29 Sep 10
Originally posted by Metal BrainThey can't "call" our debt. The US government is not some bank that can be destroyed by a sudden withdrawal demand. The US government can print as much money as it likes.
I support protectionism as well, but we would get inflation as a result. That is why any money from tariffs should be used to to reduce the money supply if it is needed.
The only thing I worry about is that if China feels it will hurt them they might hurt us as well by calling in some of their debt.
"Calling" US debt at once, especially if done with malicious purposes, would simply cause the US government to print and thus deflate US currency. Yes, that would hurt Americans' quality of life by reducing our purchasing power (in the short run), but it would hurt the holders of US debt even more by making their notes worth much less.
The Chinese economy, which is built on exporting goods based on the demands of foreign consumers, needs a strong dollar more so than the Us economy does.
If the dollar collapsed, wealthy Americans would suffer in the short term as their savings became worthless, but the jobs created in the manufacturing and technology sectors would soon compensate.
The Chinese, on the other hand, would end up with a mountain of cheaply produced crap and no one to sell it to.
The fundamental problem with the Chinese economy is that they've outsourced to Walmart and Co. the decision of what to produce and when and how. If they suddenly had to decide what to produce without western direction, there's no evidence they would have any idea what to do.
29 Sep 10
Originally posted by sh76That would cause inflation and undermine the US dollar as the world reserve currency.
They can't "call" our debt. The US government is not some bank that can be destroyed by a sudden withdrawal demand. The US government can print as much money as it likes.
"Calling" US debt at once, especially if done with malicious purposes, would simply cause the US government to print and thus deflate US currency. Yes, that would hurt Americans' quality of ...[text shortened]... duce without western direction, there's no evidence they would have any idea what to do.
You did not read the Ron Paul article I provided. If you did, you should read it again.
29 Sep 10
Originally posted by Metal BrainActually, I read the entire Ron Paul article. It's nothing new. I've heard Paul's Chicken Little whining about returning to the gold standard for years. Obviously, there's some truth to his complaints, but on the whole, it's overly simplistic and trite.
That would cause inflation and undermine the US dollar as the world reserve currency.
You did not read the Ron Paul article I provided. If you did, you should read it again.
During the decades and decades of economic prosperity engineered by US fiscal policy, the whining about floating currencies is generally at a minimum. Every once in a while, during these blips on the economic radar, these neo-liberals wax poetic about the good ol' days when people's standard of living was much, much lower than it is today.
What is needed is some fiscal responsibility on the part of the politicians, not that we throw the baby out with the bathwater every time we have a recession.
29 Sep 10
Originally posted by Metal BrainYes, China could hit the American economy hard, but it would be a lose-lose situation, and we'd come out on top in the end.
That would cause inflation and undermine the US dollar as the world reserve currency.
You did not read the Ron Paul article I provided. If you did, you should read it again.
29 Sep 10
Originally posted by sh76If the dollar collapsed, wealthy Americans would suffer in the short term as their savings became worthless, but the jobs created in the manufacturing and technology sectors would soon compensate.
They can't "call" our debt. The US government is not some bank that can be destroyed by a sudden withdrawal demand. The US government can print as much money as it likes.
"Calling" US debt at once, especially if done with malicious purposes, would simply cause the US government to print and thus deflate US currency. Yes, that would hurt Americans' quality of ...[text shortened]... duce without western direction, there's no evidence they would have any idea what to do.
If this were true it would make a great economic policy!
😉
29 Sep 10
Originally posted by sh76Apparently you did not learn much from the article. You should read it again since you did not pick up on how the USA is taxing the oil trading world with inflation.
Actually, I read the entire Ron Paul article. It's nothing new. I've heard Paul's Chicken Little whining about returning to the gold standard for years. Obviously, there's some truth to his complaints, but on the whole, it's overly simplistic and trite.
During the decades and decades of economic prosperity engineered by US fiscal policy, the whining about fl ...[text shortened]... icians, not that we throw the baby out with the bathwater every time we have a recession.
Floating currencies are not good, especially today. What is happening is that most countries are lowering the value of their currencies to increase exports. The only problem is that if everybody does that nobody gains an export advantage.
The result is that all currencies devalue and gold is the only safe investment. That is why gold is the only place to be.
http://www.kitco.com/charts/livegold.html
I find it amazing that so few people get it. Gold is not a bubble waiting to happen, it is actually undervalued.
http://www.bloomberg.com/apps/quote?ticker=DXY:IND
It really is rather simple. "Look Jane, see the dollar fall". " Yes Dick, see gold rise".
29 Sep 10
Originally posted by Metal BrainMortgage your house, fill up your credit cards, beg/borrow/steal from relatives and get into gold futures. You will be a multi-millionaire this time next year.
Apparently you did not learn much from the article. You should read it again since you did not pick up on how the USA is taxing the oil trading world with inflation.
Floating currencies are not good, especially today. What is happening is that most countries are lowering the value of their currencies to increase exports. The only problem is that if ev ...[text shortened]...
It really is rather simple. "Look Jane, see the dollar fall". " Yes Dick, see gold rise".
30 Sep 10
http://www.reuters.com/article/idUSTRE68S0NJ20100930
China says U.S. yuan bill violates WTO
...
The bill allows the U.S. Commerce Department to treat "fundamentally undervalued currencies" as an illegal export subsidy so that U.S. companies can request a countervailing duty to offset China's price advantage.
...
30 Sep 10
1 edit
Originally posted by AThousandYoungtoo many presold nike's to scotch this relationship. The US will nudge the China to value its yuan a bit better making those wonderful shoes a bit more expensive which will also allow highly modified Escalade's to finally hit the streets of Shanghai at slightly more expensive prices.
We've always been at war with Eastasia.
A definite win for dentist's who do bling mouth jewelry and a further opportunity for US acculturation through the pervasive influence of snoop. 😀
03 Oct 10
1 edit
Originally posted by sh76A trade war with China would suit me just fine! Over the last 25+ years it's become almost illegal for American's to manufacture anything. God forbid we should employ American's so they can spend there wages locally and stimulate the American economy. No Way! We have to send ALL of our money to China to stimulate there economy! I say China can jump in a lake. Boeing has lots of other places to sell it's airplanes...and if China decides not to buy anymore American securities as a result? Boo Hoo Hoo. The American government would have to live within it's budget. What a novel idea! 😲
http://www.realclearpolitics.com/articles/2010/09/27/a_trade_war_with_china_107310.html
[quote]The trouble is that China has never genuinely accepted the basic rules governing the world economy. China follows those rules when they suit its interests and rejects, modifies or ignores them when they don't. Every nation, including the United States, would like t China believe that an export based economy is the shortest path to superpower status?