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Doesn't matter. It's a zero-sum game.
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Sun is setting on the US Dollar as the world's informal, reserve currency
- Thread Starter ATCclears
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China Announces That It Is Going To Stop Stockpiling U.S. Dollars
The world is changing, and most Americans have absolutely no idea what this is going to mean for them. As demand for the U.S. dollar and U.S. debt goes down, the things that we buy at the store will cost a lot more, our standard of living will go down and it will become a lot more expensive for everyone (including the U.S. government) to borrow money.
Unfortunately, there isn't much that can be done about any of this at this point. When it comes to economics, China has been playing chess while the United States has been playing checkers. And now decades of very, very foolish decisions are starting to catch up with us.
The false prosperity that most Americans are enjoying today will soon start disappearing, and most of them will have no idea why it is happening.
The years ahead are going to be very challenging, and so I hope that you are getting ready for them.
The world is changing, and most Americans have absolutely no idea what this is going to mean for them. As demand for the U.S. dollar and U.S. debt goes down, the things that we buy at the store will cost a lot more, our standard of living will go down and it will become a lot more expensive for everyone (including the U.S. government) to borrow money.
Unfortunately, there isn't much that can be done about any of this at this point. When it comes to economics, China has been playing chess while the United States has been playing checkers. And now decades of very, very foolish decisions are starting to catch up with us.
The false prosperity that most Americans are enjoying today will soon start disappearing, and most of them will have no idea why it is happening.
The years ahead are going to be very challenging, and so I hope that you are getting ready for them.
How can that be done?????????????/
I like these threads. They reaffirm that not everyone has their heads in the sand, but also demonstrates that people can come to opposite or differing conclusions based on the same evidence (I'm assuming they look at the evidence?). That causes me to step back every so often and ask myself if I am "wrong?"
Yes, it does make a huge difference to a nation, and to individuals, if their currency ceases to be the world's reserve currency. When they lose currency dominance they fall off the catwalk and end up in the manure pile with everyone else. I see lots of evidence (just about every day) that the $US is going to be replaced as the currency of world trade - most likely before this decade ends - but I see very little evidence to conclude that it will continue to be used as such. We will know in time, but for me my bets have already been placed.
Yes, it does make a huge difference to a nation, and to individuals, if their currency ceases to be the world's reserve currency. When they lose currency dominance they fall off the catwalk and end up in the manure pile with everyone else. I see lots of evidence (just about every day) that the $US is going to be replaced as the currency of world trade - most likely before this decade ends - but I see very little evidence to conclude that it will continue to be used as such. We will know in time, but for me my bets have already been placed.
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Taku, it surprised me too. However, what says that country or entity X has to issue their bonds in US Dollars or the currency of their country? There is no rule.
I think this was a test for British Columbia (BC), and it appears that it was VERY successful given by how much it was over subscribed.
I still believe it is a sign of things to come. I think other countries and investors are fed up with the dilution of their investments in US Dollars due to Quantitative Easing, and they will vote with their feet. Note that QE is analogous to a publically-traded company just randomly declaring a stock split such that anyone with existing shares now has a diluted investment.
I am also awaiting updated reports that show how much of the US debt is now bought by the Federal Reserve instead of outside investors. If this percentage continues to grow (and I think it is/will), then it is an ominous sign of things to come. We will either spiral down in the toilet bowl or we will go to war as a distraction.
Peter
It seem there will be a lot of negative ramifications to what they are doing.
It is as though they are selling out to China.
I take it China has to agree to this......................
I am not anywhere near an economist, and barely handle my finances without
a headache, but have a good friend that is and is in BC.
Have to quiz him a little on this one.
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I am originally from BC and still have many friends up there.
BC and many of the other Canadian provinces are tightly coupled to the US economy. If the US sinks, they will bleed and possibly go down with the ship. This is also why several friends up there are going through the onerous processes to obtain guns and "arm up" a little.
Some are starting to realize that the future of the US is bleak. Hence, there are proposals such as the pipeline from the Alberta tar sands across to BC and the likely port of Kitimat, where they might ultimately service as many as 200 supertankers per year shipping the oil to China and others. I was surprised by BC offering bonds in the Chinese currency but it makes sense if one thinks "how do I remove some risk, or decouple myself from the US?".
Also, Vancouver now has deep roots with Asia after letting people buy their landed-immigrant status (ie., green card) before China took over Hong Kong in 1997. If one wants to fly to Asia you actually have a better selection of airlines and more flights if you fly out of Vancouver (YVR). There is a reason some now call it Hongcouver.
