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Right... and why exactly would China want to sell their large reserve of American bonds? Maybe it's because they don't. The reason they buy American debt in the first place is to peg the RMB to the dollar in order to sustain their export-heavy economy. Should the dollar tank, so does the Chinese economy. Perhaps you should offer another Sesame Street version of current world events.
you think china is just going to sit there with an economy soley based on american consumption? cmon there not stupid. there diversifying wouldnt you say. there not gonna rely on US consumption forever. i like that sesame street line though. that made me laugh
They are diversifying, but as of now, their rapid economic growth is coupled to their exports. I predict that in another 5-10 years, they will be able to become independent from American consumers. However, that will depend on the continued development of their service industry and financial infrastructure, which are now still in their infancy. But until then, they will have no choice but to continue buying American debt.
i think your right on that but that could all depend on how their population reacts. there being pushed hard. i like your idea though. soon the US will be chinas pupet. not the way it is now
Haha, in a decade or so I think US will be the world's puppet. With the way they're deficit spending, they will either have to drastically downsize their budget or face unprecedented depreciation of the dollar - both of which spells doom for America, the Superpower.
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Perhaps you should offer another Sesame Street version of current world events.