Thought I heard that China said today the U.S. is a bad investment risk.

[MoonRiver]

It thinks currency other than the dollar is safer. I know our dollar is in the toilet, and this couldn't have helped the stock market today.

I looked for a link but can't find anything.

[Deja Q]

1. Well duh. They send over so many tainted goods...

:crazy:

People don't want to buy bad products.

[poverlay]

2. I love Beaker! I saw a video the other day where he, Animal, and some other guy sang "Danny Boy",

and it was the funniest bit ever. A real class act that muppet...

[knitter4democracy]

8. I laughed 'til I cried at that video.

Beaker's always been a fave of mine, too, and I always look forward to seeing that sig pic.

[Mike03]

3. This could be a decisive and chilling face-off

It's true; China announced it is sick and tired of holding U.S. denominated currency and perhaps equities, treasuries and so forth, and either did or has vowed to liquedate 10% and move that to Yen, Euro, or other currencies.

Someone mentioned their exports. It really is important to understand that we are China's largest customer and will continue to be in spite of the toxic crap they ship over here.

Now, China is taking a risk as well by getting rid of dollars, but they have less to lose than we do. China is holding the cards right now. They have powerful alliances with many other major economies.

It's really a Devil's Dance. They have been threatening this for years. Do they mean it this time?

[Deja Q]

4. Are you so sure?

America may be the biggest customer, but America isn't the only country noting China's antics.

Maybe you're right.

[Mike03]

9. I totally understand what you are saying, and I hope you are right

But corporations are greedy enough to understand that Americans' buying power is diminishing as the dollar collapses. That means most Americans can only afford cheap goods. And this may be true of other economies as well.

This is the crux of the problem. We are used to cheap goods, and we don't like inflation. That is why people who used to shop at Nordstrom's or even Target are going to Wal-Mart.

This is the crunch economists have feared. And I'm really worried what will happen after holiday season when many adjustable rate mortgages are adjusted upwards. It's going to be tough on a lot of hardworking people.

Just to be clear: I detest slave labor, sweatshops, and what is happening to the Asian environment as a result of excessivelly fast growth. It's just devastating. Yet on the other hand, we need to clean up our own act. We consume so much--we need to cut back. It's OUR demand that drives their growth.

[blondeatlast]

7. We may not like it already, but we'll like it even less if they stop trading with us.

I hate Wal-Mart, but if they can't get stuff from China, our economy is in DEEEEEEEEEEEEEEEEEEEP schist.

Edit--awful typing.

[Lone_Star_Dem]

5. Here's a link

http://custom.marketwatch.com/custom/myway-com/news-story.asp?guid={33F4ADA9-5DCE-4D44-B39C-74D4017ACC5E}

Cheng Siwei, vice chairman of the standing committee of the National People's Congress, reportedly suggested Wednesday that China might need to diversify its $1 trillion-plus holdings of foreign reserves because of the precipitous slide in the value of the dollar.

[MoonRiver]

10. Thanks!

:hi:

[Mike03]

6. Rec, by the way.

I thought this was the most significant news story of the day.

Thanks for posting it.

[MoonRiver]

11. I thought it was highly significant, and frightening, also.

That news on top of the crashing markets...:scared: