ATG
Banned
+5,233|6818|Global Command
I remember I used to wonder what on Earth we would do to stop China from becoming the worlds most dominant nation.

The scheme hatched on the Chinese to tie our economies together is making Bernie look like a tinkerer.

The power elite are achieving their goals of reducing the working class to settling for survival wages and laying waste to financial institutions worldwide. A dispirited  working class will accept most any change to make things better, even if it means a new international power structure that destroys borders and reduces the standard of living of most all except the ones causing the chaos.
The question is, where is the breaking point and what can be done to stop this evil, insidious plot.





Now here's why this affects all of us: China and the U.S. together built the most monstrous liquidity bubble in world history as each pursued what it believed to be logical self-interest without any regulator, such as a stern global central banker, telling them that they were on a path of mutually assured destruction.

Now it's reached the point where global capital markets will impose their own discipline. Because most money generated over the past decade was spent on consumption rather than investment -- it's as if Madoff's clients blew their fake money on chartering jets rather than buying real property as a store of wealth -- there are few new buyers of goods. This has killed U.S. retail sales, crushed employment, lifted the foreclosure rate, stymied homebuilders and undercut loan demand.
http://articles.moneycentral.msn.com/In … spx?page=1
Harmor
Error_Name_Not_Found
+605|6837|San Diego, CA, USA
China, by tying their currency to ours instead of letting it float means that our Purchacing Power stays the same relative to Chinese products while they ban our products and deminish their own citizens' purchaing power of their own products.


Look at the inflation they are having right now.  And because the United States Dollar devalues world-wide they are going down with us by pegging their currency to the dollar.
Commie Killer
Member
+192|6676

Harmor wrote:

China, by tying their currency to ours instead of letting it float means that our Purchacing Power stays the same relative to Chinese products while they ban our products and deminish their own citizens' purchaing power of their own products.


Look at the inflation they are having right now.  And because the United States Dollar devalues world-wide they are going down with us by pegging their currency to the dollar.
Conversely, shouldn't the value of their currency go up if the value of the Dollar goes up?
Turquoise
O Canada
+1,596|6694|North Carolina
If every economy followed Norway's example, then consumption would be much less significant, whereas reinvestment would be king.

The ideal design for society involves heavily taxing the wealthy in personal finances while taxing corporations less.  Money concentrates in business itself, while personal taxes are redistributed in healthcare and education.

This creates a healthy and educated populace that is much more skilled than the current average population of most societies.  With them being healthier as a workforce, this makes finding capable workers who have the potential for a long lifespan of contributing to the economy much, much easier for businesses.
mcgid1
Meh...
+129|7005|Austin, TX/San Antonio, TX

Commie Killer wrote:

Harmor wrote:

China, by tying their currency to ours instead of letting it float means that our Purchacing Power stays the same relative to Chinese products while they ban our products and deminish their own citizens' purchaing power of their own products.


Look at the inflation they are having right now.  And because the United States Dollar devalues world-wide they are going down with us by pegging their currency to the dollar.
Conversely, shouldn't the value of their currency go up if the value of the Dollar goes up?
It normally would except that China has a policy of keeping thier currency artifically inflated (devalued) to give themselves a huge advantage in the exported markets.  In most other economies this would be bad because it would hurt their ability to import, but since China imports very little, it has little to no negative effect as far as the Chinese government is concerned.

Last edited by mcgid1 (2009-08-08 14:08:26)

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