T Nation

China Cancels American Credit?


#1

If this is true, what will this mean to the American economy??

http://economycollapse.blogspot.com/2009/05/china-cancells-american-credit-cards.html


#2

If the federal government loses a big chunk of foreign funding and does not cut spending accordingly, then they'll have to make up the difference through taxes. If that doesn't cover it (and/or kill the economy in the process), then the U.S. will default on their borrowing, and then things would get very ugly.

In the best case scenario, this will serve as a wake-up call for the government to cut spending, reverse the growth of government, and start paying off the debt. The worst case scenario is the end of the U.S. as we know it, with the nation most likely fracturing apart similar to how the U.S.S.R. did in 1991.

Some skeptics will read that worst-case scenario and scoff. Don't. This is a very dangerous time for the U.S., and I truly believe that our nation is on the brink of extinction if we don't handle this correctly.


#3

It's time for people to stop borrowing. Cut up those credit cards and start paying for what you need and want. I have never had a credit card in my life. Now I don't have all the toys and other shit others have.

The one thing I do have that others don't is Zero Debt. I know me and what I would do if someone gave me $10,000.00 in credit, go into debt to the tune of $10,000.00. I'm not different than others, I just choose a different path.


#4

Which do you think is more likely if this scenario with China is indeed unfolding:

  1. The U.S. government raises taxes.

  2. The Federal Reserve lowers interest rates to negative 5%.

  3. The Federal Reserve will print more money.

  4. America will form a union with Canada and Mexico and create the Amero dollar.

  5. The U.S. will use it's military muscle to maintain it's position of power.

  6. The U.S. government will finally cut it's outrageous spending practices.


#5

No.4, not going to happen. The USA has totally screwed us on the free trade agreement. Plus their fucked up war on drugs will not be tolerated in Canada. Plus your gun laws do not fit our life style. I can't see the USA giving up any of these.


#6

I agree with you on that. I've had one card since 02 or 03 and I've paid whatever balance is on my card monthly. The only bills I have are the ones you can't really get rid of insurance and at the moment rent. I'll be glad when I can save up enough money to buy some land and then start saving for a house. Having the engine on my Trans Am go out right after the warranty expired set me back a few....


#7

  1. If they do they better be prepared to do #6 right along with it.

  2. Wouldn't this increase the governments debt even more?

  3. Inflation.

  4. This idea is already on politicians minds.

  5. That can only last until people stop lending us money.

  6. This is the ideal answer, sadly it would probably come with #1 also though.


#8

How exactly is that different from the present?


#9

Endless money forms the sinew of war.

Cicero

Armies march on their stomach.

Napoleon


#10

It's one thing to saber rattle with Iran, but it's a whole other ball game if the U.S. does the same to China.


#11

I think the only way out is to print more money and we all know how that's gonna end.


#12

Frankly, probably not that much.

It will mean the end of American hegemony and the end of the dollar, but I think that the American economy will be relatively quick to restructure itself once it has the federal government and the enormous military spending of its back.

Europe however has made somewhere up to 30-50% depending on the state to survive and the collapse of the European welfare sytems will be most interesting.

So, you wasting money on military adventures will most likely be a habit that is much easier to kick than a welfare state because it is easier to stop killing people for fun and sport than lets say, eating and heating your apartment.


#13

As stupid as one part of this statement is, the premis is correct. Foriegn aid and overseas military expenditures should be cut. We simply can't afford it and the American public isn't going to give a shit. There is no way they can start taking away domestic entightlements. The only way we lose domestic programs is complete collapse.


#14

So, the Chines just stop being our buds just as we need them most.....
I hope our leaders NEVER fail to remember that.

It sounds to ME like they are trying to undermine us and watch us fall......(fuckers)


#15

For the greater good we need to pay more taxes.


#16

We don't need them. We need to quit spending money we don't have. You can't blame them for not lending us more money. They should have cut us off long ago. I doubt they will do anything overtly devisive. I am sure they would like to get paid back the money they are owed.


#17

Your kidding, right?


#18

http://www.youtube.com/watch?v=GGRd2mkcjdI China also has a shortage of women: http://www.google.com/search?q=china+shortage+of+women&rls=com.microsoft:en-us:IE-SearchBox&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7TSHB


#19

Excuse me?

They work hard, delay consumption and even produce your cheap goods all because they trusted your promise that they will be paid back.

You think you have any right to be lent money from someone?


#20

Is complete collapse possible?