1 Uh...let's see how I can say this delicately...it means they just fired the first shot, period.  And...get ready to pay-up, suckers, the bill's(no pun intended) in the mail.

Oh...and cut the Treasury selling trips by Hillary - thanky yous, so solly{he-he}.  

2 It would mean we can't inflate our way out of the gigantic debt we're incurring.

3 i'm really, really glad the stock market went up yesterday.  but the Chinese won't accept that as "we're all fixed now".  the Fed & the FDIC are spending trillions of dollars--the taxpayer is ultimately on the hook for that.  and the Chinese can see this.  why can't Congress?

4 They probably are serious.  It's like the old saying, when you owe someone a little bit of money, it's your problem.  When you owe someone a shitload of money, it's their problem.  Seriously though, this just illustrates how our huge borrowing needs give other countries influence over our domestic policy.  How ironic would it be if those commies kept our commies from blowing up our country?

5 it seems that the sharks smell blood in the water, how much more chum can hillary and bho throw off the side of the sinking ship the USS Economy.

6 Can I officially say now that I am scared SHITLESS?

7 After all this time, I had a chance to post first with my first post but I was showing the wife who Lorne Green was as I explained why the Fox hostess Lauren Green was unfortunately named.

As to the question at hand: what does it mean?  It means it's easier for Falun Gong slave laborers in their Beijing prison paradise to counterfeit SDR's than Greenbacks.

8

Given that the Chinese bought off a royal shitload of our debt, my guess is that it's something to watch.

How serious they are, well that depends on how stable our country stays.  One of the main reasons why the dollar is the reserve currency is because of our stability. 

The Europeans designed the Euro partly to try to offset the strength of the dollar.  Remember early last year when some started to replace the dollar with the Euro?  Well, it did...until this financial collapse and then everyone ran back to the dollar. 

I don't think it's absolutely serious, but I do think the Chinese are sending out a warning.  And given the fact that they are the ones most likely to take over the world economy when (not if) we sink, I'd say it's something we should pay attention to.  But we won't, at least not until it's too late... 

 

 

9 It means that if the Chinese want to take Taiwan and the Russians wish to re-exert influence in Europe, the United States has brilliantly positioned themselves to ultimately do very little about it.  We have literally given communist nations the economic keys to our house and garage.

10 Oh, I think we should totally support this.  What could go wrong subjecting us with an international version of the Fed?  I mean, aren't the UN and the  (non-Special) Olympics paragons of virtue when it comes to fighting corruption and looking out for the interests of the little guy?

Seriously, though, could someone explain what the actual benefits/enforcability of this system would be?  Couldn't we blow the thing up by refusing to be part of it (or declaring that we no longer recognize SDRs at some point in the future, say 3 years and 9 months from now)?

11

In the end, there will be only chaos!

*inflation and warfare will be a big part of that chaos*.

12 What does this mean?

It means that I'll have to start using my skills to barter and to become rich through an underground black market that is established either in-country or through smuggling rings via Anchorage and/or Juneau.

13 It's a warning: get your shit together or else.

14

Kratos is right!

_{My God, how could I be so blind?}

15

Hopefully it means the government will have to less with less.  Hopefully it also means that trade will be forced back into balance and manufacturing of tangible goods will have to move back, or at least closer.

I wouldn't get too excited yet, though.  The Chinese need the US to keep slurping up their exports.  I say we trade - our toxic assets for their toxic products.  Fair enough trade, I think. 

China is dependant on export industries to fend off another revolution.  They need to find a way to keep us (or somebody) buying their crap.  Whatever happens, they are not going to take over the world economy.  They have to steal all of their technology from the West.  Part of the cost of doing business there is to hand over lists full of tech as specified by the Party.  They have a collectivist system that is still far more manipulative of the market than ours.  They're polluting their rivers to the point that they catch fire, and their diverting their water from the farms to the cities to the point where agriculture is in decline.  They have a rapidly aging population, and have suffered almost total cultural destruction.  The young no longer care for their aging parents, but rather do their best to defraud them - a nation of spoiled only-children. 

