Bro... China can single-handedly bring down the US, financially, if they were to pull all of their interest out of our economy.U.S. debt is losing its appeal in China - International Herald Tribune
We owe China too much?! WE OWE CHINA?!
The Wall Street Journal had an article on 'The paradox of thrift' this week.
For years it seems economists have been pleading for Americans to increase their savings to support the continued growth of the American economy. It is a simple, basic tenet that one should live within one's means (and hopefully retain assets against future developments). But NOW the popular thought is that an increased savings rate in a recession will aggravate and prolong said recession. From a macroeconomic viewpoint the good of the whole is served when consumers increase spending during a recession, but conversely microeconomics recognizes that in a recession the individual consumers will curtail their spending to preserve liquidity.
I can see the basis of the paradox but IMO relying upon the middle class to increase spending to turn the tide of a recession is a bit like trying to use an inflatable boat for a transatlantic voyage... I'm sure it can be done, but it seems fraught with unnecessary risk. I would think that maybe Americans will take a lesson from past generations and let this experience strengthen us as we learn some very hard lessons and embrace the benefits of frugality, the virtue of postponed gratification, and the adaptability afforded by increased liquidity.
It's my hope that people can come together during the coming crisis, but I lose more & more of that hope every day observing the 'normal' people going about their conspicuous consumption-driven day-to-day routines.
I didn't think I was supposed to be this sardonic at 24...
While I'm a big believer in Peak Oil and the pressures it will place on global relationships, the China-Syria relationship is hardly worth mentioning. Syria is incredibly small potatoes, exporting less than 1/10th of all middle eastern oil. Iran has no problem selling their oil on the open market, so a one-on-one relationship with China serves no benefit to them. Besides, why would China give up a $300 billion per year trading partner in exchange for a single oil supplier that is either at or just past peak oil production?Recently China bought the rights to all the oil in Syria. It's not impossible that a nation like China hungry for oil could strike a deal with a nation like Iran. The Iranians could negotiate that in return for turning over all their oil rights to China the Chinese would trash their U.S. securities and destroy the U.S. economy. Peak oil is still here and isn't going away. The few nations with oil are not friendly to the U.S. and could do anything to bring the U.S. down.