US deficit

[!@#$%]

Re: American Tranny will end soon....

 

i just read the first part of this thread with no mention of the fact that china is, and has been manipulating their currency for some time.

 

 

come on guys.

 

so when do they start manipulating ours?

it is common knowledge that asian governments are loaning the united states money (by byiing govt bonds) at what could be considered an alarming rate.

 

http://www.newyorker.com/talk/content/articles/050418ta_talk_surowiecki

 

 

Last year, Asian countries invested almost four hundred billion dollars in the United States, mostly in government bonds. China is effectively taking most of its excess national savings and lending it to the United States. The Japanese, who despite their creaking economy remain flush with savings, bought a quarter trillion dollars of American debt last year, even though the interest is lousy and the assets themselves are losing value. More than any other nation in history, the United States depends, economically, on the kindness of strangers. Right now, Asian investors appear very kind.

 

Markets are hardly known for their tenderness. Usually, you can assume that everyone in a market is trying to make as much money as possible, with as little risk, but the currency market isn’t like most others. In the market for the dollar, many of the players have other things on their mind. China needs to go on selling Americans hundreds of billions in exports in order to keep its economy humming. A weaker dollar makes that harder. Asian central banks also already own trillions of dollars in American assets. As the dollar falls, so does the value of those assets. There are plenty of other traders in the currency markets—who have the luxury of being single-minded regarding profit—but the Asian banks are powerful enough to be, in effect, the lenders of last resort. As long as it’s in their self-interest to keep America afloat, the dollar will not crash.

 

Of course, the Chinese and the Japanese could decide that the costs of the falling dollar are too great, and suddenly stop (or, at least, cut back sharply) their lending to the United States. This would lead to a so-called “hard landing” for the U.S. economy: high inflation, punitive interest rates, collapsing stock prices and housing prices. It would also lead to bedlam for China and Japan. Their best customers would effectively be unable to afford their wares. To paraphrase John Paul Getty: If you owe the bank a hundred dollars, you’ve got a problem. If you owe the bank three trillion dollars, the bank’s got a problem.

 

There’s a good chance, then, that the landing will be soft—we lose the truffles but keep our homes—as long as everyone involved in keeping the dollar aloft continues to play the same game. No one, in Asia or anywhere else, wants to be the last guy out. What the Chinese and the Japanese do depends in large part on what they think everyone else is going to do. If the Chinese get the idea that Japan’s commitment to the dollar is wavering, or if they decide that the United States has no interest in altering its deadbeat ways, then they may try to make a run for it. Then again, that threat could act as a prod to keep the Americans in line. The currency market is a great example of what George Soros calls “reflexivity”: people’s predictions about what will happen to the dollar end up having a major impact on what actually does happen to the dollar. Our lenders are trying to strike a delicate balance: they’d like the dollar’s predicament to seem dire enough to make us change, but not so dire as to spark panic. So be afraid. Just don’t be very afraid.

 

 

 

debt won't be a sudden end to our empire

but it could help the slow demise

[BIF.BEELOWS]

that is very true we do have some sort of a symbiotic relationship.

im pretty sure acting like the "hero" won't help us any

even spider man wasnt strong enough....

[Dawood]

Re: American Tranny will end soon....

 

people’s predictions about what will happen to the dollar end up having a major impact on what actually does happen to the dollar.

 

 

 

I should start designing my own dollar now and get a company like coca cola to fund the promo. We can market it with commercials, billboards, etc. and talk a lot of yang about the US dollar and how it's ass-out and what not. I can blow up Washingtons whole spot with coke money and a little design program, you don't think so? It's 2006 now, it's hardbody Dawood dollars....You heard it here first. start investing now, ok?

 

I got paypal.

[angelofdeath]

speaking about designing dollars...

 

google: liberty dollars.

[!@#$%]

someone's never heard of a self fulfilling prophecy i guess