Fears of dollar collapse as Saudis take fright

[SUBMAN1]

Originally Posted by Skybird

Not often I disagree with a posting so totally and completely!

In a short while, China will be almost unattackable by economical means, and not few analysts would claim that it already is right now. It is autark concerning all goods that are needed by the population to survive, especially food production, agriculture. and if it ever starts to get rid of it epical, monumental, biblical dollars reserves, that will a.) deliver a direct blow to the US economy and finance markets that the US has nothing to defend against and cannot compensate, and b.) it will cause a global avalanche of dollar sales that will increase the American catastrophe even further. since some years, I consider the American willingness to allow this massive vulnerability to grow over so long time to such ridiculous peaks as maybe the greatest strategical mistake in all it's history. I say that without any malicious joy, since that desaster for the US will cause massive disturbance for the european and especially the export-heavy German economy as well. but instead of adressing this lethal weakness, america ignores it and carries on with business as usual, obviously assuming that all nations worldwide will continue to invest into the american capital market for the rest of all time - no effort to seriously consider a strategy to counter this monumental thread. Instead a yelling "Weiter so!".

The Chinese play it silent, and politely. but their determination is as adamant as that of any Western power - maybe even tougher.

What can America do if the Chinese decide to get rid of their dollars (why do you think they have accumulated them so patiently if not as a possible weapon and threat against the US...???). In short: it can do nothing. there is no military option that could be in any way "won", and there is no economical response to counter that move, or to retaliate. That simple. China is unattackable, due to its vital autarky, and its geographical size, the ongoing modernization of it's huge forces, the alreayd great poential of it's navy (that I consider to be constantly underestimated), and the simple fact that it has nuclear bombs and missiles. Sorry to have hurt your egos. The only thing that seriously works against them is demographics. Sounds queer, but the one-child-policy is producing the unwelcomed late effect of an over-aging population.

Thats about the biggest underestimation I have read yet. AMerica can rebound, especially since it doesn't have the Chinese problems. China knows this and knows that we are married at the hip at the moment. Chinese cannot sustain their economy either, especially due to its overaging population. THere is a whole thread on that in this very forum. China's got big problems so any economic fight will end up with them as the ultimate loser, and America will go about its business and regain strength eventually.

-S