Peter
BC and many of the other Canadian provinces are tightly coupled to the US economy. If the US sinks, they will bleed and possibly go down with the ship. This is also why several friends up there are going through the onerous processes to obtain guns and "arm up" a little.
Some are starting to realize that the future of the US is bleak. Hence, there are proposals such as the pipeline from the Alberta tar sands across to BC and the likely port of Kitimat, where they might ultimately service as many as 200 supertankers per year shipping the oil to China and others. I was surprised by BC offering bonds in the Chinese currency but it makes sense if one thinks "how do I remove some risk, or decouple myself from the US?".
Also, Vancouver now has deep roots with Asia after letting people buy their landed-immigrant status (ie., green card) before China took over Hong Kong in 1997. If one wants to fly to Asia you actually have a better selection of airlines and more flights if you fly out of Vancouver (YVR). There is a reason some now call it Hongcouver.
Peter
Canada's strong natural resource base is going to serve them very well in the future. As China and India (and others) continue to develop, their populations will want to obtain the comforts those of us in the West already enjoy. Canada will have a strong role in making that happen. (It is no coincidence our daughter is pursuing business studies in B.C.!)
A good interview with a (real) expert who you will NEVER see on TV.
Ask The Expert - Jim Sinclair (November 2013) | Sprott Money News - YouTube
Ask The Expert - Jim Sinclair (November 2013) | Sprott Money News - YouTube
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There's a reason for that.
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http://www.realclearpolitics.com/vi...t_act_together_world_will_de-americanize.html
Hillary Clinton: If U.S. Doesn't Get Act Together, World Will "De-Americanize"
Hillary Clinton: If U.S. Doesn't Get Act Together, World Will "De-Americanize"
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I would suggest you take a refresh math course and pay special attention to exponential functions because quite frankly your political bias is blinding you to the realities of simple arithmetic.
In a world of numbers there are no multiple correct answers. It is quite binary. A result from an equation is either correct or it is not.
When governments spend more than they receive and borrow the balance eventually reach a point where they cannot get enough capital to operate. Usually they prolong their game by creating inflation. That only works for so long.
In the end the inescapable truth is that you cannot give something to someone, without taking it from somebody else.
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Normally it is done because investors do not trust the issuing county's currency. If you look at bonds issued by a lot of South American countries they are typically issued in USD, because those countries have a history of devaluations.
What Vancouver is doing, in my opinion, is taking a gamble that the Yuan will be worth less upon maturity than today. Very likely vs. the CND not USD. It could be an indication that they have confidence in the Canadian dollar.
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A stock split does not dilute your investment. The shares you own are multiplied by a factor of x (normally 2 or 3) and the price per share is adjusted in proportion to it.
Now, a follow up offering will have a diluting effect as new shares are released into circulation from those help by the company.
Hillary is running for president! Hillary is part of ruin the USA.
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Agreed. She would be worse than Obama because she's has an asset that he is lacking - above average intelligence.
That would be downright disgusting, but as long as Americans view president's as essentially 'kings' (or queens) things won't get better. We have a long way to slide before the electorate gets mad enough to send these puppet kings and their lackies packing. Anyway... for those who prefer to look forward in time rather than behind...
Asia Times Online :: Global Economy
Asia Times Online :: Global Economy
Among other causes, if the economy collapses, the consequences could be severe enough to bring something this extreme about.
Just came across this.
Best describes what it will could like.
Long read but well done.
http://westernrifleshooters.wordpre...-how-americas-cities-may-explode-in-violence/
Just came across this.
Best describes what it will could like.
Long read but well done.
http://westernrifleshooters.wordpre...-how-americas-cities-may-explode-in-violence/
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Yet another massive nail in the dollar?s coffin
The first article would lead one to believe that it is over (which is not true, yet...). I found a more respectable article below:
Singapore and Hong Kong exchanges to collaborate on yuan
Watch to see if the London Exchange (or other non-Asian Exchange) does a similar partnership with the Hong Kong Exchange.
Peter
The first article would lead one to believe that it is over (which is not true, yet...). I found a more respectable article below:
Singapore and Hong Kong exchanges to collaborate on yuan
Watch to see if the London Exchange (or other non-Asian Exchange) does a similar partnership with the Hong Kong Exchange.
Peter
