Another perspective on our debt

[Futuristic Eskimo]

if anything we're screwing them and the yuan by printing all this money. have you seen what it's done to the Indian rupee?

Indeed. Chinese monetary expansion has been much greater than ours in the past decade, but you won't hear anything about that from Schiff. Have your portfolio consist entirely of gold brehs.

 

[Black smoke and cac jokes]

Its funny hearing non-finance people talk about how our economy works. @Domingo Halliburton knows his shyt. Listen to the man.

For those fools that think the world is going to switch to Chinese currency -

No one trusts the Chinese. They don't trust themselves. Their economy is largely built on bullshyt. When their bubble pops you will see the light. If you don't know finance I'll try to put it simply like this: They are propping up their economy artificially. It's not natural growth and therefore one day it will collapse.

U.S. corporations are the biggest economic frauds of the 21st century brah. Only nation in the world that relies on complex derivatives, self-automated high frequency trading, and purposely cause asset bubbles for short-term gains. You have corporations investing more in trading than R&D, Self-made assets, and RE overall. Please stop it man. They do EVERYTHING to avoid pay taxes, more than all international companies COMBINED, but the US economy is still well-functioning and the dollar strong? The country doesn't have any tangible market at all to speak of other than the minimal to keep small businesses on a life-line. U.S. made commodities have been on the decline for the longest and the country is and will continue to be a service-based economy which is a sign that the strength of the dollar is on the decline.

NOW

The Chinese economy was artificial cause it was the smartest move made. What they did was to hinder inflation of their currency so their exports stayed cheap. Why would you want to hurt the biggest contribution to your economy? That's the only artificial I can think of, enlighten me if there is anything else. I hope you're not talking about their political ideology because that's not an economic approach.

Also, no economy in the world has had natural growth since the industrial revolution.

our debt doesn't matter. The entire world depends on our economy. We are not going anywhere.

The entire world depends on our stock market, that's it. Nothing else in the US economy that hinders other countries from reevaluating their exchange metrics. Now, it is still the largest economy in the world but that doesn't mean that the $ isn't on the decline and countries will soon stop pegging their currency to it. I agree that the U.S. debt is not the biggest issue right now, but to say that it doesn't matter is wrong on so many levels.

It was answered by someone else already, I didn't ignore anything.

The only other country that can manage to have its currency compete with the US in the near future is China, but no one seriously thinks that the renminbi will be a global reserve currency. More than likely it will only dominate South East Asia. You seem to be operating under the assumption that economic conditions in the US are going to get progressively worse. As I don't agree, there really isn't anything here to talk about.

Nah brah, the yuan will definitely not be a reserve currency. I see a regional dominance (north-east Asia) if japan doesn't get their shyt together and lowers the damn inflation, but the currency is forcefully held low to continue to dominate the foreign export market, so they don't even want to have a powerful currency.

 

[Serious]

Specifically what about the video did you find to be bullshyt?

and how exactly are the related videos relevant to any of the information in this video?

There were some valid points, but lots of fear mongering.

 

[DEAD7]

There were some valid points, but lots of fear mongering.

Thats a legitimate critique... but the overall complexity(and causes) of the issues are laid out pretty clearly.

 

[Futuristic Eskimo]

Nah brah, the yuan will definitely not be a reserve currency. I see a regional dominance (north-east Asia) if japan doesn't get their shyt together and lowers the damn inflation, but the currency is forcefully held low to continue to dominate the foreign export market, so they don't even want to have a powerful currency.

Yea, well I didnt disagree with you. Read my post again. As no country wants to move forward being a low cost producer, they're already taking steps to strengthen domestic consumption. Their long-term goal shouldn't be to depress the RMBs value.

 

[Black smoke and cac jokes]

Yea, well I didnt disagree with you. Read my post again. As no country wants to move forward being a low cost producer, they're already taking steps to strengthen domestic consumption. Their long-term goal shouldn't be to depress the RMBs value.

Cool. Just wanted to add on

That's what they're starting to do now, but it still doesn't change the fact that their currency is far from being a dominant force in the market. They're not even trading in it tho.

So if they don't replace it with Chinese currency, then what? The Euro? LOL. The euro will be nonexistent in the next 10-15 years. You think countries that have fought each other over the last 2000 years are suddenly buddy buddy at all costs? Another large recession like the one that affected Greece and Spain will likely kill the euro for good. People in the states whine and bytch about our taxes being allocated unfairly to other parts of the country and you think sovereign nations are just gonna be ok with some shytty ass countries leaching off them? Get real. The US economy is the strongest in the world. FOH with your nonsense

There won't be a global reserve system, but instead economic regional cohesiveness where the EU, AU, Asia-Pacific, Middle-East all rely on the stronger neighboring currency.

Do you seriously believe that the EURO won't exist in 10-15 years? Really? Please let me know why you believe that.

 

[Futuristic Eskimo]

Cool. Just wanted to add on

That's what they're starting to do now, but it still doesn't change the fact that their currency is far from being a dominant force in the market. They're not even trading in it tho.



There won't be a global reserve system, but instead economic regional cohesiveness where the EU, AU, Asia-Pacific, Middle-East all rely on the stronger neighboring currency.

Do you seriously believe that the EURO won't exist in 10-15 years? Really? Please let me know why you believe that.

