China

Discussion in 'Politics' started by Palatka51, Jan 27, 2013.

  1. Palatka51

    Palatka51
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    I have one nagging question that will not go away. Maybe someone smarter than I can answer it for me.
    If China is so poor in natural resources, how is it that all these nations (we being the largest) seek their currency to finance our debt?

    Their currency has to be valued higher than it is actually worth, if there are no resources backing it.

    If they should "call on our debt" they will get what they actually want, our resources, which by most estimates are phenomenal.

    I say that China is very devious in its assessment of their own currency and their goal is to gain the whole world through default.
     
  2. Crabtownboy

    Crabtownboy
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    1. They have a lot of oil in the Western desert.
    2. They have a number of rare earth deposits that brings them money.
    3. They are using their money to lock in natural resources for their use in the future, especially in various parts of Africa.

    Check the following web site: http://factsanddetails.com/china.php?itemid=341&

    Actually their currency is undervalued. The Chinese government has manipulated its currency, keeping it undervalued and to their advantage in trade and the selling of manufactured goods.

    http://www.nasdaq.com/article/us-says-china-yuan-significantly-undervalued-20121127-01266


    Calling in the debt we own would harm us greatly and, in turn, harm themselves greatly. They would loose their biggest market. They are already planning for a post-America economic world however. They have already made suggestions that the dollar be replaced as the world's pegged currency.

    They sent very intelligent young people to the States to study economic systems and they are following "the book" very closely in their economic policies.

    From my perspective China's biggest challenge is the social problems they have and will have in the future. There is a growing gap between the rich and the poor. Historically this has led to great unrest and the overthrow of numerous dynasties in the past. They have HUGE social problems.
     
  3. poncho

    poncho
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    You should watch this video. It answers your questions.

    http://www.youtube.com/watch?feature...&v=M09HKwSFffE

    The Obama administration is quietly allowing China to acquire major ownership interests in oil and natural gas resources across the U.S.

    The decision to allow China to compete for U.S. oil and natural gas resources appears to stem from a need to keep Beijing economically interested in lending to the U.S. The Obama administration has run $1-trillion-plus annual federal budget deficits since taking office that likely will continue in the second term.

    Allowing China to have equity interests in U.S. energy production is a reversal of the Bush administration's policy. In 2005, the Bush administration blocked China on grounds of national security from an $18.4 billion deal to purchase California-based Unocal Corp.
     
    #3 poncho, Jan 27, 2013
    Last edited by a moderator: Jan 27, 2013
  4. Palatka51

    Palatka51
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    Thank you Poncho
     
  5. poncho

    poncho
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    You're welcome.
     
  6. InTheLight

    InTheLight
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    They are becoming an industrial, manufacturing giant. They have a growing economy (slight slowdown of late) and as such, have lots of profit they need to invest.

    They can't "call us on our debt" because there is no physical collateral for them to repossess. Our T-Notes and T-Bills are backed by "the full faith and credit of the United States."

    Can't do it to us. What, you think they are going to repossess the state of Oregon to satisfy unpaid debts?
     

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