- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
China and Russia dumping dollars
Posted on 12/15/14 at 10:04 pm
Posted on 12/15/14 at 10:04 pm
Read some articles indicating China and Russia are dumping the dollar. I mean I heard we owe the Chinese something like 7 trillion in debt. Given the U. S. Government refuses to restrain spending, are we now reaching the point where countries like China will simply cut off the credit line, and then dump the dollar. I'm no economist by far, but I always understood that having the dollar as the World Reserve Currency [WRC] meant countries like China [and Russia] bought dollars and that action propped up our dollar.
I always believed [right or wrong] that countries would never dump the dollar as the WRC, since the shock of that happening would throw the whole world monetary system into a tail spin.
Assuming the impossible happens, and we can't bring our spending under control, then our credit rating drops again, and again to the point countries abandon the dollar. And wouldn't that cause massive hyperinflation here. I mean would that be the trigger that causes the collapse of our economic system. In effect we become a third world country almost overnight. Folks paying $ 50.00 for a loaf of bread [hypothetically speaking].
Anybody can enlighten me on this?
Should I deversify into precious metals [Gold or Silver]? Or liquidate everything, buy land and raise rabbits? I could always eat the principal.
I always believed [right or wrong] that countries would never dump the dollar as the WRC, since the shock of that happening would throw the whole world monetary system into a tail spin.
Assuming the impossible happens, and we can't bring our spending under control, then our credit rating drops again, and again to the point countries abandon the dollar. And wouldn't that cause massive hyperinflation here. I mean would that be the trigger that causes the collapse of our economic system. In effect we become a third world country almost overnight. Folks paying $ 50.00 for a loaf of bread [hypothetically speaking].
Anybody can enlighten me on this?
Should I deversify into precious metals [Gold or Silver]? Or liquidate everything, buy land and raise rabbits? I could always eat the principal.
This post was edited on 12/15/14 at 10:26 pm
9
Posted on 12/15/14 at 10:22 pm to Matrixman
quote:
Anybody can enlighten me on this?
Should I deversify into precious metals [Gold or Silver]?
Posted on 12/15/14 at 10:29 pm to Matrixman
Our debt that China owns is valued in dollar terms. If there was global support and efforts from China to devalue our currency, they would only hurt themselves...
If they dumped bonds, prices would fall, yields would be better at those prices, and other countries would snatch them up.
...but that's not even the biggest reason you're wrong. China drives a manufacturing based, export driven economy which benefits from a strong dollar and a weaker local currency.
If they dumped bonds, prices would fall, yields would be better at those prices, and other countries would snatch them up.
...but that's not even the biggest reason you're wrong. China drives a manufacturing based, export driven economy which benefits from a strong dollar and a weaker local currency.
Posted on 12/15/14 at 10:34 pm to Matrixman
2 economies that are in pending collapse and you think they are somehow capable of foreshadowing our demise?
Posted on 12/15/14 at 10:36 pm to Matrixman
quote:The article you read has been written every week for the past ten years by crank libertarians who are bearish on everything that isn't gold, because they are crank libertarians.
Anybody can enlighten me on this?
In the real world, the dollar isn't going anywhere, China and Russia can't get enough of them, our fiscal picture is downright rosy compared to the Eurozone, and despite ZIRP and constant dollar enemas, inflation hasn't poked above 4% in six years.
This post was edited on 12/15/14 at 10:37 pm
Posted on 12/15/14 at 10:55 pm to Cmlsu5618
quote:
...but that's not even the biggest reason you're wrong.
So, is it your opinion that it is highly unlikely [or even impossible] that any country [or combination of countries] will ever dump the dollar as the WRC?
Posted on 12/15/14 at 11:03 pm to Mr.Perfect
quote:
2 economies that are in pending collapse and you think they are somehow capable of foreshadowing our demise?
Dude...I have a family member working for a company that sells gears and ball bearings. You want to know where they get those gears and ball bearings? China! For sure they don't get them from a manufactuer here in the states. By the way, are there any steel mills still operating in America? Seriously...are there any?
Damn dude, take time to notice stuff. Everything you buy [almost everything] is made in China. And what's this I hear that China has surpassed the US as the No.1 economic power.
Don't know about Russia, but China seems to be doing pretty damn good, and we still owe them 7 trillion dollars.
This post was edited on 12/15/14 at 11:13 pm
Posted on 12/15/14 at 11:10 pm to Matrixman
Sounds like your mind is made up and you're just looking for some confirmation.
So yeah, total collapse is coming and you should definitely liquidate everything and stock up on gold and silver.
Happy now?
So yeah, total collapse is coming and you should definitely liquidate everything and stock up on gold and silver.
Happy now?
Posted on 12/15/14 at 11:13 pm to Matrixman
quote:"Ever" is a long time, but it's not going to happen any time soon.
So, is it your opinion that it is highly unlikely [or even impossible] that any country [or combination of countries] will ever dump the dollar as the WRC?
Posted on 12/15/14 at 11:22 pm to boosiebadazz
quote:
So yeah, total collapse is coming and you should definitely liquidate everything and stock up on gold and silver.
