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Perspectives --be heard-- or click the graphic for other topics. -Rules-F.A.Q.-News PolicyChina alarmed by US money printing - UnitedStates.com FOREIGN* & DEFENSE - NEWS - Forums
Cheng Siwei, former vice-chairman of the Standing Committee and now head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing".
"We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como.
"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.
This has been going on for a very long time. This is merely the latest and most blatant episode.
Ron Paul warned about this for years, and the GOP mocked him.
I've pointed out for 2 years that China had an economic "Sword of Damocles" over us. And the Cons here mocked me. Whatever.
Me and mine have our butts covered. What's about to come down is no skin off my nose.
I do feel bad for people like Tsal's boy (sorry, Young Man) about to head off in the Marines. What are we creating for him to return to? A young man graduating from Annapolis. One of the finest colleges in our country.
But if the money he's paid is only worth half of what it used to be, how is he supposed to make a life for himself?
I've done a lot of research on this subject during the past year or so. I had no idea how bad things were for our currency before that. Here are some additional points of interrest:
-When our national debt surpasses our GDP (which it now has), our credit rating will begin to be eroded. (our GDP was 14 trillion a year ago. It's under 10 trillion now, thanks to the recession. The national debt is just under 12 trillion, if you don't include debt obligations (trillions of dollars owed for Social Security, Medicare, Medicaid and the prescription drug benefit known as Medicare Part D).
-According to the web site http://www.usdebtclock.org/, our interrest on the debt has gone up from 310 billion per year to 325 billion per year in only the past ten days. That's an increase of almost 5%! The debt, on the other hand, went up only a fraction of that. This indicates that the interrest rate on the debt has climbed signifigantly. It continues to climb by the hour. If it raised at this exact same rate for one year, it would increase by 176.6%.
-The Federal Government is currently collecting approximately 1-trillion in taxes per year. At 325 billion, the interrest on the national debt alone consumes 32.5% of all tax revenue (1 year ago, it was collecting 2 trillion per year). If interrest on the debt continues to climb at a rate of 5% every ten days, in one year, the interrest on the debt will consume 89.895% of all tax revenues.
Basically, what this indicates is that a catestrophe is headed our way, in the form of the collapse of the dollar. This is not good. Looking at historical examples, such as the USSR, you're talking about a possible breakup of the country, severe economic turmoil and a period of chaos, like that which followed the collapse of the Iraqi government (looting and murder were commonplace).
When the inevitable international monetary crisis hits due to the collapse of fiat currencies, Obama has a new currency printed,ready,and backed by shares in Michael Jackson's music....
The Chinese have been blatantly undervaluing their currency for years, despite our protests. Now the shoe is on the other foot. There isn't a lot they can do about it as they need us at least as much as we need them. That trillion dollars in US T-bills is going to buy a lot less chop suey. My heart bleeds for them ...
I'm shocked no one has Blamed Bush for being in the basement of the White House sweatin his azzzz off printing cash. Perhaps I just tuned in to early.......
George Aligator wrote: The Chinese have been blatantly undervaluing their currency for years, despite our protests. Now the shoe is on the other foot. There isn't a lot they can do about it as they need us at least as much as we need them. That trillion dollars in US T-bills is going to buy a lot less chop suey. My heart bleeds for them ...
I wouldnt agree that they need you as much as you need them, at least not in your current condition. The old "we catch a cold, you catch pneumonia" argument was been proven wrong by the current crisis, so if China wants to diversify its reserves, it will. If China knew it wouldn't be able to handle a fall of the dollar, it wouldn't be calling for a new global reserve currency (perhaps one more closely pegged to the Yuan). Moreover, China hasn't been manipulating its currency over the past few decades nearly as much as the US has manipulated the dollar. What's not going to change anytime soon is America's dependence on imports, so until the US switches from consumption to production, it could be buying goods in Euro and RMB. In that scenario, the US should even be supporting a new reserve currency.
So do any of you financial wizards know what will happen when hyperinflation begins? The stock market and the price of gold have both been rising at the same time over the past few weeks. Don't they generally work like a teeter-totter? When one goes up the other one goes down?
The Engine wrote: I've done a lot of research on this subject during the past year or so. I had no idea how bad things were for our currency before that. Here are some additional points of interrest:
-When our national debt surpasses our GDP (which it now has), our credit rating will begin to be eroded. (our GDP was 14 trillion a year ago. It's under 10 trillion now, thanks to the recession. The national debt is just under 12 trillion, if you don't include debt obligations (trillions of dollars owed for Social Security, Medicare, Medicaid and the prescription drug benefit known as Medicare Part D).
-According to the web site http://www.usdebtclock.org/, our interrest on the debt has gone up from 310 billion per year to 325 billion per year in only the past ten days. That's an increase of almost 5%! The debt, on the other hand, went up only a fraction of that. This indicates that the interrest rate on the debt has climbed signifigantly. It continues to climb by the hour. If it raised at this exact same rate for one year, it would increase by 176.6%.
-The Federal Government is currently collecting approximately 1-trillion in taxes per year. At 325 billion, the interrest on the national debt alone consumes 32.5% of all tax revenue (1 year ago, it was collecting 2 trillion per year). If interrest on the debt continues to climb at a rate of 5% every ten days, in one year, the interrest on the debt will consume 89.895% of all tax revenues.
Basically, what this indicates is that a catestrophe is headed our way, in the form of the collapse of the dollar. This is not good. Looking at historical examples, such as the USSR, you're talking about a possible breakup of the country, severe economic turmoil and a period of chaos, like that which followed the collapse of the Iraqi government (looting and murder were commonplace).
