china suggests non US world currency

[ulu]

'De-Americanised' world needed after US shutdown: China media

even if they get something together by the 17th, a lot of damage has already been done
on a positive note, at least both parties will be remembered for doing something significant, with long lasting consequences while in power

 

[SnowCal]

'De-Americanised' world needed after US shutdown: China media

even if they get something together by the 17th, a lot of damage has already been done
on a positive note, at least both parties will be remembered for doing something significant, with long lasting consequences while in power

Funny to read that Japanese officials are panicked that a drop in confidence in the US dollar could provoke a flight to the yen, increasing the value of their money and thus sinking their economy by crushing exports and preferencing imports over domestic industries.

This is completely opposite the logic you read on here all the time that a devalued US dollar would be disaster for us. The Japanese are worried that they'd lose business to us if that happened.

 

[Yekcidmij]

Not paying short term treasury debt (such as that coming due at the end of the month) is an implicit agreement with that Chinese author. Short term treasury debt IS the reserve currency of the world, both public central banks and private firms. Not paying as agreed calls into question the dollar's viability as a reserve currency.

Good job party liners - keep up the nonsense. The debt ceiling out not be a political toy.

 

[Ludicrus]

'De-Americanised' world needed after US shutdown: China media

even if they get something together by the 17th, a lot of damage has already been done
on a positive note, at least both parties will be remembered for doing something significant, with long lasting consequences while in power

Other countries have already taken steps to get away from the US Dollar. In fact, there are many countries now that refuse but only a limited amount of US Dollars from tourists.

 

[NightHawkeye]

'De-Americanised' world needed after US shutdown: China media

even if they get something together by the 17th, a lot of damage has already been done
on a positive note, at least both parties will be remembered for doing something significant, with long lasting consequences while in power

There's no need for Russia, China or India to continue to trade in US dollars. China has allowed trading in other currencies for years now. Russia and China even signed a pact earlier in Obama's term to trade in their own currencies.

I also recall prior to Obama's first swearing in that India, China and the EU were all likely to overtake the US economically. Funny thing happened though when Obama decided to take the US down a few notches.

For reasons perhaps best known to God, or people who understand human psychology and interactions, as the US declined the other nations did too, even more so. Just weird ...

 

[Ludicrus]

There's no need for Russia, China or India to continue to trade in US dollars. China has allowed trading in other currencies for years now. Russia and China even signed a pact earlier in Obama's term to trade in their own currencies.

I also recall prior to Obama's first swearing in that India, China and the EU were all likely to overtake the US economically. Funny thing happened though when Obama decided to take the US down a few notches.

For reasons perhaps best known to God, or people who understand human psychology and interactions, as the US declined the other nations did too, even more so. Just weird ...

Not so weird at all.

The Global Economy is basically a big bunch of dominoes set up on the New World Order playing field (picture a gymnasium).

It is an elegant set up with many spurs but the problem is that if they are set up properly, they are set up to ALL fall according to the plan, so that if you hit one spur of the layout, it might take a while for it to reach the other side of the auditorium, but eventually it makes it.

Once they reorganized the wealth, and they did, we are all vulnerable.

 

[Yekcidmij]

Not so weird at all.

The Global Economy is basically a big bunch of dominoes set up on the New World Order playing field (picture a gymnasium).

It is an elegant set up with many spurs but the problem is that if they are set up properly, they are set up to ALL fall according to the plan, so that if you hit one spur of the layout, it might take a while for it to reach the other side of the auditorium, but eventually it makes it.

Once they reorganized the wealth, and they did, we are all vulnerable.

It's generally not a good sign when your argument rests on paranoia or conspiracy theory with the infamous "NWO" or "them" at the helm.

 

[Panzerkamfwagen]

It's generally not a good sign when your argument rests on paranoia or conspiracy theory with the infamous "NWO" or "them" at the helm.

It's the Lizard Men. Honest.

Still, the economy of the "developed world" is something resembling playing musical chairs on a house of cards. It's only a matter of time until someone is left standing, the music stops, and then the whole thing collapses.

 

[ThatAthlete]

China owns every aspect of our economy anyway since we're so much in debt and they are basically holding us and if we lose China we are screwed

 

[Wolseley]

I also recall prior to Obama's first swearing in that India, China and the EU were all likely to overtake the US economically.

And he made sure that they did, too.

 

[CarlosTomy]

Funny thing happened though when Obama decided to take the US down a few notches.

