Cheers!
Having said all of that - could you explain please the inflation in China (yuan dropping in its purchase power) as the cause of dollar collapse. I don't think the there is any link here, to say the least...
Walmart will be the barometer of things to come.
If prices start to rise there, look out.
Doesn't China own a boatload of our debt, in dollars? Hyperinflation of the dollar would make those bonds worthless, wouldn't it?
Interesting take, but I don’t buy it. For his scenario to affect the US, as the price of Chinese goods increased, US demand for them would have to remain the same.
It wouldn’t.
Has there been any support for it's proposals yet?
Well, inflation will happen in China at whatever rate, and oil will eventually get away from being managed at a little over $40. So yes, the dollar will go down, and attempts to stop that will only lead to world war.
Meanwhile, back home, we’re not buying, but we are doing a few other things to make sure that we’ll have better leaders in business and politics in the future.
This a good time to do 3 things; adopt the fairtax system, reverse split our currency one for ten, a new dime would buy what a dollar did, metal prices would be a tenth what they are now, allowing us start using copper and silver in our coins, again start a vollentary re-work with our agreements with other nations, and those that don’t want too will be on notice to mind their P’s & Q’s. Lead again, instead of trying to copy sociakism. Plus it would wreck those that have $ they can’t explain in that you would have a short time to exchange yor old money for the new. My post is too long, I know.
Inflation happens when there are more dollars in the money supply. The stock market meltdown took 11 (eleven) Trillion away, so the money that is left, is worth more. Okay, lets use some common sense. Although I despise the Democrats for spending like drunken sailors, the amount they are spending - even the 4 trillion isn’t as much as was lost in the stock market crash. The money that is out there now is worth more, and the dollar is strong against the Yuan. If China devalues the dollar by dumping their investments, they only hurt themselves; sort of like losing their biggest customer because they won’t provide credit.
We are now in a period of deflation, if anyone has noticed. Gas is less, milk is below cost, and prices continue to fall on everything BECAUSE there are less dollars out there floating and flowing. Less of everything spent because the boomers lost their pants in the stock market.
The housing bubble was INFLATION, but no one seemed to care as long as it was their wallets being inflated. Now prices are down and they’re all complaining.
The internet creates this mass hysteria, and people will believe anything anymore. China is actually MORE free market and capitalistic than the USA, and it is easier for a Chinese citizen to become a capitalist in China than it is in the USA. I’m sure the Chinese government sees the USA government as inconsistant, and at the moment moving further to the left than China is.
Furthermore, just to hear Americans who’s country is barely over 200 years old comment on a country who has survived 4000 years is nearly laughable, and shows the ignorance of the Pink Floyd generational know-it-alls driving their cadillacs to the golf course while commenting ignorant xenophobic bigotry while pointing at Wall Mart signs. Folks, the smiley face on the wall mart prices is yellow for a reason, or you’d still be enriching american unions for simple household items which used to cost 400 times more than they do today.
The real inflation will happen when trade protectionism keeps global components out of USA products; and at that point, what would China have to lose by dumping our worthless dollars if we stopped buying their products?
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