$ for C is dead now we have $ for electrical applanices

[Massive Lee]

The US probably holds China by the ballz too, as a huge importer of Chinese products. If China starts playing shit games with the US, there will be economic retaliations. If US stop buying Chinese, then grapefruit faces won't be smiling anymore... The 6 month old crisis has put many Chinese factory workers out of work. They have no money, they can't pay the new appartments they just purchased. The whole Chinese banking and economy colapse... Well, this is déjà vu, right?

[Turf1600]

Lessons learned from the great depression. Govt spending stimulates the economy. The only difference is the govt had money back then.

[Vedubin01]

The US probably holds China by the ballz too, as a huge importer of Chinese products.

Im sure as the US dollar falls, the Chinese will second guess selling products to the US. Just like you LEE, when the Dollar fell against the Canadian Dollar you raised your prices on your kits. Soon America will not be able to afford Walmart due to the collapse of the US currency!

[kishg]

this is nothing new. these types of rebates for energy efficient appliances have been around for along time. I remember we got one when we bought our new LG washer/dryer set a few years ago. this seems to have been added under the stimulus bill. no need to get that excited about it. however i think i will look into buying a new stainless steel refrigerator :)

[Massive Lee]

Just like you LEE, when the Dollar fell against the Canadian Dollar you raised your prices on your kits.

Started Massive with a US$ at 1.35cdn. It went down to 1 to 1 two years ago. Now it is $1.10cdn. What do I do? Raise prices and risk loosing business. Or hold it as long as I can? Chinese will probably prefer to make 1% profit rather than making no profit and loosing a market. Even if they make 0% profit with the US, at least they have that market to help them run the same factories than produce parts for Europe where they can make profit. They can use the volume from the US to subsidize the European production.

[Vedubin01]

you did raise prices...... or for a short time you did due to the Dollar falling against the Canadian dollar.

If it becomes more to produce and sell the product than what the product is worth, then the Chinese will quit supplying or the US will quit buying. The Chinese are doing what they can to protect their interest but if they are losing revenue due to selling in the US market they will start to pull out or cash in their debt before they are left holding paper.

[wildstoats]

Dont be so naive, when the dollar falls as the world standard, China will be left holding nothing but worthless paper. Its a good way to get one's self into a war.

Or what happens when China does not want to purchase any more of our growing debt?

Well China not buying more of our debt and calling for payment on existing debts are two different issues. The reason China won't call for repayment (at least not right now) is that China is one of the top holders of USD. They can't afford to let the dollar tank until they are out of it. This is actually what they are doing right now. The Chinese are stocking up on all kinds of raw materials and they are using USD to buy them. It's basically win-win for them. They get into a more stable store of wealth and unload shaky dollars.

What happens when China doesn't want any more of our debt? Well I think that's pretty obvious. The country implodes under the weight of it's own debt. That's not news to anyone.

[Vedubin01]

China buying all things American will give them political power as well as the wealth of the US as a whole. In the extreme China then could technically claim the United States as an Occupied territory or even worse.

[wildstoats]

China buying all things American will give them political power as well as the wealth of the US as a whole. In the extreme China then could technically claim the United States as an Occupied territory or even worse.

Explain this please.

[Farbin Kaiber]

You just don't get it. do you? The concept is akin to the US getting foreclosed on. Imagine the US not paying their mortgage, and the "Bank" (China) repo's the property.

[kishg]

Explain this please.

either too much cheap beer or lsd.

[wildstoats]

You just don't get it. do you? The concept is akin to the US getting foreclosed on. Imagine the US not paying their mortgage, and the "Bank" (China) repo's the property.

Perhaps it's just too insane for me to wrap my head around. So the implication is that because we owe China money, they are going to "foreclose" on us and take our land? My question is how exactly do you think this is going to happen? Are they going to go to war with us and occupy the United States? Are the politicians going to sell part of the country and make it "New China"? I have heard this "China is going to repo the US" argument before but no one ever feels the need to explain how they think this is going to happen which leads me to the conclusion that they are full of it and just spreading FUD.

[Massive Lee]

You are broke. Nobody will lend you money. And you owe a few months rent to your landlord. He will probably ask you politely if you are willing to give him head and be his slave in exchange of monthly payments...And you have no choice.

So bend over buddy.

[Farbin Kaiber]

When the dollar loses so much ground by hyperinflation to try to balance the deficit, the value of "paper" (loans/mortgage) owed in dollars to other countries (China) becomes worthless, and they will be left with a situation where they need to get their value back somehow so they could, in theory send an "enforcer" to lay down some requests, of which could be land in trade for lost equity. Being as the dollar is tied to nothing other that the "Societal" value placed on it, when it collapses, there is no other backing vlue to transfer other than territory.

[Optimator]

When the dollar loses so much ground by hyperinflation

I stopped reading right here.