| >> |
05/22/10(Sat)01:26:59 No.9060022>>9059904
What people
seem to forget is that the US is the only country with perfect credit,
because everything is traded in USD. If the US currency deflates
rapidly, so does everyone else. Currencies are relative to one another,
but all are relative to USD. It is 1$. The change from the gold standard
to USD was a huge bonus to the US. As such, the US can simply create
money. It doesn't, because it's poor economic policy, but it can. War
economies also function differently. Profit sort of zeroes out, as does
currency in general. Things are requisitioned, essentials are rationed.
If America needed to put itself on war footing, it is entirely capable
of doing so. The economy shifts drastically, but not in a way that is
damaging. Rather it's quite beneficial. Wars are only costly when
they're not total war, or when it hits domestic production in a very
real sense (ie. bombs landing on factories).
It would hurt the
Chinese the most then, because their manufacturing would all grind to a
halt and there would be tons of unemployed people. It wouldn't be fun
for China to say the least, though they can do the same thing as the
Americans. The difficulty being that the US is much more self-contained,
and a lot of its resources can pass from Europe to North America with
much less disruption than the US can level against China. Some absurdly
high number, like 65%, of China's energy imports come through one strait
in the Philippines (for reasons unknown to me, probably the only big
enough for major shipping). America can easily shut down China's ability
to import oil at which point China ceases to exist. |
