What happens when China collapses

Discussion in 'Politics & Religion' started by Obamanation, Aug 8, 2011.

  1. #1
    Russia, and more importantly China have voiced outrage at the US since the S&P downgrade of our treasury, and after reading this article, one has to scratch their head and wonder how bad things are going to look when this particular turd hits the fan.

       
     
    Obamanation, Aug 8, 2011 IP
  2. The Webby

    The Webby Peon

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    #2
    I have a question in my mind, I'm trying to seek the answer for..

    What happens if Chinese currency is evaluated honestly?
     
    The Webby, Aug 8, 2011 IP
  3. Bushranger

    Bushranger Notable Member

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    #3
    You could always palm off Mississipi to them, they're still good at rice.

    That isn't likely to happen because they pay Fitch, Moodys & S&P too much to be given bad ratings don't they? Not only would China go broke, it would probably take out all the rating agencies too.
     
    Bushranger, Aug 8, 2011 IP
  4. The Webby

    The Webby Peon

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    #4
    Thanks mate..
    Now the question is how long can anyone cover the lie.. How long can anyone keep an illusion and make people believe that its the reality?
     
    The Webby, Aug 8, 2011 IP
  5. Bushranger

    Bushranger Notable Member

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    #5
    While they're not giving us cake, it seems not very long at all.

    Australia is very reliant on China NOT going broke. They're the reason we floated through GFC effortlessly, buying loads of iron ore from us.
     
    Bushranger, Aug 8, 2011 IP
  6. mmerlinn

    mmerlinn Prominent Member

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    #6
    China ain't going broke. But they WILL break the U.S. now that we are stealing from them on a massive scale.

    "If you don't pay your mortgage, your banker WILL repossess your house. If America doesn't pay her debts, China, et alia, WILL repossess America."

    We CAN'T pay - We WON'T pay - We WILL be repossessed.
     
    mmerlinn, Aug 9, 2011 IP
  7. wisdomtool

    wisdomtool Moderator Staff

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    #7
    China's property bubble is quite a danger spot but China is sitting on tons of money whereas USA is sitting on tons of debts. Collapse for China is far less likely than for USA. A recession and social unrest may be possible though. But I do not see China losing control of its population. China has one of the highest military budgets, one thing that most ignored was that their Internal Security forces has nearly as much budget as their military budget!
     
    wisdomtool, Aug 9, 2011 IP
  8. The Webby

    The Webby Peon

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    #8
    China's economy depends largely on export to European and American markets. Europe is in shit already. If America goes down that path, China is in big trouble..
    If production takes a hit, it causes unemployment, which in turn may cause public unrest.. It's all tied up with a single thread..
     
    The Webby, Aug 9, 2011 IP
  9. Obamanation

    Obamanation Well-Known Member

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    #9
    Well said. China's massive budgetary surplus is based on three things: Currency manipulation, Interest being paid on US Debt, and US and European consumers buying their goods. Watching Don Trump yesterday do his usual anti-China speech, I wouldn't at all be surprised to see that sentiment catch on, eventually winding up with US law makers levying a reciprocal VAT on goods made in China. Throw in decreasing demand from the double dip and worthless devalued paper being used to repay the debt, and you will see two of the three legs in their economic stool removed.  

    When civil unrest in China ignites, it is going to make the riots in Britain look friendly. Syria on a large scale would be more analogous.
     
    Obamanation, Aug 9, 2011 IP
  10. earlpearl

    earlpearl Well-Known Member

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    #10
    Well I wouldn't mind seeing that....but as to when that might happen is anyone's guess.   One other thing...wealthy tyrannical governments buy off their very unhappy citizens  i.e. Saudi Arabia.   I believe China has already been doing a bit of that. 
     
    earlpearl, Aug 9, 2011 IP
  11. Breeze Wood

    Breeze Wood Peon

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    #11
    Give credit to where credit is due.....a self rewarding alliance for both countries that will continue to evolve.

    US Capitalism is trading partners with everyone and should continue.

    Despite the Gloom and Doom the world economies continue to mature.    
     
    Breeze Wood, Aug 9, 2011 IP
  12. ApocalypseXL

    ApocalypseXL Notable Member

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    #12
    To the original question :

    The US might finally start having an economy that give them jobs . Massive outsourcing and trade deficit will eventually drain you inner economy . If China has less money maybe they'll stop building nukes and stop dreaming of a global hegemony .
     
    ApocalypseXL, Aug 9, 2011 IP
  13. Obamanation

    Obamanation Well-Known Member

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    #13
    China may be wealthy, but buy off 1.7 billion people? Maybe a chicken in every pot. Certainly not a Prius in every driveway.
     
    Obamanation, Aug 9, 2011 IP
  14. popotalk

    popotalk Notable Member

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    #14
    popotalk, Aug 9, 2011 IP
  15. The Webby

    The Webby Peon

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    #15
    More likely cup noodles than Chicken.. They don't need to buy off people..
    Keeping them oppressed is a much cheaper way..

    Meanwhile China on UK riots:
    Source: The Telegraph
     
    The Webby, Aug 9, 2011 IP
  16. Obamanation

    Obamanation Well-Known Member

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    #16
    Wow! You quite literally Googled the words "leave china alone" and linked in the top three links without even reading the content of any of the three articles, only one of which was truly on topic. Were you just bored, or was it more of a "Leave Britney Alone" moment....


     
    LoL. Its the free speech dammit! That's the problem! I had this image of what the world would be like if we had declared  a truce with Nazi Germany. There would be  Hitler's son or successor, speaking loudly from the microphone as the west dealt with cyclic economic hardship: "Its the jews dammit!".
     
    Obamanation, Aug 9, 2011 IP
  17. Bushranger

    Bushranger Notable Member

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    #17
    If China collapsed it would be nowhere near as bad for them as it would be for the western world. What hasn't been mentioned is when people are broke there is nowhere to fall any further, no matter how big the crash. If 90% of the population are living below the poverty line as many claim they are then it will only be the rich ones that suffer any crash, the same as anywhere else.
     
    Bushranger, Aug 9, 2011 IP
  18. earlpearl

    earlpearl Well-Known Member

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    #18
    that might be but I've read where they have squashed certain limited protests in either certain regions or within certain industries by increasing funds to the region or pay to the workers.   sort of puttng bandaids on whatever problem pops up at the moment.

    I'd have no problem seeing the rapidly emerging China take hits....just don't see a crash anytime soon.    

     
     
    earlpearl, Aug 9, 2011 IP
  19. Obamanation

    Obamanation Well-Known Member

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    #19
    They do say a benevolent dictatorship is the most efficient form of government.... not trying to imply China is benevolent or anything like that....   
     
    Obamanation, Aug 9, 2011 IP
  20. BRUm

    BRUm Well-Known Member

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    #20
    I've also wondered how China is going to compensate for decrease in exports once its biggest clients can only afford to import fewer. Maybe it'll just print more money like our nations have been doing for some time.

    Concerning the London riots, the link you gave Webby interestingly has only Russia with the right story:

    Libyan retards:

     
    Last edited: Aug 9, 2011
    BRUm, Aug 9, 2011 IP