World on threshold of currency wars

Well, OP....I can't fault your analysis or..more directly, the Russian take on our troubles..as source indicates this is again. The U.S. is falling ..FAST...and generally by decisions made entirely by U.S. Leadership. Almost as if crashing us to the basement was the intended point to this. Time and acceleration of events is all I'd do differently if collapse WAS the intention, for what that's worth.


I do disagree about the Fed actually doing this to maintain U.S. position. I think that is missing the nature of the position we're in and they've spent every waking Hour since the housing crash started this insuring people DO miss the gravity of it. The Fed and Treasury seem to be staffed with bookworms and academic types who wouldn't know real economic principle if it meant survival ...which at this point, it DOES.

Now the Fed is flopping around with this new.... My god...85 BILLION A MONTH ...spent into a black hole of "easing". I don't see planning anymore. I see panic driven, reactionary movement with little concern even GIVEN to long term anymore. If they survive each quarter with a system still there? They call it success.

I think China is the only intelligent one...and they saw this coming before Bush came to start events off right and proper for our destruction as a nation. China was pegging to our dollar to ride the rough waves all this time....against our objections and at times, threats to STOP riding our boat. Now, they'd done what many expected. They rode the boat to the point it's taking on water itself ....and they jumped. Thanks China.

Japan? Oh... Japan is lucky right now just to stay afloat and they have no place to get uppity. They still have a measurable % of their nation that may never be entirely safe to occupy in our lifetimes .....and THAT situation is STILL giving the world poisons every day that can last 50,000 years. Japan is better seen...NOT HEARD ..while their decisions to a crisis continue to poison a planet.

Money is the LEAST of the Japanese issues...but it sure keeps their citizens pissed about something other than the radiation they eat, drink and breathe.

reply to post by pikestaff


Because only gold and silver are money. No matter what currency you use it must be backed by gold or silver if it plans on being used over 50 years. Paper is not money.

reply to post by spangledbanner
You don't get it America does make anything , anymore except money. Now all we do is print money, and we American's

go on consuming as we always have, Ha! Ha! Ha!

Now like the head of the fed told those other countries when they complained, shut up and just print more money your self that way you can stay in the game.

Hell they will run out of paper before the fed quits printing. Ha! Ha! Ha !

Invest in ink, we need lots of ink.

Plus once the derivatives market crashes there won't be much left anyhow.That's at about $1,500,000,000,000,000.00 U.S.

Originally posted by shapur
Saddam hussain and Ghaddafi were two leaders who wanted to trade by different currencies than the petro dollar and we all know what happened to them.....Iran,India Russia,China,Venezuela and now japan and maybe Australia are starting to do the same....Can America go ahead and take them leaders all out?!...I don't think so...So yes dollar is not looking good these days at all, and seems like it will only get worse,...Considering dollar to be one of the very few bullets left in America's gun,they should play their hands very wisely.

Oh YES! Bring it on! Lock up Juliar Gillard at Gitmo, and you will have the gratitude of the Australian people forever

Originally posted by MidnightTide
The idea of waking up and China owning the world is faulty as well, in my opinion. Their economy is purely driven on currency manipulation and phony GDP growth. They have cities that are empty and con its citizens into buying into it as a sound investment. They have been reckless in their spending, signing countless agreements but then never paying. So what happens when the US dollar tanks - there goes its #1 buyer, there goes countless millions of jobs. Wonder what happens to its middle class who have tasted the good life? Yes, they have been buying gold and other natural resources around the globe - they can see the writing on the wall, but will they be able to hold onto it when the globe gets shaken when the fake economy crumbles?

China has one big card in its hand.... truely epic growth. Yes the cities are empty for now, but they've been built for the future, as has their infrastructure, etc.. with a population that large even just a small growth rate, they need to be thinking far ahead.

