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Author Re: OT but must read!
Gerry Quinn

2006-08-03, 3:47 am

In article <447d61c5$0$31638$e4fe514c@news.xs4all.nl>, mcvmcv@xs4all.nl
says...
quote:

> In comp.sys.ibm.pc.games.strategic pigdos <NA@nowhere.com> wrote:
>
> 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.


In short, China and the US are looking after their own interests, and
Europe et al would so much prefer if they did what was better for
them...

- Gerry Quinn
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