Shadows of Foreign Debt

SAFEHAVEN ^ | October 16, 2005 | Hans F. Sennholz

[Willie Green]

ping

[LM_Guy]

ping - great article find !!

[Jumper]

The dollar will survive simply because it is the only currency not given valuation by a socialist government, e.g., it is solvent contengent upon capitalism's ability to produce new jobs. In all the aforementioned socialist and communist (dictatorships included), the underpinning for currency value is between the governments.

Why is there never a discussion on the trade practices between, say the French and another third-world country; or between Belguim and the Congo...? Might a study of the interdependencies of these government-born trade pacts show us that currency valuation is really just an assigned peg between ruling classes which enable them to maintain their lifestyles while at the same time giving their social masses just enough to survive at the lowest rate to prevent revolt. Ah, socialism - if you're a politician you're got to love it!~

[ASOC]

Where is the plug for gold stocks, gold futures or gold coins?

I am so disappointed.

[raybbr]

Even in the United States where economic expansion continues at modest rates, many corporations now prefer to invest in government securities rather than embark upon new production ventures.

I heard on Kudlow yesterday that corporations are sitting on record amounts of cash but refuse to expand here in the U.S. The question was what would have to happen to get them to start reinvesting at home? No one had an answer.

[B4Ranch]

The President has the answer ...... lower labor costs, that's why he leaves the borders open.

Ahh, I don't think that's working too well though. The Outstanding Public Debt as of 18 Oct 2005 at 04:58:24 PM GMT is: $ 8,002,711,446,325.2 1 Yup, 8+ TRILLION

The estimated population of the United States is 297,465,732
so each citizen's share of this debt is $26,902.97.

>>Americans obviously spend more abroad than they earn, consuming more than they are producing and ever increasing their indebtedness to the rest of the world. <<

Americans personal savings deposits in the banks stopped growing a couple of years ago. Now the trick is to get your money out of your home value.

So I guess our economy is in great shape and the FTAA passing in January will make it even better. Of course our wages will drop out of sight but that shouldn't concern Republicans who believe in the Presidents policies.

[Willie Green]

The question was what would have to happen to get them to start reinvesting at home? No one had an answer.

I guess it never dawned on 'em that the other alternative is to distribute these earnings to stockholders as increased dividends.
LOL! What a bunch of arrogant frauds.
They really have some nerve calling themselves "capitalists".
Just a bunch of dumbed-down, non-productive corporate bureaucrats, IMHO.

[hedgetrimmer]

So I guess our economy is in great shape and the FTAA passing in January will make it even better

The FTAA will help the housing market, with the illegals flooding in from South America and all.

[nh1]

"I guess it never dawned on 'em that the other alternative is to distribute these earnings to stockholders as increased dividends."


If the valuation of the stock is such that the shareholders are happy, and people are buying the stock, why would they pay a dividend.

[GOPJ]

thanks for the ping

[A. Pole]

Ben Bernanke, former governor of the Federal Reserve and now chairman of the Council of Economic Advisers, insists that much of the world is suffering from an acute disorder of "savings glut"; the United States has no choice but to increase consumption. Fortunately, it is willing and ready to act as the "consumer of last resort."

"Let London manufacture those fine fabrics of hers to her heart's content; let Holland her chambrays; Florence her cloth; the Indies their beaver and vicuna; Milan her brocade, Italy and Flanders their linens...so long as our capital can enjoy them; the only thing it proves is that all nations train their journeymen for Madrid, and that Madrid is the queen of Parliaments, for all the world serves her and she serves nobody."
(Prominent Spanish official - Alfonso Nunez de Castro in 1675)

[ARCADIA]

If the valuation of the stock is such that the shareholders are happy, and people are buying the stock, why would they pay a dividend.

Valuations are cool because they depend more on perception then real operational economic effectiveness. It is hard to turn a profit in a competitive marketplace; but, it is so much easier to spin a yarn and milk a bunch of suckers.

[Incorrigible]

Many countries, rich and poor, now are supporting the richest country on earth. This odd situation raises serious questions of consequences if the creditor countries should suddenly tire of their chore and call a halt to the burden. What would happen if, for instance, the Asian central banks should suddenly refuse to add to their dollar holdings or even reduce them and instead decide to invest their surpluses in euros?

I say let the Chinese buy American real estate assets with all those extra dollars. Maybe we can sell them Rockefeller Center and buy it back later at half price like with did with the Japanese!

The only odd situation is when the Chinese figure out they can't negotiate a bond recall if they want to continue selling us stuff. Well, they can, but it will be at pennies on the dollar! MuWaHaHaHaHaHaHa!!!

As Donald Trump says: "When you owe the bank a million dollars, the bank owns you. When you owe the bank 100 million dollars, you own the bank!"

Ha Ha! Those ChiComs are being played!

[Nick Danger]

Zackly. What are these furriners going to do, send a repo man over here to confiscate the United States?

[Paul Ross]

What are these furriners going to do, send a repo man over here to confiscate the United States?

