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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (231)	7/21/2005 11:23:57 AM
From: carranza2	Respond to of 50645

I am concerned that China's reserves will in a few years give it the kind of power that makes military might unnecessary and indeed irrelevant. The Chinese cannot beat us militarily, and any kind of conflagration, whether or not it involves Taiwan, would be disastrous for their markets. But there is more than one way to skin a cat. They can make our life miserable economically. There is no way that the Chinese will continue to hold huge amounts of the world's biggest creditor nation's markers. It's crazy from a a commercial sense. While debtor nations cannot go bankrupt like companies and individuals can, market forces will inevitably force the value of their currency down. If the Chinese accumulation of reserves continues, and there is no reason to think it won't, it is likely that the dollar will no longer be the global currency. And we will be screwed as our national assets, i.e., real estate, corporations, etc., will be increasingly in the hands of foreigners. We got a taste of that a few years ago when the Yen increased in value. But the Chinese reserves will make what the Japanese did seem like tiddly-winnks. The bids for Maytag and Unocal were not mistakes but the forerunners of the future. The best battles are the ones which aren't fought. If Sun Tzu didn't say that, he should have.