Posted on 05/18/2009 5:37:56 AM PDT by SeekAndFind
"The U. S. should be afraid, very afraid. China is questioning the dollar's status as a reserve currency and, at US$1,000 an ounce, gold has become the world's de facto currency." -- John Ing, Maison Placements in Canada
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It is a chilling statement from an expert on both gold and China. But he is speaking the truth: In a G2 world (the United States and China), he who is the piper calls the tune, and China holds a US$2-trillion mortgage on the United States and is not happy. This country, along with others that lend money to the United States, such as Saudi Arabia, will determine the value of the U. S. dollar and gold. And they have spoken. They are not buying more U. S. treasuries and are buying gold as a new asset class. China announced that it was doing so quietly, and recent reports are that the Saudis and others have been buying bullion and hocked gold jewellery from around the world.
The only way is up for gold prices because the United States, which backstops the International Monetary Fund, the world's lender of last resort, has had to become its own lender of last resort.
Washington has cranked up the printing presses in an unprecedented way, replicating the behaviour of its spendthrift corporations and consumers. This year's budget is US$3.5-trillion, bigger than any in history.
And as Ing points out, the "bi" in this bipolar global economy is China. Beijing has not only started to hoard gold but has continued to talk up a new reserve currency concept to replace the U. S. dollar. The only reason the Chinese and others don't dump U. S. dollars is because it would be like shooting themselves in the foot.
(Excerpt) Read more at nationalpost.com ...
The article might be hyperventilating, but how will we pay the debt? The debt is beyond normal comprehension at this point. It’s sort of like trying to understand distances in outer space.
What will happen to their wealth will be the same thing that happens to ours. It will be destroyed. There is no safe haven that I can see.
chicom bump for later..........
Did you just type : “ Printing money has nothing to do with the economy or the housing boom ” ? If printing lots of money had nothing to do with the economy why would the Federal Reserve under both Bush and Obama do it during economic slowdowns? Same with Nixon and Ford in 1970s? What is a bubble anyway? Mal-investment to defend against inflation! If interest rates were high/limited money supply, why would anyone risk investing in a bubble?
Try basic economics and less talk radio.
Try monitoring the Swiss investment companies and their purchase of the very, very best vegetable crop land in the USA!!
Check out the farm land purchases in the midwest. See who the real investors are behind the purchases. Chilling thought.
LOL
Basic economics is in real short supply in Talk radio!!
That was and is the Donald Trump business model!!!
Oh I’m a financial realist. The debt is unsustainable. Basically, only thing that will get things under control is draconian reductions in government spending. Ie, social security and medicare will go down the tubes, and will have to be disbanded/discontinued. The socialists may wanna tax us all to death to ‘save’ these programs, but it only postpones the inevitable by a few years. More they tax the worse the econ will get and less money they’ll get. And, if the inflation really picks up the jig will really be up.
We’re definitely up for a serious ride, however, Chinese are in the same boat with us - actually, much worse one. They rely on continued economic expansion to maintain the social order and the government. If that fails they’ll have themselves about 700M peasants rampaging. I’m far more worried as to when the people in the US will wake up (ie, how much economic damage will be done before that happens).
I had to ping you to show an example of what they are teaching. I still listen to Rush but had to give up Hannity and Levin. They have a simple narrative they are selling and to sell it they have to write their own history. It goes :“Bush tax cuts ALONE saved the economy” This is repeated over and over and although I think they really mean upper income tax cuts and capital gains specifically, it is usually not clarified as such(which is problematic in itself because Bush tax cuts included removing many from tax rolls) .
Greenspan/Bush printing 2003 does not fit into that narrative. Obama/Bernake printing now and future inflation fits the Jimmy Carter 1970s narrative they are using so they dont mind warning us about that.
I am under 60 but, I agree with you. lol
Yet we also direct invested and poured money into their factories and infra structure...giving them gifts that keep on giving especially as they have quasi nationalized these businesses and also have stolen technology from us as well.
Fine if the Chinese don’t want to lend to us any-more but I think they need to be quiet about the stuff they already have gotten or stolen from us! I think we owe them nothing!(Especially with FIAT currencies involved in most countries, there is probably no reliable way to value who truely owes who what and to whom! I think that is that the dirty secret all of the world’s ruling elite don’t want discussed out in the open!)
When you owe the bank a billion dollars and cannot pay it back, you are in trouble. When you owe the bank a TRILLION dollars and cannot pay it back, the bank is in trouble.
China can do little to effect us economically with the bonds she is holding. Sure they can be sold off but that will have to be done in an orderly fashion and over a long period of time because to dump them quickly would crash the bond markets and cost China a ton of money.
Since we are the largest single buyer of Chinese goods it is in China’s best interest to do us no harm. In as bad a shape as we are now, we are still the engine which pulls the worlds economic train with America being responsible for close to 24% of the entire worlds GNP
You owe the bank 100,000 the bank owns you.
You owe the bank 100,000,000 you own the bank.
If the Chinese make anykind of hostile move to the dollar,
that 2 trillion they “own” becomes toilet paper.
It’s the financial version of MAD (Mutually Assured Destruction)
Greenspan/Bush printing 2003 does not fit into that narrative. Obama/Bernake printing now and future inflation fits the Jimmy Carter 1970s narrative they are using so they dont mind warning us about that.”
What tax cuts they left the corporate at 35% and helped the offshore migration.
Wonder how the investment companies will react when cash strapped local governments, knowing this land is being bought up by deep pockets folks, raise property taxes on them in a serious multi per centage fashion?
Possession still is 9/10th’s of the law and some-one still has to farm the land, can these out of country investment firms guarantee they can fully possess and use their properties? Contracts and Laws you might say? It will take occupying force to guarantee it, and slavery of the population.
Thanks. And they changed capital gains for houses too. BTW: If this tax cut expires bad news for house prices/sales.
FLASHBACK: 1988 Japan Hold Sway over US
His dealing with Fox in Mexico the complete and utter contempt for our borders and culture made him the most hated person of the time and that includes Bin Laden.
I thought McQueeg was finished also and would have bet money on it.. The Rats got the house because of them then look at what followed.
Money GW is not a Texan he is a damm NE. money spending Liberal.
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