Bloomberg stretching those brain muscles - Page 2 - TigerDroppings.com

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CarrolltonTiger
LSU Fan
New Orleans
Member since Aug 2005
46291 posts

re: Bloomberg stretching those brain muscles


quote:

we're still the most stable country in the world.


Not financially.






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deltaland
Mississippi St. Fan
Member since Mar 2011
23000 posts

re: Bloomberg stretching those brain muscles


quote:

If you owe the bank $50 million, they got a problem.


Yea they lose money and get pissed off and come repossess everything you bought on a bank loan. Hmmmm..... wonder when China will reach that level.

What Bloomberg just said has to be the dumbest thing I've ever read in economics. Holy shite someone should punch him in the nose just for being that stupid and arrogant.






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boosiebadazz
Member since Feb 2008
45284 posts

re: Bloomberg stretching those brain muscles


quote:

Yea they lose money and get pissed off and come repossess everything you bought on a bank loan. Hmmmm..... wonder when China will reach that level.


the difference in the bank and china is the bank uses the power of the state to grab your shite and the police are more powerful than you and you have to acquiesce. i dont think china enjoys that same relationship in regards to the united states

ultimately, they can call our debt. but their (and the world's economy) collapses and they aren't crossing the pacific to come take it, either.

so there's the difference



This post was edited on 3/1 at 1:10 pm


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deltaland
Mississippi St. Fan
Member since Mar 2011
23000 posts

re: Bloomberg stretching those brain muscles


If you don't think China is gaining the power to be the top nation then you're blind.

The U.S is falling and if we don't stop it then there will come a point where there is a new big dog on the block. Just look at the USSR for example....bad leadership and policies will corrupt and ruin a country, no matter how powerful. It has happened numerous times in history and we are not immune to it here.






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CITWTT
LSU Fan
baton rouge
Member since Sep 2005
31765 posts

re: Bloomberg stretching those brain muscles


The point reached when no one will buy our bonds for us to float the ship of state.





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boosiebadazz
Member since Feb 2008
45284 posts

re: Bloomberg stretching those brain muscles


quote:

The point reached when no one will buy our bonds for us to float the ship of state.


this is possible

but it is a different animal than calling in our existing debt






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boosiebadazz
Member since Feb 2008
45284 posts

re: Bloomberg stretching those brain muscles


quote:

If you don't think China is gaining the power to be the top nation then you're blind.

The U.S is falling and if we don't stop it then there will come a point where there is a new big dog on the block. Just look at the USSR for example....bad leadership and policies will corrupt and ruin a country, no matter how powerful. It has happened numerous times in history and we are not immune to it here.


i agree that we aren't invincible and infallible

but the gap between china and us in regards to being a hegemonic power is still pretty wide






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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
24113 posts

re: Bloomberg stretching those brain muscles


quote:

The point reached when no one will buy our bonds for us to float the ship of state.


quote:

this is possible



It's possible but it won't happen. Other central banks have to print to maintain the current order with our major trading partners. When other central banks print and the FR follows. It's a race to debase and we (central banks) will continue this dance for the unforeseeable future.

ETA: thus my sig pic:



This post was edited on 3/1 at 1:24 pm


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lsuhsc05
LSU Fan
Member since Feb 2013
52 posts

re: Bloomberg stretching those brain muscles


He's right. Fiat currency value is what the market says it is and right now the market thinks the dollar is the safest currency and is increasing in value. Other countries are trying to decrease their currency value in order to make their produced goods more attractive and they are able to do it.

Right now Bernanke is keeping interest rates low to try and stimulate the economy because we are a consumer nation based off of our currency. We can't devalue our money fast enough because everyone wants it, therefore our goods are difficult to sell due to exchange rate of the dollar. What this does is force a consumer economy where our job as a society is to consume products from other countries with devalued currencies. That's why it doesn't really matter if you have a job or not in the US as long as you're consuming. Welfare or 9 to 5 will accomplish that.

Who knows how long this game will hold up. I know our military, natural resources, intelectual capital, and land mass are all combined to be the collateral. You won't get past 1 to get to 2-4 so everyone will continue to play the game until we have another major economic meltdown and war. Just my $0.2



This post was edited on 3/1 at 3:17 pm


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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
24113 posts

re: Bloomberg stretching those brain muscles


quote:

Just my $0.2


Damn inflation.







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lsuhsc05
LSU Fan
Member since Feb 2013
52 posts

re: Bloomberg stretching those brain muscles








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Antonio Moss
LSU Fan
Baton Rouge
Member since Mar 2006
28822 posts

re: Bloomberg stretching those brain muscles


quote:

this is possible

but it is a different animal than calling in our existing debt


Not really. That's where the majority of current debt is held.






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boosiebadazz
Member since Feb 2008
45284 posts

re: Bloomberg stretching those brain muscles


calling in existing debt is a different animal than stopping purchases of new debt

thats what i was trying to get across






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Antonio Moss
LSU Fan
Baton Rouge
Member since Mar 2006
28822 posts

re: Bloomberg stretching those brain muscles


quote:

calling in existing debt is a different animal than stopping purchases of new debt


True, but they are interconnected. If the government stops payments on negotiable debt instruments due to an inability to pay, then people will stop purchasing negotiable debt instruments.






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UncleFestersLegs
Columbia MO
Member since Nov 2010
1285 posts

re: Bloomberg stretching those brain muscles


quote:

It’s the old story: If you owe the bank $50,000, you got a problem. If you owe the bank $50 million, they got a problem. And that’s a problem for the lenders. They can’t stop lending us more money.”
.
But if you owe China $1.5 trillion, the situation changes once again. They dump those holdings and we are properly fricked.






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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
24113 posts

re: Bloomberg stretching those brain muscles


But if you owe China $1.5 trillion, the situation changes once again. They dump those holdings and we are properly fricked.

Not really. First of all I don't how quickly China could unwind $1.5 trillion in US bonds. If they tried to unwind that many bonds quickly, interest rates would spike and that would adversely affect their economy (because we buy their goods - with higher interest rate we have less money to spend). China won't play that game.






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