Rupee, yuan may be global currencies soon

Quote from Lethn:

lol that's a government dictatorship you moron not communism.

Communism has everything owned by the state and the state controls everything. If the Chinese were really communist they would have taken control of the economy and dictated prices and controlled what people can and can't buy. In fact I would even go so far as to say that most western countries actually act more like communist states than the people they claim are communist particularly in our current climate with how they've been taking over financial institutions and banks.

They may be assholes and clearly proud of it but they're definitely not communists.
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The govt does control the economy. Every national business is state-owned. Just one example are the 2 national telcos - both owned by the state, which control all bandwidth in the country. The country's currency is pegged along with it's domestic lending rates.

China is communist - anyone thinking otherwise is either uneducated or naive.(perhaps both)
 
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.
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If what we are witnessing has no precedent, then how can you say with such confidence that this is the endgame? In reality, you are guessing it is. But since there is not precedent, you don't really know. Correct?
 
Quote from krazykarl:

The govt does control the economy. Every national business is state-owned. Just one example are the 2 national telcos - both owned by the state, which control all bandwidth in the country. The country's currency is pegged along with it's domestic lending rates.

China is communist - anyone thinking otherwise is either uneducated or naive.(perhaps both)
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If China controls everything then how are people finding ways round their firewalls or censorship, how are people getting executed for fraud? I think it's naive to think that the state can actually control everything myself but that's just me.
 
I am not trading today, so I can say something stopping this nonsense.
China and India are not in par by any stretching of imagination. People from India or Indian origin obsessed with China in two ways: one is to pick a fight; the second is to team up with China. The suspicion here is that people doing this got ego problem and want to toot their own horn -- you can leverage yourself psychologically by either rubbing the nose of or join up with somebody bigger. Chinese people would rather being left along by Indian, want neither partner nor foe. Except occasional work together twig U.S./West a bit like in the recent climate meeting.
India is at the level of S. Korean in terms of scale in respect, but I'd rather chose SK over India, because India's stuff has too much water in it, e.g. 40% India GDP is service sector, I guess you can contribute to GDP by giving either other a message. 30% of India GDP is in manufacturing, which 30% of which are home-based, I guess you can do some "manufacturing" by tinkering in your garage in case of U.S. SK also in small scale, has real hard core industries.
A finally example of steel production, China has more than the next five biggest players combined.

http://www.evraz.com/business/steel/world_steel_production
 
Quote from Lethn:

If China controls everything then how are people finding ways round their firewalls or censorship, how are people getting executed for fraud? I think it's naive to think that the state can actually control everything myself but that's just me.
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People getting executed for fraud is the control, not a symptom of something else. Until the govt. can block out the sun, there will always be satellite communication that the firewalls don't affect. Making it so expensive to circumvent the firewalls, such as getting sat gear, is a form of control and puts it out-of-reach of the masses. Something as basic as free speech being limited like that is the essence of govt. control.
 
Quote from benwm:

hey I'm not fan of US 'democracy' either, its just i don't see the US dollar being replaced by Indian Rupees or a currency you can't get even purchase...we all know the USD is dogshit but that doesn't mean its going to lose its status as reserve currency, especially when every other country is following the same policies - QE, near zero rates and large fiscal deficits...
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only a delusional person would assume that the Rupee could become a reserve currency anytime soon, but that doesn't mean there always has to be a reserve currency, ie when countries start demanding that purchases be made in various currencies including their own currency
 
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