Do you belive China Bankupt ?

[Wishcumstrue]

GIC and Temasek? 冤大头?

 

I had that gut feel that these 2 were forced to buy corrupt US banks under Washington pressure.

 

They knew the risk but to them, losing money is a lesser evil than getting pushed out of the Office by extenal Powers.

 

 

[Wishcumstrue]

They can try, but they will pay a price...

 

I think they know the cost&effect, and that is why they are doing it now in writing, not just trying.

 

Some more, they managed to get to not one but 2 US-allies to sign on the deal!

 

How's that for quiet diplomacy without the need for invasions and wasting precious lives and resources in worthless wars like US had done since 9/11?

 

SunZi Art of War had stated never ever to start a war when winning the objective can done in peaceful way.....that, IMO, is the epitome of warfare.

[Wasted]

epoch is a politcal paper funded by Fa Lun Gong....it's even more 1 sided than ST.

 

They give me free I also dunwant....unless raining...

 

 

... go toilet also can use!

[Jim]

LOL! You joking right?

 

Pray tell why doesn't a single 2012 US Presidential candidates prepare their election campaign saying that in face of their angry voters?

 

"People! Don't worry, we are in full control of our ++14 Trillion US$ debt....so vote for me!...Yes, We Can!"

 

Okay, if the Americans are so smart with their money, why are some countries prepared to abandon the USD even when guns are placed on their head?

 

And it certainly didn't help when S&P lowered US credit rating from AAA to AA+ in Aug..when warnings were already made by many economists during the period of post 2008 crisis.

http://www.reuters.com/article/2011/08/06/...E7746VF20110806

 

If US are indeed in control with their debt, their government certainly won't be going around pointing fingers at others while Americans are demanding equality in the forms of OWS.

 

Which country specifically are you talking about, abandoning USD? Venezuela? Everybody else continues to buy US debt. China has to keep buying or the RMB will rise in value against USD. They cannot afford that. So as much as they are stomping mad with American printing USD, they have to keep buying. You see the problem with Japan, strong Yen? Why? Didnt buy enough US debt.

 

If you had been paying attention to forex market, you will notice USD has been going up against almost all currencies since the credit rating downgrade. Before the downgrade, I told people the downgrade won't mean anything. I was wrong. The downgrade is favourable to the USD. The more fear in the world, the more people cling to USD and US debt. The USD is the new gold. Ignore at your own peril.

 

In fact, all signs point to US economy recovering. That's what Warren Buffett was saying on CNBC just two weeks back. Blank out the housing/construction market, the US economy is doing pretty well. He just bought 10 billion worth of IBM stocks. At it's high.

 

As much as I support the OWS movement, it is not an economic issue. The problem is the slack punishments for dishonest Wallstreeters.

 

Compare that with the riots in China. Those are rioting for basic necessities.

 

Oh, one more thing. You know why QE, QE2 didnt cause massive inflation in the US? Because it all went to China. What can China do? Nothing.

 

Who is in control?

[Itsec]

Which country specifically are you talking about, abandoning USD? Venezuela? Everybody else continues to buy US debt. China has to keep buying or the RMB will rise in value against USD. They cannot afford that. So as much as they are stomping mad with American printing USD, they have to keep buying. You see the problem with Japan, strong Yen? Why? Didnt buy enough US debt.

 

If you had been paying attention to forex market, you will notice USD has been going up against almost all currencies since the credit rating downgrade. Before the downgrade, I told people the downgrade won't mean anything. I was wrong. The downgrade is favourable to the USD. The more fear in the world, the more people cling to USD and US debt. The USD is the new gold. Ignore at your own peril.

 

In fact, all signs point to US economy recovering. That's what Warren Buffett was saying on CNBC just two weeks back. Blank out the housing/construction market, the US economy is doing pretty well. He just bought 10 billion worth of IBM stocks. At it's high.

 

As much as I support the OWS movement, it is not an economic issue. The problem is the slack punishments for dishonest Wallstreeters.

 

Compare that with the riots in China. Those are rioting for basic necessities.

