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Originally Posted by pan6467
Who owes whom? The trade deficit shows otherwise. The fact that they own a huge amount of our Treasury debt says otherwise.
How do you figure we pull their strings? Their economy wouldn't crash, they need us to sell their goods to, but they can very easily start selling to Russia and the EU. The market maybe smaller but those countries aren't in as much debt and the markets are fresh and eventually will surpass the US. Especially if interest and inflationary rates here go up and people can't buy as much.
I think China holds the cards, our government is broke, we are a people that the average family is $1000's in debt and wages are dropping.
China is doing to the US what we did to the USSR. Bankrupting our government and capitalizing on our weaknesses. Either we adjust and figure ways to reduce the trade deficit or we accept the fact China owns us.
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China can't sell to Russia - Russia has no money! They're not buying squat. The EU is already China's largest trading partner, the US second and Japan third.
The people who control the market are the people who do the buying, not the people who do the selling. China cannot "replace" the US as a trading partner. The US, in a cold second, could replace China with Vietnam, Thailand, Malaysia, Indonesia or any combination of a bunch of different nations who would drop a nuclear bomb on their neighbours for the opportunity to business with the US in a similar fashion.
Buyers set markets, not sellers. China cutting off trade with the US would the US in the short term; the US cutting off trade with China would possibly tear that country apart.