US dollar to lose its reserve currency standings? Are you dumping the dollar?
- Thread starter p0ck3taces
- Start date
Fuck if this really happens, China will definitely be king of the jungle! It says in the article that they will develop this railway system for free in exchange of natural resources from other countries. That is a really smart move for China.
In the meantime, our railway system in North America is a pure joke. I could bike faster than an Amtrak train. Shit.
If you could print an unlimited amount of money and get a stupid country (that you hate) on the other side of the globe to buy them all wouldnt you? Worst case if they get smart and start get wise to the fact that your fucking them out of Trillions you can just tell them to go Fuck themselves (because you can) and that cant do shit, why wouldnt you do it?
This may not be true today but give it 20 or 30 years and its a pretty scary thought. You get a couple of "Big Swinging Dicks" in power on both sides and this is the kinda shit that could wind up whipping out the whole damn planet
Wanna know the scary part of that story?
It is well shown that here in the US during the 1800s we came to 'superpowerdom' because of the wealth we created using the railroads.
That's why the Railroad barons are to this day still the wealthiest bloodlines here, and that's why Buffet invested so much of his wealth in trains recently.
...All with the trains stuck within our own borders... Imagine what China will have when it's 300 MPH trains can take cargo from London to Singapore, Moscow to Bangkok, etc...
A Wealth the earth has never imagined. Quadrillions? Septillions of dollars surplus? Easily.
A war for China in 2050 will simply be a matter of how much to pay to buy your opponents off and have them kill each other.
I've done well not posting lately, but...
1) The US will not lose its reserve currency standing for decades to come. Over 70-80% of the world's currencies are made up of US dollars.
For instance Canada holds nearly more US dollars than our own dollars. Nixon had no choice but to go off the gold-standard due to France holding so much US currency (but that's a whole different story). The dollar is here to stay as the reserve currency, there's no other choice.
2) The US dollars purchasing power has been going down sharply for decades. What we're heading for is simply a more complex early 1980's scenario.
It's no secret the US has unfunded liabilities it won't be able to pay in the decades to come. They'll either have to default on those liabilities or inflate their currency to levels where they can pay it.
Either way inflation in the currency supply further is inevitable and thus it's inevitable to be passed onto the marketplace. Anyone who holds fiat currencies, during times of deflation, inflation or stagflation is a retard anyway. All these "oh noes" replies regarding inflation and the decreasing value of the dollar I don't get, it's already happening. Deal with it and position yourself for it.
Commodities (I like ETFs) or leveraged ETFs (If you know what you're doing only) had very strong gains in 2010 and most will continue to perform very strongly in 2011. We're due for another credit crunch and large fall in the stock market in the second quarter of the year, but until then it's going to be bullish.
Watching CNBC and BNN is such a joke it's incredible. Just don't. Finally, invest in your own business until you have high six or seven figures to play around with. At the end of the day your best bet of beating any inflation is to grow you business, not put small amounts (that you could spend on your business) into markets you have little grasp on. Especially when that's money you can't afford to lose.
Good, easy read is Meltdown. Recommended to me by Guerrilla.
1) The US will not lose its reserve currency standing for decades to come. Over 70-80% of the world's currencies are made up of US dollars.
For instance Canada holds nearly more US dollars than our own dollars. Nixon had no choice but to go off the gold-standard due to France holding so much US currency (but that's a whole different story). The dollar is here to stay as the reserve currency, there's no other choice.
2) The US dollars purchasing power has been going down sharply for decades. What we're heading for is simply a more complex early 1980's scenario.
It's no secret the US has unfunded liabilities it won't be able to pay in the decades to come. They'll either have to default on those liabilities or inflate their currency to levels where they can pay it.
Either way inflation in the currency supply further is inevitable and thus it's inevitable to be passed onto the marketplace. Anyone who holds fiat currencies, during times of deflation, inflation or stagflation is a retard anyway. All these "oh noes" replies regarding inflation and the decreasing value of the dollar I don't get, it's already happening. Deal with it and position yourself for it.
Commodities (I like ETFs) or leveraged ETFs (If you know what you're doing only) had very strong gains in 2010 and most will continue to perform very strongly in 2011. We're due for another credit crunch and large fall in the stock market in the second quarter of the year, but until then it's going to be bullish.
Watching CNBC and BNN is such a joke it's incredible. Just don't. Finally, invest in your own business until you have high six or seven figures to play around with. At the end of the day your best bet of beating any inflation is to grow you business, not put small amounts (that you could spend on your business) into markets you have little grasp on. Especially when that's money you can't afford to lose.
Good, easy read is Meltdown. Recommended to me by Guerrilla.
Speaking of shit, something like 70% of Chinese people don't have toilets that flush. Shopping for many in China is still about buying what is needed to stay alive, not about getting the latest Xbox game.
Lol moxie... When you're done with the Time machine, I'd like to take a spin in it too...