An excellent post.
A catastrophe is indeed headed our way. It will be a world catastrophe as well. It will reshape how ordinary human beings on this planet interact with one another. It will rattle many western governments to their very core. Like the 1920's and the 1930's, there will arise from the chaos a number of self proclaimed "new solution providers." They will be power-seeking leaders who will offer simple answers to complex problems. Trust me. It's been done before.
We have, at this very moment, a Chucklehead-in-Chief who is systematically destroying the foundation of our very nation, the US currency. Even the Chinese have stood-up and taken notice....
Mozart
Last edited on Tue Sep 8th, 2009 01:34 pm by WA Mozart
WA Mozart wrote: We have, at this very moment, a Chucklehead-in-Chief who is systematically destroying the foundation of our very nation, the US currency. Even the Chinese have stood-up and taken notice....
Is a "world currency" and "world bank" something that Obama wants?
Slaol_121 wrote: WA Mozart wrote: We have, at this very moment, a Chucklehead-in-Chief who is systematically destroying the foundation of our very nation, the US currency. Even the Chinese have stood-up and taken notice....
Is a "world currency" and "world bank" something that Obama wants?
There will never be such a thing as a "world currency." There will always be competing currencies such as the Yen, the Euro and the Dollar. What is fascinating is that with the destruction of the US Dollar as a holder of "value," the other world currencies are not faring much better. As noted in a previous thread, the Chinese are doing exactly what we've done, perhaps even more so! The Euro is a complete mess as a result of their member countries simply ignoring debt-to-GDP ratio's. There is no 'safe' currency in the world today....
WA Mozart wrote: Slaol_121 wrote: WA Mozart wrote: We have, at this very moment, a Chucklehead-in-Chief who is systematically destroying the foundation of our very nation, the US currency. Even the Chinese have stood-up and taken notice....
Is a "world currency" and "world bank" something that Obama wants?
There will never be such a thing as a "world currency." There will always be competing currencies such as the Yen, the Euro and the Dollar. What is fascinating is that with the destruction of the US Dollar as a holder of "value," the other world currencies are not faring much better. As noted in a previous thread, the Chinese are doing exactly what we've done, perhaps even more so! The Euro is a complete mess as a result of their member countries simply ignoring debt-to-GDP ratio's. There is no 'safe' currency in the world today....
Mozart
I hope you are right... however, I think the idea of a world currency will probably be tried sooner, rather than later - even if it won't work.
The Engine wrote: I've done a lot of research on this subject during the past year or so. I had no idea how bad things were for our currency before that. Here are some additional points of interrest:
-When our national debt surpasses our GDP (which it now has), our credit rating will begin to be eroded. (our GDP was 14 trillion a year ago. It's under 10 trillion now, thanks to the recession. The national debt is just under 12 trillion, if you don't include debt obligations (trillions of dollars owed for Social Security, Medicare, Medicaid and the prescription drug benefit known as Medicare Part D).
-According to the web site http://www.usdebtclock.org/, our interrest on the debt has gone up from 310 billion per year to 325 billion per year in only the past ten days. That's an increase of almost 5%! The debt, on the other hand, went up only a fraction of that. This indicates that the interrest rate on the debt has climbed signifigantly. It continues to climb by the hour. If it raised at this exact same rate for one year, it would increase by 176.6%.
-The Federal Government is currently collecting approximately 1-trillion in taxes per year. At 325 billion, the interrest on the national debt alone consumes 32.5% of all tax revenue (1 year ago, it was collecting 2 trillion per year). If interrest on the debt continues to climb at a rate of 5% every ten days, in one year, the interrest on the debt will consume 89.895% of all tax revenues.
Basically, what this indicates is that a catestrophe is headed our way, in the form of the collapse of the dollar. This is not good. Looking at historical examples, such as the USSR, you're talking about a possible breakup of the country, severe economic turmoil and a period of chaos, like that which followed the collapse of the Iraqi government (looting and murder were commonplace). Well, the Cono Sur countries of South America got into this kind of rut where they could just not even pay off the interest, let alone diminish the capital owed. It sucks.
WA Mozart wrote: We have, at this very moment, a Chucklehead-in-Chief who is systematically destroying the foundation of our very nation, the US currency. Even the Chinese have stood-up and taken notice....
Mozart Come now, Mr WAM, the Fed has been undermining the dollar for decades, regardless of which party has their man in the Whitehouse. The only reason that the dollar hasn't burst like an over-ripe zit before is because of the petro-dollar.
I am not an economist, but I do know that you can't keep writing cheques on an account without sufficient funds to honour them, which is precisely what the Fed has been doing, before the manager calls you into for an appointment...
WA Mozart wrote: There will never be such a thing as a "world currency." There will always be competing currencies such as the Yen, the Euro and the Dollar.
If only all of us had as much foresight as you...
maxim wrote: WA Mozart wrote: There will never be such a thing as a "world currency." There will always be competing currencies such as the Yen, the Euro and the Dollar.
If only all of us had as much foresight as you...
Even the communists understand wealth is not created by a printing press, something Obama still needs to learn. Obama and the fed are quickly beginning to realize they NEED to create inflation and they need to do it soon. It will soon be impossible to pay back todays debt in todays dollars. The problem with inflation is rising interest rates which will require even larger interest payments. The balance between the lesser of two evils is now the ONLY choices left to the Obama administration.
I personally hope the rest of the planet denies the Obama administration more money. It would be a sobering wake up call that's long overdue. As the song goes, California here we come, right back where we started from .....................everybody.......
The warnings of a major financial disaster continue to be ignored by the Obama administration.
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