China Wants Dollar Tied To Inflation - Bet Washington and Fed are NOT Happy with that

reply to post by questioningall

... I have read many times over from economist the last few months. It is the game plan of the U.S. govt. and Fed to get the dollar inflated tremendously at some point, so the debts of trillions will be paid off easily, because the dollar will be inflated.

You are not the only one who is 'somewhat concerned' about the situation.

Check out the 'concern' of this economist on a recent Glenn Beck show -

reply to post by visible_villain


Whoa, did they ever release info on how the guy is now and what happened to him.

AH, was it a conspiracy...?

Redhat...yes indeed our printing presses ARE running 24/7. I dont know if you cought glenn becks graphs, but he showed the amount of money circulation from the fed since wwII, and it has jumped MASSIVELY in the last 2 years, like by exponential amounts. Check it out if you get the chance.

reply to post by questioningall

... how the guy is now and what happened to him.

I believe the gentleman is fine.

The 'condition' of his portfolio, however, may be another kettle of fish ...

This whole thing seems like a giant chessgame to me. I feel like we're not looking ahead at all. We're only "in the now" and China/others are thinking about the future. We had better wake up and work smart if we're going to get out of this. This is financial/economic warfare and USA is losing miserably.

If China wants their investment to hold value then they should have invested in the Gold Market instead of a fiat currency. They would like to rewrite the rules of their investment midstream, but any of us here who has lost half their retirement investment value already understands that its not going to happen.

The Stock Market, no matter where or in what currency, is just legalized gambling on a global scale. China bet big and now that it is losing it wants to change the way the game is played? That doesn't work in any casino I know.


On a side note:
I really need to get off my arse and buy a home before the super-inflation hits. Then I can pay off the mortgage with a loaf of bread and a can of beans, equaling about $200,000.

This reminds me of the US wanting China to float their currency which is artificially surpressed to bring in Jobs... Honestly, Im not to worried about this (yet). I look at it as a form of sabre rattling that both sides have played. While China does seem to have us by the balls, and we need to get our financial mess under control, China is not big enough to boss us around.

We still control the world economy. And as for the Yuan replacing the USD, that is unlikely to happen anytime soon. Simply put, there isnt enough yuan in circulation to overttake the USD, I mean the USD has a 2:1 ratio over the Euro as a world currency, suggesting the Yuan could replace the USD is madness!

All the money being dumped into banks by the U.S. fed res and the U.S. gov is not inflationary, because it is being used to prevent deflation. With so many defaults, money flowing into the system to pay back loans, the money system starts to collapse. No money is available for spending, and so the goods and services stop flowing.

Should they stop dumping money into the system to keep currency moving, than the whole house of cards collapses, and vast amounts of money disappears. Major institutions file for bankruptcy, and no one gets anything back.

There really is only one option, and that is find a way to get more money into the hands of the worlds working people to get the whole system flowing again. When the wealth becomes too concentrated at the top the way it has, money stops flowing, and the markets collapse.

First of all, it's misguided to think of these currency relationships as a "friends/enemies" situation. China is not an enemy. If they were, and if they wanted to completely annilhilate the USA, they could do it in a heartbeat simply by announcing that they would be buying no more US treasuries... ever. I'm seeing too many people here stick out their chests and say something to the effect "That'll be the day we'll allow those damned Chinese to control our currency... we're Americans, we take no shyte from nobody." How ill-informed! How clueless that attitude is!

The Chinese have no intention of hurting or destroying the USA. It's just that they've gotten themselves into a hellishly bad situation for supporting the USA's insatiable appetite for borrowing money in the past. And of course China had their own selfish reasons for doing so. For one thing, by propping up the US economy (lending it so much money), China also kept afloat the biggest economy in the world which also happened to be the place where China could sell so many of the goods they produced. So it was a win/win situation.

