Financial warfare

[Muad'dib]

1. I get paid in Yen. Since I have been hired, I have gotten an effective 25% raise. At the same time, all the other US lawyers are paid in Dollars. If this keeps up, I will basically be making the same as some of the big firm lawyers here.

2. As tantalizing as the scenario discussed above is, it will not happen for the simple reason that China depends primarily on US consumption to drive its own economy. That is, after all, why they have that huge dollar reserve. If the US goes down, China goes down harder. And unlike the US, Chinese history is chock full of delightful revolutions and revolts triggered by social instability, like massive unemployment. As it is, some reports show that roughly 100 factories are closing a day in China. I used to tell people China would collapse into a revolution in 10-15 years, but that schedule is way up.

From the People's Daily Online:

http://english.peopledaily.com.cn/90001 ... 40447.html

Regarding unrest in China:

http://www.fas.org/sgp/crs/row/RL33416.pdf

Most analysts do not expect social unrest to evolve into
a national political movement unless linkages among disaffected groups strengthen
and other social groups, particularly the middle class, intellectuals, and students, join
the protests as well.

Mass unemployment can do that.

[Steve James]

To me, it's just plain common sense that no one is trying to destroy the US economy or the value of the dollar. China didn't lend us money for the sake of good will. They lent it because of the return on the investment and the fact that we bought a lot of what they sold. There are probably some particular nations that are making out better with a devalued dollar. However, it's not the European countries, and the value of the Euro, itself, has also lost value. Europe also has an employment problem. But, even the oil-producing countries are losing money. So, in all this, who's making out like the proverbial fat rat?

[Muad'dib]

Well, most of the Kennedy family money was made during the Depression, so perhaps drug cartels.

[Steve James]

That's true. You can't go wrong with alcohol, tobacco and firearms.

[Muad'dib]

That's how Japan got out of the last Depression. They built up their armaments industry like no tomorrow. I believe its also roughly how Germany did it as well, though initially they were playing nice nice and just marching around with shovels and broomsticks. The Japanese Ultra-nationalists always point out that the US didn't fully exit the depression until it entered WWII.

[Interloper]

That's true. You can't go wrong with alcohol, tobacco and firearms.

And don't forget brothels, and lots of 'em!

[Interloper]

That's how Japan got out of the last Depression. They built up their armaments industry like no tomorrow. I believe its also roughly how Germany did it as well, though initially they were playing nice nice and just marching around with shovels and broomsticks. The Japanese Ultra-nationalists always point out that the US didn't fully exit the depression until it entered WWII.

The war machine -- the industry of war -- is another false economy, though, and not sustainable.