US Dollar will collapse!

[jensend]

a little more indepth than some:

http://www.theglobeandmail.com/servlet/story/RTGAM.20090223.wferguson0223/BNStory/crashandrecovery/home

[jensend]

so where else can the americans go to borrow money? what happens if the chinese say no? do you think maybe there are chinese who think it's foolish to prop up a bankrupt nation like the usa? these transactions have to work both ways. all these columnists blowing off about communists are only how far behind the times? the american finance sector wanted globalization and this is how it works.

[cottonpicken]

China and us must have backroom deals for them to keep acting economically insane.Their not that stupid.

Maybe they bought tiawan back.

[agstar77]

If the U.S. dollar collapses , all those Billions the Chinese hold will be worthless. They have to support the dollar , they are just as much a hostage as the U.S.

[mbratrud]

The US dollar will not collapse. If the Greenback were to collapse it would have dire consequesnses accross the World. Probably prevoke WW3. Some would argue that the US dollar will strengthen in coming months, I tend to be in that camp. This is a Global economic crisis, even 3rd world countries will be effected because of economic aid. China has poured billions into their own ecomomy in stimulas. Yes there my be minor shifts in currancy but not a .40 cent US dollar. Think about that for a minute a Bankrupt US I don't think So.

GDP Purchasing Power Parity by Country

Data Up to 2007; CIA World Factbook

United States of America

$13,780,000,000,000 2007

China

$7,099,000,000,000 2007

Japan

$4,272,000,000,000 2007

Everyone else is a longways behind these numbers Despite the fact they are spending trillions they can, Yes it will hurt but they have the money. They have the ability to raise taxes.

As a percentage of GDP the US budget Outlays looks better than it did through the mid 80's and abouit twice as good as it did through the 30's and 40's.

The Candian $ on the other hand .70 cents again perhaps?