Anybody who thinks that China is the beacon of hope for the maintenance of modern civilization is deluded.  The West built the modern world.  The West maintains it.  The muslims and communists bring only one thing - destruction.

 

16 Frank and Beans   Hope and Change....lolololol

17 I wonder what it is like to be a slave in China...

18 "Anybody who thinks that China is the beacon of hope for the maintenance of modern civilization is deluded. " Anybody ever read any of the "Chung Kuo" sci-fi series? or "Invasion" by Eric Harry?

19

This is definitely a warning to Obama and Congress straighten up and fly right -could be the boy-POTUS's first scolding by those that have been at this a lot longer than us.  Could also be a test ballon floated to see how Obama reacts - it's pretty clear that other powers perceive Obama to be a man-child and inherently weak when confronted.  If they really want to pull the trigger, they'll just demand a higher return for the higher risk of their investments.  They won't do this though as they have a vested (put lightly) interest in our remaining solvent - it wouldn't be smart to do anything to further weaken us.   

20

Fortunately, there simply is no reserve currency at the moment which can take the place of the dollar.  There aren't enough, say, Euros, in circulation and electronically available to match the dollar.  Can't be done.

Give it 18 months.  Then we're cooked.

Best regards

21 This morning Obama responded to China by stating, "Ha ha hee ho ha ho ho ha ha HA"

22 its a warning - just like buffett's rant re "focus on the economy" was a warning - and it will go unheeded, obama is bound and determined to shovel all his leftist garbage down our throats immediately - as in next week via  Pelosi and the budget.  the big "cut" is the taking out of the marker for addl financial aid for banks at 250 billion, everything else stays in...yay!

ot,

inside viewon the button re hilldog -

The error appalled some in the State Department, because the button – which was inscribed in Latin script, not Cyrillic – hadn’t been assembled with the help of State’s cadre of Russian speakers and professional translators, but rather by Clinton’s small political team. The day of the event, people involved said, Reines showed the finished product to officials who spoke Russian, but who weren’t native, or up-to-date enough to catch the error in a word out of computer terminology.

23

LONDON (MarketWatch) -- Futures contracts were pointing to a sharply weaker start for U.S. markets Tuesday against a grim backdrop of big losses on European markets and a second consecutive day of massive selling in Asia.
By early afternoon in central Asia, the Dow Jones Industrial Average futures contract was down 491 points at 12,130, Nasdaq futures were at 1774.25, down 75.25, and the Standard & Poor's 500 futures were at 1265.10, down 60.2.
Yesterday 'twas but a dream.

24 The Chinese will use any means necessary to squeeze the most out of any US dealings .. and the billionaire bankers and their paid for US politicians will do anything necessary to squeeze money out of  the US citizens ...

I don't care is we screw the Chinese ... they have manipulated their currency, stolen our technology, and oppressed their own people.  But crushing the US dollar will hurt the average Joe ... and subsidizing the bankers that profited from getting us into this mess makes little sense .. they now get to profit again at the taxpayer's expense.

We need a US government currency ... not a rich banker currency.

25 Gosh, who else said the exact same thing...just a little while ago.

Oh yeah, Russia.

And aren't the Russians currently attacking the whole idea of trading oil in dollars? And aren't they on the verge of being a full-fledged member of OPEC?

The Russians...I seem to remember something about them being really good friends with Iran. They're so close that Russia is helping them out with their nukes.

Iran. Didn't they say they wanted to wipe Israel off the map, or something?

Looks like we might not even need to have Obama destroy our economy and culture...that job is going to be outsourced.

26 Long run, it needs to happen.    The only way to impose financial discipline on the U.S. is through external means.  Clearly the Democratic process will not do it (and non-Democratic processes do not have a good record in this regard either.)

It's a no-brainer for China.  Why should they keep banking dollars that the U.S is going to deflate though deficit spending?   Why should they finance our deficits?

In the long term, it would be good for the U.S.  Having the reserve currency is only a good thing is you have a fiscally disciplined government--we don't and won't.     It is the over-valuing of the dollar that has led to the erosion of our manufacturing base more than anything else.   This will allow the U.S. to regain some footing in international trade.....


