Ride_on Posted March 16, 2009 Share Posted March 16, 2009 I read recently that China and probably others are worried about the USD weakening and being damaged by excessive loans. Is this like a home owner? What happens when the country cannot make payment? 1. Tell the lender to fek off and never trade with anyone again 2. Submit to the lenders rule 3. Fight the bit out with what military resources you have left, until everyone submits to your rule or you eventually agree to 2. 4. Renegotiate the loan payment terms 5. Something realist like freezing of the loan and giving trade priority Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted March 16, 2009 Share Posted March 16, 2009 Depends who has more guns, when the USSR asked China back for its loans after Mao broke the 30 year joint military pact after stalin's death (the USSR gave China 30 million as a sweetner for development it would be written off at the end of the pact after 30 years). The USSR had more guns lots more guns , which made China pay it back , they paid it back by selling all their grain and taking the everything of the farmers such that it caused widespread famine of millions of peasant farmers. There was also severe deforrestation to help pay for the loan back again this cause environmental catastrophe as the land held down by roots of trees caused serious land slips. The situation is different though in that the USA has more guns , but then again China can't really project its military power onto US soil, while the US would have no hope of conquering China (too big 3rd war front and China has almost unlimited cannon fodder). And thus the US might say MAKE ME. China will probably seek to put the US dollars it is holding in the hands of other people, ie buy Russian oil , russian weapons like the Su33 (which they are already doing first carrier is ready in 2011 and nuclear subs are supposed to be ready at around 2012) use excess $ to buy more and more advanced weapons , to a point where the US can't wage another war because it has no money , and can't print it to fund another war.... Then comes a MAKE ME moment.... which is where WWIII starts. But the most likely is that the loans and dollars are renegotiated such that its like an SVA where the amount of the loans is smaller but there is a higher chance of getting it back. As China and the US are almost symbiotic in their dependency , China needs US grain , US needs Chinese slaves to lend them money. Quote Link to comment Share on other sites More sharing options...
Dubai Posted March 16, 2009 Share Posted March 16, 2009 Apologies to Cgnao. Quote Link to comment Share on other sites More sharing options...
Joey Buttafueco Jr Posted March 16, 2009 Share Posted March 16, 2009 I read recently that China and probably others are worried about the USD weakening and being damaged by excessive loans. Is this like a home owner?What happens when the country cannot make payment? 1. Tell the lender to fek off and never trade with anyone again 2. Submit to the lenders rule 3. Fight the bit out with what military resources you have left, until everyone submits to your rule or you eventually agree to 2. 4. Renegotiate the loan payment terms 5. Something realist like freezing of the loan and giving trade priority What happens when the country cannot make payment? Why would this ever happen if the debt is denominated in USD? Quote Link to comment Share on other sites More sharing options...
scott666 Posted March 16, 2009 Share Posted March 16, 2009 For a decade, Russian academic Igor Panarin has been predicting the U.S. will fall apart in 2010. For most of that time, he admits, few took his argument -- that an economic and moral collapse will trigger a civil war and the eventual breakup of the U.S. -- very seriously. Now he's found an eager audience: Russian state media.Mr. Panarin posits, in brief, that mass immigration, economic decline, and moral degradation will trigger a civil war next fall and the collapse of the dollar. Around the end of June 2010, or early July, he says, the U.S. will break into six pieces -- with Alaska reverting to Russian control. Click From those crazy old TFHers, the Wall Street Journal. Quote Link to comment Share on other sites More sharing options...
Nationalist Posted March 16, 2009 Share Posted March 16, 2009 (edited) The USA can't actually go bankrupt because all its debt is dollar denominated, and they can and are printing dollars. What China needs to do is go on a buying spree in America using the dollars to acquire tangible assets such as land, timber and mineral resources otherwise they will end up holding a trillion worthless pieces of paper. Edited March 16, 2009 by Nationalist Quote Link to comment Share on other sites More sharing options...
KingBingo Posted March 16, 2009 Share Posted March 16, 2009 Then comes a MAKE ME moment.... which is where WWIII starts. In all fairness the world is a bit over populated. If we had a nice war and found a way to put all the chavs on the front line and then made friends again it might not be so horrid. Quote Link to comment Share on other sites More sharing options...
sharpe Posted March 16, 2009 Share Posted March 16, 2009 In all fairness the world is a bit over populated. If we had a nice war and found a way to put all the chavs on the front line and then made friends again it might not be so horrid. A good communist revolution would be better. Anyone who voted tory in the last 30 years put against a wall and shot. Held accountable for Thatcherite expansion of money supply through reduction of fractional reserve requirements, leading to bankruptcy of the banks etc... Quote Link to comment Share on other sites More sharing options...
