US debt hits 14 trillon.Dollars

[below_freezing]

You can believe it or not... but I hope that the American economy stays strong.

You are our largest customer after all. No one else can buy our products in such volume.

If you guys crash, we will be screwed as well.

The net effect of the US economy on China is the same as if those goods were dumped into the ocean.

If the US disappeared from the globe tomorrow China would be far better off. Or if US and China embargoed each other, we'd be better off. It would be the immediate return of Taiwan (not only because no US protection, but because Taiwan's export economy would collapse immediately since most export contractors are Taiwan based). Just that the Taiwanese export lobby has the ear of top guys in Beijing.

I also don't know why white Americans think there's a dollar peg. There's been no dollar peg in China for half a decade.

 

[Respect4Respect01]

obama and his government does not have to worry, only common people are worried.

 

[Infiltrator]

If Americans can not reduce their domestic consumption (for fear of hurting their consumption-driven economy), then there is one solution that I'm sure most of the people here on this forum would agree with.

America can reduce its overseas military presence, and save hundreds of billions of dollars every year.

We all know that's not going to happen even if our citizens want it. It's just reality unfortunately.

 

[Raja.Pakistani]

The USA debt struggles originated in the habit of living off of credit cards.

 

[jeypore]

Anonymous

Your certification doesn’t mean squat to me
China has a advantage in manufacturing not solely because of cheap labour but also because they have supply chain advantages
eSupplyChain.eu - Supply Clusters: A Key to China

I wish Somebody said something about squat before labouring after the books I had to read for the test..........

Nevertheless, Cheap labour is one part of the Manufacturing process and the Supply chain is the other. Who controls the Major Supply Chain in the world today? Meaning Which companies not Gov't.... You will be surprised when US compaines pops up more often.....

Again you are missing the point, it does not matter who the order goes to but because the retail is now totally dominated

Mr. don't care were the certification comes from, Where does the domination of Retail come from.... Americans you moran. If Americans stop buying where are you shipping the product, do you know what major percentage of your own countries goods are shipped........

 

[jeypore]

Obambam

If America is as successful in economics as China is, then there will be no talks or speculations at all about China or India threatening America's position as the number one economy, instead, we'd be seeing America's companies all over the world and beating Asian companies out of Africa and Latin America. Fact is, America is already behind in the war of economy. They also have a poor laid out structure which explains its $14 trillion+ debt.

Your are mumbling here and it was hard to understand what you are saying, for example at one point you are saying "American compaines are beating Asian compaines out of Africa"..... Nevertheless regarding the 14 trillion you speak off, it is not American companies debt, but more so of American Gov't, and that directly relates to lot of other factors and I can go on discussing this for years in this forum........ Let me simplify America or even India (democratic countries) for that matter for you, the economy of the country is not controlled by the gov't , it can only regulate it or generate more taxes for it's own benefit!!!!!!!! you get it being Chinese.........

Then come forward and elaborate on how the American blue chip companies can make more money by moving its factories back to America?
Please also tell us more about the differences in cost and productivity.

If the American Gov't removes Tax burdens on the blue chip companies, then it would move back.... There are numerous local example of this scenario, for example Honda company is manufacturing there highest selling car in Alabama because of tax incentives and haven given by the state. Another example, BMW is manufacturing there sports car (Z3 series) in South Carolina because there are protected from taxations from federal and states.......
These are just a few, but like I have said before, the economic scale in the first world country can outdue China.

Fundamental of Economic Scale is the product itself, and it's worth in the market........

Thanks..

 

[casual]

U.S. needs to cut military spending and medicare. it's the only way to balance the budget.

 

[King Solomon]

Cut military spending

Close all military bases, divest the military assets abroad

Bring troops home

Make CIA accountable for its expenses and actions to the congress

^ 4 simple steps required to revive US economy (or at least, stop it from falling over the edge). Unfortunately, the congress is run by a bunch of greedy politicians who are busy at foreign power projections rather than caring about their own citizens.

 

[casual]

Cut military spending

Close all military bases, divest the military assets abroad

Bring troops home

Make CIA accountable for its expenses and actions to the congress

^ 4 simple steps required to revive US economy (or at least, stop it from falling over the edge). Unfortunately, the congress is run by a bunch of greedy politicians who are busy at foreign power projections rather than caring about their own citizens.

OR

you can just leave old people to die

 

[Juice]

The net effect of the US economy on China is the same as if those goods were dumped into the ocean.

If the US disappeared from the globe tomorrow China would be far better off. Or if US and China embargoed each other, we'd be better off. It would be the immediate return of Taiwan (not only because no US protection, but because Taiwan's export economy would collapse immediately since most export contractors are Taiwan based). Just that the Taiwanese export lobby has the ear of top guys in Beijing.

