turning point, page-32

the US still has a vibrant weapons industry ;o) who else can pump out thousands of the most sophisticated weapons on earth every year.
China is still a baby a lot of factories there have shut because their biggest market USA isn't buying up as much.

When you think about it they make a lot of items which are neccesities. Clothes, toys and a miriad of cheap plastic junk that ends up in landfill anyway.

Germany, Japan and the US make all the large equipment and machinery and the US is a huge producer of food stuffs. All of which are required to live i think the first thing people will give up in hard times are $20 GMC drills from bunnings or the dodgy $2 kids toy that breaks after 1 week.
Chinese food stuff are not really considered safe at the moment either.

So what does china actually make that is a nesseciaty more than a want? Steel?
Besides they want to offset the loss of US consumers by generating their own consumer base. They will have to let the yuan appreciate then there industry will offshore to cheaper south east asia countries or perhapes back to the US if they are all on the bread line ;o)

Next month critical if GM, ford etc go I think we will see dow below 5000 and ASX below 2500.

All this said the US are crafty b@stards and it I think they may get some significant benefits from this crash. look at all the new foes that were lining up 6 months ago they are all cactus now.

Russia, venezula come to mind the ruble is cactus the russian billionaires are broke and venezula is in all sorts of trouble not to mention the rest.

I think if the world suddenly decided to man up and stop lending to the US they would simply take it by force anyway under the guise of national security. I mean if oz was failing fast and you had a massive miliatry that could take what you needed at others expense would you stick to the moral high ground and watch your kid starve, live in a car park etc or be ignorant and happy and don't think about your army pillaging other countries?