China raising its central bank rate and possibly slowing down sales of strategic materials is creating a bit of Wall Street nervousness if falling 100 to 200 points can be called nervousness.
What is really going on and why is China (modestly)decoupling from the US economy and its dollar backing? Could it be they are increasingly worried about a major default and want to limit their exposure, slow down the binging American customer charge account and diversify away from their huge holdings of US dollars as debt collateral?
Their problem is that (USA)debt isn't as liquid this year as it might have been, now that there is a deepening persistent recession. Don't worry, $$$ trillions are NOT (more over the fold)
going to be vanishing or disappearing .....
because that would collapse the dollar if pulled out of our economy, and the bright side is that debt is next to worthless at that point and China knows it.
It isn't that we are deadbeats, it is that the lack of investment and production in America is making our economy relentlessly negative, and we can't pay our past and current bills. Maybe we could sell stuff like our parks and our beaches and other things and become a tourist destination for the new Chinese middle class, the one that grew up just as fast as ours went south. On the bright side, Jobs! Jobs!
coming to a new tourism industry all over the privatized and sold to overseas Asian buyers and supporting a new clientele. We'd see....
"There are new jobs out there, for hotel clerks, and restaurants and tourguides and museum docents and perhaps car rental agents, or gaming casino croupiers."
The Las Vegas model could be in play all over the country as our new owners will want of course trainers and personal masseuses and entertainers by the millions as that big middle new class gets to travel and flaunt and show off its its new wealth.
Think on the bright side though. We will be poor, but honest and proud. Just as we hard working middle class folks used to be in really good jobs, like new serfs we will get to do all the laundry and cleanup and maintenance in the new tourist sites the Chinese will be creating and investing in (because they don't have room any more for recreation since they brought over thousands and thousands of formerly American companies and set them up in China.
Oh well, it's not like we couldn't see this coming. A few decades, nay just a few years ago it was us as jetsetters and globe trotters enjoying exotic locations and interesting people who spoke a foreign language.
Now as we downsized and yet again tighten our belts, we can work at home and see things from the other side.
We truly then will know how the other half lives. Because we will be living it ourselves. not as a test, not as a day in jail for charity, but as our new reality.
We could fight a war, but killing millions of people and scorching the earth all around the world just makes everybody miserable.
Question: where is the leadership to avoid these horrific scenarios coming from?
They are needed stat, at ground Zero, on the new Congress because if we have the jokers, TeaPartiers, rabid tax cutters , xenophobes towards China, India, Muslim bashers and American Taliban winning, we will really have one of those two doomsday nightmare scenarios happen.
I welcome your comments, please this isn't really a "anti" or "pro" China diary but a plea for some common sense and forward looking before it truly catches up with us.
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