Friday, February 26, 2010

Staring down the Red Chineese is easy.

Staring down the Red Chinese on calling the debt is easy; if they call we can print more fiat money and pay them in full. They have no recourse, a fact they should have thought of before they started their stupid "One Way Trade" policy.

Yes, you can de-facto refuse U.S. made products entry into the Chinese market with creative regulations; You can manipulate your currency to track downward with an ever weakening dollar so that your low wages insure a monopolistic share of key markets. The problem for you is that you still have to do something with our fiat money in order to turn it into real wealth!

So if you run the dollar down by increasing your ownership of dollars don't you understand that the way you are hurting the U.S. is akin to one man trying to hurt another mans knuckles by ordering that man to hit him in the face?

So now you are going to sell off your dollars and your U.S. treasury bonds (which are pretty much another form of holding dollars?)How are you going to redeem these dollars except with U.S.products?

You will use them to buy products from Europe or the Mid-East perhaps? So what will they do with all of these dollars in order to redeem them for something of objective value? They have no choice but to buy something from America; this just means you are buying things from America indirectly.

So for anyone who's afraid of the communists who run China calling our debt, they are the ones who are playing the U.S. governments game, they just don't know it yet. Our government can make up the rules as they go. If you don't believe me consider that they have been doing it to small business owners for years.

In a monopoly game the banker always wins if he wants too.