But as long as the dark lord bankster bastards are intent on destroying the US economy and the US dollar along with it, China has slowly and surely been getting screwed (and purpously) by inflation (printing of too many American dollars thereby diluting its value). This is not hard to understand... China has no choice but to protect it's own interests as pertains to it's loans to the USA. I don't blame China one iota. What if you loaned me a million dollars and I said to you, "I'll pay you back in 30 years and at that time I'll give you $5,000 and we'll be all square, ok?". I'm pretty sure you'd tell me where to get off. And that's what China's doing. They're telling the NWO banksters where to get off. Who can blame China for this?

I think this is a hell of a good thing for the entire planet because if it puts a stop to the incredible thievery that is called "inflation", then the American people should be thanking China wholeheartedly for this stance. If China forces the Fed to stop this insane, out of control, brainless printing of quadrillions of dollars, then the American people are better off for it. In either case, China has no dark agenda here such as to cause an economic collapse or anything sinister like that. Quite the opposite, if the US economy is healthy (without the printing presses running 32 hours a day) then China, the American people, the entire planet benefits.

I love it, because I know the NWO slimeballs hate it.

[edit on 15-4-2009 by Albertarocks]

Originally posted by jzbrown
I have to be honest here, I cant really blame china for doing this. Do I want them to, yes, and no. yes because then our idiots in government wont be able to keep screwing everyone, and no because it will affect our way of life badly.

Between this and the dollar soon to lose world reserve currency status,
and the 100's of trillions of derivatives set to collapse per warren buffet,
they are just piling on layers to assure the complete and total destruction
of the US and its global ambitions.

It is impossible for ppl to work cheaper than dissident labor camps
in China.

It is impossible to compete with factories that do not have OSHA,
the EPA, Unions, and a myriad of other cost added organizations.

Fees, licenses, taxes, permits, etc etc all running up the cost every
step of the way some government agency interceding to get a
piece of the pie.

Meanwhile in California the special economic zones in
"Cities of Industry" do not pay the taxes that American companies do
and these special economic zones are sitting on US soil ....

The ppl running our country have been doing their best to pass laws
that let the companies send the jobs overseas, or bring ppl into
the country via an alphabet listing of 68 visas to work here for less.

The list of US visas

So, I say if you think this is getting fixed you have not been paying
attention to what they want for us.

The hour is late and the bell tolls for us all.

As carlin said, the game is rigged.

Make your preparations to bugout and live off the land, the cities will
turn into a larger version of the LA riots or worse.

Good Luck to all the good ppl !

reply to post by Fox News

"We still control the world economy."

There may be a reason you are right but I am pretty sure it is not
due to our vanishing manufacturing sector.

Again it is not likely due to our collapsing auto sector, and warren
buffets choice of investing in autos is a Chinese electric car.

Additionally our strength is not our need to import oil to run our economy:

"The United States imports approximately 62 percent of its oil. Canada supplies approximately 20 percent of these imports, and Mexico contributes 10 percent. But over 30 percent come from regimes that are less friendly or stable, including Saudi Arabia, Venezuela, Nigeria, Angola, Iraq, and Algeria (respectively the 2nd, 4th, 5th, 6th, 7th, and 8th largest oil importers to the United States)."

Our truthfully 20%+ unemployment and under employment rate
does not scream we are the supreme world nation either.

US breaks the 20% barrier on true under employment and unemployment

Maybe having 100's of trillion in derivatives set to implode makes
us the role model for the world ? Again, I doubt this...

Quadrillion dollar powder keg set to blow

Even the mainstream rag Marketwatch put out by the Wall street
journal covered it a YEAR ago...

/32qx7h

Had to make a tiny url cause ATS formats the huge link wrong.

It pulls it up via marketwatch though.

You can search Google for "marketwatch derivatives" and it is the
top hit.

So while I wish you were right about the US being the top world power,
I think the truth is playing out VERY differently for a myriad of reasons.

What we are seeing now is the thieves looting the treasury on the way
out the door as they have done throughout history of failed nations.

Good Luck to all the good ppl !

Originally posted by Rockpuck
reply to post by questioningall

 

I have to admit, their request sounds entirely reasonable.. If your going to inflate the money supply with trillions of dollars, you should be paying more then 2% on a long term Tbill.

