8/14/2007

3 bubbles to destroy China

William Pesek wrote another article in the Today paper, one of those that prayed that China will collapse tomorrow. Nothing worth reading as the doomsayer's mindsets are predictable. I would like to write an article about the 6 bubbles that will destroy America. 1. The huge trade deficit that they cannot afford to repay. The greenback will soon become green banana money. 2. The huge expenditure on war and the defence budget. 3. The high consumption of Americans. They drink more petrol and eat beef that is 5 times bigger than the Asians. Mother earth just cannot afford to keep feeding them without going bust. 4. The high wage expectation. They think they are the chosen people that can always command a higher pay than other aliens. This privilege is only reserved for citizens of Paradise Island. All their industries will move out in a matter of time. They are simply uncompetitive. 5. They have made themselves the enemy of the Arab/Muslim world. 6. They think they can continue to fight wars everywhere with impunity. I could have added more. But these 6 bubbles, each alone, could cripple the American economy.

8 comments:

Abao said...

The 6 bubbles that you mentioned seems to be already crippling the American economy.

Anonymous said...

China is the world's largest holder of USD. If the USD becomes banana money, Chinese wealth will also turn into bananas.

redbean said...

asians must write and speak up or allow the west to plant ideas in their minds and decide on what asians read and how asians see things and think. many western writers are just doing that, probably paid by strategic agencies, to subtly influence the minds of asians without the dumb asians knowing.

and asian media are helping them to do so without knowing as well. the only agency that does present an asian perspectives, seeing and talking things the asian way is the CNA and al jazeera. did i get the name right?

the rest are mindlessly under the influence of western agenda setter. they set the agenda, what to write, what are the issues that are important to them, what they want the asians to think and how to think.

sad that today we are still being colonised mentally.

Anonymous said...

since the time of red indian movies we'd been growing up with dozes of white supremacy idea. now that we can see better, they are beginning to appear more like whited sepulchre.

redbean said...

holding on to the greenbacks is like holding on to stocks and bonds. all the countries financial experts are closely watching the movement of the greenbacks and its diminishing value. they are all making plans to jump ship and hedging. many would be slowly switching to other instruments to protect themselves.

if or when china unload the greenbacks, they must have weighed the consequences and balance the odds and cost/benefit equation. sometimes monetary loss can be sacrificed for political gains.

it is a very complicated issue and you can't see the chinese dumping all their us treasury notes and greenbacks just because they don't like what bush said. all these are carefully thought out and any actions to be taken will not be taken in the heat of the moment.

Anonymous said...

First and foremost oil is traded on NY and London in US$ and the Chinese need US$ for now. Russia, Iran and Venezuela were trying to start their own oil exchanges based on the Euro, and of course American is dead set against it. Saddam Hussein had this idea, but nobody knows how far the plan progressed before he was removed.

If these major oil producers do their oil trade in Euros, the role of the US$ will decline and with it the American domination of the world economy, because the whole world economy runs on oil.

Matilah_Singapura said...

"Give me control of the money, and I care not who rules" — Baron Rothchilds (Famous Jewish Banker)

The fundamental problem is that the medium of exchange—money—is no longer from "The People". It is purely from the state, and the state has made it illegal to use any other form of medium for exchange.

We have lived 35 years or so on a paper money standard. All the "bubbles" you mentioned could not have occurred (or at least, it is highly unlikely) if we were on sound money standard or did not have legal tender laws where the state forces you to use its currency.

Remember the Golden Rule:

He who has the Gold makes The Rules

redbean said...

rothschild is out of date. today power is in the hands of those who holds political power backed by the barrel of the gun.

economic power can be hijacked by political power. malaysia, indonesia and recently thailand, are good examples.