not understand "The Deal" that W, Clinton and GHWB made with China...
Very few of U.S. were aware of what we were doing, or why, at the time. But GHWBush cut a deal with the Chinese - we would buy from them a lot of cheap goods so they could create jobs for their huge population. And, China began contributing to Presidential elections, for U.S.
It was a stroke of genius. Bcuz, with trade the world inside China was turned upside down. From narrow minded Communists, they became narrow minded Capitalists.
When Walmart and William Jefferson saw that, he knew how HE could get the money from China to become President. So, he expanded our Walmart and China involvement. And, they gave him a lot of money.
When W became Pres he re-hired many of his dad's old fiends, and in exchange for HIS campaign contributions, he continued to expand Walmart and China.
As the 1st two chart show U.S. that trade has enabled China to grow exponentially.
However, sadly for U.S., we have not grown much at all.
And, THAT is what all the shouting is all about.
However, one MUST ask, must one not, is THIS the time to cut off China, and its subsidization of our economy? What would happen to U.S. if China were to not only stop buying US TBills, but started to sell them?
Economic Chaos.
Do you even remember July 08 when China told U.S. they would stop buying FMae&FMac bonds...?
The total collapse of what remained of the RE financing system. The "Nationalization" by W of both FMae&FMac.
Be VERY careful what you ask for..., you might get something terribly different.
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ppppsss:
The last chart is CR's trade chart showing U.S. the impacts of our thirst for oil.
To the best of my knowledge tis the only one that does that for U.S.
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Understanding Trade Balances and Continued Urgency of Global Coordination
http://seekingalpha.com/
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Trade Deficit Trouble
http://seekingalpha.com/
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