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 ...
They made stuff with near slave labor and sold it to us. We sent them money for the stuff they made.
US companies closed plants here because they could make a lot more money on Chinese goods.
They made more stuff. Repeat this enough and you're in the hole big time.
Everyone's happy until the slaves begin to look for something other than IOU's after their 12 hour days.
A hard rain is gonna fall.
WOW! Unfortunately many Freepers don't realize how poisonous he is politically, don't realize that seeing Cheney on TV just makes Obama MORE popular by contrast to Bush/Cheney. I believe GWB had good motives for Amnesty and other screw ups but it doesn't make reality any better. The talk radio mantra is “Bush is a nice man with good motives that got tricked by democrats, but he saved the economy and ALL our lives from terrorists but let evil democrats trick him. Obama on the other hand may be doing similar things but he has EVIL motives and wants to destroy us all.”
press beating tom-toms for internatioal currency.
He did some real just plain stupid things that caused the core to sit out the midterms, I will never forgive him for that and even with everyone up in arms about his Amnesty, the Turd still did not change tack. We supported and elected him twice then HE turns his back on us!!! WE employ him no different than an employee that is given work to do.
The Conservative base was going wild, People who usually are very reserved were voicing their displeasure loudly..
Then the Arrogance talking down to us calling names and the Johnny Sutton the sawed off little Gonzales AG the NON Fence.. THEN THEN we get stuck with his partner in this assualt on America The Traitor McQueeg LOL fat chance this Zombie had.
Would that mean no more Barney Frank?
I disagree. Real property and solid businesses have real value that transcends inflation. The Chinese have dollars, so they can and will buy our property and businesses.
Our children may very well have bosses (and landlords) from China.
Capital gains on housing changed in 1997. It's not set to expire.
Tthanks I was strugging this morning!
Erm... they don’t have that many. And, they’ve been spending their reserves through their own stimulus internally propping up all the failing businesses.
Don’t know if you remember, but before this whole mess last year all the talk was about all these BAD loans in the Chinese banking/industrial system. In other words, due to corruption et al, the Chinese central bank has been lending massive ammounts of money to all kinds of companies that weren’t really turning a profit.
Ouch! (for China)
“....where did China get the money to loan to us?(IE, the money with which to buy US treasuries and bonds?)”
Have you been to Walmart, K-mart, Target or looked at the tags on the consumer products you have in your own home? About a bazillion Chinese men and women put their sweat and lives into getting all that “stuff” to you (and us).
That should answer your question.
Yes with factories and billions of dollars provided by US investors, while the Chinese kept their yuan artificially pegged to the dollar 8 to one. So how much do we really owe them? What authority can legitimately decide what fiat money is really worth?(the arbitration of open war-fare perhaps?) How many trillions of dollars worth of RandD have they stolen from us?
The Econuts are about to experience a huge shock since the only true way we will be able to pay our debts is to rebuild domestic factories to produce high quality goods and commodities to be sold domestically and abroad. Oil fields and coal mines will be demanded of us to be re-opened by the Chinese to be sold to them to repay our debt. Perhaps our dollar will be so devalued that we’ll peg 8 of our dollars to one of their yuan!
The debt is in dollars. That's what they'll get in payment. If they want to take those dollars and buy our oil and coal, good for them.
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