Cheng Siwei, former vice-chairman of the Standing Committee and now head of China’s green energy drive, said Beijing was dismayed by the Fed’s recourse to “credit easing”.
“If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies,” he said.
The Austrian School of Economics has been saying this would happen for years, and now I think it might. Here in Brazil there are talks about our government stop stocking US dollars, and they are probably discussing it all over the world.
Borrow real money,
Pay it back with Monopoly money…
Oldest scam in history…
I’m surprised the rest of the world didn’t see it coming. Only they are probably in worse shape that we are…
I wonder who will eventually get left ‘holding the bag’.
you people are idiots. you were living in bushes ass up till the economy started to tank and now you want to blame obama when he has been in for barely 9 months. the stimulus was a fraction of the deficit tax cuts for the rich bush got and we aren’t counting the deficit spending supplemental spending for the wars. dems have only had the house since 2007 but didn’t have a majority in the senate to get anything done. bushes treasury stopped printing reports documenting inflation from money printing in 2006 to cover what he was doing. the m3 report showed an annual growth of 7.5% per year while under bush it grew by 40% through his first term. food, oil and gas have been inflated for years. now obama is no friend of mine, he is another corporate dem just like clinton was but you are all on crack with your socialism nationalization nonsense.
China has been printing better US dollars for years now. Now they are complaining because we are now printing dollars?
GO LOOK at what the USA did the last few wars..
AFTER the war, we MADE things worse for about 10 years..WHY.
BECAUSE we had bonds with other countries, and made our money WORTH NOTHING.
As if we needed more evidence that the US is toasted, now we have the chinese government giving the US economy 101.
#22
The blame for this depression cannot be placed on just one political party. The blame should be placed where it truly belongs, the federal reserve. Sure, both parties played their part in causing this depression, but neither have done nearly as much harm as the fed.
Audit the Fed, then end it.
#23
What the flying fuck are you talking about?
Obama or McCain or Bush or Clinton, wouldn’t make significant difference – they aren’t really in charge. Sad fact is the financial markets figured out the game was up on the creation of credit, and blackmailed the US govt to forking over the future earnings of generations or face the meltdown of the foundations of Wall St.
A well regulated system like we had in most of the 20th century would have weathered the downturn in housing but a series of changes to laws made to benefit the already-wealthy knocked all resilience out of the system and the US govt blinked, dooming the US to former world power status. The US government cannot issue enough credit to reignite an economy that has sent its most powerful engines overseas. Like most of the posts have said, we’re fucked.
No shit..
You can blame this on the Government all you like but this has all come about by unrestrained greed on the part of the banks and corporations.
The government is culpable in that they are in the pockets of these institutions, with the elected representatives and their staff repackaging and selling policies favourable to these institutions to the public, and then acting as the ultimate in unaccountable fall guys.
What we are witnessing is the logical extension of unrestrained capitalism, where government corruption and corporate infiltration is so endemic that it is now accepted as status quo.
Barack Obama accused of making ‘Depression’ mistakes
http://telegraph.co.uk/finance/economics/6147211/Barack-Obama-accused-of-making-Depression-mistakes.html
To those who think China will not allow the US dollar to tank:
China has quietly divested itself of US dollars over the past couple of years. They are buying stakes in mining and agriculture concerns all over the world.
Be afraid.
At costofwar dot com they estimate the Iraq war at nearly 700 Billion dollars to date. Quite the sum of money spent on a lie.
Combine that with the 226 Billion spent in Afghanistan and the total is nearly 1 Trillion dollars.
Way to go Bush/Cheney, this is all your fault.
If this money was not spent on this lie of a “war”, the US would be in much better position financially, don’t you think?
I believe the US should stop sending dollars all over the world. Quit buying all that shit made in those obscure little pieces of crap that depend on the US for everything. Lets instead start making things here, Let Wally’s China-Mart go out of business when it has to pay people producing the products they peddle a decent wage.
This could be the best thing that ever happened in the US. When our dollars are worth nothing in trading with the rest of the world, they will be very valuable in trading with ourselves. Now if we could just arrange for never again to have some shit head from Texas getting us into a war, we would be in great shape. I know lets throw Texas the hell out of the Union.
33. Quixote,
I can do 1 better..
SHIP the boss’s OVER THERE ALSO..
Let them live by the laws of the other countries, that they sent our WORK TO.
Its not Asia, china, japan, Indonesia, Taiwan, or any of the rest.
US companies ASKING these countries for goods, BRING them to the USA and sell them at GROSS prices. GROSS= 3-10 times the MAKERS COST.
Even the AUTO makers in the USA, have most of the parts MADE outside the USA, and shipped in. The cars PUT together IN THE USA.
Import tax is on goods Made Against USA Made goods..we dont MAKE ANYTHING, anymore. except Underwear.(fruit of the loom).
If they want to do business in those other countries, SEND the BOSS’s and CEO over THERE. Let them LIVE under those LAWS and regulations. and get paid 1/10 what they are in the USA. Its only 10 times the COST, BECAUSE they charge so much FOR GOODS.
A few of those companies Are jumping to the USA. and STARTING to sell direct in the USA. think about that. They are trying to undercut USA sales. Which could be great, if the products are WORTH the time.
I guess they don’t block mises.org over there.
#29 Hugh Ripper
“You can blame this on the Government all you like but this has all come about by unrestrained greed on the part of the banks and corporations.”….
(Sigh) Once again it falls to me to bring clues to those who have none. Hugh, the relation between “Government” and “banks and corporations” is identity.
I think part of the US’ economic problem, IS all of its dollars being used all over the world. The US has to print more of it, so every country, large and small, can use it in place of their own crappy currency. Mainly because in the past, their citizen had no confidence in their nation’s currency. In many cases, it was justified because of their inflationary spending. Now, after a decade of inflationary spending by Congress and a republican administration, on a costly war. The US currency is feeling the effects of over supply, and far too distant use, abroad. It’s probably keeping the Chinese economy stable. Even though they’ve been stealing jobs from the Americans. Now, they’re griping that all this import dumping, by them, on the US, is causing Dollar instability and depreciation. WELL BOO HOO CHINA!
Well, it is one of the worst looking, and least lasting, pieces of paper money in the world.
You’d think that with a big economy as the US has they’d be able to produce better quality money.
Like the Scots say “It’s crrraaappp.”
deowll wrote:
“Of course I’m sure they will blame it all on the privious adminsitration.
Fact 1) Congress does the spending and it has been Dem for many years now.”
… I love when people just conjure facts that support their arguments. Unless I’m mistaken, the Democrats took control of Congress in 2006 – hardly a long run. I won’t present that as FACT because I’m not going to do your research for you — but I’m pretty sure. (And even then, in 2006, they didn’t outright control the senate — they needed the 2 independent votes to go their way to have 51.)
I do agree with the general tone of your message — they’re both to blame. Politicians stink at long-term planning.
jbenson2 — Look at the timing of the stimpack (which was happening no matter who won the election, just in a different form) and tarp bailouts, recent Medicare prescription drug benefit expansion, etc. The fact that you place the blame solely on Obama shows you’re more interested in being a hater than actually paying attention to who’s spending your money, if you don’t place any blame any farther back than that, too. It’s not like we were on a good financial path when he took over….