Posted on 04/24/2011 9:42:07 AM PDT by library user
Can you cite a source for that? I find it fascinating if so.
Not a challenge, just a request to be edified:)
10 years ago the AUD was worth half of the USD. Now it's about 1 to 1 and the trend is that the USD is still falling.
LINK (give it a few seconds to generate the chart) 10 year chart USD vs. AUD
Oil companies around the world
Natural resources companies around the world
I think they are already doing that, but gradually dumping dollars gives them more to invest. On the other hand, continuing the current arrangement allows them to protect their jobs (like "green jobs") in the short term, and gives them a lot of influence (e. g. Taiwan) over a POTUS who is already too eager to pander to anti-US regimes.
I think it's also important to note that Soros ("The man who broke the Bank of England") could strike before China does, so China might want to get out while they can. Since Obama is already doing some of Soros's work, that could happen if some day we elect a less fiscally irresponsible POTUS.
Sounds good to me.
INVOICE
Capital, Goods and Services stolen and extorted by the Peoples Republic of China
FDI, Intellectual Property, technology, know how . . . . . . . . . . . . . . .$ 2,500,000,000,000.00
Payments received from the Peoples Republic of China . . . . . . . . . . .$ 1,000,000,000,000.00
Amount due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,500,000,000,000.00
Your Treasury certificates are your payment receipts. Thank you.
The peg has worked out quite well for them over the last 10 years. They’ve built up a current account surplus never before seen in the history of world trade. They’ve co-opted entire industries from the US. They’re able to (and are) buying materials producers all over the world, to insure that they have inputs to their economy denominated in yuan, not dollars.
About the only area they’re lagging is in oil. And at the rate they’re making deals in South America, they clearly aim to plug that hole in their portfolio.
If they choose to, they can float their currency in advance of selling off their US debt holdings, and take the hit to their industry and use their huge surpluses to float their economy for a few years while they find markets other than the US. The size of their US dollar holdings gives them options that no other country in the world has right now. They could hedge some of their exposure, they could forward contract on oil to lock in current oil prices, etc. They have a wide variety of options available to them. They can’t protect their entire exposure due to the size of their account, but they can lessen the overall pain.
They only need to think of how to do this with the financial instruments extant, and because they’re communists, sometimes they’re a little bit slow in thinking creatively. But sooner or later, I expect that they’ll happen upon an idea, because the speed with which the Fed is destroying the dollar is making this their #1 issue very quickly. When the PRC wants out, they’ll get out, and it will be a one-way trip for the US.
And we’ll have the Free Trade Uber Alles twits to thank for it, the people who thought that “free trade” with communists was a suave economic theory.
Nothing you wrote, which is all true, we know that, refutes what I wrote.
I made an investment. The layabouts collecting our tax dollars via government handouts invested nothing. Except, in the case of SSI, a lawyer’s fees so they could get on the gravy train.
My source is none other than the Fed and their own stats.
Here is a link: http://www.federalreserve.gov/releases/h6/hist/h6hist1.pdf
Take a look at the relative rate of increase of M1 over M2 since say Jan 2009. I look at the unadjusted numbers.
So where oh where is all that currency going? I’ll tell you my theory, but I’d like to hear your theory first.
;-)
Fastest place to find this sort of info is FRED, the Federal Reserve database.
Here ya go:
http://research.stlouisfed.org/fred2/categories/24
Ryan’s plan is too close to Obamuzzie’s to be meaningful-—especially when you know how reliable all those “spending estimates” are. Paul’s plan is a good effort but you can see from the charts posted below does not break the spending curve——we really need Paul’s plan times two. But I digress-—I follow the Chicoms as close as I can without being a freak about it. Un-mentioned in all the analytical hand wringing is the beating they’ve taken in the past two years from natural disasters and drought. They’ve said repeatedly that they were going to have to use reserves (read: US bonds) to help re-build/restore. They can’t feed themselves (80 million tons of US northwest wheat goes straight to China every year). And the Chicoms are scared spitless about losing their labor price advantage (to themselves)-—even their own newest plants are highly automated. And they still have something over 800 million people who don’t have flush terlets. TV’s yeah, toilets no.
