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China In Trouble?


wagner

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  • 1 month later...
with only having read the article on the op, if china's economy colapses (government funding running out, though it may not happen), then I could see china asking the US for what we owe them. kinda makes me wonder if they would go as far as war if we can't pay it in the time frame they want us to (provided this scenario happens).
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with only having read the article on the op, if china's economy colapses (government funding running out, though it may not happen), then I could see china asking the US for what we owe them. kinda makes me wonder if they would go as far as war if we can't pay it in the time frame they want us to (provided this scenario happens).

 

U.S. would reply with middle finger that has an IOU taped to it, cuz we broke as a joke...

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NPR, Bloomberg have been talking about this for weeks. It will be interesting to see their GDP figures later today...

 

BRB, reallocating Chinese stock holdings (Baidu, Tencent)...

 

If they are bad the markets are going to tank a huge dump.

 

It does not help that our own country is moving towards this policy/debt driven cliff because a bunch of people in DC refuse to do what is right.

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Two categories I hear A LOT in my line of business (international banking):

"Back-shoring" - bringing manufacturing back to the U.S.

"Half-Shoring" - bringing Asian manufacturing not to U.S., but Mexico/Canada/Latin America.

 

Yesterday, I had a business lunch with a prospect company in Akron who is looking to bring manufacturing to Mexico. 8 years ago when they started a manufacturing JV with a company in China, it was 3 times more expensive to manufacture subassemblies in their shop in Mexico. As of last fall (when gas was even higher), their internal analysis showed that - through increased labor/resource cost in China, time to ship, increase in shipping costs/insurance, etc - it's now only 20% more expensive in Mexico over China.

 

Also, what do Chinese businesses want to invest in? Made in America. I have another client that receives sub-assemblies from their suppliers in China...reassembles with enough content in the U.S. to qualify for the 51% export credit...and ships/sells it back to the Chinese market because of the mark-up they can charge for it being USA-built!!!

 

Barney approves.

http://2.bp.blogspot.com/-S9bauq390Mk/T7IKyKUH0dI/AAAAAAAAAPM/9V3C8YtAP04/s1600/Misc-true-story-realistic-l.png

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