Skip to comments.Should You Be Scared That China And Russia Just Agreed To Drop The Dollar?
Posted on 11/24/2010 7:14:10 AM PST by La Lydia
China and Russia have announced that they will no longer use the dollar for bi-lateral trade. Instead they will use either the ruble or the yuan. Should you be scared? Is this the end of the dollar? Meh, not really. This is what everyone wants to see happen; we want the yuan to become a real currency used in trade...
It's not the end of the world if the dollar isn't the world's sole reserve currency. It certainly hasn't been bad for the yen, or the Singapore dollar, or the Swiss Franc -- all widely respected and used global currencies -- that aren't THE RESERVE CURRENCY.
There's plenty of stuff to freak out about. This is not one of those things.
(Excerpt) Read more at businessinsider.com ...
And I was concerned about my Peso’s.
maybe we should just pack up our factories and come home.....
This is probably an oversimplification....
But if the dollar is the world’s currency perhaps we are “too big to fail”. Not so much once the dollar has been replaced.
Common sense tells me that we can not sustain a stable currency with the Fed printing money. There has to be a consequence and it will not be good.
Many other countries have had periods of very unstable currency valuations. Why do we think it can NOT happen here? Just because it has not in the past is not a guarantee for the future.
No kidding. Never gonna happen, but a great take on it
I am not sure that the Chinese would be interested in it if this cause the value of the yuan to go up. On the other hand, the Russians would be more interested since a stronger ruble will allow them to purchase more for less rubles.
But all the reasons ‘your’ factories are in China are still in place.
The CONUS has a lot to offer entrepreneurs, but these advantages are more than offset by massive taxation, regulation and legal vulnerability.
The shareholders who actually own the factories will keep them where they make the most return on capital. Think of it as “Freedom of association”
This is merely another facet of the Obama Presidency. In the remaining years of my life, we will not be able to repair the damage caused by this imposter over the last 22 months. (And he still has another 26 months to go). If the new House doesn’t use every means necessary to cut overall spending by 35%, you can kiss America ‘good-bye’.
Invest in Glen Beck and Buy Gold Now!
War without bullets. We knew these guys were always our enemies. They will always be our enemies until they have a free and functioning constitutional republic. The Cold War never ended it just changed weapons.
Roughly speaking, this is equivalent to barter between Russia and China.
Is it that different than a company splitting it's stock? (With the exception the holdings of the current stockholders are, in this case, not increased accordingly)
The yuan certainly isn’t.
I would think so, but again I am not an expert.
Splitting a stock share does not affect the overall price of other goods.
If we change the valuation of the dollar are we then going to change the price of goods and wages paid?
They should go to Euros. Then their economies can go the way of Greece, Ireland, Spain, and Portugal.
I have invested in silver. Traditionally silver has been priced at about a 30-1 ratio to an oz of gold. According to current gold prices if that ratio is accurate, an oz of silver should be worth about $30, which is close now.. Silver is much easier to manage in currency form than physical gold.
That is the very definition of inflation (revaluation of the dollar). Also, if a company creates more stock, thereby devaluing the stock that is already in circulation, then that certainly reduces the value of each share - thereby reducing your purchasing power should you sell it for money to make a purchase.
A dollar bill really is just "stock in America" (I've heard it described as such many times). And, that's easy to reason out, because if somebody purchases a tangible item here they do so with dollars.
Aw...now ya got me droolin'. Just imagine how this country would flourish.
Imagine a investment climate where a flat tax was in place at 10%, capital gains at 5%, no death tax, and all corporations had profit sharing program where employees shared in the wealth generated. The “leaders” were willing to reward the employees by being equal. Not forced by governments, but because we have a moral fabric where we all lift each other up through merit......
Aw...now ya got me droolin’. Just imagine how this country would flourish.
Not with the ridiculous regs, the unions and the minimum wage laws now in place.
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