Chinese imports = higher standard of living for America

[J P Corry]

if China really wanted to wreck the US all it would have to do is say two words... "Sell Dollars".  The Chinese are holding the second largest amount of dollar reserve assets of any foreign country.  If they dumped all of those on the world market, the dollar would tank, interest rates would soar, inflation would return to double digits, and the standard of living of every joe shmoe in the US would go down the pooper.

And China would lose it's grip on the US, throwing away it's most significant bargaining chip and 'trade war' weapon.

Our economy has weathered worse threats than this one and emerged stronger and wiser for it on the other side.

They don't scare me at all.

[thumbody]

The cheap labor may seem like a desirable thing but when all the manufacturing jobs are gone what do you think will drive the economy?
The UK and Germany used to be manufacturing countries , They outsouced their manufacturing and now have some of the highest unemployment in the world.
  Manufacturing creats wealth (taking a couple of dollars worth of raw materials and creating usable items worth much more. The service economy we are headed towards creats no wealth it only transfers wealth to others.
 We buy manufactured goods from asian and other under developed countries where American companies pay slave wages to people who can never dream of buying the things they make. '
 Look at Mexico ,The big 3 auto companies build factories there on former farm land that the Mexican Government has thrown the local farmers off of. They then have to work in the factories to feed thier familys. The workers either live in huts on company property or crowd onto flat bed trucks to get to work. They will never buy any of the vehicles they build. Go to a dealer and check the prices on  Surburbans They are built in both Mexico and the USA but there is no difference in the price of the 2.
  When manufacturing is gone the whole economy suffers look at places like Flint MI. for example the tax base for school and public services is disappearing .

[brimic]

". With the trade defecit as it is right now a weak dollar = good. That is why we arent taking any real action to increase it's value against the Euro, much to the chagrin of the Europeans."

Another side effect is that the weak dollar makes it more expensive to take vacations in Europe,  giving a relatively better 'bang for the buck' for people to spend their discretionary money on Domestic services and locations.