I mean, as long as the Obama administration doesn't do anything stupid like raise corporate taxes, raise government spending, institute a cap and trade system or anything dumb like that!

27 It might surprise people who have read my posts in the past, but in principle a world currency wouldn't be all that bad an idea. It would greatly facilitate world trade, and prevent game-playing by other countries (like China, which artificially pegs the Yuan to the dollar to keep exports cheap). It would -- in theory -- level the economic playing field.

But it's like the old joke: In theory, theory is the same as practice; in practice, they differ.

The main problem is what you'd base the GloboBuck on. What baseline would you use? Also, how would you prevent nations like Russia, China, and the OPEC nations from "gaming" this global currency to their advantage? Would the WTO act as an enforcement arm for the IMF? If so, what enforcement powers would it have? How would the WTO impose penalties for infractions which do not run afoul of sovereign laws?

This is why I'm in favor of a global currency in theory, but opposed to it in practice. This whole thing is really just a transparent attempt on the part of the G20 to jawbone the United States into more favorable policy positions, and to keep them from inflating the US dollar. They know as well as we do that the global political situation could not maintain a GloboBuck.

Lots of people will mention the Euro as a prototype GloboBuck, but it's not clear to me that the Euro will survive the downturn -- poorer countries like the Balkans, Italy, and Ireland really want Germany and France to step up international support; but France and Germany have restive populations of their own who will mightily resent moneys being sent abroad to help "foreigners". The GloboBuck would have the same problem, only on a much larger scale.

28 I've been laid off since the first week of December and I'm on the verge of having to live with friends if I can't scrape up some rent money in the next week. If Obama's going to do something about the economy, he can start by NOT PISSING OFF THE PEOPLE WHO HOLD THE PURSE STRINGS. Seriously. I should have been able to get a job by now. Stupid recession.

29 hey I have an idea why not have a very long and expensive war in Asia and not raise taxes to pay for it. In fact let's have tax cuts and then just borrow the money from our sworn enemies. Oh and EZ credit for all !!

30 There is nothing that can piss off the holder of a debt more than the debtor spending frivolously. If one can spend on that shit, one can afford to pay us back.

31

ÃÀ¹ú²»Òª×ż±ÎÒ¹ú»á°ïÖúÄãÃÇ!

Bwahahaha!

32 OT:

Obama’s chief tech adviser is a shoplifter

Usually this happens when you are 15. He was 21 at the time. He’s only 34 now. BTW, three members of his old staff there have been charged with bribery.

33 here is a thought, the republicans should push through repirations and then tax it at 90 percent.

34

Posted by: Monty at March 24, 2009 07:57 AM (/0a60)

China no longer pegs the yuan to the dollar, they switched to a basket of currencies in 2005.

 

 

35

The Chinese are worried, and rightfully so. The Obamanites have embarked on a policy of hyper-inflation. If you own a debt of trillions of dollars and they look to be ready to deflate to the point that your trillions of dollars may become worth maybe a loaf of bread you may be worried.

 

All of us should be worried as well. The Obamanites keep saying they are only going to tax the rich. This is the same thing the communists said back in the 30s and 40s when they raised the tax on the highest tax brackets to 91%. Note that when they did that they did NOT tie the brackets to inflation.  They then set about to cause massive inflation culminating in the Carter years in  the double digits. This placed the common man in the “rich” category. 

 

For example; the failed AMT bullshit (which NEVER achieved it’s stated purpose) if indexed to inflation would now only kick in at app 2.1 million dollars. Instead we keep passing annual “fixes” to keep it from hitting people in the 75K range. The communists keep saying that this costs us money. (If they keep passing “fixes” it costs us nothing.)

 

The facts are that the communists own Washington now and the Communists in China recognize that. They know what is about to happen and they are SCARED.

 

That should tell us something.

36 Appears that Team Obama will ignore all of these real world type things and feed America more campaigning tonight:

tapper

At his prime time press conference tonight, administration sources tell ABC News, President Obama will use his opening statement to give the American people a progress report of sorts.

This will be an update on the steps that are being taken to "strengthen our economy and move it from recession to recovery," a White House officials says, "focusing on job creation, housing, getting credit flowing" as well as crafting a budget that will ensure long-term growth.

