The Debt Trade

Top Exports partners of China...

US 21%,

Hong Kong 16%...Top Export partners of Hong Kong...China 47%, US 15.1%, Japan 4.9%

Japan 9.5%...Top Export partners of Japan...US 22.8%, China 14.3%, South Korea 7.8%, Taiwan 6.8%, Hong Kong 5.6%

South Korea 4.6%...Top Export partners of South Korea...China 24.6%, US 13%, Japan 7.5%, Hong Kong 4.2%

Germany 4.2%...Top Export partners of Germany...France 9.7%, US 8.6%, UK 7.3%, Italy 6.7%, Netherlands 6.2%, Belgium 5.5%, Austria 5.5%, Spain 4.7%

Top export partners of the EU zone...US 23.3%, Switzerland 7.6%, Russia 5.2%, China 4.8%.

The USA goes down and the positive balance of Trade that China currently enjoys disapears...

India...Top export partners of India...US 17.2%, UAE 8.4%, China 7.8%, UK 4.4%

Sorry but the primary US export is US consumer debt inflation...all the above countries import it to sustain the inflation of their domestic economies...Once the US consumer caves in...the flow of US consumer debt inflation out of the USA will slow then stop...

Current US balance of trade in 2006 was around -3.047 Trillion...That's 3 Trillion of new money flooding out into the Global system every year...year in and year out...adding to the total global circulating money supply. of the around 180 Trillion dollars equilivent circulating now...The USA accouts for 46 Trillion dollars of it...or 25% of the total Global money supply...

Sinclair seems to believe that the rest of the world would just keep on trucking along without that 3 Trillion dollars...or the 10+ Trillion dollars over the past 6 years...or around 25% less money showing up.

Without that 3 Trillion dollars showing up...all the contracts on Earth dependant upon inflation greater than previous inflation of the money supply to to service their continued existance couldn't be for long...they would all be busted...

The eye popping growth that appears to have blown Sinclair's mind out would slow, then stop, then reverse...the global division of labor along with the economy would implode...

Once the US consumer reaches their maximum potential to support it...

And all those cities Sinclair was looking at are less than 30 years old...before US consumer debt inflation began to pour into China in the early 1980's to inflate China into what it is today...those cities were mostly semi-run down heaps where bicycles on the streets vastly outnumbered automobiles...

Exported inflation harms economies? So you are saying that growth is no good?

Growth harms economies...

Sounds sensible to me...China should have not allowed the inflation that has pumped them up into what they are today from entering the country...

China would have hardly progressed economically and the USA would have inflated to maximum potential and imploded 2 decades ago...

The imported dollars expand the monetary base inside China...the magic of fractional reserve banking of all the dollars imported into China is the cause of the different growth rates that are being trumpeted as proof that China doesn't require imports of inflation to sustain the inflation of it's domestic economy...The Chinese, so called middle class, are getting in debt up to their eye balls to enjoy the delusional lifestyles of the wannbe rich and famous...

Cut off from the USA...China along with India and the rest of the world stop inflating and begin deflating...

Germany was supporting the roaring 20's inflation and when they reached maximum potential inflation and imploded...the rest of the inflation in the world that the Germans were supporting slowed then stopped and then began to implode 1929-1933...followed by the bankruptcy reorganization of the world 1933-1945. With most of Europe and Asia being liquidated in the process...

Same thing will happen when the US consumer reaches maximum potential...poof...and the roaring 6 decades come to an end.