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Monday, December 6, 2010

Chickity China The Chinese Chicken

Thomas Lindaman writes:

I've often said Leftists aren't good with an economy because they don't understand the basics of economics.

TARP has been an overwhelming success. The same goes for the Stimulus, which has apparently saved somewhere around 3 million jobs. The car bailout turns out to have been a good thing too. The bailouts kept us from going off the cliff. The lack of bailouts in Europe still have them toeing the edge. History will show who was right.  Healthcare reform will also ultimately save this country a good deal of money, if you self-absorbed corporate anarchist bastards don't manage to kill it in the House.

Essentially the Republican plan is to keep things just the way they are now--no better, no worse--until they can get into office in 2012 and take credit for fixing the economy. If the American people have to suffer, so be it. After all, we had the gall to elect a Democrat in 2008, we deserve whatever befalls us.

Republicans are the party of people who don't know how to manage their (inherited) wealth, and rapists. The rapists thing really surprised me, but they are what they vote.

Republicans understand the basics of economics? Are you going to fix it the way you fixed it last time?

Almost Zero Job Creation Under Bush

http://www.businessweek.com/the_thread/economicsunbound/archives/2009/06/a_lost _ decade_f.html


Stock Market Was The Worst Ever Under Bush


Bush Produced The Worst Economy In Decades


IMF Declared America To Be In A Depression 2 Weeks After Bush Left Office


But tell us more about "the basics of economics", you REPUBLICANS you.

This was made abundantly clear recently with a quiet little event that caught very little attention.

The EU's economy is tanking as badly as ours is. To help matters, America is sending money to some of the EU's banks as a means to help them along. Of course, the first big question is where we are going to get the money since we're still recovering from our own economic downturn. The short answer is...we don't know.

There's another question that should concern us all. As we've seen, the dollar has been losing its value in recent years. While the Left said it was bad under George W. Bush, the Left has said it's great under Barack Obama because a weak dollar stimulates trade by making our products cheaper. However, no one will be forced to buy our products, even if they are cheaper because it's a free market. People have a vested interest in buying products at a lower price, but they're not bound to it.

Now, for the question. What impact will a weak dollar have on the money we're sending to the EU? The answer lies with the Chinese. Right now, China owns a lot of our debt, due to the political and economic bungling of both President Bushs, Bill Clinton, and now Obama. By granting Most Favored Nation status to China, we've given them access to our economy.

And here's the punchline, kids. China will use that against us.

At any time, China can call in our debt, meaning we either need to pay them in full or they essentially own us. And they have told us to watch our spending in recent months. Extending a monetary helping hand to the EU isn't exactly being miserly, especially considering how poorly the dollar has fared against the Euro.

Now for the question. What would happen if China decided to call in our debt after floating a loan to the EU?

The short answer: nothing good.

The longer answer: it would ruin two major global economies, leaving China as a sole economic superpower. America would be unable to pay its debt to China and unable to pay its loan to the EU. The latter, in turn, would cause the EU's economy to continue its death spiral until it either pulled itself together and pulled out of it or crashed and burned. The instability of the EU right now makes the latter the more likely outcome. China will have beaten us and the EU without even firing a shot.

So, does anyone else want to rethink our generosity to the EU?

Well, the United States could do the same thing and "demand payment" of all our debts. 

It won't happen.  Not by us or by China.  Because we both know that doing so would destroy the worldwide economy.

How could China remain an economic superpower, if the economy of the world has collapsed?  It would ruin their own economy, as well.  Fortunately China understands economics better than right-wingers.

As far as the EU: Allies help each other out, that's what allies do.  Helping to stave a worldwide economic collapse not only helps them, it also helps us.

And one last thing: It's a loan.  We're not just "sending money."

I say let's finally start calling out the Chinese for the problems their currency manipulation has caused for industrialized economies all over the world. America could use a good scapegoat these days anyway, and the Chinese are infinitely more deserving than the (very ugly) anti-Islam sentiment going around lately.