KingBingo Posted March 16, 2009 Share Posted March 16, 2009 A good communist revolution would be better. Anyone who voted tory in the last 30 years put against a wall and shot. Held accountable for Thatcherite expansion of money supply through reduction of fractional reserve requirements, leading to bankruptcy of the banks etc... Rubbish, shooting anyone who has voted Labour more than once in their life would obviously be much better. Quote Link to comment Share on other sites More sharing options...
shedfish Posted March 16, 2009 Share Posted March 16, 2009 nice to see the moderates in full flow again. hell, why not make sneezing a Capital offence... Quote Link to comment Share on other sites More sharing options...
huw Posted March 16, 2009 Share Posted March 16, 2009 The USA can't actually go bankrupt because all its debt is dollar denominated, and they can and are printing dollars. What China needs to do is go on a buying spree in America using the dollars to acquire tangible assets such as land, timber and mineral resources otherwise they will end up holding a trillion worthless pieces of paper. Because the idea of private assets being confiscated by the sovereign power on whose territory they lie is inconceivable to the Chinese Quote Link to comment Share on other sites More sharing options...
D.C. Posted March 16, 2009 Share Posted March 16, 2009 Rubbish, shooting anyone who has voted Labour more than once in their life would obviously be much better. Hmmmmm, I've never voted tory or labour. How about we shoot both of you and declare Vince Cable king? Quote Link to comment Share on other sites More sharing options...
Nicholas Cage Posted March 16, 2009 Share Posted March 16, 2009 (edited) Edited March 16, 2009 by Nicholas Cage Quote Link to comment Share on other sites More sharing options...
Nicholas Cage Posted March 16, 2009 Share Posted March 16, 2009 (edited) sorted image. Edited March 16, 2009 by Nicholas Cage Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted March 16, 2009 Share Posted March 16, 2009 Rubbish, shooting anyone who has voted Labour more than once in their life would obviously be much better. Rubbish shooting anyone who has voted Tory/Labour once in their life would be much better and reduce the population nicely. Quote Link to comment Share on other sites More sharing options...
thod Posted March 16, 2009 Share Posted March 16, 2009 The US has no reason to default it can print dollars. It must be annoying for the Americans to have to pay interest each year to the Chinese. What I would do is have the treasury print off a $10 trillion bill and have a Obama fly out and hand it over. "Here is your money" he would say handing over the piece of paper, no more interest payments. All the Chinese get is a piece of paper, but they have repaid. Quote Link to comment Share on other sites More sharing options...
piece of paper Posted March 16, 2009 Share Posted March 16, 2009 The US has no reason to default it can print dollars.It must be annoying for the Americans to have to pay interest each year to the Chinese. What I would do is have the treasury print off a $10 trillion bill and have a Obama fly out and hand it over. "Here is your money" he would say handing over the piece of paper, no more interest payments. All the Chinese get is a piece of paper, but they have repaid. Oi! Lay off! p-o-p Quote Link to comment Share on other sites More sharing options...
mightytharg Posted March 16, 2009 Share Posted March 16, 2009 When Bolivia defaulted on its debt, the U.S. president ordered the Navy to blockade their coast until they paid. Bloodshed was narrowly averted because it turns out that Bolivia is landlocked. Quote Link to comment Share on other sites More sharing options...
thod Posted March 16, 2009 Share Posted March 16, 2009 (edited) When Bolivia defaulted on its debt, the U.S. president ordered the Navy to blockade their coast until they paid. If your debt is dollar denominated, then you can't print more. The land locked Bolivian coast. Edited March 16, 2009 by thod Quote Link to comment Share on other sites More sharing options...
Cinnamon Posted March 17, 2009 Share Posted March 17, 2009 (edited) Clickand Around the end of June 2010, or early July, he says, the U.S. will break into six pieces -- with Alaska reverting to Russian control. From those crazy old TFHers, the Wall Street Journal. See also: Chuck Norris: I may run for president of Texas Edited for clarity. Chuck is serious about this btw, tinfoil stetsons all round. Edited March 17, 2009 by Cinnamon Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted March 17, 2009 Share Posted March 17, 2009 The US has no reason to default it can print dollars. rather concerned that Ireland can't print Euros,the Government may have pulled the rug from the 50K protection scheme with regard to the Bank of Ireland and that the Post Office should have been partnered with a foreign bank in the first place. Quote Link to comment Share on other sites More sharing options...
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