 

Oh, one more thing. You know why QE, QE2 didnt cause massive inflation in the US? Because it all went to China. What can China do? Nothing.

 

Who is in control?

 

 

your reasoning very interesting leh... its totally oppose of what i thought and read from books and Internet... where u get our info from huh??

i know countries buy USD.. but they want the oil... who wants to buy another country's debt...No doubt, china is the largest foreign creditor but they have no control.. all US needs is to default. Beside that, Fed is the largest creditor, probably 60-70% and it held by few banks, not gov.

 

Furthermore, china is an exporter and she can command people to trade in RMB also. Dont forget russia and china trade their own currency between themself.

 

u need to know who control the flow of currency... whoever in control will control the country... and he's the LAW!!! forex just another tool for them to play, control the flow = control the forex system = manipulation... clear enough?

 

Next, you mentioned USD is a new gold... oh gosh.. i almost drop off the chair... any facts to support this huh?

 

do you know QE / QE2 goes to who?? china?? U need to understand how fed works? youtube got many video in simplistic description, if not get the books from amazon. QE is to bail out those banks!!! especially AIG... its totally insolvent... those banks who create the MBS need to be bail out.. what a joke...

 

 

 

[Without_a_car]

Which country specifically are you talking about, abandoning USD? Venezuela? Everybody else continues to buy US debt. China has to keep buying or the RMB will rise in value against USD. They cannot afford that. So as much as they are stomping mad with American printing USD, they have to keep buying. You see the problem with Japan, strong Yen? Why? Didnt buy enough US debt.

 

If you had been paying attention to forex market, you will notice USD has been going up against almost all currencies since the credit rating downgrade. Before the downgrade, I told people the downgrade won't mean anything. I was wrong. The downgrade is favourable to the USD. The more fear in the world, the more people cling to USD and US debt. The USD is the new gold. Ignore at your own peril.

 

In fact, all signs point to US economy recovering. That's what Warren Buffett was saying on CNBC just two weeks back. Blank out the housing/construction market, the US economy is doing pretty well. He just bought 10 billion worth of IBM stocks. At it's high.

 

As much as I support the OWS movement, it is not an economic issue. The problem is the slack punishments for dishonest Wallstreeters.

 

Compare that with the riots in China. Those are rioting for basic necessities.

 

Oh, one more thing. You know why QE, QE2 didnt cause massive inflation in the US? Because it all went to China. What can China do? Nothing.

 

Who is in control?

 

Iraq abandoned the USD in 2000. Got whacked

Iran abandoned the USD in 2009, to be whacked soon.

Libya switching to gold dinar in 2010, just got whacked.

North Korea, not using USD, might be whacked.

[Itsec]

Iraq abandoned the USD in 2000. Got whacked

Iran abandoned the USD in 2009, to be whacked soon.

Libya switching to gold dinar in 2010, just got whacked.

North Korea, not using USD, might be whacked.

 

 

the moment SG wants to trade in SGD with other countries... i think i can renounce my citizenship... go MY look for jobs...

[Jasonjst]

that's why they can print and print.... use printed paper to exchange for goods... best ever deal in this world.. get a cheque from bankers (who helps to create more debts) and continue to print paper and exchange for goods... gov get the goods and bankers get the commission and interests which is COMPOUNDED!!! and those interests or electronic $$$ received are loaned out which in terms created more debts.. everyday sit in the office, see the digits increased exponentially...

 

best job in this world!!!

 

that's why gov hates gold/silver standard...

 

Why cant other countries print money secretly without USA knowing huh ..... ? If they give us " printed USD " , we give them " newly printed SGD " , hence nothing to loose leh .

But best is go back to barter trades between countries , something like you give me a pig in exchange for 100 chickens , haha

Edited November 26, 2011 by Jasonjst

[Jasonjst]

Which country specifically are you talking about, abandoning USD? Venezuela? Everybody else continues to buy US debt. China has to keep buying or the RMB will rise in value against USD. They cannot afford that. So as much as they are stomping mad with American printing USD, they have to keep buying. You see the problem with Japan, strong Yen? Why? Didnt buy enough US debt.

