China banks told to halt lending to US banks

Since the fall of the Soviet Union we have boasted that Reagan's Star Wars put them in such a financial box that their leadership caved. End of Cold War.

By China supporting US dependency on offshore lenders then turning off the money spout they probably seek to gain from passivity and non-violence what otherwise would be possible only with a war. The crippling of the economic engine which is the life's blood of our military.

It would be like a casino telling a patron.

"Bad luck! You lost your stake! Time to go home - oh wait! Wanna keep gambling? Why not bet your house?"

Crazy it is not.

Long-term geopolitical warfare and crafty as hell - it is.

Why China would do this is crazy. If anything they would try to pump money into us since our economy is tied so close to theirs. Maybe they're trying to isolate themselves so as to come out on top after this fall, but it ain't gonna happen yet. They're just going to get screwed

I like your thinking Smart_giraffe!

It really bothers me that the mainstream American media is still saying "Oh, we might be heading into a recession.... maybe even a depression!"
Look at the definition or a recession - two quarters of negative growth. America has has more than 2 quarters of negative growth now. They are well in a recession... and everybody with 1/2 a brain knows a depression is imminent.

There's only one thing to say: The fucking fucker's fucked!

Goodbye recession, HELLO DEPRESSION!

Maybe I'm a little paranoid, but this seems like a very strategic move by the Chinese in order to ensure that our economy is hit as hard as possible, leaving their biggest competitor for global superpower at a great disadvantage.

Not to mention Russia is aligning with Iran, Cuba, and Venezuela to get more strategic positions around the world against the United States.

And what do we do? Fight senseless wars against states that are not threats in order to secure privatized, corporate, record breaking profits, which leaves ourselves in a vulnerable position to approach other global powers that are rising as we (free) fall.

Two final thoughts:

1. Hard as it is to imagine, the Bush Administration may end up being remembered more for the damage their administration caused post their terms (mostly economic and foreign relations) in office than for the damage caused while in power.

2. Ironically what may save us from a possible WWIII scenario could be the ridiculously inflated defense budget the Bush Administration has given us (2006: 768 Military bases spanning every continent and nearly 600 billion dollar defense budget annually).

Pretty bad when one of the biggest profiting countries which relies on American's and thier money, not to mention they have all of our jobs, won't lend you a buck. They own most of America already so why lend money to America, but if America goes down farther they can owni t all. They are not thinking or taking advantage of the biggest failure in American history thanks to George Bush and his oil buddies. If oil goes down so will this crisis! Prosecute Bush!

AHAHAHAHAH
this is what we've been waiting for.
our own government wont tell us how bad things really are.
their scared.
leave it to someone else to give us the the hint that things are MUCH worse then they seem to be

But I thought we were getting the money from them
I mean we sent the me the money when we destroyed our own manufacturing capabilities to take advantage of their lack of environmental rules and labor laws

What do you mean we can't have our money back

Pleaseeeeeeee!!!!

We opened up walmart just for you.

Can we please have our money back

We promise we'll be good this time

Keynes:

The Costs of Deflation:

"Either the government’s announcement is believed and the future is discounted immediately in the rate of exchange, in which case we suffer all the elements of a violent and sudden deflation; or else the government’s announcement is disbelieved, or only half believed, in which case we have a slow movement with the expectation of a further movement in the same direction, the effect of which on trade and employment hardly bears thinking about. As soon as the business world has good reason to believe that prices are likely to fall, no course is open to it except to contract its engagements, draw in its horns, and go out of business as far as may be until the funeste process is over…"

"In no other way than by the deliberate intensification of unemployment. The object of credit restriction… is to withdraw from employers the financial means to employ labour at the existing levels of prices and wages. The policy can only attain its end by intensifying unemployment without limit, until the workers are ready to accept the necessary reduction in money wages under the pressure of hard facts…. Deflation does not reduce wages ’automatically’. It reduces them by causing unemployment. The proper object of dear money is to check an incipient boom. Woe to those whose faith leads them to use it to aggravate a depression!"

Oh darn. Looks like we are going to have to bring the troops home. Who is going to finance the bail out? The chickens are coming home to roost.

we are a strong people. mayhap some have forgotten, but this is the wake up call. what we all can do is take a personal lesson. if you cant afford it, dont buy it. credit may have a place, but overall, it has been seriuosly abused. 11 trillion in debt. that will take a while to pay off. if we stopped prohibition of cannabis and hemp, that would create so many jobs and add billions to our annual economy. there are many other industries that have been supressed by big money. better fuel mileage concepts that have been developed and proven. only to be bought out and buried by big oil. so many great things have been kept from us by those looking to get rich while our nation suffers.

Maybe america will finally have to depend on it's self. Not saying it's not going to be hard, but maybe it will open many people's eyes.

This is frightening considering this is where all our funds are coming from.

If we go into a depression, I'm not going to be hungry. I picked up a book on foraging in the wild. I'm going back to hunter/gatherer except without the hunting because i'm vegetarian!

YES.

SMART MOVE CHINA!!

I salute China and their decision.

Take the money from all the rich company owers that bankrupted their co's and made 1000's of people loose their jobs, and yet the heads walk away with 10's of millions to their huge, castle like properties.

Make them sell everything they purchased from money made off the backrupt co and have them live in a normal home, with 5 bedrooms at most. Oh the Horror!

we're in trouble, now.

What? We will actually have to learn to stand on our own two feet? We were warned over two hundred years ago by some very prescient men that to get into hock to foreign bankers would bring nothing but corruption, greed, and misery. Unfortunately some lessons have to be learned the hard way.

So we can't "refi" America anymore?? It is like a house that has gone down in value and no more ATM. How are we going to pay for all the new wars we plan to start?

good, this is like taking drugs away from an addict. the detox is going to be hell but if we survive we'll be all the better for it. at least if we can keep clean...

America has gone through bad economic times before. This is nothing new.

History repeats itself. What would be NEW is if those who make the most impact on history actually made sure it didn't repeat....

it happened in the 1920's. It happened in the late 1800s.

Big rich people screw up and the little, small, frail tax payers....pay.

China Launches Its First Piloted Spaceflight
they got more important things to spend their money on
http://current.com/items/89338371_china_launches_its_first_piloted_spaceflight

It's starting to happen.

Get ready for the crunch.

looks like an extremely bumpy road ahead my friends

I dont blame them one bit.

Is it just me or is everything getting worse and worse

Uh-oh!

This means they are turning the screws.

Should we send Mooselini to negotiate?

China stopped lending to us, but is now investing in Greenness!! Bad news U.S.!!!! The Chinese were the only things keeping us a float.... this is going to get worse before it gets better, brace yourselves!

We are living in historic times requiring great and inspired leaders!

Uh oh...