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We want dollars floating outside the country so we can export our monetary inflation and be the sole printer of dollars that can extract the real labor and resources out of foreign nations.
Globalization was a means of dollarizing the world. A modern form of empire more slick than the British could have ever dreamed of.
When those dollars come home, for example when the Chinese buy up west coast real estate, we see the inflation at home.
Demand for dollars abroad varies with degrees of local economic and political instability, not with the whims of the Bilderbergers, Illuminati, or other imaginary international string-pullers.
We want dollars floating outside the country so we can export our monetary inflation and be the sole printer of dollars that can extract the real labor and resources out of foreign nations.
Globalization was a means of dollarizing the world. A modern form of empire more slick than the British could have ever dreamed of.
When those dollars come home, for example when the Chinese buy up west coast real estate, we see the inflation at home.
Exactly that is why when Gadafi demanded Gold for Oil USA and Europe declred him a Tyran. ¿How he dared to ask for real money instead of papers?
Since I am retired I hope you are right. I could use continued low inflation and nice stock market returns.
I am with you on that. And wouldn't it be nice to see CDs or other investments paying 12 to 15% again like the 70s and early 80s, but we forget the interest rates being changed in those days as well. I just want to live long enough to see decent returns on my buck, a few more SS raises and almost no inflation. OK, I have every right at my age to dream.
Oh, BTW, has anyone seen OP return with examples of who is warning us of an economic crisis?
When the CDs paid great rates, inflation was kicking us. The point is now we have strong returns mainly in the stock market and real estate, and inflation is low. I definitely do not want to see high inflation. That will just erode the value of my portfolio.
They aren't "investing in the US", they are buying US debt so they can sell us more than they buy. It's actually the opposite of investing in the US. Rather they are investing in their own infrastructure and productive capacity (prosperity).
It is a form of vendor financing. They ran the scheme in the 90's. Japan buys US treasuries to push up the value of financial assets. The Fed can lower short-term rates to stimulate consumption without fear of long-term rates rising. The lower rates on long-term debt also encourages refinancing which supports consumer spending.
Mortgage rates were as high as 10 percent in 1994. The scheme was formulated not long after Clinton political adviser James Carville said at the time that “I used to think that if there was reincarnation, I wanted to come back as the bond market. You can intimidate everybody."
In essence, you're paying someone 125 cents on the dollar for something so they will use the extra cash to buy from you. The telecom debt bubble, the mortgage refinance bubble, and the sovereign debt bubble have obvious similarities to the scheme.
When the CDs paid great rates, inflation was kicking us. The point is now we have strong returns mainly in the stock market and real estate, and inflation is low. I definitely do not want to see high inflation. That will just erode the value of my portfolio.
i was making my comments by the way, tongue in cheek. Of course no one wants to see high inflation again. that was why I put the smiley face at the end of my comment. I was saying let's have it all and of course I know that can't happen.
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that was why I put the smiley face at the end of my comment. I was saying let's have it all and of course I know that can't happen.
