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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (26225)	1/10/2010 4:37:12 PM
From: ayn rand	Read Replies (1) \| Respond to of 71456

"The U.S. media continue endless blathering about how China “needs” the U.S. consumer, and “needs” the U.S. as a trade partner. This is plainly silly. No creditor “needs” a deadbeat. Handing China soon-to-be-worthless IOU's in exchange for its manufactured goods is not “trade” - it's simply another form of borrowing. China would “need” the U.S. if and only “if” the U.S. was either paying China in full for its imports, or providing China with essential goods/assets needed for its own economy. In fact, any time China seems about to buy some significant U.S. asset, the U.S. government “slams the door” in China's face – as with its recent attempt to purchase a U.S. gold mine. Meanwhile the clueless, U.S. media are oblivious to the fact that China now has the world's second-largest economy, one-fifth of the world's population, vast pools of personal savings, and a domestic economy growing at close to 20% per year. The only thing China “needs” from the U.S. is for the U.S. to pay its debts (in full). Since that isn't even theoretically possible, the U.S. has virtually no economic leverage with China. Thus, in any U.S./China “trade war”, China will win and the U.S. will lose. Case closed. For precious metals investors, a “byproduct” of this U.S./China spat should be an acceleration in the advance of gold and silver. This is a very good reason why precious metals investors should closely follow this simmering trade-war between the U.S. and China. Along with China, precious metals investors will also be “winners” in this war." .................... -U.S. Slaps Tariff On China; Gold Price Jumps Seeking Alpha January 10, 2010