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Streaker is jerking off to thoughts of China.

   

lol Woohoo!

   

When you factor in ripple multipliers and the fact that an American deer hunter in Canada isn't just spending money on the deer hunt you'll find that the effect goes far beyond the Canadian hunting industry.

Just follow an American on a hypothetical trip to Canada...

He pays a landing fee via his airline ticket to a Canadian airport.

He pays for a taxi to his hotel.

He pays for the stay at the hotel.

He buys dinner and then breakfast the next morning at the hotel.

He buys some tourist crap for his kids.

He pays for the local weedhopper to lift him out to the hunting lodge.

He pays for the week at the lodge.

He gets lucky and bags a deer.

He pays a local butcher to dress and butcher the deer and then pays more to a Canadian shipper to have the meat shipped back home.

He pays to get back on the weedhopper to go back to the hotel near the airport for another nights stay.

He buys dinner and breakfast again.

He pays more money via his airline ticket to the Canadian airport which makes more money yet again as the airline buys fuel from the airport to lift the weight of the hunter and his luggage.

Now, if this hunter stays home that's alot of people whose paychecks will be short by the hunters contribution to the Canadian economy - and they won't then pay taxes on that income.

So it's quite easy for a relatively small number of people to have a $3 billion dollar impact on an economy.

   

Too many goods on the market equals a lower standard of living? I have to disagree with you there. A high savings rate equals a high investment in capital goods, which leads to productivity gains in the manufacture of goods. Remember, that when money is being saved it is still being used, just in a different fashion. Instead of being spent on consumption of goods, the banks lend the saved money to different industries to finance their projects. Also, you don't need to export goods to bring money in, you need to export goods to bring different goods in. You can export goods for money, but then you'll end up with a bunch of paper and no idea what to do with it ala China.

About PPP, what I mean is that the US will soon experience some pretty rapid inflation and that will drive up their internal prices, so that the purchasing power of the average American will be lower relative to a year ago. Couple that with the exchange rate fluctuation, it is likely to see a faster closing of the US-China wealth gap - certainly not per capita though.

Historically GDP contractions in the US have been short, but this is a new era, with a ballooning trade deficit and a weakening currency, the US may be headed for some more complicated problems if they don't reverse their course. This recession can be short or long, it all depends on the scope and manner of government intervention. They have the potential to ride it out or readjust their economy, but they may try to postpone the inevitable and make the problem even worse like in the '30s.

   

The size is not important; there are billions of kilometres of textiles. The fabric is the same though.

   

China has long pegged the yuan to the US dollar. That's been a big part of our trade complaint with them is that their currency would be worth more if they let it float.

The effect of inflation in the US will be that of reduced Chinese imports as consumer spending drops, hurting the Chinese economy. The next thing is that the stupid and arrogant Chinese are already paying more for fuel and other imports unnecessarily because by insisting on pegging the yuan to the $ they will experience the same inflationary problems.

Give it a year or two and we'll call it a depression in the US.

In China they'll call it a civil war.

   

Without cheap Chinese imports, the US' inflation rate would have been higher.

   

But when he gropes his wife he can feel her ugliness through the admittedly huge quantity of fabric - something very different from when he's groping her good friend Cheryl Tiegs.

   

Phantasms are disconnected from the reality.

   

I'm sorry but it won't play out that way. China has a 700 billion dollar trade surplus on the United States. That means that they can afford to cut 700 billion dollars worth of their exports to the US without any problem (they aren't getting any actual goods in return). The factories that are building that stuff aren't going to disappear once the US can't afford the items.

   

With all the American dollars it has in its Official Reserve, China hopes it can buy the silence of the US government over its projected annexation of Taiwan.

   

Consider this---- due to the $700 billion US that China has invested in it has a vested interest to support the US $.

If you owe the bank $1,000.00 and can't pay-----you are in trouble.......
If you owe the bank $1,000,000,000.00 and can't pay-----the bank is in BIG trouble.

   

All this because the American dollar is also the main international currency since the Harry D. White's plan implementation from the Bretton Wood Conference (July 1944).

   

HEH HEH
DONT'CHA JUST LOVE IT WHEN A PLAN COMES TOGETHER..........

   

The Keynes' plan would have been much better:

http://en.wikipedia.org/wiki/Bancor

   

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