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The Chinese are just blowing hot air, c'mon.....do you think they are buying US debt for our benefit? No, they need to buy our debt to manipulate their currency and keep their export sector strong.
Seriously......its an odd world when people think China's commentary on the US is anything but pure propaganda for internal consumption. If the Chinese say American should do X, its because X benefits China and hurts America.
The Chinese are just blowing hot air, c'mon.....do you think they are buying US debt for our benefit? No, they need to buy our debt to manipulate their currency and keep their export sector strong.
Seriously......its an odd world when people think China's commentary on the US is anything but pure propaganda for internal consumption. If the Chinese say American should do X, its because X benefits China and hurts America.
Precisely what it's all about. Good one, man.
Whatever Xinhua says up there is just rhetoric and stokes to its so called patriotic and otherwise oppressed population.
The USA needs to pass a balanced budget amendment otherwise we are headed for depression!!!
Tea party republicans are right! If anything what is going to cause a depression is Washington overspending into oblivion.
The Chinese are clearly warning us. The S&P downgrade is the canary in the coal mine.
At the end of the day BOTH republicans and democrats are going to have to make changes that they do not like:
Tax increases for the rich and the middle class.
Cuts to defense spending
Cuts to domestic spending
At this point, we have NO options left. We have to drastically cut spending and increase taxes otherwise we are headed for a depression. Mind you, it was only the tea party republicans who supported the balanced budget amendment.
At this point, we have NO options left. We have to drastically cut spending and increase taxes otherwise we are headed for a depression. Mind you, it was only the tea party republicans who supported the balanced budget amendment.
Drastic spending cuts and tax increases would deepen the economic crisis and make a depression more likely. In fact, it was one of the mistakes that they made in the 30s if I recall.
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Originally Posted by Boompa we are now Colonies of the Chinese, Japanese, Germans and Koreans.
I would argue that it's exactly the other way around.
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Basically, in 1971 when the United States created the OPEC oil standard (dollar backed by OPEC's oil reserves instead of gold--which was SIGNIFICANTLY more valuable and important) we pushed "globalism" to dollarize the world. We make dollars (paper) and everyone else makes things (real goods/resources) that dollars can buy. From us having an (intentional) trade deficit, the other countries would build up dollar reserves. They would then recycle into U.s treasuries, which allowed us to consume more (with intentional budget deficits). This setup created even bigger trade deficits...which meant more dollars floating out. Bingo. You guessed it. Foreign central banks needed to hold even more reserves (to prop up the dollar and keep their currencies low to maintain their export based economies). We were more than happy to supply the budget deficit and extra consumption. This loop has been keeping the U.s artifically doped for nearly 4 decades like the article above outlines. It was a form of colonizing the world more slick than the British could have ever dreamed of.
The Koch Brothers think they control their Chinese Masters just as Prescott Bush and Fritz Thyssen thought they controlled Hitler. Thyssen got the VIP suite at Dachau for his troubles
The Koch Brothers think they control their Chinese Masters just as Prescott Bush and Fritz Thyssen thought they controlled Hitler.
The United States holds just as much power, if not more power, than China weilds against us.
If China does anything to tank the dollar, the value of their reserves will plummet and they will hurt their largest customer-crushing their domestic economy.
I assume people around here are familar with the phrase that goes along the lines of "If I owe you $50,000 I'm in trouble. If I owe you $5,000,000,000, you are."
With a background in accounting, I've seen that being the creditor isn't all that it's cracked up to be. If GM defaults on all of the money it owes to a tire company--the tire company risks being thrown into a bankruptcy of its own. Having your balance sheet blown up with writedowns and losing the income streams from your largest customer is equally devastating. Perhaps China and its 1.2 TRILLION is U.S treasuries should take note.
If we sink, make no mistake, we WILL take the world with us. If you know anything about mutually assured destruction, it's one of the most powerful deterents known to man.
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The only way to fight a weak dollar is to strengthen it. Many people no longer care whether the US currency still justifies the faith people seem to have in it. The new game, which amounts to playing with fire, works exactly the other way around: The dollar deserves the faith it gets because otherwise it loses that faith. Dollars are bought so they don't have to be sold. The dollar is strong because that's the only thing that can prevent it from growing weak. Reality is ignored because only by ignoring it can the dream come true. Or, to put it still more clearly: Behaving irrationally has become rational behavior.
Last edited by Thatsright19; 08-07-2011 at 05:36 PM..
S&P TOLD the U.S. Government what they expected to keep AAA rating.
Read their lips: $4.0 trillion in debt reduction over 10 years.
Bumbling Congress was told what was required and they delivered $2.5 Trillion.
I am ashamed to call myself an American. My ancestors had been here since 1750.
You are told how to keep your AAA and you fail.
the DOW futures at this moment, are showing down 200 points.
S&P TOLD the U.S. Government what they expected to keep AAA rating.
Read their lips: $4.0 trillion in debt reduction over 10 years.
Bumbling Congress was told what was required and they delivered $2.5 Trillion.
The US government should not take anything the S&P says seriously, the S&P was not elected to run the country. Not only that, the S&P doesn't even appear to be able to do basic budgetary arithmetic.
The S&P downgrade has no relevance to anything, what does the S&P know that investors don't? Nothing....
The US government should not take anything the S&P says seriously, the S&P was not elected to run the country. Not only that, the S&P doesn't even appear to be able to do basic budgetary arithmetic.
The S&P downgrade has no relevance to anything, what does the S&P know that investors don't? Nothing....
The downgrade puts us below countries like UK, Norway, and others.
We are equal now to New Zealand and another one at AA+
Right below us at AA is "guess who."
A country in the current news.....SPAIN.
Stocks will suffer due to the downgrade.
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