An example could be the $9 billion in loan applications to the administration's new Consumer Business Lending Initiative; or encouraging signs in the president's plan for home foreclosure prevention and the refinancing of mortgages.

The President will say "there are no quick fixes but a comprehensive strategy can lead us to prosperous days again," says the official.

37 Hmm... going to a weighted basket of currencies as a global reserve system...

So, on one hand, it means that countries awash in dollars are less likely to be hosed if the US economy completely collapses.

On the other, it means that almost any significant disturbance in either the euro or the US dollar (as those two currencies will have the heaviest weighting due to their monetary base) would result in a ripple effect that would damage the world economy in total.

This sounds like a good idea... why?  Let individual countries decide what works best for them.  If China doesn't want so many dollars, that's their right.  But to have a country with the largest Third World economy on earth dictating monetary policy for the globe?  That's just asinine.

38 Plus the EPA is about to regulate all of our exhalations and farts.That will do wonders for the economy.

39

The facts are that the communists own Washington now and the Communists in China recognize that. They know what is about to happen and they are SCARED.

 

That should tell us something.

 

Yeah, our communists are more communist than their communists

40 China no longer pegs the yuan to the dollar, they switched to a basket of currencies in 2005.

Not so much. The Chinese are experts at gaming the monetary system -- the peg isn't official, but it's still there for all intents and purposes. As long as the US remains China's biggest trade partner, and as long as they hold so much of our debt (denominated, let us not forget, in US dollars), the peg will hold.

41 Borrowing to finance the war in Iraq. The gift that keeps on taking.

42 "29 hey I have an idea why not have a very long and expensive war in Asia and not raise taxes to pay for it. In fact let's have tax cuts and then just borrow the money from our sworn enemies. Oh and EZ credit for all !!

Posted by: John ryan at March 24, 2009 08:03 AM (LHCAa)"

"You only think I guessed wrong! That's what's so funny! I switched glasses when your back was turned! Ha ha! You fool! You fell victim to one of the classic blunders! The most famous is never get involved in a land war in Asia, but only slightly less well-known is this: never go in against a Sicilian when death is on the line! Ha ha ha ha ha ha ha! Ha ha ha ha ha ha ha! Ha ha ha... " 
http://tinyurl.com/6cdes

43 32
i dont care so much about the shoplifting, how about his plans? Shove out all federal data except national security info? Great.....

In a conference call March 5, when he arrived in his new job, Kundra told reporters the government "is going to need to go through a transformation to ensure that we have the right resources to be able to respond to a new economy, to the digital economy." A transcript was provided by the White House.

He says there is no reason for governments to be writing their own software when companies may be able to provide the same thing, off the shelf, for less. When he worked for the District of Columbia, he used Twitter for office communications, and he moved to make it possible for residents to renew their drivers' licenses or pay parking tickets on Facebook.

Now that he's moved to the federal government, he's in charge of recovery.gov, the massive Web site on which the administration promises to post details of where economic stimulus money is going. He said there are plans for another site, data.gov, an outlet for the masses of information the government can make available.

"There is a lot of data that the federal government has. And what we need to do is, we need to make sure that all that data that's not private, that's not, you know, restricted for national security reasons, can be made public," he said.

44 "Borrowing to finance the war in Iraq. The gift that keeps on taking."

As opposed to all the other borrowing................

45

I see RRowdy has showed up to promote the gay communist agenda. Hey Mr. Photojournalist your hero is in the news today.  Bwarny Fwank calls Scalia a homophobe because he says there is no “right” in the Constitution to engage in buggery.

 

http://tinyurl.com/c2blv9

 

He isn’t satisfied with destroying the nation’s banking system. He wants to destroy everything.

46 'Would you give back your bonus if you were an AIG executive?"  http://tinyurl.com/c4msme  A surprising CNBC poll.

47 "EZ Credit for All"

Uh, that's one of your side's campaign planks, JR.

48

The Chinese are experts at gaming the monetary system

No doubt, they fight under their weight class in many areas.  Just pointing out it is not longer official policy to peg the yuan directly to the dollar.