It is good that you are paying attention, one thing easily missed is
that they cashed in their long term ones for short term ones that
pay even less.

To me that says they are thinking about bailing out.

If they do that, and some of the other large ones do it as well we are
looking at a crash of the bond markets most likely.

China trading in long term T-bills for short term for rapid escape

The reason for the trade in is my opinion, no proof given for the
trade in, but proof that it is happening.

It does not bode well for the last person off the bus, so likely there
will be a rush to get off the bus.

Things like this happened back during the great depression, just
now it is global in scale.

Personally, I think the worlds banking elites have out smarted themselves again. They did the same thing back in 1929, and that was global as well.

In 1979 the U.S. had the lowest gap it has ever had between the rich and the average worker since the beginning of the industrial age. Since that time, supply side economics has completely turned the tables and now we have the largest gap ever between the rich, and the average person. Market economies simply can not function in this manner. The money supply must circulate. Currency must circulate in order for the system to function. When a small percentage of the people siphon off a large portion of the money, trapping it in reservoirs of wealth, the money supply current slows, and we arrive at the point were we are, dead in the water.

reply to post by Albertarocks


very well said.. I completely agree with your level headed take on this

Star for you

From me

regards

berth

reply to post by Albertarocks


I concur with badBertha - very well said and explains it perfectly.

I find it amazing, some are just sticking with the "WE ARE AMerica and we kick A#%" nobody wil F with us!

People don't think, China will do what is in their best interest, and if that means putting the screws to the U.S., well guess what, China will win.

I am still waiting for some kind of acknowledgement of this from the MSM, but there has been none.

I will be paying attention to the Far Eastern news more, to see what information comes from them, and how this situation moves forward - in what the U.S. says about it.

262 Billion = US monetary base as of September 2008 (minus dollars held abroad)
3,818 Billion = projected US monetary base in September 2009 (minus dollars held abroad)

3,818 Billion / 262 Billion = 15-Fold Increase in US monetary base

This is a staggering devaluation of the US currency! It means that for every dollar in America in September 2008, the fed is going to create fourteen more of them! Below is a rough sketch of what this Increase in US monetary base would look like:

[atsimg]http://files.abovetopsecret.com/images/member/ac667e6685c9.gif[/atsimg]

China knows what is coming down the line, even though the general public of the U.S. want to deny it.

No wonder MSM doesn't say a word.

Oh, but I will make sure to put on my "OMG - I didn't see this coming" surprise face, along with everyone else. But, did I actually prepare for it?

One other chart to comprehend how much we are printing and spending, and why China wants other countries to take a stance with them.
[atsimg]http://files.abovetopsecret.com/images/member/32b4955533ab.jpg[/atsimg]

I'm not worried.
Obama will simply set up his teleprompter, sit the Chinese down, and read to them what the teleprompter wants him to say and Obama will use that hypnotic, pausing way he speaks and before you know it the Chinese will be wearing Obama pins and will be chanting "Hope Change!!!, Hope Change!!!"

Yes, but Obama is doing with our current deficit is what was done in 1945 to end our the Great Depression.



Guess what, didn't create hyperinflation then, and won't now.

[edit on 15-4-2009 by poet1b]

[edit on 15-4-2009 by poet1b]

Here is a link to an article in Google News that paints the picture even better.

news.google.com... =STANDARD&url=http%3A%2F%2Fwww.bloomberg.com%2Fapps%2Fnews%3Fpid%3D20601087%26sid%3DamfjRQPE6kc0%26refer%3Dhome

www.bloomberg.com...

Today’s figures signal deflation, or prolonged price declines, is the bigger danger, and underscores Fed Chairman Ben S. Bernanke’s call for inflation to remain “quite low for some time.” The Fed’s record injections of cash into the economy have spurred warnings from some economists, including central bank historian Allan Meltzer, that consumer prices will surge.

“The more slack there is in the system, the longer it will take for inflation to become a concern,” said Carl Riccadonna, a senior economist at Deutsche Bank Securities Inc. in New York. “Production data look terrible. Things do not look good and this means the dramatic pace of layoffs we’ve been seeing in manufacturing for the last several months is likely to continue.”