 

If you had been paying attention to forex market, you will notice USD has been going up against almost all currencies since the credit rating downgrade. Before the downgrade, I told people the downgrade won't mean anything. I was wrong. The downgrade is favourable to the USD. The more fear in the world, the more people cling to USD and US debt. The USD is the new gold. Ignore at your own peril.

 

In fact, all signs point to US economy recovering. That's what Warren Buffett was saying on CNBC just two weeks back. Blank out the housing/construction market, the US economy is doing pretty well. He just bought 10 billion worth of IBM stocks. At it's high.

 

As much as I support the OWS movement, it is not an economic issue. The problem is the slack punishments for dishonest Wallstreeters.

 

Compare that with the riots in China. Those are rioting for basic necessities.

 

Oh, one more thing. You know why QE, QE2 didnt cause massive inflation in the US? Because it all went to China. What can China do? Nothing.

 

Who is in control?

 

You might be right .... at some point of time , when the US economy start picking up , USD will rebounce. The best indicator to watch is US employment data . But look like Europe and China is pushing things down beyond 2012 , and US again need QE3 liao ... Hence not so soon , I think .

 

[Tigerwoods]

you cancel out each other, everyone will still be in debt

Actually the only way to get out of this problem is to write off debt, instead of increasing debt.

Giving more money to a debt ridden country is like a Bankrupt man going to Loansharks to get money to clear his bankruptcy.

 

By Debt reduction, though it makes no sense to any banks, can reboot the world system and kickstart a recovery much much faster than printing more money.

 

[Tigerwoods]

To quote a famous book, "To those who have much, more will be given. To those who have little, even what they have will be taken away."

 

The only condition one needs to satisfy to be bankrupt is to have more debt than one can service.

 

China's debt crisis is not like Greece's in that they dont owe foreign creditors and dont have to worry about day to day bond market fluctuations.

 

However, there is a lot of domestic lending and a lot of corrupt accounting. I used to buy a lot of "S Chips" - China companies listed in SGX, and my fingers are burnt into a crisp.

 

China's banking system is totally capable of imploding without foreigners meddling. If and when the Chinese people lose faith in the banking system, we'll see bank runs. The proverbial PRC investors coming to Singapore with suitcase full of cash to buy Singapore property are the early ones.

 

Also, China's financial system is hard to manage. To some people, the RMB is overvalued. To some, it is undervalued. Pushing either way hard can cause problems.

 

At this point, I think to keep Chinese inflation stable, RMB need to gain value to keep the farmers properly fed. However, pushing the value up too hard could put Chinese export industry into recession, resulting in hungry factory workers.

 

And China needs roughly 8% GDP growth to keep factory workers fed, and this is increasingly hard with the slowdown in US and Europe. There is only so many ghost towns and ghost cities they can build. Any slowdown and we will have a few hundred million angry unemployed workers here and there.

 

Not a pretty picture. Head for the hills.

a Nice read.

The problem with our world today is that everybody wants to grow too big too fast. What causes it ? GREED

It is very sad to live in a world where the only way to sustain the economy is for its inhabitants to spend more than they can afford.

 

[Jim]

Iraq abandoned the USD in 2000. Got whacked

Iran abandoned the USD in 2009, to be whacked soon.

Libya switching to gold dinar in 2010, just got whacked.

North Korea, not using USD, might be whacked.

 

Iran stopped accepting USD for oil trade in 2007. The Iranian Oil Bourse took a bit longer but was very much operational by 2009. If you are waiting for a petrodollar war in Iran, you may have dozed off by now.

Paul Krugman wrote this in 1998. He has since won the Nobel Prize for Economics. He may know one or two things about economics:

 

Don't worry about the euro

 

Besides, what is the effect? Devaluing the USD? These days, devaluing the USD is doing Uncle Sam a favour. Oh, and it's Germany that had a bond sale failure, not the US. US Treasuries are very well taken up still.

