So here’s the deal:
American house prices fall. American consumers find their assets reduced so stop borrowing. They stop borrowing they stop spending. They stop spending and the Chinese find themselves with no buyers. No buyers for the Chinese means an economic recession in China. Economic recession in china undermines the Communist Party whose legitimacy is only sustained because they deliver economic growth. A threatened Communist Party looks for a way to win over its people again. China goes for the same option every government does when times are hard – it stirs patriotism by picking a fight with someone. If China picks a fight it will be with Taiwan. China sets foot on the island and Taiwan activates its alliance with America. America has pledged to defend Taiwan regardless.America fights China.
The world ends.
Which sucks, I was hoping to make old age.
posted by Benjamin Nakizo @ 10:09 am
4 Comments:
It's a massively complex situation with companies investing in different markets from different countries.
I think it's right to state this will have an impact, and indeed now is doing so, upon much of the developed world - including India and China. Markets are beginning to regain their former strength after a 2%/day drop on the FTSE, but there's still much uncertainty.
It's ridiculous that lenders operated in the manner they did - they were undoubtedly fully aware of what they were doing at the time and that there would come a point where the smallest market fluctuation could but millions into bankruptcy.
It's a saddening sight to see these people who moved in home of attaining the American Dream, have all hope taken from them. It goes to show the strongest country in the world attains it's title with a very thin veil, hiding a massive invisible-poor.
Yes, I'm looking at you as well, France.
You didn't start far back enough. You have to find the proper blame for the prices falling in the first place. Doesn't it all have to start with a butterfly flapping its wings, isn't that the rule?
Damn butterfly's. They are the ones with the real power.
Even when it was the immigants, I knew it was the butterflies.
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