www.reuters.com/articl...6420110302

Well, if this happened, the dollar (all country dollars) will be going down the gurgles.
And most "developed" country going to hurt with their advanced welfare systems.

Trade imbalances with huge monthly deficits are to be called, and some country going to declare bankrupt.
I think Australia going to be one of those country.
USA and Canada and most of Europe as well..

Its gonna be a real imminent danger for the world as we know it.

Well I think it's something to worry about down the road. I think it's tangent for China, Japan to devalue the dollar right now or in the foreseeable future for the purpose of inflating their nomination. That said, even thou China and Japan hold most of the US debt, I don't think they would be a fool right now to piss off the US treasury dept for supplying billions to these country's.

Thats just it, the billions "supplied" by the US treasury is being called.

I think it is just the same economic decision as banks calling in their loan papers.
Logically, there is no economical reason for banks to lend you money unless you can service the loan.
Right now, most of the countries lending from China, in term of trade balances, cannot service the trade imbalances.

So, China will stand a large trade loss should the lendee default in their repayments.
What can they do? coming to your country and take what they were owed to?
Banks can repossess your assets if you cannot service the repayments,
they can even get the sheriff to came along and "pacify" you while they are busy bagging and tagging your stuff.

If China came across the sea and ask for their money back, what then?
Some may be low enough to deny owing and refuse to pay (akin to stealing methinks)
Some would resort to "came and get it" approach just like the baron robbers after taking your belongings.
Some would use catchy phrases such as "sweat shop", "low wage labour" or other such media hypes..
Bah Humbugs!!!
If you do not pay, who going to suffer? the "rich" factory owners? or the low wage sweatshop workers?

You use it, you pay for it, otherwise you are just a common thief; no matter how nationalistic you might feel.
There is no justification for not wanting to pay, and promises of paying is just no longer good enough..
so what then?

It is US who are guilty in handing them our jobs and assets, not them guilty of taking it, they legally fulfilled their contract to supply.
it is US who are creating the opportunity for them to be able to do so, the fact that the masses consumed the "junks",
if it is real junk, why YOU buy them? no one is forcing you to buy junks!
It is NOT their fault that craps are being sold in your neighborhood, it is the fault of your neighbors who are willing to pay money for them.

They (the "communists") has beaten us capitalists in our own capitalistic game.
We cannot cry foul, to do so it will be a double standard hypocrisy.

Wake up guys! TEOTWAWKI is looming.. and the sky is falling...

It is more hype then anything. The Chinese know by recalling debt they cannot collect on (save for going to war), that their economy will be better served if they act like the debt does not exist for the time being.

Dimitri

Dimitri wrote:

It is more hype then anything. The Chinese know by recalling debt they cannot collect on (save for going to war), that their economy will be better served if they act like the debt does not exist for the time being. Dimitri

So how long the act going to last?

For as long as people did the same thing to the US when the US was printing money it could not back to rebuild most of the world after the war. It is 2011 and people still act like that superinflation of the dollar never happened. It is a act that every country in the world has been doing for many years, and will keep doing for each superpower that they know they cannot piss off.

Dimitri