I started out this thread, assuming I could engage others on this forum in a constructive honest discussion on something that is very important to me and every American. I was upfront. I never said I was an expert...far from it. I was just trying to understand how things work. I actually thought this forum was one on money, and maybe some folks out there wouldn't mind providing some expertise on the subject. I was wrong.
Oh on the Gold and Silver thing. Think I'll stick with Real Estate.
End of thread.....
Good night.
This post was edited on 12/15/14 at 11:27 pm
Posted on 12/15/14 at 11:28 pm to Matrixman
How are people going to rent or buy your real estate when the dollar is worthless?
What police force will protect your property when society and the government break down?
You need to get better at this doomsday stuff.
What police force will protect your property when society and the government break down?
You need to get better at this doomsday stuff.
Posted on 12/16/14 at 6:47 am to Matrixman
quote:
China and Russia dumping dollars Read some articles indicating China and Russia are dumping the dollar. I mean I heard we owe the Chinese something like 7 trillion in debt. Given the U. S. Government refuses to restrain spending, are we now reaching the point where countries like China will simply cut off the credit line, and then dump the dollar. I'm no economist by far, but I always understood that having the dollar as the World Reserve Currency [WRC] meant countries like China [and Russia] bought dollars and that action propped up our dollar. I always believed [right or wrong] that countries would never dump the dollar as the WRC, since the shock of that happening would throw the whole world monetary system into a tail spin. Assuming the impossible happens, and we can't bring our spending under control, then our credit rating drops again, and again to the point countries abandon the dollar. And wouldn't that cause massive hyperinflation here. I mean would that be the trigger that causes the collapse of our economic system. In effect we become a third world country almost overnight. Folks paying $ 50.00 for a loaf of bread [hypothetically speaking]. Anybody can enlighten me on this? Should I deversify into precious metals [Gold or Silver]? Or liquidate everything, buy land and raise rabbits? I could always eat the principal.
Read some articles you don't link.
You heard about some imaginary number you can't confirm.
You ask if we are reaching a doomsday scenario because of US Congress.
After all this flimsy assumption stuff, lack of links, and General BS...and ask for enlightenment...and then when people point out things to you, you get defensive and whine.
Head back over to Political Talk and rejoin the other choir members. I'm sure there's another pastor set to turn around and preach to you all soon.
Posted on 12/16/14 at 7:25 am to Matrixman
Fact of the matter is the closest currency that could replace the U.S. dollar on the WRC is the Swiss Franc. China is a communist country and is not an option. The Swiss are no where near our GDP. The dollar ain't going anywhere. Why do you think rates fell even more lately?? Bc Germany went in and bought a pile of our Treasuries.
There isn't a country out there that can compete with the United States in terms of credit rating and interest rates. Russia is having their own problems with citizens stock piling US dollars bc they don't trust their own government and haven't since before the Soviet Union! #Merica
There isn't a country out there that can compete with the United States in terms of credit rating and interest rates. Russia is having their own problems with citizens stock piling US dollars bc they don't trust their own government and haven't since before the Soviet Union! #Merica
Posted on 12/16/14 at 8:01 am to Matrixman
quote:If you really wanted to "understand how things work" you don't start a thread with "Assuming the impossible happens..."
I started out this thread, assuming I could engage others on this forum in a constructive honest discussion on something that is very important to me and every American.
I was just trying to understand how things work. I actually thought this forum was one on money, and maybe some folks out there wouldn't mind providing some expertise on the subject. I was wrong.
Why not throw in "What if an asteroid hits the Earth? Should I buy gold and silver?"
Either stop reading The Blaze and Zero Hedge and starting threads about what you just read or stop pretending you "really want to understand how things work." You don't.
Posted on 12/16/14 at 8:08 am to Matrixman
quote:
China and Russia dumping dollars
They have horrible timing. The USD has gone up 13% since 1Q 2014 and looks to be in the beginnings of a bull market.
Posted on 12/16/14 at 8:11 am to LSURussian
quote:
Zero Hedge
A guy in an investing/trading group I'm in tried to submit an article to them. ZH wouldn't take it because he had too much discussion on technicals and fundamentals.
They shoot for opinions/narratives that get people wound up. Facts need not apply (sounds like typical journalism and politicians).
Posted on 12/16/14 at 8:19 am to LSU0358
quote:
A guy in an investing/trading group I'm in tried to submit an article to them. ZH wouldn't take it because he had too much discussion on technicals and fundamentals.
They shoot for opinions/narratives that get people wound up. Facts need not apply
I joined ZH a few years ago and submitted some comments critical of a couple of their more bizarre, paranoid articles on financial topics.
As you wrote about your friend, I used facts and figures to discredit their Chicken Little articles.
They deleted my comments and then revoked my posting privileges on their website telling me in an email notifying me that I could no longer post on ZH, "Your comments are no longer welcome on ZeroHedge."
Posted on 12/16/14 at 8:24 am to LSURussian
I always love the guys that don't know much and ask something bombastic with the disclaimer "I'm just throwing it out there", who then proceed to defend their original premise to the death.
Posted on 12/16/14 at 8:31 am to LSURussian
I'm legitimately very thankful that there are a few rational people around here who keep this board from being overrun by asinine lunatics spouting off the BS they read on places like Zero Hedge. I see enough of that crap on facebook to get my fill.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News