Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: rr_burns who wrote (109252)	10/21/2010 12:47:19 PM
From: benwood	2 Recommendations Read Replies (2) \| Respond to of 110194

I think China would be bothered by a rapid collapse; but I also suspect that the eventual actualized dollar loss (of purchasing power) is viewed internally as a necessary investment. I think they play the game with a far longer horizon than the get-rich-quick thinkers in America. It used to look like they'd be the dominant producer economy in the world in 2050. Now it is conceivable that they will be dominant in 2020 or 2025. Kind of a remarkable gain. Hence, I don't think they'll mind so long as they've moved up the sunrise of China as the dominant economic superpower. In a way, they are using the IMF playbook to dominate those we purport to help, eventually crushing the victim country under a debt burden. As for your second thought about how disruptive do they want to be? Again, using history as a guide, I would say no more, and no less disruptive than the Dutch, English, French, German, Japanese, or US historical counterparts. That is to say, highly disruptive at times, and at peaceful times, using their clout and power to gain an advantage. Like we've been doing for the past 60+ years. Good observations about the super high taxation period being another sort of social-political aberration. One difference in condemning future citizens to enslaving debt impoverishment is that I expect them to give the debt holders the finger at some point. "It isn't our bloody debt," they'll say. We've given the youngest college graduates a terrible economic deal, with high unemployment, collapsing pay, and massive public debt. How long will they stand for it, I wonder. Perhaps along with the helicopter cash drop, Benny Boy will be dropping iPads and other electronic gizmos to dull the young rebellious minds. If hunger continues to spread, however, it will simply blow apart at some point.