What if China crashes before the US does?

[medved]

http://www.telegraph.co.uk/money/mai...1/ccview11.xml

Would not it make the dollar stronger?

m.

[FRED]

Re: What if China crashes before the US does?

http://www.telegraph.co.uk/money/mai...1/ccview11.xml

Would not it make the dollar stronger?

m.

This is a good story. Thanks.

[jk]

Re: What if China crashes before the US does?

ernstt&young calculated that there were about $900 billion in bad loans. but, then again, there are $1trillion in reserves at the pboc. somehow, i would think those reserves provide a cushion which will keep the bad loan problem from destroying the chinese financial system.

[blazespinnaker]

Re: What if China crashes before the US does?

China isn't going to crash. Go do a little tour of your house, and look at where everything is made. 75% likely to be from China. China is not some dot com, they are the work horse of the world and will likely remain so.

The big problem are petro dollars. Russia has already publically withdrawn from the USD into a basket, China has absolutely no desire whatsoever to see the USD tank. Petro currencies though, your middle eastern countries, may decide to bolt however.

Unlike China, who only has a product if someone has an economy to buy it's products, everyone needs oil and will need oil for the forseeable future. What's worse, is that we may be near peak oil, in which case they might want to stretch it out.

No, if you want to keep your eyes on anything, I think it's Saudia Arabia, Kuwait, Iran, etc.

[Questions]

Re: What if China crashes before the US does?

Hi, I started learning economics only this year so all I can do is ask questions Sorry if my questions sound a bit "unprofessional", yet I'd like to point out at a few things...

Suppose that China would "crash", despite all the efforts of the government to feed the system with bad loans, etc.

Wouldn't that seriously affect the US economy as well?
Considering that apart from all the exports, there's a strong interdependency between the two countries, e.g. the fact that "China's central bank now holds more than $700bn in US bonds and dollar instruments, including $342bn in US Treasuries."
What could happen if? What would this imply for the rest of the world?

Is there a risk that a "Wall Street Crash" might happen again?