49 RRowdy is a gay communist? That explains a lot.

50 yeah RR, i guess thats kinda like saying that "i'm gonna take the surge cost and extend that out 10 yrs and say, "see, i'm saving this much on the war in Iraq"  and claim thats a decrease in the debt.  Then, act suprised/confused when the CBO comes out and says your def. projection is off by about 1 trillion dollars. 
10 bil a month x 12 x 10 = 1.2 trillion.......   BRILLIANT!!!!!!  Fucking losers

51 Must be that new math that the Annenburg Challenge looked at.

52

41 Borrowing to finance the war in Iraq. The gift that keeps on taking.

 

Wasn't Obama supposed to end the war?  Why the wait?

53 It is also no longer official policy to seize land without paying farmers, but that happens as well. The Chinese aren't however "gaming" the system, they are just keeping a stable exchange rate between themselves and their largest trading partner. Asia is big on export-led growth, and Japan, South Korea, Thailand etc. have all been accused of "gaming the system" and having unsustainable exchange rates.

That being said, this is a warning to Bumblefuck to lay off the spending---or else. The Chinese are not only better capitalists than the US now, they are also more fiscally conservative. A sad day indeed.

54 The Chinese aren't however "gaming" the system, they are just keeping a stable exchange rate between themselves and their largest trading partner.

It's a distinction without meaning in my view. China has driven their economy by ruthlessly driving down exports while at the same time erecting barriers to non-raw-material imports. Asia (apart from Japan) has a lesser but similar problem: they save too much rather than too little. China pontificates about American spendthrifts, but without American spendthrifts their economy would crash and they know it. They have no domestic market for finished goods (or at least not one big enough to sustain themselves). And what little domestic market they have, they want to keep for themselves and not open it to foreign competition.

China and other countries like Vietnam, Burma, even Indonesia to a certain extent, fear letting a large consumer-oriented market grow. It would cause all kinds of political upheaval that they don't really want. So the only answer is to jam cheap goods into the markets of the West...but it may be that the previously-insatiable maw for consumer junk has finally been filled. This scares the crap out of the Chinese, because there's really no Plan B to reignite economic growth: if American's aren't buying Chinese stuff, and their dollar-denominated debt is devaluing, then the Chinese economy has nowhere to go.

This whole "world currency" thing is just a shadow-play: the Chinese are scared, and want the US to be scared as well.

55

As I understand - approx 60% of all US currency is used outside of the US as the world's foreign reserves.  If everyone dumps the $US, then the world will be flooded with schitt loads of $UD that no one wants.

The value of the $US would plummet to next to worthless because of massive oversupply.

The effects of this would be :

1) US would no longer be able to afford any imports. Not even from China.

2) US made goods would be very cheap to export.

3) The value of the $11trillion US debt would instantly go up to $11gazzillion.  It would be so high, that the US would have to default on all it`s credit.

I cant actually see any positives for China ?  Unless they want the US to default on all the money we owe them as a precursor for war or something else ????

Can someone point out the benefit to China ??  I cant see it ?

Maybe the Chinese are lead by people as smart as Obama and his team !!

56
#53 The Chinese are not only better capitalists than the US now, they are also more fiscally conservative. A sad day indeed.

It is sad what we have become ... still I don't see China as capitalist.  They steal technology from US companies that move there, and I doubt China will have much use for them in the end.  The Chinese are seen as servants of the regime ... as I understand it, though I'd like to have better insight on their society. 

57

Speaking of Bwarny Fwank; he is about to start a hearing with Taxcheat Timmy who wants the authority to take over ANY company that the financial czars deem to be in danger of failure, whether they have bailouts or not.

 

Can you sez “nationalize”? The Obamanites are striking out again.  The country should be screaming but all we get is a mention by Fox and a yawn from the rest.

58
#55   3) The value of the $11trillion US debt would instantly go up to $11gazzillion.  It would be so high, that the US would have to default on all it`s credit.

I don't understand that one ... debt would stay the same, but we couldn't sell more debt without much higher interest rates.  Inflation would occur, so in real dollars the debt would be cut in half or less ... which is exactly what the Chinese are pissed about.   as I understand it

59 in real dollars the debt would be cut in half or less ... which is exactly what the Chinese are pissed about.

