You know what, Chris, fuck the Chinese. Yeah, they can stop buying our debt, which they in large part created by gaming their currency with their "beggar they neighbor" policies. They played this game just like the Japanese did back in the 1980s. It's easy to look brilliant when you hold your currency's value below real market and screw the workers in your trading partners. As long as you have scum collaborators like most of the US corporate executive suites, it's easy (doesn't "C" level mean crooked, corrupt, criminal, and collaborator?).
Well, they can stop buying our debt and they can watch the yuan boom and zoom in value while their exports to the US crater. They'll need the funds they save to try to rescue their nomenklatura's asses when the peasants revolt again. You can hear the rumbles of the coming maelstrom already.
unrepentant_expat
· 10 months ago
Yah know, the problem with consuming American debt is that an hour later you just feel empty.
Charel
· 10 months ago
Here, in the good old EU we mostly buy our own governments bonds. But then, we save a lot more.
pdxprobert
· 10 months ago
When is this supposed hyper-inflation supposed to hit us? What event will trigger it? I know prices have gone up and package sizes have gone down in the grocery ailses, but we seem to be in a deflationary time...I still see some fairly attractive prices especially in the food and clothing items on sale... where's the hyper inflation I keep hearing is going to come to America? It's supposed to be unlike anything weve ever seen in our times... Anybody here understand economics enough to respond?
Older_Wiser
· 10 months ago
You might find this video amusing, though helpful:
If I remember the simplest explanation, it's too much money chasing too few goods which drives up prices. At least, that's the classic explanation I remember. That would explain countries like Zimbabwe, but in today's climate, with govt bailouts and such, we don't really have a clear picture of what's happening in the US, although with unemployment rising, the money supply should shrink, causing deflation, although right now, banks are hoarding cash and not loaning and inventories are bloated because of lack of demand.
paulbot5
· 10 months ago
Obama 'predicts' more debts, even though he has the power the fight it, what an ass
Older_Wiser
· 10 months ago
This ought to frost taxpayers' balls, if anyone bothers to read it:
Jan. 9 (Bloomberg) -- Henry Paulson may be the most powerful manager of money in the world and he still couldn’t do for taxpayers with the $700 billion bailout of American banks what Warren Buffett did for his shareholders in investing in Goldman Sachs Group Inc.
The Treasury secretary has made 174 purchases of banks’ preferred shares that include certificates to buy stock at a later date. He invested $10 billion in Goldman Sachs in October, twice as much as Buffett did the month before, yet gained warrants worth one-fourth as much as the billionaire, according to data compiled by Bloomberg. The Goldman Sachs terms were repeated in most of the other bank bailouts.
Paulson’s warrant deals may give U.S. taxpayers, who are funding the bailouts, less profit from any recovery in financial stocks than shareholders such as Goldman Sachs Chief Executive Officer Lloyd Blankfein and Saudi Arabian Prince Alwaleed bin Talal, owner of 4 percent of Citigroup Inc., said Simon Johnson, former chief economist for the International Monetary Fund.
The transactions are “just egregious,” said Johnson, a fellow at the Peterson Institute for International Economics in Washington. “You want to do it the way Warren does it.”
Paulson’s decisions mark the first time in the nation’s 236- year history that the U.S. government has had to prop up the financial system by purchasing shares in institutions from Goldman Sachs, the most profitable Wall Street firm last year, to Saigon National Bank, a Westminster, California, lender with a market value of $3.8 million.
Giving Money Away
“Paulson said he had to make it attractive to banks, which is code for ‘I’m going to give money away,’” said Joseph Stiglitz, who won a Nobel Prize in 2001 for his work on the economic value of information.
“The worst aspect of this is that they were designed not to do what they were supposed to do,” he said in a telephone interview from Paris Jan. 7. “In many ways, it’s not only a giveaway, but a giveaway that was designed not to work.” (More at Bloomberg.com)
Obviously, the former CEO of Goldman Sachs, Paulson, knew what he was doing--that is, stealing from the US Treasury on his company's (and other banks) behalf. At least, that's what I call it.
Brad
· 10 months ago
Taking a break from stimulating my package, I had the reasurring thought--
If I just give that Nigerian official who has been emailing me another installment of cash into his untraceable account, good times are just around the corner!
All Comments
Well, they can stop buying our debt and they can watch the yuan boom and zoom in value while their exports to the US crater. They'll need the funds they save to try to rescue their nomenklatura's asses when the peasants revolt again. You can hear the rumbles of the coming maelstrom already.
http://www.creditwritedowns.com/2008/12/inflati...
If I remember the simplest explanation, it's too much money chasing too few goods which drives up prices. At least, that's the classic explanation I remember. That would explain countries like Zimbabwe, but in today's climate, with govt bailouts and such, we don't really have a clear picture of what's happening in the US, although with unemployment rising, the money supply should shrink, causing deflation, although right now, banks are hoarding cash and not loaning and inventories are bloated because of lack of demand.
Jan. 9 (Bloomberg) -- Henry Paulson may be the most powerful manager of money in the world and he still couldn’t do for taxpayers with the $700 billion bailout of American banks what Warren Buffett did for his shareholders in investing in Goldman Sachs Group Inc.
The Treasury secretary has made 174 purchases of banks’ preferred shares that include certificates to buy stock at a later date. He invested $10 billion in Goldman Sachs in October, twice as much as Buffett did the month before, yet gained warrants worth one-fourth as much as the billionaire, according to data compiled by Bloomberg. The Goldman Sachs terms were repeated in most of the other bank bailouts.
Paulson’s warrant deals may give U.S. taxpayers, who are funding the bailouts, less profit from any recovery in financial stocks than shareholders such as Goldman Sachs Chief Executive Officer Lloyd Blankfein and Saudi Arabian Prince Alwaleed bin Talal, owner of 4 percent of Citigroup Inc., said Simon Johnson, former chief economist for the International Monetary Fund.
The transactions are “just egregious,” said Johnson, a fellow at the Peterson Institute for International Economics in Washington. “You want to do it the way Warren does it.”
Paulson’s decisions mark the first time in the nation’s 236- year history that the U.S. government has had to prop up the financial system by purchasing shares in institutions from Goldman Sachs, the most profitable Wall Street firm last year, to Saigon National Bank, a Westminster, California, lender with a market value of $3.8 million.
Giving Money Away
“Paulson said he had to make it attractive to banks, which is code for ‘I’m going to give money away,’” said Joseph Stiglitz, who won a Nobel Prize in 2001 for his work on the economic value of information.
“The worst aspect of this is that they were designed not to do what they were supposed to do,” he said in a telephone interview from Paris Jan. 7. “In many ways, it’s not only a giveaway, but a giveaway that was designed not to work.” (More at Bloomberg.com)
Obviously, the former CEO of Goldman Sachs, Paulson, knew what he was doing--that is, stealing from the US Treasury on his company's (and other banks) behalf. At least, that's what I call it.
If I just give that Nigerian official who has been emailing me another installment of cash into his untraceable account, good times are just around the corner!