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They talk about "national savings rates", and say China's is about 50%. I think it must include the buildup of foreign currency reserves, because if you look at Chinese wages being about 5% of US wages, and them paying taxes on those wages, too, it would be irrational to assume that they still...

LOL, HIG is gonna become an S & L so they can get $3bb TARP money to buy some bank?

Yeah, we can just sell them more debt to cover the interest, and more to cover the principle, like we have been doing. At some point, do you think they might want something other than more debt for their money?

At some point, when your best customer owes you a lot, and doesn't pay their bills, and obviously isn't going to, you stop shipment or slow them to the rate they are able to pay at, so at least the debt can't get any higher. That's next, IMO.

The problem is that the money they are handing out isn't getting lent to anyone, so as a result the "sterilization" increases the rate of deflation. To add injury to that insult, we the taxpayers need to pay interest on borrowing the money, and if it doesn't get repaid, we are stuck with the...

I would guess its our hedge funds that were doing the selling/deleveraging as the rest of the world bought on the cheap, trading us back our paper for metal. Dubai also had dramatically increased gold purchases recently. Looks like they managed to pick the bottom, too. I think within a...

Makes you wanna say HMMMMMMM Looks like they are pretty willing to trade green paper for metal at this price if you ask me... http://arabianmoney.net/ So now we know who's been doing the buying while they crushed gold prices

Does anyone here think we can spend more than we earn forever? Does anyone here think we can borrow more forever? Does anyone here think we can import more than we export forever, borrowing or selling assets for the difference? Does anyone here think our government can spend more than...

It would be a much bigger collapse than the Soviet Union was. Things trade in dollars around the world. The dollar is the worlds reserve currency, at least today. How many more weeks or months is a different question entirely.

Not anymore. Just like "In the long run housing prices always go up" is not true. To assume they WILL always go up was and is foolish. Its no different for assuming the dollar will always be a "safe haven". It is no longer deserving of that honor, and eventually as a result, things...

So do you think China will be increasing their US Bond holdings? I don't. And i think that's real bad news for the US dollar a month or two out. China will be investing in China, instead.

What makes us think the dollar will be granted eternal forgiveness? Why not the Yuan as the world's reserve currency? At least they are producing things the world wants to buy... And they consume lots of raw materials and energy to do it.

I don't really disagree with any of that. The lack of a better world reserve currency alternative to the dollar is what's keeping our debt accepted still, I think. In addition, people are still assuming the bailouts will work. I don't think they will, but anything is possible, I guess...

http://www.nytimes.com/2008/11/09/world/europe/09iceland.html?_r=3&_r&oref=slogin&oref=slogin&oref=slogin How much advance notice did they get? I bet it was no better in Argentina or Russia or Belarus. Nobody is going to tell you a collapse is imminent. As a matter of fact, I'd be willing...

I read today that China only has $484 billion of US treasuries, smaller than Japan's holdings. I makes me wonder what the rest of their $1.5 billion in reserves consist of, if that's true. I think they will be wise to pare down the US dollar content over time, perhaps at a rate of $5 billion...

They are trying, but in the end they will be left "holding the bag" with trillions of dollars of worthless US treasury bonds. That loss of value will render their central bank insolvent. If you'd ever been a credit manager in hard times you'd know that it goes from where you lend more and...

Pretty sad they couldn't come up with that small an amount of metal, huh?

If it goes below $690 again, I'm thinking of taking delivery on a 100 oz COMEX bar.

Maybe Russia will sell oil in Yuan. At least its more stable than dollars.

That change is why we no longer make things here, and why we seem destined to borrow and consume till nobody will take more of our paper promises. It took a long time for it to evolve to that, but here we are. If my guess is correct, the current economic situation is the prelude to us...