Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Trade between Germany, France and GB was big in 1913. Only about 10 years ago world trade as a share of world GDP became as big as in 1900. Germany relied in WW II on US imported goods for military equipment and even financing. The idea is always to buy a stock of needed stuff to fight the war through as fast as possible and resume trade as soon afterwards as possible. In 1914 every important person, at least in Germany, knew that wars are very bad for the economy and worse so, the longer the war lasts.

I think it would be very well possible to produce all needed things without China. There is nearly nothing which is only produced in China and we have the knowledge to produce nearly everything even in the west again (what won't be necessary, because there are still other SE Asian or African countries...). It is much easier than in the previous WWs.

"The dollar has already depreciated, China has reduced its holdings of US treasuries and"
That is plainly false, China is buying up Dollars FASTER THAN EVER BEFORE. The US has a private net capital outflow and still a significant trade deficit. All this is closed from state or quasi-state entities. Don't blame the Chinese for the dollar's decline, blame them, that it did not decline further.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers

by Martin (weiser.mensch(at)googlemail.com) on Sun Apr 27th, 2008 at 07:15:31 PM EST

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