Why It Was A Bad Idea To Allow America To Be Owned By Foreigners

[Praxeas]

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.


Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.



Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.



http://www.telegraph.co.uk/money/mai...nchina107a.xml

[CC1]

At least Chrysler is once again an American company!!!!!!!!!!!!!

[Rico]

Originally Posted by Praxeas

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.


Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.



Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.



http://www.telegraph.co.uk/money/mai...nchina107a.xml

The Chinese will hurt themselves more than us, if they do something like this. They are always making threats to do this or that. It's their style of negotiating. I've seen North Korea use the same tactics with the development of weapons grade nuclear material. They threaten to do this or that as a means of negotiating.

[Rico]

Originally Posted by CC1

At least Chrysler is once again an American company!!!!!!!!!!!!!

Not as long as so much of the materials that goes into automobiles is imported. The days of an all American made set of wheels are sadly long gone.

[Hesetmefree238]

Originally Posted by Praxeas

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.


Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.



Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.



http://www.telegraph.co.uk/money/mai...nchina107a.xml

It certainly puts us in a bad position, but we would also be in a bad position
if they suddenly quit buying our treasury bonds. This is due to the fact that
our government spends more than what it receives in tax revenue. The only
way we can fund our deficit spending is through the selling of treasury bonds
which brings in the needed money to fund the deficit. Of course the best
solution would be to cut spending to equal what we receive in tax revenue.
This would solve the budget crisis, and we would not need the Chinese any
longer to buy our debt. On the flip side if we cut spending drastically at this
point it would possibly move us into a recession. What an economic tightrope!

[CC1]

The USA exporting almost all of it's manufacturing is a huge mistake. I am not a big believer in the benefits of an open world trade policy and economy.

I know the idea is that this interdependence will cause more cooperation and strengthen the reasons for getting along rather than war BUT at some point it means that we are no longer independent.

If I were king of the USA we would begin the process of making it difficult for foreign countries to own American companies, give disincentive to companies moving manufacturing offshore, and speed up the development and implementation of alternative fuel options for vehicles. This last would be to end our dependence on outside sources for oil. That should be a priority based on national security.

[Rico]

Originally Posted by CC1

The USA exporting almost all of it's manufacturing is a huge mistake. I am not a big believer in the benefits of an open world trade policy and economy.

I know the idea is that this interdependence will cause more cooperation and strengthen the reasons for getting along rather than war BUT at some point it means that we are no longer independent.

If I were king of the USA we would begin the process of making it difficult for foreign countries to own American companies, give disincentive to companies moving manufacturing offshore, and speed up the development and implementation of alternative fuel options for vehicles. This last would be to end our dependence on outside sources for oil. That should be a priority based on national security.

That would mean Toyota, Honda, Subaru, and Nissan would all have to pack up and scram.

One thing that can be done to spur American manufacturing would be to change some of our regulations. When I went to truck driving school, a jillion years ago, one of the things we learned is that it costs more to ship a pair of jeans from Houston to Dallas than it does to ship the same pair of jeans from overseas.

I like the idea of developing alternative fuels. However, it will be interesting to see the impact producing these alternative fuels will have on our environment, namely air and water quality.

We could stop our dependence on foreign oil overnight, if it wasn't for the tree hugging owl lovers in this country.

[CC1]

Originally Posted by Rico

That would mean Toyota, Honda, Subaru, and Nissan would all have to pack up and scram.

One thing that can be done to spur American manufacturing would be to change some of our regulations. When I went to truck driving school, a jillion years ago, one of the things we learned is that it costs more to ship a pair of jeans from Houston to Dallas than it does to ship the same pair of jeans from overseas.

I like the idea of developing alternative fuels. However, it will be interesting to see the impact producing these alternative fuels will have on our environment, namely air and water quality.

We could stop our dependence on foreign oil overnight, if it wasn't for the tree hugging owl lovers in this country.

At least those companies have not bought American companies. They have just build factories here. My gripe is when our laws allow major American corporations to be bought out by foreigners. That should be against the law.
Mercedes should never have been allowed to buy Chrysler.

Alsmot 15 years ago I was a member of a group that hosted specialists on business and trade at our monthly meetings. These were world class folks. Back then I heard one guy predict how multinationalism of companies would evolve and everything he predicted has come to pass.

[Ron]

I thought Americans believed in free trade?
Or is it just when it is in your favor?

[RevDWW]

Can anyone say "One World Government"?