Yep. That's what's beind this "global currency" talk. It's meant to scare the US into shutting down the printing presses. The Chinese don't want their US dollar holdings to plummet in value due to inflation (which is all but inevitable at this point). The only real question is how bad the inflation will be and how long it will last.

60

Let me reword that last rant. Most of the web sites actually are covering the story however the common statement is:

 

The government at present has the authority to seize only banks.

 

I get the feeling from the stories that the news media are not concerned with the fact that power to seize ANY private company should be illegal because it is UNCONSTITUTIONAL.

 

Why is the media not using the term “nationalize”?  Could it be because that term is associated with communism and they know that is where we are headed but they don’t want to say it until it is too late?

61

Wasn't Obama supposed to end the war?  Why the wait?

Posted by: Nod at March 24, 2009 08:48 AM

Regarding Iraq, Obama said Sunday, in a quote that would rival any passage in Ulysses S. Grant's celebrated memoirs,

"(Iraq) ...is still a pretty serious problem..."

62 This wouldn't be good for China.  How the hell are they going to pay warlords?

95% of the underworld runs on the US Dollar.  The Fed isn't stupid.

It's in the interest of US taxpayers to drop the reserve currency status for the US Dollar.  We'd certainly starve the Fed of the ability to inflate their way into growth, but we also have a fiscal war over spending and taxation.

The good news is China isn't proposing the Yuan as a reserve currency.

63 I get the feeling from the stories that the news media are not concerned with the fact that power to seize ANY private company should be illegal because it is UNCONSTITUTIONAL.

Is this Obama saying he can seize banks?  That's utter tripe.  The Fed can seize them.  The Fed is their licensing authority.  All the government can do is assume control of the Fed.

64

The Fed can seize them.  The Fed is their licensing authority.  All the government can do is assume control of the Fed.

 

The Fed being a private concern is a fiction just like F&F was a private concern. Who nominates the head of the fed?  If the “fed” was a private concern where do they get the authority to seize a bank?  Normally when a “private” concern tries to seize a bank they call it bank robbery and a federal crime. 

 

Where did the federal government get the authority to “license” banks or require a license? I do not see that in the listed authority of the federal government.

65

hey I have an idea why not have a very long and expensive war in Asia and not raise taxes to pay for it.

Gee, I thought Afghanistan was the "good" war. Have your talking points changed? Naw....

Oh and EZ credit for all !!

Talk to Barney Buttpirate about Affirmative Action lending....

66 Putin said the same thing recently.

I think it means that the world sees our current political/economic weakness and is capitalizing on it. They want us as customers, sure, but would like to be free of our political pressure.

What does it mean? IMHO...We dumped the gold standard, they want to dump the US standard, it's only a matter of time before it all blows up and we have another Great Depression and World War.

67 Kinda reminds you of those old Hollywood westerns.  You know the ones:  Guy winds up having to cross vast desert in order to escape the injuns whom he managed to piss off with infected blankets and poisoned fire water.  Bad guy runs out of water in the middle of the desert.  Last thing the bad guy sees is vultures circling overhead. (I don't really think we are the bad guy.  But I think the current administration and its supporters have seen America that way for just about forever.  Projection.)

68

Fox just put a graphic up that shows the interest on the debt ONLY by 2019 will be over 800 billion a year. That is over 70% of the budget going for debt service. It is the favor of the gov to make the currency worthless.

69 Good morning people! It's great to be here in uh....North...ummm, New.........Jeryorkolina!

You know people are always comin up to me talkin about inflation.

"Mr Preznit, Mr Presnit, what about inflation? Your policies gonna cause inflation, Mr Preznit!"

Now let me say one thing and that's I KNOW inflation! I am an expert on inflation!

I mean look at Michelle butt!

Aha-ha-ha-ha-ha-ha!

That girl loves her some Ho-Hos! Ya know what I mean, fellas?

Round the White House we call her the Ho-Ho ho!

HA-HA-HA-HA-HA-HA!

