U.S. Dollar Is ‘One Step Nearer’ to Crisis, Yu Says

U.S. Dollar Is ‘One Step Nearer’ to Crisis, Yu Says

Sept. 28 (Bloomberg) -- The U.S. dollar is “one step nearer” to a crisis as debt levels in the world’s largest economy increase, said Yu Yongding, a former adviser to China’s central bank. Any appreciation of the dollar is “really temporary” and a devaluation of the currency is inevitable as U.S. debt rises, Yu said in a speech in Singapore today. “Such a huge amount of debt is terrible,” Yu said. “The situation will be worsening day by day. I think we are one step nearer to a U.S.-dollar crisis.” Yu also said China is worried about the safety of its foreign-exchange reserves including those invested in U.S. Treasuries as the U.S. currency weakens, reiterating his earlier views on the dollar assets. The U.S. will record a $1.3 trillion budget deficit for the fiscal year ending Sept. 30, the Congressional Budget Office said Aug. 19.

LINK ---> Bloomberg

Well as stated above we are just one step closer to the dollar crisis aka dollar collapse. This isn't news for most, but for the few that are shocked maybe you should get out more. This just confirms what we already knew, and that is you cannot just print up 1.4 trillion dollars in new currency and continue to have deficits that are massive and expect nothing bad to happen. The next step is going to be hyperinflation if there is a massive devaluation of the dollar due to people running from it which will probably happen.

Thoughts? Questions? Concerns? Please keep your seat backs and tray tables in their forward and upright positions because we are about to hit some serious turbulence!

reply to post by SpaDe_


my concern is there is still a black hole of dirivitives (spelling)
this black hole equals more money than is in circulation
when the world money system is ready they will crash the system
then one world banking
you thought wall street was bad
watch what happens when their power is concentrated

xp

reply to post by XPLodER


I agree the derivatives market has yet to rear it's head, but if there is massive hyperinflation beforehand wouldn't that be a good thing? Follow me for a minute on this one, and correct me if I am way off base. Say there is a massive devaluation on the dollar and now what used to be $1 is now $1000 wouldn't that then make the derivatives that were worth 10k now only valued at 10 essentially?

Like you said there are plenty enough people that see the writing on the wall and are wondering when tshtf ... Its not only the us currency . But where it is used as a global one it will effect a lot of countries .There is lots of news that the euro has a bad cold .I think this was in the plans for quite some time and was moving along with a one world govt. as well as a one world currency as a end .With the Internet and some sovereigns not wanting to go along with this, it has stalled .

Now the ones that were bringing down the house are in a very bad spot .It makes it scary to imagine what they may be willing to do just to be able to sweep this under the rug ...Interesting times we live in .. peace

Yes I am sure China with all their US Treasuries is just waiting for the Dollar to crumble so their stock is worthless. If it happens, good, maybe we can actually start off correctly because if the USA takes a big hit, so does the entire world.

This video has been posted before, but it is very relevant to this topic. I know the video is a little long. The information in the video is very good information.






For those of you who do not have access to youtube here is a basic summary:

He basically is saying that money is created out of thin air. That creates interest and debt. The debt ratio for the first time since the great depression is being paid down. This is going to cause massive deflation he is saying. He also says and shows that it effects every country on the planet that trades in dollars. He also shows how money is created through bank loans. There is a short part of the video that shows how the world markets used to work independently, and now in the last 20 years they work together and move together. The ultimate point of the video is where the US and the dollar goes so goes the rest of the world.

reply to post by SpaDe_


there is mathmatically no way to pay off the american debt
there is only defult
inflating the money supply will be the defult as they print to much it will become worthless
hyper inflation to follow

alternative

the us is a corperation (a zombie corp)
it is insolvent
start a new corperation called the the United States of America
transfer all assets to the new corp and bankrupt the corperate govenment
legally the debts dont have to be paid
remove the centeral bank and coin your own money

with no interest on money (debt causes interest and inflation) america can in two years become the most prosperous country in the world

this only works in a legal frame work and non violence and lawful actions are required
there is a remedy in law and only law can fix a problem in law

legally a corperation cannot be govenment (but it is)
so get your coountry legal
their plan is to crash america which will crash the world

read the law books and spread the word

america the corperation owes the money not the american people

thats why the corperations have been bailed out and not the people

xploder

only lawful non violent actions will fix these problems

Well, to me, I think this is China`s way of giving the U.S. government fair warning about their feelings on the shoddy way they are devaluing the dollar, beings the U.S. is so deeply into debt to them. I wouldn`t be surprised, that if the U.S. government keeps up this dangerous practice, China may just call in their debt. I mean think about it, if someone came to me needing to borrow money to cover their debt, fine, but, this is none stop borrowing and there is a point, as the one loaning the money, I would know that they are in way over their heads with debt to the point that it would be impossible for them to repay it. There has to be a point of no return in this situation, and the U.S. government I believe is about to, if they already haven`t, stepped over that line of overborrowing themselves into bankruptcy.

If this WAS the plan, as many believe, to kill the dollar, I would say they are doing it in a masterful way.

There is a solution to the "Federal" debt...

Secession!! ATS Link