China warns of "dollar trap"

Well, I think that the vast majority of Americans will only wake up when the new iPad tops out at $1,000,000,000,000,000,000,000.00.

Then.... they'll freak the fuck out.

 

I think the socialists here will blame it on "capitalism" and swoop in for the kill (of liberty).

 

I think that Limecat, will continue to wear Limes.

And you know mass-hysteria, fear, martial law, Revolucion, etcetera as well.

 

So what other currency that I can legally switch to?

I fear that dollar is already useless and just hanging by the faith of the people.

 

I'm no economist, but I'd imagine that the first thing that'll happen is that an alternative currency will rapidly develop and a lot of people will be ripped off in a major way as they struggle to interact with this prospectively new and unfamiliar economic reality. The debtors will go bezerk, trying to transfer or even magnify the debts of their very likely ignorant clients from dollars to whatever the new system of exchange is, and a lot of people will be either exploited to the hilt or else stand up to their debtors - maybe there'd even be a polarisation of society drawn around these lines, 'commonfolk' vs 'debtors', a conflict that is not staged at the moment in society due to the fact that we take it for granted as we've always had/used the dollar and thus take those who lend/grant access to that dollar for granted.

To speak more broadly, if the US dollar fell the implications on the rest of the world would be enormous... Australia, to use one of these nations, would be in a very awkward position. On one hand, we rely on the US for financial and military security, but have enormous trade allegiences with China, Japan and the Asia-Pacific region in general... we'd essentially be caught between embracing an identity as an Asian country or maintaining our Western-ness, with the result being reflected in which currency/economic sphere the nation would 'choose' to align itself with. If the US dollar fell and we all said "Fuck that, let's use the opportunity to jump ship and tie ourselves in with the yen or the rupiah!" then we'd be heading down a very different direction to if we said "The US is our partner and ally, whatever economic system and direction they end up adopting will be the one that we also go with in order to cement that relationship." Thus there's a lot of potential for some major change for our country in the possibility of the US dollar falling from it's prominence...

 

I think you'll be okay down under. Seemed like a booming place when I was there in 08/09. I hit at JUST the right time too. I was geting $1.50 AUD for $1 USD. Now, I would only be getting $ .9671 AUD for $1 USD. That is a 35.5+ % drop in USD value in Australia since Dec 2008/Jan 2009.

 

Jesus, talk about a rapid turn downhill... I'd known that the value of the US dollar had fallen, but I hadn't a clue that it was that drastic. Based on that it's probably wise to take China's words a bit more seriously on the matter...

We're booming alright, but the boom is cemented in trading mineral resources, natural gas and other products harvested from the Earth with China... they provide us with an inexhaustible demand for materials, and we provide an inexhaustible consumer base for their manufactured goods, we rely on each other pretty heavily. But the boom will end just as soon as all the wealth is sucked out of the ground, and we'll be left with a worthless expanse of raped, exploited land. What we take from the Earth we can only take once, there's nothing renewable about mining... and the worst thing is that this wealth is going straight to the pockets of major mining companies and most of us don't see a fucking cent from it. If you work in the mines (a lot of people here do...) then you'll be rolling in money, but if you don't then the only benefit you'll recieve is indirect, through 'state economic growth' and all the rest of it. It's shameful, to my mind if we must pillage our planet for trade (and I don't think we should be, I'd actually support a total ban on mining up north in the name of ecological preservation - enough is enough and it has gone too far as it is) then the least that can be done is that all of us who live on the land benefit and not just the businessmen. For this reason I think that these mining companies should be nationalised... that's opening up a massive can o' worms and it's not even on the topic of the thread, but to me it's the only just way to do it. As I say, we all live on this country and we all suffer the consequences of it being depleted... it's not the businessmen who'll suffer, they'll be able to catch a plane to their mountain cabin in the Swiss Alps, but we'll be left on a land that's been sucked dry of it's richness and we won't have recieved any compensation from these wealthy parasites for having so completely ruined the landscape in the name of furthering their own greed.

Anyway, I've derailed the thread enough by now... CONTINUE, MENTLEGEN!

 

i remeber there was talk of a north american currency like the euro i think it was called the amero?

 

All that would need to happen for a drastic reduction in quality of life, in America, would be the Chinese, Russia, and India buying oil in their own currency or SDR's, instead of USD.

When and if that ever happens, the trends will go as follows: currency wars (happening right now), trade wars, then real wars.

The USD will go belly up, its only a matter of time. The currency cannot be manipulated like it has been by the central bank without any economic consequences.

I'm glad I got out of financial stocks awhile ago, and got into foreign currencies and precious metals.

 

Lol, the US won't go belly up. We know war better than anybody else. The only reason China is speaking on the issue rather than taking action is because that would be an act of war. China might have superior military technology, but their military spending isn't nearly as much as ours. We have ships all over the world waiting to fuck shit up if that happens; and if it happens, China will be a crater.

 

You sure about that?

 

Imho I believe that investing in precious metals is not such a good idea. I mean think about it hypothetically if in any case the US dollar goes belly up people aren't going to want to trade gold for food

 

Fixed and correct.

 

Liberty is a concept in political philosophy that identifies the condition in which human beings are able to govern themselves

Socialism is an economic and political theory advocating public or common ownership and cooperative management of the means of production and allocation of resources. (Human beings coming together, equally and governing)