None of this excuses our own domestiic morons Obamuzzie, Berranky (that’s how T. Boone Pickens says it) et al for destroying our financial system but it helps to see where the pressure really comes from. And BTW—there must be a new bookkeeper in town: China has been building up to about one trillion$ in US bonds over a number of years and just announced a few months ago that their recent buy put them just over one T. Where did the other two trillion appear from? private China? local gov’ts? where? who? WTF?
I don’t blame the Chicoms in the slightest for buying resources etc. because they have nearly a trillion substandard-living people to look out for. And they see what happens in the ME to dirtbag autocrats who do not take care of their own people. One of my best sources of Mideast news in recent months has been CCTV9 (Chicom News) because they have people there and are REALLY paying attention.
Bottom line is we need a real congress. We need a real president. On a personal level if you do not already have enough ammunition, spare food, cash money, emergency stores, etc. then you have just not been paying attention.
You were *told* you were making an investment.
What I’m saying is that you were lied to. There was no investment. You were told you were making an investment in your retirement. They lied to your face - you were paying for the retirement of other people, not your own retirement.
Now, you’re 100% right - you paid these taxes as you were producing in our economy, unlike the grifters who are sponging off the system. You have followed the rules, and with those who followed the rules, the bargain should be kept. But I want people to understand that there is no account with your SSN on it at the SSA. The money you put in over your working lifetime is gone, spent in part on other people’s benefits and on US Treasury debt.
To get to the heart of the problem and punish the grifters while not punishing you will require the political will to say “You grifters are going to stop stealing from productive people. We’re done with allowing you to eat out the substance of the productive people of this country. If you try to cheat or steal your way through society any more, we will see to it that you starve to death.”
Somehow, I just don’t see that happening, however much we might desire it to happen.
” You were *told* you were making an investment. “
Actually, we were *told* we were making a ‘contribution’ — FICA is the acronym for “Federal INSURANCE CONTRIBUTION Act”...
And, as long as there is even ONE unconstitutional “Alphabet Acronym” federal agency in existence, and wasting dollars, you have no moral right to default (recognize that word from another - but related - context??) on this lifelong contractual obligation......
“They’ve built up a current account surplus never before seen in the history of world trade.”
On the backs of their citizens. That’s the problem. Letting the currency float puts the money back into the hands of their citizens, not the state, and they would be even better off.
They have enough that they could have made their own middle class and have China transition successfully into the first world.
Now, their entire future depends on what they do with the currency surplus. By selling 2 trillion USD to buy commodities, they are selling low and buying high, which means that the US government gets about 2/3rd of what they lost in the currency surplus back with zero benefit to the Chinese people.
They also spike commodities prices for their own citizens. Not a good thing.
“They’ve co-opted entire industries from the US.”
They are getting their butts kicked by poorer nations like India, which has a future. China has now.
“They’re able to (and are) buying materials producers all over the world, to insure that they have inputs to their economy denominated in yuan, not dollars.”
Do they have enough to make up for a shortfall in Chinese labour force where it falls by half in 20 years?
“the people who thought that “free trade” with communists was a suave economic theory.”
So why aren’t we all working for the Chinese? Free trade is amazingly powerful. If the nation you are with wants to become the marketer rather then the market, then they receive much less benefit than from 2 way trade.
Looks like Bill Gross called it right by dumping all of the US treasuries that he owned some time ago. Unless the Fed starts QE3 with ~$3 Trillion dollars there is no way that interest rates are not going to go up while the dollar is going down! Man talk about F’d up, this is going to hit the treasury like a ton of bricks. Also this will pretty much tank the housing market as interest rate can do nothing but rise from here on out. Guarantee that you’ll see Japan and other large holder of treasuries start selling like mad as well. If they really drive down the price (increase the interest rate) we could be looking at a default since no matter how high they raise the debt ceiling there is no way we can afford interest rates in the 7-10% range.
