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148 Comments
- Nodaki, on 07/06/2009, -1/+93This is very simple to understand.
It is in the interests of the Chinese government to keep the dollar inflated and stable. If the dollar tanks, a very large portion of Chinese holdings become worthless. The Chinese will continue to promote a world-reserve dollar until they are sufficiently divested out of the dollar and then they will have no qualms about it failing.
China is currently attempting to hedge its exposure to the greenback but not in a way that would crash the dollar. They have a very delicate balance to maintain. Investing in energy, commodities, and land without looking like they are abandoning a sinking ship. They have academics screaming at the government to stop supporting the tolerance for a grossly inflated dollar and establish a world-reserve currency. Despite this they will still march out their official and play dumb...for now. - jrm125, on 07/06/2009, -2/+43Aww, thanks China, you look cute today too.
- pstroll, on 07/06/2009, -1/+36translation: they are dumping
- inactive, on 07/06/2009, -2/+33I would say that too if I had billions of potentially worthless dollars.
- gbudavid, on 07/05/2009, -5/+36FTA: Beijing has floated the idea of an alternative to the dollar as global reserve currency and wants the topic broached at the summit starting in Italy on Wednesday.
- Nodaki, on 07/06/2009, -9/+39Do you not see the Chinese motive for keeping the dollar strong while they are sitting on a literal mountain of U.S. Treasury bills? I can explain it you but then again your comprehension is so severely blinded by your hatred for Ron Paul that you will accept or deny information regardless of fact.
- BlackOculus, on 07/06/2009, -0/+25Part of me wishes the U.S. dollar would go into hyper-inflation so I could sell a 12-pack of coke and pay off my mortgage and other bills.
/smarm - FormerBabby, on 07/06/2009, -0/+24Protecting their investment. Nothing to see here.
- funk49, on 07/06/2009, -0/+16Ding, Ding...give Nodaki the chicken dinner. Right on the money.
- drake77, on 07/06/2009, -13/+28The dollar may have its problems, but it is still the best reserve currency in the world. It would take any other currency (existing or newly created) decades to get to the point that it would be robust enough for countries to start buying amounts of it that would make a difference in the global economy.
What people don't seem to understand is that so much that is said on the world stage is posturing. China says that they demand a new world currency to replace the dollar because they want to shift U.S. policy a few degrees in one direction or another. We agree to what they want and all of a sudden the dollar is acceptable again.
Misidentifying politics and posturing leads to fear and centrism. The world is not going to end tomorrow. - fdgvieira, on 07/06/2009, -3/+16Well if China said it then it must be true.
- xirfan, on 07/06/2009, -0/+11dolla bills y'all.
- JohnGalt750, on 07/06/2009, -1/+12ding ding ding... we have a winner
If they really wanted to keep buying dollars it would be in their interest to say the dollar is worthless and buy it cheap when other countries sell out of fear. - kemp34, on 07/06/2009, -0/+11Regardless of what they actually do, with their large amount of dollar holdings, this is the smartest thing they could say.
- AresDiggs, on 07/06/2009, -2/+12Why is he being dug down - If you're going to claim someone is wrong the least you could do is explain how when asked...
- caramba421, on 07/06/2009, -1/+11You betta diversify yo bonds, *****!
- DankBuddz, on 07/06/2009, -13/+23Our economy is on the rise again? Based on what? Are you serious? Unemployment is still rising, and home prices are still falling.
- Pinkertinkle, on 07/06/2009, -0/+9China and America: both interested in a strong stable dollar.
- newbis, on 07/06/2009, -6/+15It could be all those ***** economists who claim the worst is over... I read an article about that somewhere... Oh yeah, http://digg.com/business_finance/Is_The_Worst_Over ...
- DankBuddz, on 07/06/2009, -3/+12Insert stereotypical uneducated social conservative comment here.
- kaelyiesta, on 07/06/2009, -0/+7It's the best currency to be the reserve in the same way as a jail cell an inmate is forced to use is his best jail cell. One cannot reasonably claim something is right and good simply because it remains so through force.
You are entirely correct that public announcements by political officials are posturing. But what you conclude from that doesn't follow.
In truth, our ability to inflate our currency(and we are inflating it, despite the misunderstandings many diggers here show of their concept of what inflation really is) is dependent upon governments like the chinese being willing to permit it. It's no longer a value based currency, but one based on faith and force. The chinese own quite a bit of our debt and would not like to see that value decrease, so naturally they want our currency to be supported. Does that mean it's ok what we are doing? Hardly, and the chinese people would probably say no if they understood how badly we and their government are ***** them. - kylere, on 07/06/2009, -0/+7This announcement being made in Rome is ironic
- TheFinaleofSeem, on 07/06/2009, -1/+8Huh? Does the US produce more trolls per capita than any other country?
Well, that might be true... - Xavious85, on 07/06/2009, -8/+15Care to point out what Ron Paul was wrong about? Not trying to argue your point, because anyone can be wrong about anything. Just interested in hearing what some of the points are.
- DankBuddz, on 07/06/2009, -1/+8So even though thousands of people are still being laid off, and enemployment is still rising, the economy is on the rise again?
Its all so clear to me now. - TexanRudeBoy, on 07/06/2009, -0/+7Why would the Chinese, or anyone for that matter, come out proclaiming the dollar is strong and there are no worries if it actually was strong and their were no worries? A strong dollar would speak for itself. The fact that the Chinese come out once a week to reassure people the dollar is strong is sure fire proof that they're really worried about their dollar denominated assets.
