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.

In any case, China isn't going to quit playing, which is the point. No one
is particularly happy about getting fewer services for more dollars.