US threatens to ‘cut China off’ from dollar if it does not uphold sanctions against N. Korea

I thought the USA was indebted to China to the tune of hundreds of billions of dollars because they loaned US money to finance our debt, or something like that.

a reply to: AugustusMasonicus

Forbes? Wait a second...

Outside the Anglophone world, governments and leaders have long pined for the return of the world gold standard. In 2004, Malaysia’s president Mahathir Mohamad began a program to establish a pan-Islamic international gold standard currency. In 2009, at the Arab League Summit in Doha, Muammar Gaddafi of Libya called on African and Muslim nations to create an international gold-based currency, to be used in trade for oil. At a G8 currency meeting in 2009, Russia president Dmitry Medvedev held up a half-ounce gold coin and called it “an example of a future world currency.”

here you go

Opinion piece, you didn't specify that.

a reply to: carewemust


China owns around $1.3trillion in Treasury bonds. This is dwarfed by what we own of our own debt.

They are also now the number two debtor behind Japan.

originally posted by: PublicOpinion
Opinion piece, you didn't specify that.

All that does is further demonstrate that no one currently has a gold-backed currency.

whats funny is Gold is traded in dollar amounts. WHat happens when that suddenly happens devaluation within hours for a short term right?

a reply to: kloejen

It would be mostly a stalemate.

I checked a few charts showing commodity production (especially agricultural goods) and I think that both nations could survive an economic war between each other.

They would both take some huge hits but overall they would be OK.

So it's not actually the end of the world.
When the nukes start flying then it's the end.
Which I don't see happening anytime soon between China and the USA, if ever.

originally posted by: AugustusMasonicus

originally posted by: PublicOpinion
Opinion piece, you didn't specify that.

All that does is further demonstrate that no one currently has a gold-backed currency.

Gold is not what it used to be.

Oil is the big thing now. It's the Black Gold.
And everyone's currency absolutely depends on the oil flowing.
Once that oil stops flowing, it's game over from top to bottom.

But there are vast oil reserves accessable to both China and the USA, so it's not gonna happen for decades to come.
Everything's going to be fine.

originally posted by: Nexttimemaybe
Expect us stores to be almost completely empty with a few weeks or months if that happens.

A lot of U.S. economy relies on buying from China and reselling at a higher price as the U.S. does not produce that much anymore.

It would be pretty devastating for the U.S. while the rest of the world gets flooded with very cheap Chinese goods.

Sounds like a good way to get Americans back to work.

You don't think that the void would be filled with new American manufacturing? Jobs would be popping up like sunflowers.

It's not all doom and gloom. We can and would restart our manufacturing basically overnight.

a reply to: kloejen

I reckon saying that is shooting themselves in the foot. The Chinese must have laughed for days at that comment.

All it takes is China and a few other countries to abandon the US pretro dollar as a reserve currency and the US is rato.

Syria is all about getting a US pipeline from their slave; state Saudi Arabia into Europe, so they can then lean on European countries to buy oil off the US at an exorbitant price and not Russia or watch out.

God help them if they don't because the US has a long record of what they do to countries that put their nose out of joint. If too many countries buy oil in currencies other than the US dollar, the US is rato because the only thing that is keeping the US dollar afloat, is that they have been successful in forcing it to onto other countries as a reserve currency.

It only takes on or two big rats to jump this ship and a trickle might turn into a flood very quickly and then what for the US?

Read PCR's work on this.

a reply to: Azureblue

You dont understand how or what the petro dollar does. First this will surprise you the US currency isnt the only one. Even the euro has reserve status. The petro dollar is actually a major drag o thr us economy.As the reserve currency, the U.S. is obligated to run these deficits to fulfill reserve requirements in an ever in an ever-expanding global economy. If the United States were to stop running these deficits, the resulting shortage of liquidity can pull the world into an economic contraction. Meaning the US continually has to take on more debt as the world economy expands and needs more currency.

The US economy would be much healthier for US citizens without being used for foreign transactions. Problem is there arent many countries that can handle being a reserve currency do to the demands it places on their economy. Chinas economy would crumble for example unless they backed it with gold. But that limits the amount of currency they could print, making it useless as a reserve currency. When i see fools talk about petro dollar just tells me they dont understand world economics.

originally posted by: dragonridr
a reply to: Azureblue

You dont understand how or what the petro dollar does. First this will surprise you the US currency isnt the only one. Even the euro has reserve status. The petro dollar is actually a major drag o thr us economy.As the reserve currency, the U.S. is obligated to run these deficits to fulfill reserve requirements in an ever in an ever-expanding global economy. If the United States were to stop running these deficits, the resulting shortage of liquidity can pull the world into an economic contraction. Meaning the US continually has to take on more debt as the world economy expands and needs more currency.

The US economy would be much healthier for US citizens without being used for foreign transactions. Problem is there arent many countries that can handle being a reserve currency do to the demands it places on their economy. Chinas economy would crumble for example unless they backed it with gold. But that limits the amount of currency they could print, making it useless as a reserve currency. When i see fools talk about petro dollar just tells me they dont understand world economics.

The rather jaded refain that if it wasn't for the US the whole word would collapase again. Sumit tells me i've heard that before somewhere.

like your signature by the way, its truth in itself.

a reply to: Arnie123

You don't understand, so let me say it again and i'll quote myself

All I have to add is that ALL x86 chips made by both AMD and Intel get polished in China. Cut of China and no new chips, there are no production facilities outside of China that takes care of the specialization they do.

Automation doesn't fix that.

originally posted by: JHumm
He tells me they are teaching them things that he learned in high school. What a crock.

Many freshmen classes, especially early in the semester are remedial classes.

How much stays that way depends on the strength of the program.

originally posted by: carewemust
I thought the USA was indebted to China to the tune of hundreds of billions of dollars because they loaned US money to finance our debt, or something like that.

Sort of, but not really. The US also owns a substantial amount of Chinese debt, in a debt:GDP ratio, we're more invested in them, than they are in us.