China wouldn't have a reliable oil supplier without allying with Russia? Oil is a commodity traded on a global market; it really doesn't matter who is allied with who, as long as you have the cash to buy it.
False. The United States has ALWAYS made good on its debts.
The finances of the United States are MUCH more transparent than those of either Russia or China.
China is also a net oil importer. :roll:
If a default is eminent as you say, then I suggest you take your life savings and bet against US sovereign debt. You'll make a fortune when you're right, since nearly every investor in the world will be betting against you. :roll:
Note: Randomly using the phrase "Ponzi scheme" doesn't make you sound like you know what you're talking about. It just makes you sound silly to those of us who actually know what the phrase means. :2wave:
False dichotomy, China is pursuing long term contracts and oil reserves all over the planet, it is a national security risk especially in time of war where supply lines can be cut. It has been official policy of the US for quite awhile, same with the UK to simply force access only. This is why we prop up dictators and meddle in others affairs but not always for oil but funny how we interefere in the affairs of almost every oil exporting nation on the planet. Russia has oil and is willing to build pipelines with long term supply contracts, very smart move by China. Leaving things to a market where net exports are shrinking is not smart, that is what the US is doing, hamstringed by its own policy. Its own reserves and suppliers already in terminal decline.
No the US has not and does not. In 1971 the US reneged on Bretton Woods which is a force majeure default, in response the currency devalued by a substantial amount over a few years and along with some other factors threw the nation into crisis. Meanwhile the debt continues to grow at an exponential rate never ever being paid off or down.
More transparent? probably but corrupt and criminal nonetheless. At any rate China has already told the US to pound sand on some CDO exposure, US deserves it. Act like a criminal get treated like one. Unfortunately for the US China can stiff arm loan shark tactics.
yes china is a net importer and they see what that means and are taking steps to deal with it as they should, the insane US policy is not a model to follow in their eyes evidently
already have, made a bundle, I retire in a month at age 43, I made an absolute killing shorting the insolvent US banks and its enough to relocate and retire on
Ponzi scheme? yes it applies, it must grow or it dies and relies on more and more suckers coming into the game, problem is it ran out of suckers and let debt over saturation to occur and now the FED is in a liquidity trap it said could never happen. Most banks are insolvent, pension plans, state and local govt's are all facing declines in revenue that will throw many into bankruptcy. While the FED and fractional reserve can survive short bouts of contraction long term contraction kills it dead. The need for exponential debt growth against a nearly linear actual economic growth is ponzi by its very nature. Biggest state bonds(California) are already in the toilet, so much so it can't even borrow more to bail its insolvent self out. About 40 states are short anywhere from 6% to 50%, it will be worse in 2011. Every nation that has gone down this path has failed, sometimes multiple times. Too much leverage is a killer, institutionalized over leverage is a death sentence and it is US official policy now. By the time the deflation gets done ravaging the US the chances of it surviving financially are slim, politically as well.