Comment: China will be bound to

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China will be bound to

China will be bound to whatever laws the US and Idaho wish to apply to them in the area. I highly doubt they are going to manufacture goods in Idaho and ship them back to China since that makes absolutely no sense at all. Wages here are much higher and transporting goods costs money, so why wouldn't they just manufacture everything in China? It's more likely that they want to extract natural resources from the land and sell it to whoever will buy it.

I find it funny that people are saying the Chinese are going to back the yuan with gold since it seems pretty unrealistic. The money supply in China expands ~20% year over year (not including credit), so the idea that they could somehow back all of this with gold, without eventually having to go off the gold standard seems somewhat ludicrous.

I guess what I'm trying to say is that one should exercise more caution before jumping to such conclusions.