear option' of dollar sales

[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]

Its ok bud, we all still love you

Originally Posted by BKLYNH2

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

[BKLYNH2]

Thanks

[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.