Wake up and smell the coffee on this one. They can buy our remaining factories...ship them to Tianjin and ACCELLERATE their industrial economic dominance of the trade "relationship." They can buy up OUR resources...OUTBIDDING US for oil, gas, coal, iron ore, steel scrap, rare earth metals, raw lumber, relagating the U.S. to a third world also-ran. They have already nailed down an exclusive with Iran's oil. They are trying to ace us out of Venezuela's oil...which is our only major alternative here to Middle East oil currently. (They are helping Chavez build up and arm himself with a major military force...why do you think?) They are buying U.S. scrap steel essential to our mini-mills at top dollar, and sucking it all away at levels eclipsing the similar insatiability of WW-II Japan prior to Pearl Harbor.

They nearly picked up UNOCAL for a song. The White House was all set to not just cave to the Chi-Comm's lobby...but abet it. The Chi-Comm's have $700 billion sloshing around and are looking for ways to spend it to our hurt...i.e., without doing anything to buy any of our manufactures. They wish to suck our industry away from us. Permanently. E.g., They only want to take. And keep.

As the mighty Chinese Yuan becomes the invincible reserve currency of the world, the Banna Republic of the Former U.S. of A. will fall to turmoil and internal revolution. This is war. Notice how EVERYTHING the communists here are doing is designed to destroy national sentiment? From teaching revisionist falsehoods and misrepresentations throughout all grade levels in schools, and PC-correctness, schism-America (i.e., hyphenated americans). Instead of the United States, we are the UN-TIED States. Polyglot aliens are given priority admission to the U.S. legally...and they don't even have to learn english or think of acculturating...nor do they want to. They hate us too. And the RATs have written our educational funding mandates so that their languages have to be taught in our schools (ESL run amok).

Meanwhile, our envious Southern neighbor, long festering resentments over the loss of Texas and California 150 years ago, et al., is manifestly aiding and abetting a "reconquista" movement of the illegals they encourage to invade across our borders. Vincente Fox is no friend of America...and he is no friend of liberty. He even was cooperating with Chinese manipulations in our hemisphere with Castro's Cuba, Hugo Chavez's Venezuela and Brazil's new Marxist government. Only recently realizing that China has played him for a sap...but still too wed to his anti-U.S. rhetoric to reverse course.

We need to restore the things which unite us. From teaching American history accurately, and debunking the revisionists, and seeing our enemies clearly. Including neighbors that aren't too neighborly. That includes restoring economic opportunity for AMERICANS safeguarded by economic outsourcing disincentives...shedding the chimera falsehoods of the import lobby. That was always part of the greatness of America. And a necessary social compact.

The phoney free traders have long said that the only consequence is that the Chi-Comms get our worthless dollars. Wrong. They get our factories. We get their worthless manufactures that enfeeble us, and make us dependent on them across the board. They are reversing the industrial relationship. Soon it will be unstoppable. Delta will be snapped up for a song. Then GM. Then Ford. Then Boeing. This is what they are counting on. Winning the fight without the enemy realizing he is in one until it is too late.

It has been working for them for 15 years. The only thing they need to worry about is people who are alert and see the danger, Nick. I would not put it past them to start assassinations of key American protectionists. You are aware of the titanic number of agents they have over here, aren't you? "Accidents" will happen.

[mississippi red-neck]

Nice job.

I do not know very much about economics.

But to my way of thinking when the majority of your people start third world jobs,for third world wages,and living in third world houses and exist in third world conditions, then you become a third world country.

All the good this country seems to be good for anymore is to consume.

If our government keeps the flow of the good paying jobs leaving the country and flooding the job market with cheap illegal labor deliberately depressing the wages of the jobs that are left here we won't be able to do even that.

The government politicians and big business better remember that those employees who wages you are destroying are also the tax base for the government and the customer for business.

When enough lose their job and/or they go broke so do you.

[mika.]

So, how many China agents has the FBI caught to date?

[lucysmom]

What are these furriners going to do, send a repo man over here to confiscate the United States?

What happens to third world countries that borrow money from abroad and can't make payments? Interest rates are raised and the lender dictates internal economic policy as a condition of further loans the financially stretched country must have.

Wouldn't it be ironic if we borrowed ourselves into a position to have our economics dictated by China?

[Nick Danger]

Wouldn't it be ironic if we borrowed ourselves into a position to have our economics dictated by China?

Where do you think the Chinese get all these dollars they loan us? They get them from Americans, who buy Chinese stuff at Wal-Mart. Then our government borrows the dollars.

At that point, we have their stuff, and we have our money back. So far, so good.

What the Chinese have is a piece of paper that says we'll give them the money back in 30 years, except if they invade Taiwan we'll consider that an Act of War and abrogate the debt (which we're allowed to do under International Law if they make war on us).

How exactly do you think they can "dictate" policy to us? The only policy they want from us is to keep buying their stuff so they don't have a billion unemployed Chinese trying to hang the leaders of the Communist Party. If they try to foment any sort of slowdown here, they get whacked worse than we do.