Is china dumping now? Is this hyperinflation?

china will stop buying US paper. they will use excess dollars to buy real assets all over the world while pretending they are still willing to purchase us government securities.. perhaps they will take a short term financial hit on their existing portfolio. their new purchases of real assets may or may not.appreciate in value. regardless their purchase will certainly increase their political influence and power. which certainly is a goal of china.

the bottom line the US and europe except for germany and russia are headed down the road of economic destruction.
 
Quote from zdreg:

china will stop buying US paper. they will use excess dollars to buy real assets all over the world while pretending they are still willing to purchase us government securities.. perhaps they will take a short term financial hit on their existing portfolio. their new purchases of real assets may or may not.appreciate in value. regardless their purchase will certainly increase their political influence and power. which certainly is a goal of china.

the bottom line the US and europe except for germany and russia are headed down the road of economic destruction.
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Germany I can see. But Russia? Russia is a supply region: they only sell basic commodities. By definition, they will lose longer term in any future development of the global economy, large parts of which involve, as they always have, finding a better, cheaper way to do things. In energy, this meant going from wood to coal to oil to nat gas/nuclear to, eventually, wind and solar - the priors are indirect ways of getting at the stored energy of the sun, the latter far more direct. (BTW, this doesn't mean the latter will be economically efficient in the lifetime of anyone reading this.)
Russia has oil and nat gas, but has no capacity at all to advance further. Their nuclear capability was shown by Chernobyl. On that basis, I don't think anyone is going to be buying nuclear reactors from them any time soon, unless they have a good political reason to do so.
They're economic and political losers. They hide this by bullying. No one is fooled.
 
Quote from trefoil:

Germany I can see. But Russia? Russia is a supply region: they only sell basic commodities. By definition, they will lose longer term in any future development of the global economy, large parts of which involve, as they always have, finding a better, cheaper way to do things. In energy, this meant going from wood to coal to oil to nat gas/nuclear to, eventually, wind and solar - the priors are indirect ways of getting at the stored energy of the sun, the latter far more direct. (BTW, this doesn't mean the latter will be economically efficient in the lifetime of anyone reading this.)
Russia has oil and nat gas, but has no capacity at all to advance further. Their nuclear capability was shown by Chernobyl. On that basis, I don't think anyone is going to be buying nuclear reactors from them any time soon, unless they have a good political reason to do so.
They're economic and political losers. They hide this by bullying. No one is fooled.
More...

commodity losers? price of oil has 2x. since January. rogers believes commodities will be in short supply for years to come as capacity declines because farmers cannot get loans or new mines are not opened. as to nuclear reactors what makes you think reactors were ever a major export item?

political losers? what are u referring to?
 
Fed printing does not=hyperinflation, or inflation at allreally. For inflation to take hold, we need consumer willingness to expand household debt and money velocity, without that the fed could print a quadrillion $$$, until it has any velocity, it doesn't matter.
 
Quote from zdreg:

commodity losers? price of oil has 2x. since January. rogers believes commodities will be in short supply for years to come as capacity declines because farmers cannot get loans or new mines are not opened. as to nuclear reactors what makes you think reactors were ever a major export item?

political losers? what are u referring to?
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Political losers should be obvious.
As for commodities, oil does increase at a real as opposed to an inflation adjusted rate over the long term, but not as much as economic innovation does.
Over the short term, Russia is dysfunctional politically and has a shrinking population, the surest economic indicator there is. So on any time horizon you wish to examine, they're losers.
Or, to quote Jim Rogers, "I wouldn't invest in them with your money."
BTW, reactors are a major export item for France. It's a real technological solution to a real problem, and that is how economies truly advance, by having such solutions to sell to the rest of the world. Basic commodities are and have always been a short-term solution. It's how you pay the rent while working on other things.
 
Quote from zdreg:

china will stop buying US paper. they will use excess dollars to buy real assets all over the world while pretending they are still willing to purchase us government securities.. perhaps they will take a short term financial hit on their existing portfolio. their new purchases of real assets may or may not.appreciate in value. regardless their purchase will certainly increase their political influence and power. which certainly is a goal of china.

the bottom line the US and europe except for germany and russia are headed down the road of economic destruction.
More...

It would appear that this is happening...but, in a VERY specific manner - the Chinese are buying up farmland all over the world! They bought about 6,000,000 acres in the Congo. Hmmm, do they not want the US to be the breadbasket of the world? Preparing for war? Saudis are doing the same thing... http://www.economist.com/world/international/displayStory.cfm?story_id=13692889

BTW - nice post Pascal!

-gastropod
 
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