So true. Russia is more of a criminal enterprise then a "Nation" and China would still be back in the 1940's had we not put them to work making crap to sell to us.
Reuters: Russia, China to replace dollar as reserve currency
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So true. Russia is more of a criminal enterprise then a "Nation" and China would still be back in the 1940's had we not put them to work making crap to sell to us.
China will starve but not India as its economy is more inward looking than export based. Same as Brazil which is more self sufficient type set up. Russia sure will pay the price if it does not spend any funds to diversify its economy from energy based to other areas.
To diversify the currency basket somewhat makes sense but to totally nullify dollar as reserve currency is stupid.
Stock_Trad3r is destroying the US dollar
Well, I know Microsoft, HP, IBM, Dell, Caterpillar, Dow Chemical....hum...let me think about Russian companies...Gazprom and Rusal and hum.......
India ? Arcelor Mittal ( oh, aren´t they Luxembourg based ? ) and Tata and ....hum....Has anyone heard of the phrase.....
"deepest of the daggers are dug in by those dearest to us"
same thing is happening or already happened to the US..........it's own people, Republican policies, overspending and public befooling CEOs etc. etc. GWB and Neocons......... all combined together in a orgy to destroy the American society..........if not intentionally but in a state of denial to the risks they were taking.
If $60T figure is true regarding the US debt, then its all over. US FedRes has to find a way to keep the economy liquid and credit flowing and all the while trying to get rid of $60T figure, be it by selling off assets, cutting defense budgets, higher taxes or drastically cutting down on the standards of living or all of the above combined. Look ahead to more stimulus packages to keep the economy afloat.
"deepest of the daggers are dug in by those dearest to us"
same thing is happening or already happened to the US..........it's own people, Republican policies, overspending and public befooling CEOs etc. etc. GWB and Neocons......... all combined together in a orgy to destroy the American society..........if not intentionally but in a state of denial to the risks they were taking.
If $60T figure is true regarding the US debt, then its all over. US FedRes has to find a way to keep the economy liquid and credit flowing and all the while trying to get rid of $60T figure, be it by selling off assets, cutting defense budgets, higher taxes or drastically cutting down on the standards of living or all of the above combined. Look ahead to more stimulus packages to keep the economy afloat.
Btw, both CIA and White House open papers have acknowledged that currently a global wave of shift is occuring in economic and political set ups.........a shift from West to South East Asia mainly China, India and Japan. Militarily, US will still hold the top spot.
So currency diversification does make sense if taken on with good foresight and proportionate implementation.
So currency diversification does make sense if taken on with good foresight and proportionate implementation.
Let's see....a bunch of exporting countries getting together to say how much they hate the dollar because of its weakening...isn't that special...
So, one day they decide to create an "emerging market" currency. It goes onto the market and the dollar floats against it starting at half its value....ooopsss....now those exporting countries have essentially permanently lost their biggest customer.
The US people get pissed. They elect the Republicans back into power. The Republicans promise to make America self-sufficient on energy. We drill like crazy. We invent our own self-sufficient energy infrastructure. They take away virtually all business taxes.
Wow...says every company in the world. Not only can we do dirt cheap business in America, but we also have an extremely stable government and educated workforce to choose from.
For some reason I'm not really too worried if they do do this.
So, one day they decide to create an "emerging market" currency. It goes onto the market and the dollar floats against it starting at half its value....ooopsss....now those exporting countries have essentially permanently lost their biggest customer.
The US people get pissed. They elect the Republicans back into power. The Republicans promise to make America self-sufficient on energy. We drill like crazy. We invent our own self-sufficient energy infrastructure. They take away virtually all business taxes.
Wow...says every company in the world. Not only can we do dirt cheap business in America, but we also have an extremely stable government and educated workforce to choose from.
For some reason I'm not really too worried if they do do this.
U.N. panel: World should ditch dollar
Reuters-: U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.
Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.
http://www.reuters.com/article/newsOne/idUSTRE52H2CY20090318
That is not an option, China can still take out all of our major cities, most of these politicians in Washington have FAMILY and would not be willing generally to take that risk.
The US is running a Madoff Scheme, people only invest in the US, because it appears to have relatively solid performance due to increasing investment.
The institutional buyers of treasuries at this point are only speculators they are 'flipping' treasuries the same way that real estate speculators did in the housing market.
A few hundred years ago Westerners were dying from the plague and dysentery living in cheap shacks you are deluding yourselves if you think that China was much worse off.
The fact remains that people are not capable of buying treasuries at an accelerated rate for eternity, the math does not add up. India is much weaker than China they are a democracy and can easily be corrupted from within with a few bribes.
Now we had the crash of 87, tech bubble and real estate crash and without another bubble the US cannot continue in its present state. There will eventually be one large investor or a group of investors that will be pressured into selling their holdings (treasuries, dollars etc) for whatever reason it may be. China's economy is 1/3 exports so they will take a hit, but the largest difference is that the Chinese, Indians etc were used to a level of poverty where as the spoiled Bretton-Woods Americans have NO IDEA what they are in for.
The US at this point is as solvent as Citigroup quite honestly.