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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (11592)	1/31/2009 12:26:17 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 33421

Protectionism definitely resonates with the American people. We're isolationist by culture, and we have a strong protectionist streak running down our backs. It's been Chinese savings that has fueled our economic bubble, right or wrong, good or bad. They sold us cheap goods and parked the profits in our T-Bills, mortgage bonds, and Asset Backed Securities. We weren't b*tching so much about currency manipulation when it kept our rates low and provided all the capital for those liar loans. But well over 100+ million Chinese depend upon exports to the US for their livelihood. Exports that most Chinese can't afford for themselves. And there's been tremendous inflation in Chinese Real Estate based upon those wages they've earned, so it's quite possible they are facing an equally devastating credit crisis as their financial system suffers from loans going bad. But they do have $2 Trillion in US reserves they will need to draw upon to counter that. But it would be far less painful for them to help us restore our economic health than spending it all trying to preserve their own hides (which might wind up happening anyway). Any flaws in my logic? Hawk