“We’re in a very deep global recession that’s going to hold prices down,” said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts, who accurately forecast the drop in CPI. “Deflation is still something that’s a risk, though I don’t think we’ll get into a deflationary spiral.”

Some economists argue disinflation could lead to outright deflation, which erodes profits, makes debts harder to repay and delays purchases by consumers and companies. Others caution that in the longer term, the unprecedented fiscal stimulus and the Fed’s policy of buying more assets and pumping money into the financial system will reignite inflation.

Originally posted by Albertarocks if they [China] wanted to completely annilhilate the USA, they could do it in a heartbeat simply by announcing that they would be buying no more US treasuries...

Total BS. Laughable, often repeated around here, and total BS.

You seem to think China is the largest holder/purchaser of US government debt. They aren't. They are only slightly the largest FOREIGN holder/purchaser. The largest holder/purchaser BY FAR are...the mighty US households, who still have a net worth over 30 trillion.

China not buying a single T-bill ever again isn't something we could get through lightly, but we'd get through it. How? How do we get through a time when we really need more people to buy bonds? How did we do it in WWII for example?

Bugs Bunny, that's how:



"The tall man with the high hat, and the whiskers on his chin
will soon be knocking at your door...[munches carrot] and ya ougtha be in.
The tall man, with the high hat, will be coming down your way,
get your savings out,
when you hear him shout,
"Any bonds today? Come on folks, step right up and get 'em.
Any bonds today?
Bonds are freedom, that's what I'm selling,
Any bonds today?
Scrape up the most you can,
here comes the freedom man,
asking you to buy your share of freeeeeeedommmm, TODAY!
[Bugs impersonates Al Jolson:]
mmmwaaaahhhh any stamps today?
[?Give to these?]...would be blest,
we all invest, in the USAAAAAAAAAA,
[falls on knees] Saaaaamy, my uncle Sammy[parody of 'Mammie']
Elmer Fudd: Here comes da fweedom man
Porky Pigg: C-C-Can't make tomorrow's plan!
All: Not unless you buy your share of freedom....TO-DAAAAAAAY"

The point is, US households could absorb a big chunk if not all of what the Chinese buy with a serious, patriotic effort.

We'd also have to make a different effort to get foreign friends to buy more as well. China knows that if they stop buying our bonds, we'd cozy up even closer to Japan and Taiwan and basically everyone else. And why would we give them our jobs if they don't buy our debt? It'd be a major trade war at least, followed shortly by either a hot or cold war. Plenty of the Chinese want the US to believe we are all just friends while they bide their time and grow. They think they are patient and we are all stupid. To keep them in line, we have to stay out in front as long as possible, economically and militarily. Then by the time they are 'on top' they will not be far out in front of everyone, they will be 'the biggest' yet it will be close enough to be moot, and there will be other powers about as powerful as well. It will be a multi-polar world and everyone will have to play nice.

China is just playing a role. They are the biggest currency manipulator on the planet. They are on board, they are on the same page as the US Fed. They just have a problem right now with tons of riots and if it gets worse, the government will collapse. So for the time being, they are going to talk tough and tell their people to blame the USA. They need to deflect the anger of their people. They know they are taking our jobs while criticizing our ability to pay debt to them and that that doesn't make any sense. They really don't want us to shut down Chinese trade and Chinese jobs, employ Americans and pay them back that way.

China does obviously want the US to fail. They just aren't ready for that yet. Everyone said they and India were ready before "the crisis" but they just weren't. The "smarties" really thought they were, but they are fakers who never took the time to look at and think about the numbers I guess. Anyone who looked at the numbers knew it was BS. So plan B was to once again throw 'unprecedented' amounts of money into the system for another ride around the boom/bust merry-go round. Every bust is bigger because they avoid using it to improve our long term situation on purpose.

[edit on 15-4-2009 by 11andrew34]

[edit on 15-4-2009 by 11andrew34]