[JCricket]

isn't it great? They loan us money to buy their goods. So what would happen if all americans completely stopped buying chinese goods. Just thinking out loud below.

1.China would not have any money coming in on exports from us. They would have a recession and unemployment would rise in their country. There wages would drop(lower than now I think). They would have to raise the interest on their loans to keep solvent. The big business' over there would be hurting.

2.Over here, the demand for goods would stay the same, but the purchasing ability would drop as the prices would be higher because of the cost of domestic labor and the limited supply of these goods. The money flowing out of our economy would stop. However, our economy is in fairly poor shape. It would take several years before we built up enough production facilities(be it labor, capital, or equipment) to becomes strong again.

3. To ensure this doesn't happen again, major tarrifs should be imposed on imported goods.

Just an idea, if we did this China would be hurting bad..........
So, lets do a little extortion here. If we owe China, lets say 5 trillion dollars, we will agree to buy 10 trillion in goods over the next ten years. This cancels the debt and keeps them afloat for that time. If not, then we just stop buying and paying.....................

Afterall, this(edit: china's action) is kind of like a drug dealer giving credit to a junkie to keep his profits high.