I'm so glad the Right is going for revisionist history WHILE WE STILL REMEMBER IT CLEARLY.

Most of us are not as poorly informed or have such short memories as the Tea Party members.

 

[Yekcidmij]

China owns every aspect of our economy anyway since we're so much in debt and they are basically holding us and if we lose China we are screwed

That's quite an overstatement. The largest holders of our debt are:

1) Social Security 2.6T
2) Foreign debt (not including China or Japan) 2.6T
3) The Federal Reserve 2.1T
4) China 1.3T
5) Japan 1.1T

 

[CarlosTomy]

That's quite an overstatement. The largest holders of our debt are:

1) Social Security 2.6T
2) Foreign debt (not including China or Japan) 2.6T
3) The Federal Reserve 2.1T
4) China 1.3T
5) Japan 1.1T

Is it an overstatement? I read not too long ago that China could use a "Nuclear" option by calling in our debt or ceasing to buy more of it which could effectively collapse our economy in a couple of hours...but that was so highly unlikely because we are their main customer for goods and services. But still, they seem to hold an ENORMOUS amount of leverage on us.

 

[NightHawkeye]

Is it an overstatement? I read not too long ago that China could use a "Nuclear" option by calling in our debt or ceasing to buy more of it which could effectively collapse our economy in a couple of hours...but that was so highly unlikely because we are their main customer for goods and services. But still, they seem to hold an ENORMOUS amount of leverage on us.

As in the "cold war" days, the prospect of Mutually Assured Destruction holds the adversaries at bay. (Some simply call it MAD, but I digress ... )

They have repeatedly attempted to dethrone the US. They are our competitors after all. Fortunately for us, as the US has slowly declined, China has as well. It seems that their options are limited.

 

[Yekcidmij]

Is it an overstatement? I read not too long ago that China could use a "Nuclear" option by calling in our debt or ceasing to buy more of it which could effectively collapse our economy in a couple of hours..

Several things to consider.

First, Treasury bonds are not callable on demand (I think those in the SS Trust Fund are though, but those aren't marketable).

Second, the corollary to China deciding not to use our treasury debt is less Chinese goods being sold in the US (Current Account + Capital Account = 0) which would be a huge recession/depression in the Chinese economy.

Third, there is no other asset large enough, safe enough or liquid enough to immediately serve as a reserve asset; the losses taken by China on their existing treasury debt would be enormous. Who would they sell to, at what price, and for what in return?

Fourth, even if China got tired of holding treasury debt, there is some price and rate of return where they would buy again, unless they are just crazy irrational investors. Think about it, if an asset offers any sort of positive rate of return, and the price of that asset falls to 0, then rationally you would buy an infinite amount. Everyone has a price they're willing to pay.

Fifth, there is a buyer of last resort that could keep any fire sale of treasury debt from getting out of control - the Federal Reserve.

 

[Maynard Keenan]

China holds 8% of our debt. They don't "own us."

But this silly politics over borrowing, when our debt is far from being in a true crisis level, is causing us long term harm due to tarnishing the world's image of the US and it's currency as perfectly reliable. In essence, the right wing is once again self-fulfilling prophesies. Say that government can't work, get elected and make sure it doesn't work then say "look, we were right!" Say that the world is going to stop trusting our currency, get elected and make it untrustworthy then say "look, we were right!" All so they can then, in the aftermath, slash government spending, eliminate safety nets and protections for workers and the environment, and create the dog eat dog capitalist utopia they desire.

 

[Wolseley]

China holds 8% of our debt. They don't "own us."

But this silly politics over borrowing, when our debt is far from being in a true crisis level, is causing us long term harm due to tarnishing the world's image of the US and it's currency as perfectly reliable. In essence, the right wing is once again self-fulfilling prophesies. Say that government can't work, get elected and make sure it doesn't work then say "look, we were right!" Say that the world is going to stop trusting our currency, get elected and make it untrustworthy then say "look, we were right!" All so they can then, in the aftermath, slash government spending, eliminate safety nets and protections for workers and the environment, and create the dog eat dog capitalist utopia they desire.

Personally, I think this hits it quite a bit closer to the mark:

Throw the bums out? Here's what Americans must do now | Fox News

 

[Allectus]

China owns every aspect of our economy anyway since we're so much in debt and they are basically holding us and if we lose China we are screwed

Trust me, during my time in China the people were just as worried about owning America's debt as Americans were about them owning it.