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Why China is at America's mercy

To answer the question of the thread. Simply put, no industry and horrible economic and foreign policies.
 
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Abhi.. Thanks for your post but can you enlighten us. How US collapse hurt India? Its doesn't meant I am in favor of US collapse.I just want to know ok..

regards
Jailer

americans owns your stock markets, they are the ones injected hot money pushing the speculation up``and if U.S collapsed india wont sell any of those low-end IT services to no body, as their economy is at primative stage their domestic demand wont even take up 10% of what india produces for U.S and western europ``and also most the call-centers are going to shut down too```

so with negative budget and factor driven economy how india is going to 'prosper' ?
 
Look at it this way...If someone make a 'simplistic' assertion on how China can 'collapse' the US economy, just about everyone will jump on that bandwagon. We have seen it often enough. But when the table is turned like what this article is suggesting, then international economic relationship is not that 'simplistic' and assorted mental and rhetorical gymnastics are used to turn the discussion back to the other 'simplistic' assertion that China can 'collapse' the US economy.

:lol::lol::lol::lol::cheers: .

Welcome to the club. I always thought when you guys will say you had enough.
 
Look at it this way...If someone make a 'simplistic' assertion on how China can 'collapse' the US economy, just about everyone will jump on that bandwagon. We have seen it often enough. But when the table is turned like what this article is suggesting, then international economic relationship is not that 'simplistic' and assorted mental and rhetorical gymnastics are used to turn the discussion back to the other 'simplistic' assertion that China can 'collapse' the US economy.

Life ain't fair darlin'. If you wanted an echo chamber, there are plenty of American sites where I'm sure you'll be welcomed to the circle jerk.
 
Life ain't fair darlin'. If you wanted an echo chamber, there are plenty of American sites where I'm sure you'll be welcomed to the circle jerk.
Read for understanding. He was making exactly the same point, but was insinuating that this forum was the echo-chamber, and you were the ones unable to proccess opposing views.
 
Read for understanding. He was making exactly the same point, but was insinuating that this forum was the echo-chamber, and you were the ones unable to proccess opposing views.

As soon as you can quote me anywhere saying that America is going to collapse then you can accuse me of being unable to process opposing views.

Besides this forum is hardly an echo chamber, with the amount of arguing here, it's more like a war zone.
 
As soon as you can quote me anywhere saying that America is going to collapse then you can accuse me of being unable to process opposing views.

Besides this forum is hardly an echo chamber, with the amount of arguing here, it's more like a war zone.

In fact, I have repeatedly said that America is not going to collapse. :lol:

The more likely scenario, is either a slow recovery, or a "lost decade" (like Japan had).

http://www.economist.com/node/21525440
 
In fact, I have repeatedly said that America is not going to collapse. :lol:

The more likely scenario, is either a slow recovery, or a "lost decade" (like Japan had).

Growth figures: Six years into a lost decade | The Economist

I saw that issue when I was grocery shopping. Interesting cover.

08-02economist.png
 
americans owns your stock markets, they are the ones injected hot money pushing the speculation up``and if U.S collapsed india wont sell any of those low-end IT services to no body, as their economy is at primative stage their domestic demand wont even take up 10% of what india produces for U.S and western europ``and also most the call-centers are going to shut down too```

so with negative budget and factor driven economy how india is going to 'prosper' ?

Sorry,US is not the only nation were the low end Indian IT products are in demand,comeone if the world can cope up with low end "made in china"their will be always a market for our goods also.
 
Well just read the article, talks about a lot of things but my view is that no improvements in those numbers will all that significant until America can get unemployment down below 5% again.

Also reading the comment section

So long as discredited Keynesian economic principles and insistence on wealth redistribution, class warfare and tax increases persist at the highest levels of American governance, there will be no recovery. Period.

That has been the opposite of what American policy has been in the recovery.
 
Oh wow I just cannot believe some of the high rated comments

In the US, the bottom 50% of earners pay no federal income tax. The top 50% and more specifically the top 10% carry the burden of supporting the government.

Conversely, the bottom 50% receives the lion’s share of government benefits. Indeed medical payments ($793 billion - 23%) and old age pensions (Social Security ($701 billion - 20%) were the largest components of the 2010 budget and combined dwarf the likely somewhat bloated defense budget ($689 billion - 20%).

While it may make social sense - indeed I would argues it does - for the more able to support those less able, I find it unfathomable that all of the bottom 50% are incapable of contributing anything to society but must be net financial drags. (Note - many do contribute to Social Security and Medicare / Medicaid taxes although they are net beneficiaries.)

I would argue that spreading the burden too narrowly on the top earners inhibits capital formation, diminishes incentives and results in a relative decline in international competitiveness and long term trends in living standards.
 
As soon as you can quote me anywhere saying that America is going to collapse then you can accuse me of being unable to process opposing views.

Besides this forum is hardly an echo chamber, with the amount of arguing here, it's more like a war zone.

Not saying anything...just from your reply it was obvious you mis-read his post.
 
I love Bollywood scenario...but how about "Holy"-wood version in youtube, just to have some perspective of China-US relation


[video]http://www.youtube.com/user/newsupload2010#p/u/35/pmfKkMKjxyA[/video]
 
without china lending money to the US, the US economy collapses.

the US borrows chinese savings to consume chinese goods.

if the chinese stop lending money to the US, then those savings will remain in china and thus chinese consumers will use their savings to buy their own goods.

anyone that understands basic economics will get this.

all this china depends on the US consumer is ego massaging by westerners and indians.

china holds all the cards, china is the growth engine to the global economy.
china being the largest creditor nation, is the world's banker.

china has the manufacturing base and the savings pool to consume as much as they want.
consumption is the easy part, anyone can do it, manufacturing and savings are the part not everyone has.

thing is, china lends their savings to american consumers and gives the chinese made goods to american consumers.
its not a symbiotic relationship, the US is a parasite on the global economy. its a parasitic relationship.

anyone that studied economics and finance like i did will understand this.

if china stops buying US treasuries, then the only buyer will be the federal reserve, that means massive inflation in the US because the fed prints new money to buy up those bonds, thats what zimbabwe and argentina central banks did.


P.S i think india should worry about their own economy, 10% budget deficits and 90% debt to gdp and still a debtor nation is nothing to write home about. as jim rogers has said, india's growth is built on debt, without going into debt the indian economy would grind to a halt.

btw india should worry about their cricket team that got humiliated by england, tendulkar showing what a flat track bully he is.

the chinese are perfectly capable of managing their own affairs.
 
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