While the purposeful devaluation of the Japanese Yen is big news it isn't for the reasons proposed by OP.
1. Japan is getting militarily nervous about China and North Korea. The U.S. *is* Japan's defense policy and there is no way that they would intentionally alienate us right now. Therefore, this new policy works for the U.S. or it wouldn't be in play right now.
2. Japan is the the largest creditor nation to the U.S. Devalue the Yen and it costs less to pay them back. The Japanese are willing to take that hit to get the exports moving again. They are coming up fast on 20 years of hardcore stagnation. There were articles about Japan's lost generation (as a result of long term recession) 10 years ago. The last 10 years haven't helped the situation and it is time to try something new.
3. The U.S. isn't the only country that Japan lends to. Devaluation of the Yen will make credit from country to country cheap and easy which is widely anticipated to assist in really boosting a world wide recovery from the past four years of ick.

Slightly different topic but for those who think that a global currency is a good idea, how has the adherence to the Euro worked for everybody so far? Greece can have austerity or a severely pissed Germany because they share the same currency everybody has their noses in everybody's business. Bad juju!

My last thoughts are about U.S. currency.
Devaluation would work for us in terms of paying back our foreign debt. It would negate the interest and cost us less in terms of real value.
Devaluation would boost our export ability the same as it would boost Japan's. Everyone says bring back the jobs, well, this would be the way to do it.
Devaluation would cause inflation. That would hurt old people but it would also do more than put a bottom under the housing market. There would be a very fast (well at least as fast as the rate of inflation) rise in home values. The underwater no longer would be. People who want to sell to trade up would be able to again and the whole housing engine would start to work again.

I thought the poster who talked about our currency as reserve in terms of our new found (refound) fuel producing status was interesting. It has been the "petrol" dollar for so long and it is interesting to consider what thumbing our noses at the rest of the world in terms of fiscal policy and paying debt means if we (and we are) are set to become the number one exporter of fuel by 2020.

In closing, I think the Japanese plan is generally good for people in the U.S. and the U.S. government. Not so good for the retired who will not be able to get income in the "new' dollars. I have suspect for a while now that the inevitable decision is going to be to let the inflation come. Let it be high but manage the rise so as not to have extreme panic and recognize that the older folks are going to bear the brunt of it. that's why they will get to keep social security (with the newly proposed adjustment which has **less** of a cost of living adjustment) and my generation will not get it.

Here's hoping 2013 is a good year for the U.S.

reply to post by spangledbanner


The currency war started a while back, now it is a gold war. As more and more countries attempt to repatriate their gold reserves from the Fed and the BoE, they will see that their gold does not exist, or that it is gold salted tungsten bars. It's a race to the bottom... get your silver while you still can, mainly pre 1965 90% coins. The PM markets are manipulated so don't let the swings in the market scare you... it will all equal out when the fiat currencies of the world collapse, and that day is coming VERY soon.

I have three words for you...........Fiat Money System

Money which has no intrinsic value and cannot be redeemed for specie or any commodity, but is made legal tender through government decree. All modern paper currencies are fiat money, as are most modern coins. The value of fiat money depends on the strength of the issuing country's economy. Inflation results when a government issues too much fiat money. Read more: www.investorwords.com...


Source

Forget currency wars, the next war will be a world war where they destroy everything. Trust me, it's going to be great for the economy.

reply to post by spangledbanner

Give up the Reserve Status without a fight. It will win you some much needed respect.

You really think we care about respect? We dont give 2 #s what anyone thinks about us I thought that was clear by now...so much demands from 1 man to a legion...cracks me up.

Originally posted by Polonia I have three words for you...........Fiat Money System

That's too many words my friend.
Here's just one for your consideration - it goes hand in hand with your three words.
They should always have been a four word sentence and the problem started when they shortened it to three.
*** JUBILEE ***

Japans economic woes are tied primarily to two things. The fixed investment asset bubble that popped in the late 80's to early 90's from which they have never really recovered from (China is on this very same path). And a steep demographic decline that has accelerated..