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One of the challenges that we've got to address internationally is currency rates and how they match up to make sure that our ... goods are not artificially inflated in price and their goods are artificially deflated in price," Obama told senators from his Democratic party.
Currency controls are coming...I heard something on Wall St. Unspun (Peter Schiff's radio program) concerning the government interfering on the liquidity of money market accounts. Don't know the specifics.
1. Dollar bills are not dollars. Dollars are not dollar bills. See: U.S. Constitution, Article 1, Sec 8, 10. Coinage Act of 1792, and Title 12 USC Sec. 411.
2. Dollar bills, aka Federal Reserve notes, are obligations of the U.S. government to pay face value on demand. That promised was repudiated in House Joint Resolution 192, in 1933.
3. The Congressional Research Service confirmed that FRNs have no par value (worthless). They are underwritten by about 300 million "volunteers" under FICA / Social Security. (You do know that you're a "contributor", equally liable on those worthless notes.)
4. By law, "Dollar bills" are worthless, so they are not fiat. They are notes. And obligated parties on those notes must accept them in lieu of lawful money (gold / silver coin). Did you knowingly agree to be an obligated party on the public debt? Perhaps you should write to Congress and ask them about it.
5. The national debt, soon to be 14 trillion, is only payable with dollars, not dollar bills. That debt computes to 650 billion ounces of gold. Unfortunately, the estimated world supply of bullion is only 5.5 billion ounces. Fort Knox has 147.4 million ounces.
6. The validity of the public debt cannot be questioned, pursuant to clause 4 of the 14 th amendment, even when it is IMPOSSIBLE to repay.
One of the challenges that we've got to address internationally is currency rates and how they match up to make sure that our ... goods are not artificially inflated in price and their goods are artificially deflated in price," Obama told senators from his Democratic party.
Could this be a devaluation of the US dollar if so by how much, 30 percent or 50 percent..........
Actually the issue is not with the US Dollar, it's with the Chinese Yuan - and it's not just the US Dollar that's affected. The Europeans and the Japanese are ALL complaining that the Chinese Yuan is undervalued and that the Chinese need to divorce it from the US Dollar so that the Yuan can rise to it's proper rate. As it is now the Yuan is pegged against the US dollar (and thus other currencies) at a rate that is way too low. The result is that the Chinese have an "unfair" advantage in regards to the price of their exports when compared to the more expensive exports coming from the US, Europe and Japan. The low value of the Yuan is helping the Chinese and hurting everyone else (US, Europe, Japan, etc - in short ANYONE who trades with China).
The Chinese are well aware of this but are reluctant to give up the advantage their weak currency affords them. Eventually they WILL give in though and the Yuan will rise against the US Dollar and other world currencies. It's just a matter of WHEN.
As I've explained MANY times to posters on this board - a weak currency is not necessarily a BAD thing, just as a strong currency is not necessarily a GOOD thing. It all depends on the circumstances.
The Chinese citizens' standard of living will EXPLODE when their currency is allowed to rise. All of that pent up savings...like having a stash of gold @ $300/oz. House prices dropped 90% in real terms within certain areas of Florida. Think of all the goodies they'll be able to buy with asset depreciation such as that.
The Chinese citizens' standard of living will EXPLODE when their currency is allowed to rise. All of that pent up savings...like having a stash of gold @ $300/oz. House prices dropped 90% in real terms within certain areas of Florida. Think of all the goodies they'll be able to buy with asset depreciation such as that.
A rise in the Yuan will provide more wealth to Chinese citizens as well as boost US (and other country's) exports to China (helping to boost OUR economy and rebuild OUR manufacturing base) and thus help our trade deficit with China. It WILL make imports from China more expensive, but the fact is, as long as imports from China remain so cheap the US industrial base will continue to migrate there - so the rise in the Yuan (and any associated increase in prices of imports from China) is a necessary evil if we want to stem the trend of manufacturing moving to China.
A rise in the Yuan will provide more wealth to Chinese citizens as well as boost US (and other country's) exports to China (helping to boost OUR economy and rebuild OUR manufacturing base) and thus help our trade deficit with China. It WILL make imports from China more expensive, but the fact is, as long as imports from China remain so cheap the US industrial base will continue to migrate there - so the rise in the Yuan (and any associated increase in prices of imports from China) is a necessary evil if we want to stem the trend of manufacturing moving to China.
Ken
...and we'll just have to do without iPads, Wii's and tennis shoes.
The Chinese citizens' standard of living will EXPLODE when their currency is allowed to rise. All of that pent up savings...like having a stash of gold @ $300/oz. House prices dropped 90% in real terms within certain areas of Florida. Think of all the goodies they'll be able to buy with asset depreciation such as that.
All the more reason you better trade in your monopoly money for real gold.
Arlen Specter brought up pulling out of the bunk World Trade Organization(WTO) and instating import tariffs, as the first question yesterday with the President. The President said NO! With a very lame excuse.
WTF-ball!!!
Arlen had a very good point, that needs to be pursued! Get out of the WTO and NAFTA, NOW!!!! Set import tariffs and put Americans back to work NOW! While the government makes their money off those wanting a piece of our pie, by the tariff taxes on the imports. Forget this world economy crap!
...and we'll just have to do without iPads, Wii's and tennis shoes.
Nope. We'll just have to pay a bit more for them. In return we'll have more more jobs - and maybe iPads, Wii's and tennis shoes that will eventually be made HERE.
Nope. We'll just have to pay a bit more for them. In return we'll have more more jobs - and maybe iPads, Wii's and tennis shoes that will eventually be made HERE.
Ken
Not really. Efforts will be made to ensure we're manufacturing necessities first, before we create feel good gadgets. The toys will be too expensive relative to the sheer unemployment statistics. Eventually, after maybe 10 or 20 years, your assertion will be correct.
How's that recovery you've been predicting?
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