You said nah breh

A move back to a regional system is a step backwards and there's really no benefit of doing that, as any regional power is bound to be more risky than the US. I don't understand why you think that kind of a system would be beneficial.

 

[Domingo Halliburton]

U.S. corporations are the biggest economic frauds of the 21st century brah. Only nation in the world that relies on complex derivatives, self-automated high frequency trading, and purposely cause asset bubbles for short-term gains. You have corporations investing more in trading than R&D, Self-made assets, and RE overall. Please stop it man. They do EVERYTHING to avoid pay taxes, more than all international companies COMBINED, but the US economy is still well-functioning and the dollar strong? The country doesn't have any tangible market at all to speak of other than the minimal to keep small businesses on a life-line. U.S. made commodities have been on the decline for the longest and the country is and will continue to be a service-based economy which is a sign that the strength of the dollar is on the decline.

you can use derivatives responsibly. there's no reason an airline shouldn't hedge fuel prices. multinationals hedge against currency risk and so on. it's not all blind speculation, you can use derivatives responsibly. dollar has gained against most currencies this year and that's with all our money printing.

The entire world depends on our stock market, that's it. Nothing else in the US economy that hinders other countries from reevaluating their exchange metrics. Now, it is still the largest economy in the world but that doesn't mean that the $ isn't on the decline and countries will soon stop pegging their currency to it. I agree that the U.S. debt is not the biggest issue right now, but to say that it doesn't matter is wrong on so many levels.

now I shouldn't say it doesn't matter but our debt could go from 17 to 20 trillion tomorrow and no one would bat an eye. and our biggest bond holders would still line up at the treasury auction for them.

 

[Black smoke and cac jokes]

you can use derivatives responsibly. there's no reason an airline shouldn't hedge fuel prices. multinationals hedge against currency risk and so on. it's not all blind speculation, you can use derivatives responsibly. dollar has gained against most currencies this year and that's with all our money printing.


now I shouldn't say it doesn't matter but our debt could go from 17 to 20 trillion tomorrow and no one would bat an eye. and our biggest bond holders would still line up at the treasury auction for them.

Finally get to argue with someone that knows their subject.

Yes, derivatives are definitely a field to explore with caution. The problem is that the large investment firms are not being responsible, they are exploiting the possibilities of small margins which is harmful to the overall market. It's gambling at it's finest where the winners win big and, clearly after the bail out, the losers don't lose at all, they just pass losses onto the public through devaluing their products (mortgages, loans etc.). It can't be anymore artificial since they're hedging their losses to an economy that is already fragile, hence not creating any real value to the currency they hold.

True, but that is solely because of U.S. presence in the global market and other countries' perception of the strength of the dollar. I'm not saying that the $ isn't the strongest currency now, I'm pointing out that it's on the decline due to the return of commodity markets in Asia particularly.

You said nah breh

A move back to a regional system is a step backwards and there's really no benefit of doing that, as any regional power is bound to be more risky than the US. I don't understand why you think that kind of a system would be beneficial.

I said nah to the yuan being the next dominant currency and you said you didn't disagree so I thought my post was just adding on to what you said.

The world needs to regress, economies are heading in the wrong direction. To continue to rely on an unstable U.S. economy would be detrimental to a lot of countries, see 07 contraction.

 

[Domingo Halliburton]

Finally get to argue with someone that knows their subject.

Yes, derivatives are definitely a field to explore with caution. The problem is that the large investment firms are not being responsible, they are exploiting the possibilities of small margins which is harmful to the overall market. It's gambling at it's finest where the winners win big and, clearly after the bail out, the losers don't lose at all, they just pass losses onto the public through devaluing their products (mortgages, loans etc.). It can't be anymore artificial since they're hedging their losses to an economy that is already fragile, hence not creating any real value to the currency they hold.

yes, the speculation by some firms on wall street is out of control. There's like 3 times the amount of oil we use in a week is traded in contracts on these futures exchanges. the CFTC has been trying to get swaps and other derivative limit rules for awhile now.

and next time I'm all for less moral hazard if they screw up again. but when Lehman failed credit markets were literally freezing up.

 

[IAmGettingAMailOrderBride]

So are we going to have a economic collapse or a recovery

 

[DEAD7]

So are we going to have a economic collapse or a recovery

The market will recover eventually, its a matter of how long it'll take and how deep the recession will be.

 

[Liu Kang]

CHANGE YOUR GOD DAMN BLUE FONT ALREADY fakkit

US COLI BREHS ROCKING THE MIDNIGHT THEME CAN'T READ YOUR shyt YOU DUMB fukk

WOOOOOOOOOOOOOOOOOOOOOOOOO

True.
@DEAD7 has interesting points of view even if I don't necessarely agree with him but that color is unreadable on Coli Night. Could you try a lighter blue like this one ? Because that one (wich is bolded moreover) is really difficult to read.

 

[DEAD7]

True.
@DEAD7 has interesting points of view even if I don't necessarely agree with him but that color is unreadable on Coli Night. Could you try a lighter blue like this one ? Because that one (wich is bolded moreover) is really difficult to read.

will do.

 

[ill]

@fkdmR I'm referring to the Chinese using imaginary money to build ghost towns so they can list those bullshyt values as assets and further borrow against it.