Kuwait drops dollar

[Jimbuna]

Originally Posted by Hitman

Sounds like a rude way of not paying your debts

BTW maliciously? Why should China want to keep so much bons of a currency that might suffer heavy loses once the US economy can no longer stand its huge deficit?

The US economy is doomed, it's only a matter of when will the deficit exceed the credit capacity. If I had dollars I would get rid of them ASAP

What China is doing is an enormous favor to have taken so many until now....:hmm:

I agree...we Brits are hanging on to the pound for grim death. it's only a matter of time before the inevitable change over to Euros will happen

[Fish]

Originally Posted by elite_hunter_sh3

courtesy of fish

http://www.subsim.com/radioroom/showthread.php?t=115530

Ok tell them your ok with some nukes on there head.

[Sea Demon]

Originally Posted by Skybird

Spoken by testicles, not by brains.

No. Spoken by a sense of survival. Doesn't have anything to do with parts of the body at all. If China is building large foreign exchange reserves in dollars simply so they can drop an economic bomb, such as dumping them quickly and completely so as to prevent US military action, or stop oil deliveries to America.....that's just like dropping a bomb of destruction. That means simple deliveries of food within America may be disrupted to the point of non-delivery. I don't know about you, but not being able to eat is hazardous to your health where I come from. With that said, the nuclear option is only the most extreme. And it is the least desirable. But indeed, I would expect the US government to retaliate in a way that would make them pay an ultimate price. China needs to know that economic warfare is not in their interests, and will be painful to them if they partake in it.

If they want to exchange their foreign reserves nominally, then they should do so. But nevertheless, I'm willing to bet that they will not do so at all. The Euro as a long term option ain't that good as is. With a large, yet rapidly shrinking, and aging population sucking on government pensions, and a burgeoning low skilled/hostile Muslim infusion in Europe.....I wouldn't bet on it.

[Skybird]

Nobody forced you to sell your dollars offworld. Nobody forced you to waste oil like crazy, and still refuse until today to tackle that problem of excessive wasting ressources, and not to adapt your economy. Nobody forced you to ignore the economical developement in Asia for decades. Nobody forced you to raise a state deficit that high that only astronomers have an image of what the numbers mean. Nobody forced you to run your economy in a way that today the inherent weaknesses and vulnerabilities not only become more and more appearant, but also more and more threatening. Nobody forced you to trust stock markets, and to launch this madness called "globalization" (about which your own pliticians for the most have become remarkably silent since two years or so). Nobody forced you to let major parts of your heavy industry rot, and not modernize your steelworks since decades. Nobody forced you to follow an economic course where you depend more and more on market protection and subsidies to keep your home factories alive. Nobody forced you to sell out parts of your country to Asian investors. Nobody forced you to accept a trade deficit that in the short run funded your luxury (past), in the long run only cripples your economical backbone (present and future).

You did all that voluntarily. Nobody forced you, no one else told you you should do it, nobody else is responsible for your situation than you yourself. You sold yourself, by your own decision. Nobody forced you.

You may take some comfort from the historical fact that most empires, including the Romans, weakened themselves from within when eroding their inner economy by becoming more and more dependent on a constant input of economic goods to consume, that was maintained from the outside. Rome, like America, saw itself as the navel of the world, and considered it to be quite naturally for that reason to become a great consumer, but not as great a producer. Many empires literally consumed themselves to death, mislearned how to support themselves anymore by their own economical effort, and were bancrupted by exessive military spending that their own internal economy could not afford -it was heavily depending on constant financial inputs from foreign powers. exactly the same is true of the Us today - if investors would stop to think in dollars and turn to Euros, if investors would rlaize that they are only helping to increase bubbles that sooner or later mist burst - America would face a very brutal landing on the surface of hard reality. European nations in the past 500 years repeatedly reached that point - namely Spain, France and Portugal. The British only were able to sustain the fight against Napoleon by adressing these issues just in time, by reforming their fiscal and tax system.

