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Jem: China is a predator and Brazil was the prey. Your export industries were the weak gazelles and now china is looking to thin your heard some more.
*****
November 9, 2010
SouthAmerica: Reply to Jem
Brazil is a country almost 100 percent self-sufficient â if Brazil close its borders tomorrow to the rest of the world, Brazil can survive with minimum disruption to its internal market.
We have everything in Brazil and basically Brazil does not need anything from any other country to be able to survive.
Brazil is a credit nation and the United States is on the hook to Brazil for over $ 300 billion dollars as of December 31, 2010.
The United States is the poor country that needs to borrow money from Brazil and not the other way around.
Brazil is in such a good shape economically speaking that in the last meeting of the G-20 in South Korea about 2 weeks ago the Brazilian Finance Minister did not bother even of showing up because he had more important things to do in Brazil.
The monetary game with China has been doing well for many years â but the suckers on this deal is not Brazil â it's the United States.
The Chinese are laughing of the United States and its collapsing economic system and they are going to help undermine the US economic system with very cheap money as long as necessary â and they just watch the US economic system self-destruct one step at the time.
Ben Bernanke latest âquantitative easingâ QE2 in plain English âprinting moneyâ as fast as possible it is a desperate effort by a Central Banker to project the illusion of wealth a little longer before the house of cards come down crashing.
When, under QE, a central bank buys from an institution, the institution's bank account is credited directly and their bank gains reserves. The increase in deposits from the quantitative easing process causes an excess in reserves and private banks can then, if they wish, create even more new money out of "thin air" by increasing debt (lending) through a process known as deposit multiplication and thus increase the country's money supply. The reserve requirement limits the amount of new money. For example a 10% reserve requirement means that for every $10,000 created by quantitative easing the total new money created is potentially $100,000. The US Federal Reserve's now out-of-print booklet âModern Money Mechanicsâ explains the process.
China needs Brazil, but Brazil does not need China or the US for that matter.
Brazil has something to sell to China, the ships go full of commodities to China â then China pays Brazil in US dollars and after paying most of its international debt to the IMF and to the Club of Paris and on top of that being able to accumulate another US$ 300 billion dollars in foreign exchange currency â Brazil does not care about what Americans think â for all practical purposes the United States has become completely obsolete and yesterday news.
The ships come full of stuff to sell on the United States and they go back empty to China.
In the meantime, China has the United States by the balls to the tune of trillions of US dollars â and the United States has become so pathetic that they don't have control even of critical strategic minerals that they sold to China because the US economic system is becoming a completely clueless economic system.
What is left of the US economic system is standing on top of quicksand, and is held together by government intervention, accounting gimmicks, and not much substance.
Here is the sad reality of what is left of the US economy:
http://www.usdebtclock.org/
I close my case.
****
Jem, as you can see Brazil is the country on the way up, and the United States is the country that is falling like a rock.
.
Jem: China is a predator and Brazil was the prey. Your export industries were the weak gazelles and now china is looking to thin your heard some more.
*****
November 9, 2010
SouthAmerica: Reply to Jem
Brazil is a country almost 100 percent self-sufficient â if Brazil close its borders tomorrow to the rest of the world, Brazil can survive with minimum disruption to its internal market.
We have everything in Brazil and basically Brazil does not need anything from any other country to be able to survive.
Brazil is a credit nation and the United States is on the hook to Brazil for over $ 300 billion dollars as of December 31, 2010.
The United States is the poor country that needs to borrow money from Brazil and not the other way around.
Brazil is in such a good shape economically speaking that in the last meeting of the G-20 in South Korea about 2 weeks ago the Brazilian Finance Minister did not bother even of showing up because he had more important things to do in Brazil.
The monetary game with China has been doing well for many years â but the suckers on this deal is not Brazil â it's the United States.
The Chinese are laughing of the United States and its collapsing economic system and they are going to help undermine the US economic system with very cheap money as long as necessary â and they just watch the US economic system self-destruct one step at the time.
Ben Bernanke latest âquantitative easingâ QE2 in plain English âprinting moneyâ as fast as possible it is a desperate effort by a Central Banker to project the illusion of wealth a little longer before the house of cards come down crashing.
When, under QE, a central bank buys from an institution, the institution's bank account is credited directly and their bank gains reserves. The increase in deposits from the quantitative easing process causes an excess in reserves and private banks can then, if they wish, create even more new money out of "thin air" by increasing debt (lending) through a process known as deposit multiplication and thus increase the country's money supply. The reserve requirement limits the amount of new money. For example a 10% reserve requirement means that for every $10,000 created by quantitative easing the total new money created is potentially $100,000. The US Federal Reserve's now out-of-print booklet âModern Money Mechanicsâ explains the process.
China needs Brazil, but Brazil does not need China or the US for that matter.
Brazil has something to sell to China, the ships go full of commodities to China â then China pays Brazil in US dollars and after paying most of its international debt to the IMF and to the Club of Paris and on top of that being able to accumulate another US$ 300 billion dollars in foreign exchange currency â Brazil does not care about what Americans think â for all practical purposes the United States has become completely obsolete and yesterday news.
The ships come full of stuff to sell on the United States and they go back empty to China.
In the meantime, China has the United States by the balls to the tune of trillions of US dollars â and the United States has become so pathetic that they don't have control even of critical strategic minerals that they sold to China because the US economic system is becoming a completely clueless economic system.
What is left of the US economic system is standing on top of quicksand, and is held together by government intervention, accounting gimmicks, and not much substance.
Here is the sad reality of what is left of the US economy:
http://www.usdebtclock.org/
I close my case.
****
Jem, as you can see Brazil is the country on the way up, and the United States is the country that is falling like a rock.
.
