Japan Aff Michigan 2010 / ccgjp lab – 7wks
The withdrawal of troops from Japan saves the US billions
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- And, that’s key to preventing stagflation – specifically, China will dump the dollar which tanks our economy
- 2AC Add-on: US Economy [2/2]
The withdrawal of troops from Japan saves the US billionsCogan, 2010 [Doloris, writer/editor of the Guam Echo, sent by the Institute of Ethnic Affairs in Washington, D.C., to Guam from 1947 to 1950. She worked as Pacific Area assistant in the Department of the Interior from 1951 to 1955; “Move Okinawa Marines to the US,” June 25; Accessed online: http://www.guampdn.com/article/20100625/OPINION02/6250316]While the conference referred to a $20 billion buildup of the Marianas, the move of troops away from Futenma has been estimated to cost about $26 billion, $10 billion of which would come from U.S. taxpayers and $16 billion through a loan from Japan. Sources of funding do not yet seem clear. The U.S. has already borrowed billions of dollars from China and Japan to keep our federal government afloat. I would hate to see us borrowing more that we would have to pay back with interest in order to make this move. I have recommended transporting the 8,600 troops, and their dependents, back to the mainland, where there are plenty of empty barracks and unemployed workers to build whatever else is necessary. That would save billions of dollars and be a win-win situation. And, that’s key to preventing stagflation – specifically, China will dump the dollar which tanks our economyXinhua February 4, 2010 [Xinhua (Official Chinese News Network) “Record U.S. budget deficit renews China's concern about its dollar assets” 02/04/2010 - http://news.xinhuanet.com/english2010/china/2010-02/04/c_13162484.htm] Chinese economists are again concerned about the value of the country's dollar-denominated assets after the U.S. government's budget plan unveiled Monday forecast a record deficit for 2010. The economists are worried that, if the Congress approved the budget plan, the U.S. federal government will issue more bonds and print more money to finance the deficit, which may prompt dollar depreciation. Dollar depreciation erodes the value of China's holdings of dollar-denominated assets. The same fears took hold almost one year ago when the U.S. government said it would issue up to 2.56 trillion U.S. dollars of treasury bond debt to stimulate the economy to get through the recession. This time the budget deficit is larger. The Obama administration on Monday proposed a budget of 3.83 trillion U.S. dollars for fiscal year 2011 with a forecast deficit of 1.56 trillion U.S. dollars in 2010. The planned fiscal deficit is 10.6 percent of gross domestic product (GDP) - up from a 9.9 percent share in 2009 - the largest deficit as measured against GDP since the second world war. He Maochun, director of the Center for Economic Diplomacy Studies at Tsinghua University, said the deficit would be financed by those holding U.S. dollar-denominated assets with the main channel to transfer the risks caused by the deficit being the issuance of U.S. treasury bonds. The U.S. is already in enormous debt, with Treasury data showing public debt topping 12 trillion U.S. dollars in November last year, the highest ever. To pay for the deficit, the U.S. federal government will borrow 392 billion dollars in the January to March quarter of 2010, according to a Treasury Department statement released Monday. It will then issue 268 billion U.S. dollars of treasury bonds in the second quarter. Experts said the record deficit suggests the federal reserve will continue to flood more money into the market. The massive issuance of treasury bonds, the large fiscal deficit and the printing of the dollar will prompt further declines in the value of dollar, they said. In 2009, the greenback depreciated against major currencies by 8.5 percent, according to China's State Administration of Foreign Exchange (SAFE). China is the biggest foreign holder of the U.S. government debt. As of the end of November last year, China held 789.6 billion U.S. dollars of U.S. treasury bonds. Moreover, more than 60 percent of China's 2.399 trillion U.S. dollar stockpile of foreign exchange reserves - the world's largest - is in dollars. Cao Honghui, director of the Financial Market Research Office of the Chinese Academy of Social Sciences (CASS), a government think tank, said the massive U.S. deficit spending and near-zero interest rates would erode the value of U.S. Bonds. The U.S. government should not transfer the problems of enormous debt to other nations or regions that are creditors like China, he added. The SAFE said in a statement in December 2009 that China would diversify its foreign exchange reserve holdings - both currencies and securities - to reduce risk. Liu Yuhui, an economist with the CASS, said late last month China may scale back its purchases of U.S. debt on concern the dollar will decline. China trimmed its holdings of U.S. government debt by 9.3 billion U.S. dollars in November last year - the biggest cut in five months - taking them down to 789.6 billion U.S. Dollars. 2AC Add-on: US Economy [2/2]Global economic collapse resulting from selling of US debt Washington Post 2010 (Robert J. Samuelson (Washington Post) “China's $2.4 trillion grip on the global economy” - 1/25/2010 -http://www.washingtonpost.com/wp dyn/content/article/2010/01/24/AR2010012402299_pf.html) Consider what would happen, hypothetically. China would first sell securities in which its dollars are invested. That would include an estimated $800 billion in U.S. Treasury bonds and securities, plus billions in American stocks and corporate bonds. After unloading the securities and collecting dollars, it would sell the dollars on foreign exchange markets for other currencies: the euro, the yen and who knows what else. The massive disgorging of dollars could trigger another global economic collapse. As China's selling became known, other foreign and American investors might jump on the bandwagon, abandoning dollar securities and shifting currencies. If panic ensued, markets would fall sharply. Banks' and investors' capital and wealth would erode. Directory: files files -> Answer True False 2 points Question 2 files -> Integer programming and game theory files -> 4 Integer Programming files -> Bpa vehicle Window Repair Scenario #1 task: Procure vehicle window relacement. Objective files -> Pop Warner History files -> North Carolina Inclusion Initiative Mapping Where Children with ieps are Being Served Purpose files -> Fall 2013 Spring 2014 Program Data: Standard 1 Exhibit 4d files -> Hanban – asia society confucius classrooms network 2010 request for proposal files -> Northern England’s set-jetting locations Download 0.59 Mb. Share with your friends:
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