miss understand...
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Paaauul, what part of holding onto what is left that is "the most secure" do you really NOT understand.
(And, no, that was not, really, a question, for you.)
When, in July of ought 8, China "demanded" that W step up and "guarantee" their investments in FMae&FMac...
- they were only dumping US$ 35 Billion a MONTH of their Trade Surplus into them...
- W "nationalized" FMae&FMac to "insure" the Chinese that we would stand "behind" those funds - if ALL else fails.
And, that there would be some, as in in ANY, funding left available for home loan for the rest of US.
What China understood, and you obviously do not, is that IF you are going to be left with ONLY the right to the "secured asset"; you are FAR better off having that asset in the Good Old United States - than almost anywhere else.
And, that IF the government of all of U.S. "guaranteed" that if the asset value no longer existed, the central government of all of U.S. - under the Commerce Clause - would guarantee that the FULL value of their investment would be "guaranteed" by the "full faith and credit" of all of U.S....
they could NOT loose.
With the Yuan "tied" to the US dollar, they KNEW that whatever happens they will be able to demand to be paid off in equal US dollars = and/or assets.
And, when W and the government of U.S. "guaranteed" that WE will pay them off in U.S. dollars, they KNEW that they would not loose.
So..., IF their economy collapses, they still own "U.S."...
and they can cash in their chips, and go on with their lives.
And, if the economy of U.S. collapses, they still own the last dollar that has any value - to U.S. or the rest of the world...
and they can STILL go on with the rest of their lives.
Paw-aul-ll..., you do see, do you not...
that we are all now like on death row in Texas...
"killing U.S." has no more meaning than a "dry oil well" has to them...
a "gusher" only means that they will earn more than we will...
keeping U.S. alive is only useful..., as long as it IS useful...
to keep employed, or subsidized, enough of those who buy "trinkets" & "Christmas toys" from Walmart...
- from China.
- from China.
Even if the government of U.S. does declare "BK"..., THE "creditor" has the legal right to choose between "taking" The Debt and/or The Asset.
W gave them, the Chinese, that right.
You - will learn - that he - W - not only DID know what he was doing, to U.S.
but also did not.
Much of what went wrong he knew would go wrong.
But, much more not only could, but would, and did, go wrong...
that he did not comprehend...bcuz he was incapable of understanding...
did go wrong...!
You (U.S.) will also learn that you (U.S.) have NO legal remedies.
Sad, but true.
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The United States of Apathy
http://money.cnn.com/2011/11/22/markets/thebuzz/index.htm
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