Rupee, yuan may be global currencies soon

[benwm]

Quote from T_Geithner:

democracy my ass, the west has fucked the world with it's preaching of democracy, trying so hard to shove it down other countries' throats

democracy not for the benefit of the west, but because the Chinese people want it.

the likelihood is that the communist regime will be brought to its knees eventually...until that happens it will be hard to overcome the looming risks of an unsustainable system..unsustainable in the sense that it all depends on the state controlling the economy - its banks, not allowing RMB to be freely traded..

the best scenario would be if this happened peacefully, but you probably need time to take its course for this development to occur..

communist and reserve currency don't really go together as far as I can tell

 

[PocketChange]

Over 2.5 billion chinese and indians are already tied to these currencies. Next generation world scrip will be all electronic.

 

[misterno]

Quote from benwm:

democracy not for the benefit of the west, but because the Chinese people want it.

the likelihood is that the communist regime will be brought to its knees eventually...until that happens it will be hard to overcome the looming risks of an unsustainable system..unsustainable in the sense that it all depends on the state controlling the economy - its banks, not allowing RMB to be freely traded..

the best scenario would be if this happened peacefully, but you probably need time to take its course for this development to occur..

communist and reserve currency don't really go together as far as I can tell

The only problem is China is not ruled with communism. Whoever calls the system in China "communism" should get his brain checked.

 

[Lethn]

Quote from Kassz007:

For some reason you are referring to Western democracy as being one unified system...

The USA form of democracy is much different than most other democratic countries...

It's not most different from other countries, it's just different.

You have the United Kingdom which is a constitutional monarcy, you have Switzerland with Direct Democracy and so and and so forth. I think the U.S really need to get their heads out of their arses and learn about the freaking world before commenting on it like that.

 

[krazykarl]

Quote from Misthos:

How often in the past twenty years did the US gov't backstop/monetize/guarantee about 23 Trillion dollars? Effectively the entire financial system?

We have never seen this. Ever.

The US govt. guarantees this stuff on a daily basis, and has been doing so for decades. It's just recently been brought to the forefront becuase of the economic environment.

People involved with finance have been seeing this for their entire career, minus perhaps the first few years when they were inexperienced.

 

[Misthos]

Quote from krazykarl:

The US govt. guarantees this stuff on a daily basis, and has been doing so for decades. It's just recently been brought to the forefront becuase of the economic environment.

People involved with finance have been seeing this for their entire career, minus perhaps the first few years when they were inexperienced.

What we are witnessing has no precedent.

Yes, there may have been implied guarantees in the past, but when was the last time the Federal Reserve monetized about a trillion and half of agency debt? Sorry, that's neither "customary" nor "normal."

A fiat monetary system is a great method of speeding up production, "democratizing" credit to encourage economic and job growth, and to smooth out the bumps of economic cycles... but up to a point. Eventually, the mega cycle ends. Credit ultimately overaccumulates and outgrows a nation's productive capacity to service it legitimately (i.e. w/o QE)

We're at the endgame now. The private sector is no longer merely influenced or even manipulated by government. The private sector is ENTIRELY DEPENDENT on the government and it's ability to take on risk both past, present, and future.

Yet even the government has limits. So what's next? That's the endgame.

 

[tradestrong]

Quote from Misthos:

What we are witnessing has no precedent.

Yes, there may have been implied guarantees in the past, but when was the last time the Federal Reserve monetized about a trillion and half of agency debt? Sorry, that's neither "customary" nor "normal."

A fiat monetary system is a great method of speeding up production, "democratizing" credit to encourage economic and job growth, and to smooth out the bumps of economic cycles... but up to a point. Eventually, the mega cycle ends. Credit ultimately overaccumulates and outgrows a nation's productive capacity to service it legitimately (i.e. w/o QE)

We're at the endgame now. The private sector is no longer merely influenced or even manipulated by government. The private sector is ENTIRELY DEPENDENT on the government and it's ability to take on risk both past, present, and future.

Yet even the government has limits. So what's next? That's the endgame.

No Precedent? You ever heard of the FDIC? Do you know that it was created during massive bank runs during the great depression? How about the savings and loan crisis? How about every recession since the great depression? Over time, how much money do you think has been "backed" by the government either indirectly or directly?

I would say that all we are witnessing is another degree of backstopping. It has plenty of precedent. I'm sure in 1930 everybody was saying..."there's no precedent for what the government is about to do".

 

[Misthos]

Quote from tradestrong:

No Precedent? You ever heard of the FDIC? Do you know that it was created during massive bank runs during the great depression? How about the savings and loan crisis? How about every recession since the great depression? Over time, how much money do you think has been "backed" by the government either indirectly or directly?

I would say that all we are witnessing is another degree of backstopping. It has plenty of precedent. I'm sure in 1930 everybody was saying..."there's no precedent for what the government is about to do".

You've got to be kidding me, right?

Of all the above examples, the Great Depression is the only one that comes close. Yet even then, total debt to gdp did not exceed 300%, and that was *during* the crisis.

You cannot compare the S&L Crisis and every recession since the Great Depression with today's crisis. They're incomparable in magnitude and Fed reaction. You're comparing a case of the sniffles with pneumonia.

And as for the Great Depression, we entered that with relatively minimal total debt to GDP. What is the total debt to GDP as of the beginning of this crisis? Near 300%? Where will it go? Where can it go?

Fed involvement with depository institutions from 1919 to Dec 2006:

Same EXACT chart, yet end date is January 2010:

Yes, you need to take into consideration past inflation... but those prior year bumps surely get flattened out by the recent activity, don't they?

And by the way, did the GSEs exist before the Great Depression? No.

 

[independenceair]

Yes I've heard that too ..the Indian rupee should be the next leading reserve currency...soon

 

[T_Geithner]

Quote from benwm:

democracy not for the benefit of the west, but because the Chinese people want it.

the likelihood is that the communist regime will be brought to its knees eventually...until that happens it will be hard to overcome the looming risks of an unsustainable system..unsustainable in the sense that it all depends on the state controlling the economy - its banks, not allowing RMB to be freely traded..

the best scenario would be if this happened peacefully, but you probably need time to take its course for this development to occur..

communist and reserve currency don't really go together as far as I can tell

democracy like everything else has it's own pros

but it's also bullshit in so many ways too, democracy is the raping of decent people with the stupidity of the masses

you know what's dragging america down so bad so fast, the rampant stupidity, you will not find such a high percentage of confused delusional souls in any other country in this fucking world

a government that lines up stupid people and puts a bullet through their worthless heads has a higher success rate and a better chance of survival than one that feeds and breads stupidity only because it prefers democracy in which they rely on the stupidity of the masses to manipulate them in order to get their shit done