Skip to comments.Why the dollar stays steady as America declines
Posted on 02/07/2014 5:06:27 AM PST by Red in Blue PA
Last week Nigeria's central bank announced something that might make American politicians blink. Kingsley Moghalu, the deputy governor, pledged to convert almost a tenth of Nigeria's $43 billion reserves from dollars to the Chinese currency.
"Ultimately the renminbi is likely to become a global convertible currency," he explained, noting that "the future of international economics and trade will shift in large part to business with and by China".
He is not alone.
Such forecasts have much to do with China's rising economic might and the gradual liberalisation of its currency. But they reflect alarm and irritation about America, too. The US current account deficit, rising government debt, the hangover from a financial crisis and political gridlock have prompted economists and investors to warn of a looming dollar decline.
(Excerpt) Read more at cnbc.com ...
And I believe that day is coming.
America really needs to stop messing around with globalism, and become aggressive in trade.
We need to build up America again.
Bigtime. America first.
We need to stop funding everything through debt.
That is going to kill this nation, and the Founding Fathers warned us against it.
With this bunch of Kenyan Commies in charge, how could it be any different?
This is nothing but economic common sense.
A thousand fold...
In my humble opinion, people across the world still put their hope in the American way.
There is no hope in the Chinese way, the Russian way, the North Korean way.
America is the last best hope. When America struggles it is time to bargain shop, in the hope America will roar back. We do have a bunch of lazy craven fat citizens, but we also have some, a few fine hardworking independent citizens.
“With this bunch of Kenyan Commies in charge, how could it be any different?”
The irritating thing about it is that almost fifty per-cent of the electorate voted for these people again, and one of THE MOST irritating things is the lawyers in my neighborhood who had Obama signs on their lawns in 2008.
One would think that thinking people, officers of the court, would think before they voted with their intestines.
Absolutely discouraging and amazing.
Don’t raise the debt ceiling = instant balanced budget.
The debt-parasites call it default but the only thing it defaults is their endless spending of taxpayer obligations.
I’m at mixed feelings about that. The only reason the American Dollar was as strong and stable as it was as a world currency was because the American tax payer worked productively as economic slaves, forgoing the benefits that other “socialist” type governments gave their peoples. We made do with less so that other nations wouldn’t have to field armies or build up their own economies to pay for their own defense and security needs. We deliberately let China devalue its currency against our own to build itself up at our expense.
Yes our problems will be increased 10 fold if the American dollar loses its reserve status, but we will then have the opportunity to have the world’s tax collar cut off our necks and we will be forced to restructure our society and economic system back along more traditional and Constitution lines!
Lower the debt ceiling every 3 months and cut spending. It’s the only way to get out of this Obama created downward trend.
If taxes rise beyond the peoples’ ability to pay those taxes, the system will collapse any way!. I’m looking at the fact that our entire federal banking system will fail and we’ll be where Russia was say...1992!. Everything will change and we may no longer even be a complete nation anymore, but good men of conscience, sadder, but wiser will have a chance to rebuild.
Much of the debt we owe is to ourselves and our future. We owe a trillion to China, but they owe a trillion to us(from debts from WW2 and loans since and we have not forgiven those debts). They have cheated us as many nations have by artificially keeping their currencies lower making our goods more expensive or outright blocking them via outright tariffs and restrictions (despite what WTO treaties may stipulate). Domestic debt can be repudiated and so can foreign debt if such debt has been fraudulently incurred by currency manipulations of other state players!
there’s a simple reason for the steadying dollar.
The USA added about 40 trillion in oil/gas reserves to back the dollar in the last 5 years. USA oil production has gone up by 1 million barrels @ day for the last three years and according to the EIA will go up up roughly 1 million barrels @day for at least the next two years. Partially because of revenue from the oil patch government revenues so the result is that deficits are falling fast.
So USA federal deficits and trade deficits are shifting money flows around the world in favor of the dollar.
Most likely trial lawyers. They are notorious for voting rat year after year.
I don’t believe in “free trade” like many on our side do.
I believe in doing what’s best for us. I believe in gaining advantage for America. We should reward our allies with bilateral trading agreements. The bilateral arrangements should be mutually beneficial. I do not believe in the WTO. I don’t think that surrendering our national sovereignty to a global body is in our best interest. I believe in the USA. Well, the older version of it anyway. Let’s bring the republic back. It is our only hope.