Speaking of bad press for China
- Thread starter mormit
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Shannow, the link didn't work.
Seems like the reserve banks are hoping enough people will stop believing the markets will crash to put off that crash by pumping in money. Great, another taxpayer bailout of banks that are in too far over their heads.
One day China will decide to pull out of the dollar. I hope we have enough foresight and manufacturing capacity to take advantage of that. Oh, and a sensible government not addicted to deficit spending, and willing to buck the immediate interests of the corporations to enact meaningful reforms in lending law.
One day China will decide to pull out of the dollar. I hope we have enough foresight and manufacturing capacity to take advantage of that. Oh, and a sensible government not addicted to deficit spending, and willing to buck the immediate interests of the corporations to enact meaningful reforms in lending law.
I don't blame China for buying up US dollars, since they're such a good deal these days. They will start selling when they go back up in value, like any wise investor would do.
China exports trinkets, imports dollars. Dollar rises. China exports dollars, imports gold.
I wonder how long they can keep things afloat just by creating more "money"?
"Money isn't real, George. It doesn't matter. It only seems like it does."
100% correct!!!
If it's not a gov't entity, try opening a bank and printing your own currency and see who comes knocking on your door.
Puffing up credit makes people feel rich, so they start spending. This is supposed to "kick start" the economy. But if there are material shortages, it can kick it into hyperinflation, too.
Puffing up credit makes people feel rich, so they start spending. This is supposed to "kick start" the economy. But if there are material shortages, it can kick it into hyperinflation, too.
They create currency in the form of credit, not actual paper. Here's Canada's figures:
How the Debt-Based Monetary System Functions in Canada
Money should be a unit of wealth treated like weights and measures, free from political interference by elected officials or corporations. Altering currency to suit political motives is like a grocery store proclaiming "now only 5 miles away instead of 6", after they secretly switched your odometer to read nautical miles.
Yes. But the question is: should the government print its own money to create its own social programs and infrastructure, or should it let the bank create the money (out of nothing), then borrow it from the bank and pay never-ending interest on it? It's not hard to see who this system benefits:
Canadian Debt
Canadian Debt
Social programs can be done through mandates to cities or counties, with the market system optimizing for efficiency. Right now, government departments work hard to spend every penny of their budget, or else it gets cut the next year. There is no incentive to conserve resources.
Inflation is not needed to accomodate economic growth. There is nothing wrong with prices dropping as the system becomes more efficient, and rising as it becomes less efficient. People will just have to get used to salaries also dropping or rising. If you look at the amount of real goods you can buy with a salary, that amount does rise and fall over time.
Inflation is not needed to accomodate economic growth. There is nothing wrong with prices dropping as the system becomes more efficient, and rising as it becomes less efficient. People will just have to get used to salaries also dropping or rising. If you look at the amount of real goods you can buy with a salary, that amount does rise and fall over time.
Reagan's former Treasury Secretary, Paul Craig Roberts, has a few interesting things to say about trade relations with China:
In the Hole to China
http://www.counterpunch.org/roberts08082007.html
China's Threat to the Dollar is Real
http://www.counterpunch.org/roberts08102007.html
In the Hole to China
http://www.counterpunch.org/roberts08082007.html
China's Threat to the Dollar is Real
http://www.counterpunch.org/roberts08102007.html
I think he has more to say about the way the US is being managed than the trade with China itself. We want to have the cake and eat it, too, i.e. have China sponsor our lifestyle by buying our bonds to finance our budget deficits and trade deficit, and then demand China to adjust its currency to help fix problems that we have created for ourselves.
I wouldn't be too concerned about China dumping the bonds they have bought - they are more concerned about keeping their people employed through exports and it is important for them to make sure that the US has a stable and growing economy.
They sent a message to us to keep the rhetoric down.
The number one priority for us should be to fix the budget deficit and not trade restrictions.
I wouldn't be too concerned about China dumping the bonds they have bought - they are more concerned about keeping their people employed through exports and it is important for them to make sure that the US has a stable and growing economy.
They sent a message to us to keep the rhetoric down.
The number one priority for us should be to fix the budget deficit and not trade restrictions.
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