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| In comp.sys.ibm.pc.games.strategic pigdos <NA@nowhere.com> wrote:
quote:
> Loans? From China? To the US? LOL.
Really. The more money China loans to the US, the more cheap goods the
US can buy from China, and the more the Chinese economy grows. It's a
short-sighted, unstable, yet mutually beneficial relationship. Ofcourse
this can't go on forever, and when it stops, the US economy and the dollar
will collapse and drag much of the rest of the world with it.
Ofcourse the collapse of the dollar will mean that much of the US debt
will evaporate, and foreign moneylenders don't want that. So the big
question is how long they will dare to lend money to the US. The more
they lend, the less the chance they'll get it back, but when they stop,
they'll lose much of the outstanding loans. And so far, it looks like
China cares the least about that risk. They probably hope their booming
economy will make up for it.
mcv.
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