Finance, Forex and Investments

Can the US function without Chinese cash?

A few billion has been exchanged for banks - the short of the story is that the US government has no intention of stopping the Chinese from billion dollar aquisitions - it might not be able to Further reported by London Telegraph and bloged by http://www.youtube.com/watch?v=Vgbo2fd_Fy4 On Dec 23 world bankers are now talking downward spirals and depresion world wide including the US - These depresions will not effect China or India - Giving the Chinese and other greater leverage against the US economy and therefore domestic and foriegn policy Can the US function without Chinese cash Is it Friday : There does seem to be some wierd inter relationship forming - they need the goods to manufacture and you need the cash - Difference being the Chinese might decide somthing that starves a few million of their own and it won't bother them - Can America do that ? No of course not - playing with the Chinese is at best dangerous IMO

Public Comments

1. I think you're question would be more accurate "can China function w/o American cash"
2. It is the other way around. We the US needs to tell China to go else where and stop any trade with that Country. Completely!
3. america would be in so much trouble(im talking about bankruptcy end of our country) if china cut off all cash flow. america is no longer a creditor nation, we have become the biggest debtor nation in the history of the world.
4. China is paying for bush's war. Its the US in debt to China not China in debt to America
5. Stop Hating China and blaming CHina for your problem!!! God Damn!!!
6. China needs to finance the U.S. for the following reason . . . they do not have the military necessary to secure middle eastern oil fields. The U.S. only receives 40% of its oil from the middle east . . . China is completely dependent. Any economic or political instability in the region affects China and India on a much greater level than the U.S. Remember, the U.S. can meet it's own energy needs . . . we choose not to.
7. I think it can. But China needs US. Not only cash. They both need each other and they are working together quite well.
8. Succinctly - yes. Ask yourself what is cash? It's buying power. It is no longer a tangible item (since 1964? in the US). So if today we release $1 extra buying power (the FED) and it buys some goods which were in the pipeline since yesterday, then it buys an undepreciated product at a depreciated price. China's answer - stop the depreciation, buy US. It could of course extract all of its assets. The consequences would be to force investors to evaluate whether the long term stability of the Chinese system compares favorably to countries which have been capitalists for much longer. That choice won't be an issue till after the Olympics. The issue becomes one of how to release the replacement buying power. The utube vid says the FED favors existing channels.
9. No.All foreigners are the controllers of our economy.We are a bankrupt nation.