I have been wondering when Soros ("The man who broke the Bank of England") and his gang will make a move on the USD. Remember that the UK Conservative Party had won in April 1992, and Black Wednesday was in September 1992. Obama is doing Soros's work now, and I think he would be more likely to attack the USD if we ever elect a more responsible POTUS.
Not only that, but by insisting that the benefits be paid to you, you are doing the same thing to every young person today, with the added caveat that we cannot afford to pay these benefits.
So think carefully. Why are you strapping off your set of chains, adding onto the overall link, and going, ‘hey kid, have at it?’
“That’ll work great till people lose their homes...
No home = no yard = no garden.”
Which is already the case for the millions who live in apartments, or homes where raising chickens in the back yard is prohibited, or the back yard is the size of a postage stamp.
**************************************************************
The story of The Three Little Pigs. The original, brutally honest version. The version told before our society was feminized with a bunch of fantasies.
It’s not a feel good story, but a cautionary tale about reality. Don’t plan ahead, don’t be smart, don’t work hard, don’t lay a lasting foundation for your life, and you get eaten when the time comes.
Many individuals will suffer and die. It seems inevitable by now. It’s unfortunate for those clueless or lazy individuals in a certain sense, but it will be a blessed purging for the sake of society, a society grown fetid and bloated with riffraff of boundless sloth and stupidity.
Look, I hate to be the bearer of bad news here, but there is NO “contractual obligation.” Period, end of story.
It wasn’t I who said this. The opinion I’m about to give you is that of the United States Supreme Court, in 1960, in the case Fleming v. Nestor. You can google around to find it all over the various law sites, but I’ll give you the hard-truth quotes:
“Held:
...
2. A person covered by the Social Security Act has not such a right in old-age benefit payments as would make every defeasance of “accrued” interests violative of the Due Process Clause of the Fifth Amendment. Pp. 608-611.
(a) The noncontractual interest of an employee covered by the Act cannot be soundly analogized to that of the holder of an annuity, whose right to benefits are based on his contractual premium payments. Pp. 608-610.
(b) To engraft upon the Social Security System a concept of “accrued property rights” would deprive it of the flexibility and [363 U.S. 603, 604] boldness in adjustment to ever-changing conditions which it demands and which Congress probably had in mind when it expressly reserved the right to alter, amend or repeal any provision of the Act. Pp. 610-611.”
...
“The Social Security system may be accurately described as a form of social insurance, enacted pursuant to Congress’ power to “spend money in aid of the `general welfare,’” Helvering v. Davis, supra, at 640, whereby persons gainfully employed, and those who employ them, are taxed to permit the payment of benefits to the retired and disabled, and their dependents. Plainly the expectation is that many members of the present productive work force will in turn become beneficiaries rather than supporters of the program. But each worker’s benefits, though flowing from the contributions he made to the [363 U.S. 603, 610] national economy while actively employed, are not dependent on the degree to which he was called upon to support the system by taxation. It is apparent that the noncontractual interest of an employee covered by the Act cannot be soundly analogized to that of the holder of an annuity, whose right to benefits is bottomed on his contractual premium payments.”
As I said, I hate to be the bearer of bad news. But I’m not just whipping some opinion of mine out of my ass. This is the case law of the land, period, end of story. There is no “contract” and the Congress can cut or gut your benefits.
Exactly so. I see the issue of SS/MC as moral issues, and while anyone who has read my drivel here on FR knows that I rarely, if ever, talk about “morality” in any context, I do think that it is immoral to perpetuate a system which is a fraud by “passing it on down” because you were defrauded when you were young&dumb, so it is time to defraud the young&dumb when you’re older, wiser and more cynical.
I know. Please see #117 to see that this is not merely my opinion. This is settled case law.
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