Re: [MLUG - DISCUSSION] Feingold's comments on China and the U.S. re: Tibet

[Mike Miller <EMAIL:PROTECTED>]

On Sun, 6 Apr 2008, Jim Locke wrote:

> http://www.thenation.com/blogs/thebeat?bid=1&pid=307126
>
> I found this story refreshing.  It's good to see some are willing to 
> speak out on China (the government). I find it completely unacceptable 
> we are so intertwined with China regarding trade and debt.

China has massive power over our economy:

http://www.cbsnews.com/stories/2008/04/04/60minutes/main3993933.shtml

   China holds half a trillion dollars in US Treasury bonds. For that
   reason economist Navarro says they have us over a barrel. If they dont
   like our behavior, he says all, they have to do is dump all their U.S.
   investments. Its known as the financial nuclear option.

   "What would that do? That will cause interest rates to spike. Mortgage
   rates to spike. Inflation to spike. The dollar to go through the floor.
   The stock market to go into chaos," Navarro said. "We would be in deep,
   deep, deep trouble."

   "The nuclear option, financial nuclear option is Chinas pulling all its
   money out of U.S. treasuries,"

I guess there are good reasons for them not to do it, but I don't like the 
feeling of knowing they have that kind of power.


> It's high time we practice what we preach if we want to continue supporting
> countries that align more with our stated values.
> Unless we are really just in it for the money and cheap products, then it
> would be nice to say so.

Right -- I think you've discovered one of the central problems of life. 
Sometimes lying pays so well that people feel they can't afford to tell 
the truth.  But politicians discovered the value of lying a very long time 
ago and I guess we can now think of it as a time-honored tradition.  In 
this way they have their cake and eat it too.  They aren't going to start 
telling the truth (i.e., practicing what they preach) any time soon.

Mike

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