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Your postings are usually shorter because you don’t have facts to share, and you don’t understand what you are talking about (more on this in a moment). My postings vary from short to longer because there are times when I want to share facts, and explain things in details. Just because you don’t have command of the subject, don’t know the facts, and don’t understand the details, is really your problem, and your detriment, as it doesn’t change the facts.
Let’s start with the funny part. You tried to argue with me about China’s $820b in currency reserves and you don’t even know where to find and verify that information! Folks, I cannot make this stuff up. Leave it to this guy to argue about something for which he doesn’t even know the answer to, nor how to verify it! I post the facts, and welcome anyone to verify it and try to prove me wrong. I’m sure the folks here are smart enough to see that you don’t even have any factual retorts. When you can only give your opinions with no supporting facts, it tells me you have nothing.
Now let’s get to the rest of your opinions. If you add 50 states together, you get the United States. So what? 50 Thailands equal China? What an embarrassingly weak argument!
It does not change the fact that US is in China for more than just cheap labor. China has huge domestic savings of 40+ percent of GDP ready for domestic consumption, on pace for the largest currency reserves in the world, huge government spending, and large amounts of liquidity (since the people do save) to lend to other debt-ridden countries like USA. US cannot realistically go elsewhere because of three reasons, so get uses to it. 1) US need financing, and China has the liquidity and money to lend to debt-ridden US. 2) US companies, just like Taiwan, need the domestic consumption of China to sustain its own economy. That’s one reason China has no problems attract FDIs because a country must first invest into China, before it can gain access to the Chinese market. 3) Demand for lower cost products will increase as US financial problems increase (baby boom generation is getting ready to retire, and US has under funded, unfunded liabilities in Social Security, Medicare, and Pensions). People will continue to look for ways to save money so demand for Chinese products isn’t go away anytime soon. Therefore, it’s a no brainer to be friendly with China.
I’ve forgotten more about economic, than you know now. Both supply and demand drives a healthy economy. You can have all the demand you want, but if there isn’t supply to meet demand, you are in trouble. You can have all the supply, but if no one is really demanding your products, your supply is useless. Here are two examples from the real world. USA currently demands oil and financing in large amounts. The oil producing countries have the oil, China has the money to finance, and both have leverage over US. It’s because of this dis-equilibrium in demand over supply that US loses leverage. Conversely, you can have all the supply, but if there isn’t the demand, you are also in trouble (GM is a good example and may be bankrupted this year, despite having the supply but not enough demand). Therefore, you need both, Supply and Demand to match in equilibrium, since dis-equilibrium like US needing so much financing and oil, just creates leverage for others.
China is optimizing its reserve portfolio. That a diplomatic way of saying that some of these assets are moving into other currencies, strategic oil reserves, other raw material reserves, future and options of these raw materials, and slowing or even sell off dollar denominated assets in the future. If US truly have many other realistic options to finance its deficits and debts, post those options here. Otherwise, you are just full of talk, without facts.
I’ll give you credit for trying to be somewhat fairer about your opinions, even when you don’t have enough facts. At least that is an improvement over fish.