I also don't know why white Americans think there's a dollar peg. There's been no dollar peg in China for half a decade.

Lol, without Americans buying your trinkets, you would be back to eating each other within a month.

 

[OrionHunter]

Should we be surprised? On September 10, 2001, Secretary of Defense Donald Rumsfeld held a press conference to disclose that over $2,000,000,000,000 in Pentagon funds could not be accounted for. Rumsfeld stated: "According to some estimates we cannot track $2.3 trillion in transactions." According to a report by the Inspector General, the Pentagon cannot account for 25 percent of what it spends!

There's nothing but a chaotic system in the US of A that operates without proper checks and balances. Did this missing amount go into funding Top Secret Black Projects so that it does not come under congressional oversight? How much more has been whisked away for this purpose?

 

[ZhengHe]

Lol, without Americans buying your trinkets, you would be back to eating each other within a month.

America buys everything from China, but China doesn't sell everything to America, and with 14 trillion in debt you shouldn't even have food on the table lol.

US is like a dying man on life support, guess who the life support is? That's right. Be arrogant all you want but just know that when China pulls the plug the US will collapse faster than an obese American suffering a heart attack.

 

[Safriz]

The USA debt struggles originated in the habit of living off of credit cards.

sood kaa nizaam.. FAILED

in english.....Economy based on compound intetest ..failed. same goes for europe.

 

[Anonymous user]

I wish Somebody said something about squat before labouring after the books I had to read for the test..........

Nevertheless, Cheap labour is one part of the Manufacturing process and the Supply chain is the other. Who controls the Major Supply Chain in the world today? Meaning Which companies not Gov't.... You will be surprised when US compaines pops up more often.....

Back this up with a source or article and at least articulate your thoughts on how it fits in with your theory

Mr. don't care were the certification comes from, Where does the domination of Retail come from.... Americans you moran. If Americans stop buying where are you shipping the product, do you know what major percentage of your own countries goods are shipped........

Missing the point again, of course I know the Americans are one of the biggest consumers of retails goods. The fact is companies like Wal Mart who dictate who to buy from which leads to the benefit of manufacturers (in China or elsewhere). Unless you are telling me Americans will boycott Wal Mart due to this I hardly see what your rants are about.

Also you have yet to explain your theory of taxation on Blue Chip companies and the benefits it will bring to America with its current deficit or better yet negate the articles I provided about Blue Chip companies evading taxes.

I do however see in your new post to Obambam about lowering taxes to attract manufacturing back to the US. How does it all fit in??

Btw its spelled Moron not moran dipstick, if you wanna insult someone least spell it correctly to show some sophistication.

 

[Anonymous user]

Current Debt Situation Is Like Sub-Prime Crisis: Pro

Monetary policy has been "the great enabler" that central banks used to keep interest rates at "absurdly low levels for years now" and this has encouraged politicians to believe that sovereign debt is "a lot cheaper than it really is," David Stockman, former director of the Office of Management and Budget, told CNBC Tuesday.

"Politicians have not been willing to take the tough steps to impose the pain, the austerity and the tough trade offs that are required to control this," Stockman said.

But things are changing as the Chinese aren't buying as much sovereign debt because they have to take care of "their own inflation spiral," and the Federal Reserve will have to end its second round of money printing soon, he added.

"The current situation is like the sub-prime mortgages crisis of a few years ago," Stockman said.

Monetary stimulus, or quantitative easing, is officially due to end at the end of the month and talk of more stimulus has been rife, though to date Ben Bernanke, Federal Reserve chairman has kept silent on the issue, despite the debt ceiling deadline of August 2 nearing for Congress to agree on raising it further.

“The day of reckoning is rolling in, it may not be today or this week or this month but we’re very much towards the end of what can be sustained," Stockman warned.

"In other words the balance sheets of the big countries have been used up. We’ve used ours, we don’t have any balance sheet room left. The ability of the central banks to monetize this debt which they have is coming to an end," he added.

“The Fed and China have been the biggest purchasers of debt, that’s going to change. In the bond markets real investors began to realize that the politicians in the United States are just faking, that this Biden group meeting has no hope of coming up with a plan that will make a difference," Stockman said.

"Once it is clear that the Republicans will not agree to tax increases, the Democrats are dug in against any cuts in social security, it becomes evident to the market that the risk of owning and holding US government paper is far higher than it appears to be and far higher than the rigged rates we have today,” he added.

Extracted from CNBC Pro (subscription only)