wrote in message
...
On Fri, 1 Oct 2010 10:38:08 -0700, "nom=de=plume"
wrote:

They are already braced to take that loss. China is smart enough to
see our current system is unsustainable. The only question is whether
they want to get out while the dollar is still strong or ride it down.
They may take the tough love decision to squeeze us, just to force us
into fiscal responsibility and insure a longer term market for their
goods.

Not true. They're in it for the money. They intend to keep playing.
They're
certainly going to squeeze us (continue to actually) to get our house in
order. What's wrong with that? Everyone wins.

We are not going to be any happier about it than the Greeks were when
the Germans told them they had to cut their entitlements.
The question is how that manifests itself. We have a horrible history
of electing politicians who will not admit we are in trouble and
promise to kick the can down the road.

The Chinese can bankrupt us yet not take a Trillion buck loss. The value of
the their debt holdings are decreasing with any inflation we get. And they
may get 50% of the debt and win a war against evil America and not even have
to shoot off a missile. We've spent a Trillion in the middle east on the
longest war in US history and still no way to win. They spend $500 Billion
and win. The ability to print money does not guarantee we can not go BK.
If overspending by government made us richer, the USSR would still be the
USSR and be the richest entity of all the nation states.