Well, there you go again Arjay, contradicting yourself. This time, in consecutive sentences, which is quite an achievement.

>>Pericles China can can slowly increase domestic consumption and keep their economy expanding.Eventaully the West will be totally broke with a one way system buying from China and pay interest to the debt parasites<<

There is no doubt that China needs to increase domestic consumption, in order to strengthen its economy overall. An over-dependence on exports, especially when some of their overseas markets are stagnating, would be dangerous for them. But if you don't have a market for all those iPhones outside China (that's what exporting means), there is no way that you will be able to sell them inside China, would you? The money that the workers are presently paid comes from exports. No exports, no money to pay for iPhones.

So the transition from an export-driven economy to one that is able to thrive by servicing its internal market alone, will necessarily take generations, not months, years or decades.

But to that contradiction I mentioned. The "West", if it becomes "totally broke", wouldn't be able to continue "buying from China" anyway, would it? Which is exactly the challenge China faces - right now it is absolutely and critically dependent on the survival - and growth - of its overseas markets. Were they to suddenly dry up - which is one of the most likely scenarios from a Ron Paul US economy, given his aversion to debt - China would suffer a massive recession, against which the problems of the "West" would look like losing loose change down the back of the sofa.

Incidentally, Arjay, I have been meaning for a while to ask you: you do know that the banking system in China operates in exactly the same way as ours, don't you? That is, their lending is governed, as is ours, by a reserve ratio.

http://www.smh.com.au/business/beijing-looks-to-ease-limits-on-bank-lending-20120313-1uygx.html

Horror of horrors - it's that bogey of Paul-a-nomics: Fractional-Reserve Banking! Whatever next?

If you are interested, here's a factual report on the history of China's participation.

http://www.bis.org/publ/work360.pdf

Consider it all part of your education. Not everything can be found in conspiracy-nut web sites, you know.

Pericles,the Chinese Govt just like the US Govt pre 1913,creates 80% of new money to equal their people's productivity debt free,or as debt free infrastructure.This means that by comparison the vast majority of their citizens pay less tax than we do.Our Govts tax us to pay for debt to OS central banks and their parasites for no good reason.

When the US Federal Reserve came into power in 1913 by the corruption of Woodrow Wilson,the West's demise was set in train.You are witnessing the reality of absolute power.It corrupts absolutely.

Sorry, Arjay, wrong again.

>>Pericles,the Chinese Govt just like the US Govt pre 1913,creates 80% of new money to equal their people's productivity debt free,or as debt free infrastructure.<<

That is completely incorrect.

FYI, China's "official" government debt according to the IMF is 33.8%, or 60% higher than Australia's. But as we all know, that is only part of the story. When you factor in Australia's private debt, our figure is much higher.

Guess what. So is China's. They don't have the individual debts that we have, but they have instead other government debt hidden under the covers.

"Once local government debts, costs of re-capitalizing state-owned banks, bonds issued by state-owned banks, and railway bonds are included, China’s total debt amounts to 70 to 80 percent of GDP, roughly the level of public debt in the United States and the United Kingdom. Since most of China’s debt has been borrowed in the last decade, China is on an unsustainable trajectory at the current rate of debt accumulation, particularly when economic growth slows down, as it’s expected to do in the coming decade."

http://the-diplomat.com/2011/07/05/china%E2%80%99s-ticking-debt-bomb/

So please, no more garbage about "new money to equal their people's productivity debt free". You're only embarrassing yourself.