I once have said two or three years ago that american economy is far weaker and vulnerable than americans are able to admit. Back then I was laughed at only, and saw waving hands. At least some have stopped laughing now. The rest of it will be learned sooner or later, too.

Else it is "Game Over, player US looses".

P.S. Some "experts" fear that Chinese economy is heading for a bubble-bursting soon. If that happens and it is the main bubble bursting, internal investement markets in the US as well as the already troubled property market will have a chance to get a first taste of spicey things to come. I don't know why America seem to have assumed that it would be spared from it's creature called globalization. and compared to several european countries with partially far more modern industry branches (especially steel and machinery), America is not really as well prepared for that. If other nations will suffer econo0mically, the military spendings and investements into computer equipement are the first to be cut. And what Western economy depends on selling of arms and computers more than anyone else?

[Iceman]

Sky-wizard again to the rescue....I'm so glad you are here Skybird to point out all the things people should be doing or should have done because you told us so a few yrs ago....do you get your prophecy from a crystal ball or do you consult the stars?..or is it simply your superior athesist intellect farther evolved than the rest of us?

The things you think are knowledge are not....it is as easy at looking at clouds and know rain is coming....but thank you again for the weather report.....hows the weather in your neighborhood Skybird?

[Sea Demon]

The funny thing is that I've been hearing about "impending US economic collapse" since I've been alive. Recessions, depressions, dollar fluctuations, inflation, currency crises, bubbles, etc. are terms I've seen since the 1970's. This isn't new...well, maybe to the prophet Skybird it is. This to me is like impending doomsday from global warming. Or is "global cooling" the new fad? :hmm:

[bradclark1]

The way I see it China's future is tied to ours, like it or not. A kind of simplistic statement but hey!

[Fish]

Originally Posted by Iceman

Sky-wizard again to the rescue....I'm so glad you are here Skybird to point out all the things people should be doing or should have done because you told us so a few yrs ago....do you get your prophecy from a crystal ball or do you consult the stars?..or is it simply your superior athesist intellect farther evolved than the rest of us?

The things you think are knowledge are not....it is as easy at looking at clouds and know rain is coming....but thank you again for the weather report.....hows the weather in your neighborhood Skybird?

Iceman, perhaps you could enlighten us where exactly Skybird is wrong in his post? :hmm:

[Sea Demon]

Originally Posted by Fish

Iceman, perhaps you could enlighten us where exactly Skybird is wrong in his post? :hmm:

Where the hell has the gloom and doom predictions proven correct?? Other than Internet BS hype that is.

[Skybird]

Why just sticking your head into the sand?



Full throttle, and with loads of optimism and horsepower towards the future!

[Sea Demon]

Originally Posted by Skybird

Why just sticking your head into the sand?

Why is it that you can't prove your gloom and doom scenarios? We're still here and doing fine, despite your "prophecies" of doom of past years. Arrogant posturing does not substitute for accuracy.

[The Avon Lady]

Hey! It says "made in Guangzhou" on that motorcycle! :p

[Fish]

Originally Posted by Sea Demon

Where the hell has the gloom and doom predictions proven correct?? Other than Internet BS hype that is.

The game is not over yet.

[PeriscopeDepth]

Don't get too giddy waiting for the United States' downfall now. I know it's all the rage to be anti-American now, but some Euros seem to have a very short memory when it comes to the United States. I wouldn't be so pumped about China taking down the US if I were you guys.

PD

[SUBMAN1]

Funny thread. Hmm. Lets see... China goes after Taiwan and decides its going o bankrupt the US to stop them from helping.

Hmm. US being not as stupid as some people in this thread make them out to be, freezes China's assets, bankrupting their country overnight instead of China bankrupting the US.

People who suggest that China can bankrupt the US, don't seem to get the big picture, and clearly show that they do not understand the complex US China relations. To put it simple - China and the US are joined at the hip. One cannot do to the other without effecting themselves to a similar degree in the process. The US has as much capability to effect China as China has capability in effecting the US.

I have some great articles on the subject if anyone is interested.

-S