 

I just read the first Made-in-Brazil iPhones have finally hit the market. China's position as the world's factory is not irreplaceable. US's position as the No 1 consumer of the world is harder to supplant.

Edited November 26, 2011 by Jim

[Ngck]

Actually the only way to get out of this problem is to write off debt, instead of increasing debt.

Giving more money to a debt ridden country is like a Bankrupt man going to Loansharks to get money to clear his bankruptcy.

 

By Debt reduction, though it makes no sense to any banks, can reboot the world system and kickstart a recovery much much faster than printing more money.

 

 

its impossible to write off all the debts and the world economy is fuel by debt

[Wishcumstrue]

The USD is the new gold. Ignore at your own peril.

 

Some of the forumeers already questions some of your dubious assertion regarding USD. So I am not going add on.

For the part regarding USD is a "new gold"...here's what Warren has to say about its future:

 

Warren in Apr'11:

Warren Buffett: There's "No Question" The Dollar Will Keep Falling

"No question that the purchasing power of U.S. dollar will decline over time. Only question is at what rate it will happen."

 

Warren in May'11:

Warren Buffett: End of U.S. Dollar as Reserve Currency?

"

Edited November 27, 2011 by Wishcumstrue

[Wishcumstrue]

its impossible to write off all the debts and the world economy is fuel by debt

 

There are good and bad debt.

 

Kinda like good and bad cholesterol.

 

The key is how you manage both.

 

http://finance.yahoo.com/loans/article/109...ebt-vs-bad-debt

 

[Kiadaw]

If US fail, or China Bankrupt, they will recovered, because they are big countries with many resources. But any fail, we are in big trouble.

 

The world will balance itself, it due time, with consequences. Small nation like us that rely so much on export will be badly hitted.

[Smhomie]

Warren Buffett has already offloaded his BYD investment. Made 17 times his initial invested amount.

 

Just leveraging on his name to make money when at that point in 2007-2008, nothing else in US was viable except emerging green technologies

 

BYD's core activities were manufacturing lithium batteries for consumables. They then later had this concept vision of building electric cars since they had adequate knowledge in stored energy.

 

Fast forward today, there is no full electric car on sale by BYD, only hybrid cars. I just came back from Guangzhou last week, a news announcement was made for it.

 

I didn't feel the economy was doing well at all in China, things were actually a lot more expensive due to hyper inflation unfortunately...

 

The news article may be true after all....... be careful of 2012.

[Wishcumstrue]

Iran stopped accepting USD for oil trade in 2007. The Iranian Oil Bourse took a bit longer but was very much operational by 2009. If you are waiting for a petrodollar war in Iran, you may have dozed off by now.

 

Jim, it is all about timing and stretched US resource, doesn't mean the US suddenly become peace-loving doves.

 

During period after 9/11 to early this year, the US military was struggling fighting 2 major wars in ME.

Once the objective of killing Osama was met this year, their focus began to shift.

 

No, I am not dozing off one bit once you see US politicians traveling the region a little more often than usual.

 

Also, why use Paul Krugman's decade old article claiming no concerns about the dollar's reserve currency status?

This article is no longer valid after US debt had balloned 3x since he wrote that article.

 

Today is a very different world since 1998.

Just this Aug, Krugman says in NYT "America is indeed no longer the stable, reliable country it once was....".

He also places the blame on others like S&P credibility and US's right-wingers.

Source:

Credibility, Chutzpah and Debt

 

The irony is he himself support and visited the OWS protestors.

After his visit he wrote:

"..the (OWS) protests have already elicited a remarkably hysterical reaction from Wall Street, the super-rich in general, and politicians and pundits who reliably serve the interests of the wealthiest hundredth of a percent. (top 1%)

 

Source:

Panic of the Plutocrats

Paul Krugman Visits Occupy Wall Street Protests (VIDEO)

 

So this Nobel Prize winner knows not only about economics, but also understand the sinister aspects that had corrupted the US financial system.

Edited November 27, 2011 by Wishcumstrue