/biz/ - Business & Finance

>>17028592
>as long as the fed says so
Yeah I'm with you there, but in a closed system there has to be SOME release valve. If it goes as you say and asset prices are propped up, then the only release valve I see is the USD index and FX markets.

>>17028611
One thing to note is that SARS came right as the world was recovering from the dotcom recession. Plus a major defense spending boom was happening with the Iraq/Afg/etc war. China was still squarely in the emerging market camp, was only beginning to be a major player, and did not have the massive amount of debt that it does today. All of that is the opposite today, China is one of if not THE most important global trade entity, holder of debt, and market player

>>16371207
The reason is because although their debt to GDP ratio is high, in sovereign terms they're actually the biggest creditor nation in the world. Everyone else owes them money, not the other way around. Compare that to US which is the biggest debtor nation in the world by far

>>16193558
>What's the debt denominated in again... oh ya, USD retard lol
Pretty sure this is a troll, but I'll bite anyway since it's important to understand.

As Greenspan and MMT keynesian pundits will tell you, it's impossible to default on a debt denominated in your own currency because you can always print more money. What they don't tell you is what happens after that. The dollar is devalued and confidence in the currency is shattered, domestically and around the world. So trade deficits skyrocket, those costs are passed onto the consumers, and your purchasing power is destroyed. Yeah nice going, just print more money lol

That wouldn't matter so much IF we weren't completely reliant on foreign trade for nearly fucking everything. We don't produce shit anymore, we ship our steel overseas and import the products made with our resources. We haven't been a self-sufficient nation for a long time.

>>16157469
Except this time China doesn't even need anyone else

>>15977081