I've lived in China for a year and half and it's true that a majority of people are struggling and living off 1000rmb a month (roughly $150 usd).
They look happy at first but deep inside them they are pissed. Sit with a local in a bar, get him a few shots of Bai Jiu and he'll tell you what he honestly thinks about his country... Born in the lower class = no chance to succeed even if you manage to get an education. Born in the higher class = immediate success even if you're the biggest dumbass. The country runs on a concept called GuangXi (Chinese word meaning "the power of your connections"). If you have no connections in the higher class, you'll live off white rice and chicken bones for the rest of your life pretty much.
I think there is a big risk that the Chinese will turn against their government this decade. (I'm talking about a major rebellion here). If the gov doesn't find a way to share the wealth with all those people in the rural areas and give them a little more respect, China is fucked.
They look happy at first but deep inside them they are pissed. Sit with a local in a bar, get him a few shots of Bai Jiu and he'll tell you what he honestly thinks about his country... Born in the lower class = no chance to succeed even if you manage to get an education. Born in the higher class = immediate success even if you're the biggest dumbass. The country runs on a concept called GuangXi (Chinese word meaning "the power of your connections"). If you have no connections in the higher class, you'll live off white rice and chicken bones for the rest of your life pretty much.
I think there is a big risk that the Chinese will turn against their government this decade. (I'm talking about a major rebellion here). If the gov doesn't find a way to share the wealth with all those people in the rural areas and give them a little more respect, China is fucked.
Unstated thus far is that there is a huge amount of Chinese people that are reaching retirement age. The number dwarfs that of the baby-boomer retirement.
Also, remember that the United States is a country of entrepreneurs. We have more opportunity than, say, a college educated Chinamen.
Also, remember that the United States is a country of entrepreneurs. We have more opportunity than, say, a college educated Chinamen.
Re high speed trains, Thailand recently signed a deal with China to build a link from the Laos border in the north to the Malaysia border in the south. It will connect with a high speed link that will be built from China through Laos. It is probably less than a decade before China links the entire Eurasian continent by high speed rail. That does have some big implications for commerce, doesn't it? Anybody know the numbers comparing high speed rail freight to air freight? And how can I cash in on this?
But there won't be a ton of dollars of dollars out there is the dollar crashes and becomes worthless.
I just see it as, if it looks so obvious that China is eventually going to become the super power, then crashing them right now by crashing our dollar would seem like a good idea. If our dollar were to crash right now, China would be fked. That would be all that's need to pop their property and credit bubble they have right now. Plus China needs the US consumers as well as europe, US consumers would be gone and much of europe would be hurting bad as well.
Most of the world would be hit hard, but I think we would fare the best and be able to recover the best. A worthless dollar would make our exports very attractive.
Also with the whole world struggling, like I said this might give reason to make a new global currency. I believe the US would much rather have a new global currency then to have the Yuan become the reserve currency.
Just seems like that would work out much better for the US then sitting around and watching everyone pass them by.
I don't get how that would work. A worthless dollar means the U.S. could not buy any oil. No oil means everything in the U.S. shuts down as it has to import massive amounts to keep everything running. So worthless dollar = no oil = no exports. Before then, as the dollar becomes weaker and weaker, the price of oil goes up inversely proportionally, so price of exports with any energy content goes up.
Weak Dollar Opens Doors for U.S. Manufacturers - WSJ.com
Weak dollar helps U. S. exports - Business - The Buffalo News
Just makes our goods cheaper to buy, but that's true if the dollar becomes completely worthless, then it won't matter. Just a weak dollar helps exports, not a worthless one.
Read these links and the point revolves around a weak dollar with the dollar still being the primary currency. The problem lies if it seizes being the primary currency. The dollar would be worthless so our current way of life would be over. The question is, how real is the possibility of this actually happening? We're almost at the point where we wont have enough money to pay the interest on our loans; China and Russia are already using their individual currency for their business transactions. All we need is for the "oil" countries to decide they'll deal with a currency other than the dollar and we're foked. I've yet to hear someone logically tell me why this most likely wont happen.
...how about this thread is almost a year old and nothing has happened?
Is that a good way to explain it?
I lol'd, but on a serious note this kind of talk smells like 1920s all over again. Major difference is that with the internet the effect can be achieved much faster.
How safe is buying dirt? Let's hope it's not a plank road fever..
No not at all!! Sarcasm is the antithesis of logic. Being that it's a year old, one can say that we're a year closer to not being able to pay the interest on our loans. What would happen if I can't pay the interest on my AMEX card? I actually don't know. I guess I could work out a payment plan, but I can be sure I won't be able to add more debt onto the card. Following this logic, what makes anyone believe that once we get to the point of not being able to pay our interest on our loans we will still be able to borrow more money?
This is assuming that the information I've read is correct about the interest on our loans. Maybe we're nowhere close to not being able to pay our interest back. Maybe we can pay our interest and we're still paying on the principal. However, everything I've read indicates that's not the case. Like I said, something logical!