The BIG Thing Dixie either DOES NOT know or does not want you to know.

[Lowaicue]

There are no problems with headless chickens. Of all the animals on the planet, chickens rank among the dumbest, even WITH their heads... so, no worries about chickens without heads. Communist Chinese, it's a different story. Mao killed over 60 million people... hardly something a headless chicken could ever do. We've had a long storied history of conflict with Red China as well... Vietnam and Korea come to mind, as well as Cambodia and Taiwan.

China isn't talking of cutting military budgets, they are spending more than they ever have before on their military build up. At the same time, their leaders are pushing for strong-arm economic warfare against their enemies, and the stronger they become financially, the more they will do this, because Communist China rolls like that. One of the problems they have, is too many people in the country to provide for, they don't have enough land and resources, that's why they've implemented barbaric population control measures and continue to violate human rights. Whenever we become unable to service our debts to them, they will come for their retribution in the form of our land and resources, because that's what they need the most. If our money is worthless, they'll assume American property, including YOUR property, and you won't have the military to prevent it because you were too stupid to see it coming... ironically, much like a headless chicken!

Dixie, Dixie, Dixie. What are we to do with you? Buy you a newspaper perhaps would be good to start with. What conflict did you have with The Peoples Republic of China? (Red it once was, but now, despite the labels you like to attach, it is now as capitalist as America). What do you mean by a long storied history of conflict?
China's defence budget for 2013 is ONE SIXTH that of the US. (That, for Dixie, is half of one third) so I wouldn't get too concerned yet awhile.
They, you say, are pushing for strong arm economic warfare against their enemies. What exactly is America's policy towards their enemies? Invite them round for a Sunday tea of cucumber sandwiches and Earl Grey?
But, my friend, if you pop down to your local newsagent's and invest a few cents in a newspaper, you might learn that china has already won, not by strong arm tactics, but by the reverse. Soft power is the name of the game and you came to realise it just too late. You make a gun, they make a friend. You buy more warplanes, they build an African port. You want to poke your noses in where people don't view the world through the warped spectacles that you wear, they invite world leaders, we do not like, to be feted in Beijing. You have killed hundreds of thousands of innocent foreigners, their army stays within their borders. (Mao's 60 million was a long time ago).
All in all, it is true that they can and do learn a lot from America. What a shame that your unique brand of arrogance and xenophobia prevents you from learning anything at all.... from anybody!

 

[Rune]

Yeah and those who understand economics told him to shut up, I am sure. He is probably just some dinosaur still raging about Nanking, which was a horrible atrocity. But they are also squabbling over some uninhabited islands, which both have legitimate claims to, but are not of much use to either. We don't need our headless chickens butting their nose into it. Instead we need those who look at all sides and take careful and measured responses.

Interdependence. Do you understand what that means?

The ownership of the islands conveys the mineral rights of the territorial seas surrounding the islands. It isn't that complicated.

 

[Rune]

Might as well make another thread... This needs to be exposed.

My guess, is it is the first and due more to his hate than his stupidity. If I had gone plural then I would be here all day. So let's just go with the big ticket item that he and I have been butting heads on here.

China is no real threat to us. They hold paper that we can honor or not. If we fail to honor the paper it will destroy the SS trust as that is all they have. The SS trust fund will have to be actualized (turned into dollars) and so we will have to sell that debt to some other lender. If China, India and the rest of the world do NOT continue to grow, kiss your grandma's and your own hopes of a retirment goodbye.

You might say, well I am not counting on SS. Good for you. IT DOES NOT MATTER! If you are heavily invested in gold and other durable commodities you might make out alright (even still I would suggest getting out of Dodge before it is too late). Otherwise, you will get screwed.

Our retirees and near term retirees are more dependent on the growth of the third world than anyone. Us younger folks, we could just push the US to default now and put the weight on the current/near term retirees, China and the other debt holders. Of course, it will hurt us, especially those who have much property in goods that are subject to price fluctuations. But we can recover.

I am not suggesting that course. There would likely be some bloodshed. But there is no avoiding the pain. Deal with it now or deal with it later. The shell games are not going to work and those in the know are not fooled.

BTW, there are several ways we can default. They are all painful. We can just discontinue use of the dollar or as Greenspan has suggested we can print more dollars to cover it. The results are pretty much the same. Denying the dollar will be more painful up front but will allow us to recover more quickly. Papering over it with new currency will let us ease into default and it will take longer to recover. Faced with those two options only, I would prefer actual default.

Any economist that tells you this is not where we are headed is lying, a Pollyanna or just expects to die soon. We will not grow our way out of this. The best option is to restructure the unfunded liabilitities NOW.

Start pushing back the retirement age. Means test SS/Medicare. Increase the number of dollars that are subject to payroll taxes. Reduce the overly generous COLA.

Benefits will have to be reduced. A tax solution alone will put too much weight on our economy and in conjuction with our massive debt will make us a bad investment. Taxes will probably have to be increased too, though.

The truth makes you mad? Tough. Thank FDR, Reagan, Bush and Obama.

Stupid question Dept. Why is Greenspan wrong? The US could print greenbacks (real dollars) and pay off the debt.