- garths, on 07/06/2009, -0/+6Parent comment is all you need to read.
If I owned a few billion dollars worth of beanie babies I would be telling everybody that beanie babies were valuable, at least until I sold them.
In more general terms, remember that nothing that any government says is the straight out truth. They are trying to influence other governments and the general public into acting in a way that will be beneficial to their own interests.. - ltethe, on 07/06/2009, -0/+6FTA:
"You may have heard comments, opinions from academic circles about the idea of establishing a super sovereign currency. This is all, I believe, now a discussion among academics. It is not the position of the Chinese government."
The lowly digger is now elevated to a lofty "academic circle" now huh? - Qumahlin, on 07/06/2009, -3/+9Yes, and most of the people on welfare live in slums and can barely afford to clothe and feed their family.
So while YOU may be poor, i'm doing just well thanks, even with the taxes being "raped" out of my check...i'll take those taxes any day over living on welfare thanks. - caramba421, on 07/06/2009, -2/+8Yeah, they're really living it up at the expense of those poor Wall Street execs...
- xjonnyx134, on 07/06/2009, -0/+5In the world economy, China control you.
- gilbes, on 07/06/2009, -0/+5A strong dollar is good for China. So of course they are going to say this.
- 123bucklemyshow, on 07/06/2009, -2/+7Your mom on my date list.
- TexanRudeBoy, on 07/06/2009, -2/+7Why would the Chinese, or anyone for that matter, come out proclaiming the dollar is strong and there are no worries if it actually was strong and their were no worries? A strong dollar would speak for itself. The fact that the Chinese come out once a week to reassure people the dollar is strong is sure fire proof that they're really worried about their dollar denominated assets.
- toejamz, on 07/06/2009, -3/+81) We are not poor. We are among the richest (per capita) in the world. Sorry. If you are American, you don't know what it means to be poor. Really poor is when you can't even STEAL enough to eat. In America, you can live fat and happy with food quality yearned for by 90% of everybody by feeding from a trash can.
2) The USA has one of the lowest tax rates in the world. Although Rush whines about tax increases, Americans pay about the same tax rate as we did in 1972, and much less than we paid all throughout the glorious '80s.
3) People on welfare are a very small part of your tax burden. They are also getting smaller benefits than they have at any time since the 1960s.
The military, on the other hand, accounts for nearly HALF the federal tax burden. Rather than whine your perverse tones of bass-ackwards class envy, (do you really envy the poor?) perhaps you should take a look at some real numbers?
Come back when you can back up your whining with something approaching reality, mmkay? - vertinox, on 07/06/2009, -0/+5Correction the USD is backed by nuclear weapons, the IRS, the world largest prison system, and the world's largest military complex.
Anyone who disagrees with the USD internally gets sent to jail for IRS tax evasion.
Anyone who disagrees with the USD externally gets invaded. - DankBuddz, on 07/06/2009, -0/+5@Lionhart
I don't own a house, nor do I care that you're a bachelor. Thanks for the story. - inactive, on 07/06/2009, -1/+6Were you deliberately using past tense to describe America?
Irony: always delicious. - unclefire, on 07/06/2009, -0/+4Well duh. They're sitting on a crapload of us treasuries. Their currency is pegged to the dollar and oil is traded in dollars.
Plus the export boatloads (literally) of goods to the US. - shadus, on 07/06/2009, -0/+4I'd like to know where you live. It certainly isn't on the rise here.
It's crashing a bit slower... but that's a far cry from 'on the rise' - protogenxl, on 07/06/2009, -1/+5That's a good plan General
- rjey, on 07/06/2009, -0/+4Until the employment situation gets under control our economy is anything but on the rise.
Learn more about what is really going on out there instead of burying your head in the sand before making such asinine comments.
http://market-ticker.denninger.net/archives/1178-M ... - coolcole93, on 07/06/2009, -10/+14This is why the world hates you.
- Pedestrian101, on 07/06/2009, -2/+6But... we ARE #1.
- ChadTable, on 07/06/2009, -3/+7If you think Americans have to pay a lot of taxes, try living in Britain.
- dupems, on 07/06/2009, -0/+4Right. Because China has no interest in misleading people to believe that the Dollar has a strong future. Oh wait...
- Elranzer, on 07/06/2009, -2/+6Ron Paul is NEVER wrong on Digg.
- funk49, on 07/06/2009, -0/+4"In a 2003 paper, Thomas Laubach, the US Federal Reserve’s senior economist, calculated the impact on long-term interest rates of rising fiscal deficits and soaring national debt. Applying his assumptions to the recent spike in the US fiscal deficit and national debt, long-term interests rates will double from their current 3.5pc.
The impact would be devastating by making it punitively expensive to finance national borrowings and leading to what Tim Congdon, founder of Lombard Street Research, called a “debt explosion”. Mr Laubach’s study has implications for the UK, too, as public debt is soaring. A US crisis would have implications for the rest of the world, in any case. "
Yeah, that sounds pretty fantastic.
Source:
http://www.telegraph.co.uk/finance/financetopics/f ... - PROGLVR, on 07/06/2009, -0/+4Those dollars are being spent quite readily on resources. Look at China's expansion throughout the world. Oil is merely a piece of it all. They wont want to change anything until the money is mostly gone.
Doesn't it make anyone at least a little nervous knowing any country has this kind of control of our currency?
To answer all those looking out for all the poor people in the world its called birth control. Check it out. Can people at least try to be responsible for themselves? - alamedaman, on 07/06/2009, -0/+4I for one welcome our new overlords
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