A little Winter Festival gallows humor! Ya gotta have it!

Ha-ha-ha-ha!

Speakin of Hos...I'll be meetin with with the Chinese Premier Ho Chi Mihn today! He's worried about the Yawn versus the dollar!

Yawn....what the hell kinda name for money is that?

I mean, I mean, sure it's Chinese money! One hour later ya gotta spend it again!

Aha-ha-ha-ha-ha!

One hour later! Use it again! Hey, what're they usin for currency over there.....CRACK?!?

Ha-ha-ha-ha-ha-ha-ha!

No seriously. Drugs are never funny....

Cept when you're takin em!!! Am I right? I'm right! Right fellas!

HA-HA-HA-HA-HA-HA!

70 Relax! We have a foolproof recovery plan in the works. What could go wrong?

71

Relax people. Unicorn turds are the new gold... Everyone in America will be rich as soon as they come off back order.

Damn Chinese said they would be shipping this week, but nooo, they had a rush order for some ballistic missles for a guy named Kim.

Kim, what kind of name is that for a guy. Must be some kind of waterheaded retard moron bowling champion.

72

And what is going to replace it? The Yuan? I doubt it. It wasn't long ago that the Russians suggested the same thing. We may  be in a recession, but we still have the strongest economy out there.

www.notoriouslyconservative.com

73 We may  be in a recession, but we still have the strongest economy out there.

Give Barry time, will you?  He's only been in office ~2 months.  It's going to take a bit longer for him to solve that problem.

Qwinn

74

29  "hey I have an idea why not have a very long and expensive war in Asia and not raise taxes to pay for it. In fact let's have tax cuts and then just borrow the money from our sworn enemies."

You're an idiot.  At this stage, tax increases do nothing but harm the economy and ultimately reduce tax revenue.  After the tax cuts the goverment had more money flowing in than ever before, so don't blame all this on lack of revenue.  We are well past the peak of the Laffer Curve.  Anyway, I don't give a fuck about the government's cash shortage.  It's time for cuts.  The federal government, and state governments for that matter, wastes huge dollars every day on bullshit.  Major bullshit expenditure #1 - paying nonproductive scum to sit at home and birth out 10 babies.  They also fail to invest in things that help the economy and save money - like border enforcement.  Let them figure out how to do less with less.  Time to balance the budget, regardless of the cost to the sensibilities of the damn do-gooder bleeding hearts.

As for the war in Asia, that would not have been necessary had the Clinton administration done its job.  Like, I dunno, killed OBL one of the 6 times they had a chance.  Or before that, if the Liberals hadn't lost Viet Nam for us and totally undermined American presige and the fearful respect in which we were held - making every tin pot dictator feel free to piss us off and ignore our demands/warnings.  Like every serious problem this country faces, Liberals are 99.999% to blame. 

75 Ehn, soviets have done the same in the past, its just a muscle flexing thing meant to humiliate their enemy.

76

Oh hell, let's not out-source our war.  Let's just get down to having a civil war now.  Spring is about here, and all thougths should turn to some good ole communist ass kicking, teabagging the government, and civil uprising - or do I repeat myself?

Anyone else notice how all the store are running low to none on ammo?  Seriously.

77 The Chinese don't want their US dollar holdings to plummet in value due to inflation

They will just have to make it up in volume

78 First time posting here...

It's comforting to think the Chinese are blustering, but I think they're serious about this. We have to remember that their foreign currency reserve mainly serve its stated purpose: to keep the yuan stable. If the reverse currency isn't stable then their currency isn't stable, which in turn means the country isn't stable politically. The one event that probably informs the Chinese leadership most is the fall of Suharto in Indonesia following the Asian financial crisis in 1997. Currency devaluation is a sure way for a dictatorship to lose power, since it hurts especially those who profiting from the regime.

79 Good grief.  Should I look to China to save my retirement.  My head is definitely on the verge of exploding.  Home to the Budweiser product, quickly.

80

The Chinese won't buy our bonds so why would they have any interest in holding our currency?

 

But mnore to the point, remember all the idiots who told us about the benefits of the China market? 

 

Turns out they meant the American market benefitting the PRC.

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