The LITTLE-BROWN-JUG Forum

China is watching what America does.

Will China's concern over our debt make any differance to our lawmakers and the legislation that is pending in congress?

What would America do if China decided to demand payment on the debt they hold?


China is the largest holder of U.S. government debt and has invested an estimated 70% of its more than $2 trillion stockpile of foreign-exchange reserves (the world's largest) in dollar assets, Reuters reports. Further dollar weakness, brought on by enormous U.S. deficit spending and near-zero interest rates, would erode the value of China's huge U.S. holdings.


http://finance.yahoo.com/tech-ticker/ar ... et=&ccode=

We could print more money devaluing the dollar even more, we could jack interest rates to the high level they were the last time we faced this same sceanario.

The campaign promises made sounded good at the time. Those promises might even have kept America from getting to this point if they were followed. But they weren't.

Will Obama take decisive action or revue, re-revue then revue the situation some more? We'll have to use what we have seen him do so far as a best guess.

Looks like the most encouraging thing Wen had to say was:

"We have seen some signs of recovery in the U.S. economy ... I hope that as the largest economy in the world and an issuing country of a major reserve currency, the United States will effectively discharge its responsibilities"
http://news.yahoo.com/s/nm/20091108/bs_ ... _financial

I think most of us echo his hope. Though there seems to be a group that thinks it is more important that the democrats fail than that the U.S. succeeds in recovering our economy. It may become important for us to realize we are no longer the most powerful nation in the world.... other countries have caught up and bypassed us in many areas... that title now needs to be shared with a few other industrialized nations.

There is a radical element in both political parties. Their agenda isn't good for America but they are to far gone to realize that succeeding is about all of us not them.

We can disagree on how best to succeed but at least we are civil and want success.

With that I can indeed agree....