G-20 fallout: Trade barriers, tensions could rise

G-20 fallout: Trade barriers, tensions could rise

finance.yahoo.com

WASHINGTON (AP) -- The world's most important economies are going home to look after themselves. They left their summit without any meaningful agreement, finding it ever harder to cooperate and more likely to erect trade barriers to protect their own interests.

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Those of us who track economic data on a day to day basis could probably go on forever about the technicals and potential policy changes that will come out of this G-20 turmoil. A great number of people are speculating as to what the US will do next. However, I believe the next move will come out of China.

With QE2 firing the first salvo of a global trade and currency war, China is poised to respond in kind, but not by devaluing their own currency, but by downgrading the US' credit rating to straight to BBB, and this time it will be the People's Bank of China that does this...

Suddenly our borrowing costs will go up, and money will have to be printed in order to make up for it because the Fed will not be willing to change course, they are engaged in battle after all. This is going to lead to massive economic damage at home and abroad. In my opinion what is happening today is going to lead to such a large systemic failure that it could lead us straight into a war. And that my friends, is my true concern here.
Rest of the world says F.U. to US led trade war

The U.S. couldn't persuade other countries to pressure China to stop manipulating its currency or limit their own trade surpluses and deficits. The Americans faced charges of doing some currency manipulation of their own by pumping $600 billion into their economy.

China has proven extremely capable in the area of military hardware, especially their naval and air forces. They've taken full advantage of their economic boom to build their forces, and they are using the United States as the metric by which they measure the effectiveness of their military preparedness.

Over the last decade China has been building a huge cache of silver, gold, platinum, copper, molybdenum, palladium, steel, and oil and are expanding to other nations to begin their own massive, global oil exploration industry. The Red Dragon is finally awake folks. They have also placed pretty much a moratorium on rare earth metal sales, and are becoming increasingly protective of their precious metal hoards. I my opinion, this will lead the Chinese to a position where they can cut the economic ties between us as they will have the necessary resources to maintain a strong currency, and by the end of the mayhem may be the only ones economically able to provide products and services to the world.

This has been my theory for some time. While there are pressures from within economically, politically, and socially, there are pressures and hidden dangers coming from without. America, in my opinion, may face the same fate as all other empires before it.

Mired in gridlock at home, at war economically with the world as well as militarily in many parts of it. We have instabilities in our entire system and they are beginning to shake the house of cards apart.




finance.yahoo.com
(visit the link for the full news article)

I really wish I knew more about how this whole thing works, but from my simple understanding it's like this.

1. China lent us money with the promise of us paying them back.
2. The US can't actually pay back all we owe because there isn't even enough US money in circulation to do so?
3. China is getting snubbed, so they will basically warn the rest of the world that we're broke and not to lend us anymore money?

??

Threat of currency war persists after G20 summit

"I think it's fair to say we did not resolve those issues here," Harper told reporters in Seoul.

But he said G20 leaders agreed that more attention should be paid to trade and currency issues.

"We have got a process for continued engagement. We've got a timeline around that," Harper said. "These are not going to be easy issues to resolve. But I think we've got everyone talking the same language."

No Mr. Harper, they will NOT be resolved. These aren't just arbitrary challenges, this is a product of China learning from the mistakes of the US. They've watched Keynes destroy America, and they are taking a different route. Some would say, to a free market economy, with real cops on the beat. Do we think that China would sit idly by in the event that the US collapses under it's own weight? I think not. China is well poised to take over, and they are chompin' at the bit to open up their markets to the rest of the world. They want to turn the tables on us, and they will succeed. Why? Because we have the biggest bunch of idiots on the planet running a centralized economic planning scheme like a charity...for themselves. And we're busy arguing about which side feels better and whether we prefer red or blue lube when we're forced to take it.

reply to post by WickettheRabbit


Looks like you've got a pretty good handle on the situation.

The wild card is how far out of control this trade war will get. War, in my opinion, is on the horizon.

if China degrades the US credit rating, does that in effect make it harder for the US to attract investors? if that is the cae, would also the interest rates rise on the loans if they are made? this would result in an even sharper decline in the value of the US dollar, possibly more hard hitting taxes on the public that aren't so subversive, of course even greater inflation. Of course, if this is possible, and if China is in control of it, then it would make sense that China is preparing pull out its investments in the US before the dollar falls any further, which would result in complete chaos. The problem, is that with the fall of the US, many other countries that rely on their exports and US consumption would be hit dramatically. Their currencies would further devalue as well. Their products would become too expensive. Inflation would soar across the globe. Everyone would blame China, because China is the only one that stays relatively stable if such a thing occurs, and this is all highly probable if China wants to become the superpower of the world, which of course they do. So yeah, it does look like war is not far off.

I should add that the first shot was fired while America was focused on the election. They are still trying to wring out the election results for all they are worth and much controversy is being manufactured by both sides of the debate across all media outlets.

People are totally asleep in regard to what is happening around them. If all we ever listened to was MSNBC, FOX or CNN, we would believe that TARP and TALF worked, that QE 1 worked and QE 2 will be a godsend, and that the economy is recovering thanks to the stimulus.


I say they are living in a dream world, and when the whole damn thing implodes they will tell the American people how no body saw it coming.

effing criminals.

is it possible that a country can get repossessed? seriously, if a homeowner cannot afford to pay his bills, then everything he has is taken away until it amounts to the debt owed. why can't the same happen to a country, especially when the States are literally just one large corporation with a board of directors called the FED?

reply to post by asperetty


The difference is, that China is poised to replace the US dollar as the reserve currency of the world. They've made several moves to that end over the last 3 years:

Are BRIC Countries a Threat to the Dollar Standard?

BRIC was one of the first messages to be sent to the US over the BS we've been pulling for pretty much the whole last decade.

Originally posted by asperetty
is it possible that a country can get repossessed? seriously, if a homeowner cannot afford to pay his bills, then everything he has is taken away until it amounts to the debt owed. why can't the same happen to a country, especially when the States are literally just one large corporation with a board of directors called the FED?

I think this is why we're seeing socialist political pressure from within the US.

Cash for Clunkers came out of the Chinese embassy, so did the home buyers credit, why? Chinese are heavily invested in our real estate market, and they wanted the raw materials that are found in vehicles:

Cash For Clunkers Hype In Full Force



Chinese finding U.S. real estate a bargain. We've already sent off our cars and many of our homes to pay our debt to the Chinese.

so the entire US policy is in effect to elongate the process by which it loses not only global significance but also its own sovereignty, and in that process, try to make everything as worse as possible for everyone else in order to persuade them that they need the US, when in fact, a conglomeration or synthesis of the BRIC nations' economies could effectively surmount the throne, much like what was expected from the EU and the Euro, that the US is clinging to . well, I don't blame the US government for throwing its final blows. its almost a natural response, similar to the the latest shadow stimulus and how it was a final act of a FED/Democrat coalition before the potential change of direction once the Reps took office.

reply to post by asperetty


Only now a global restructuring of that caliber can be done because the US is not in the position to do anything about it.

It's a definite lose situation for us.

Originally posted by projectvxn
The wild card is how far out of control this trade war will get. War, in my opinion, is on the horizon.

I say let's go ahead and light this candle.
I'm tired of waiting
let's fire it up
and get it over with.
Maybe we can salvage
something after the FED RES
is gone. Maybe GOV will be
people friendly again.

www.abovetopsecret.com...

Originally posted by asperetty
is it possible that a country can get repossessed? seriously, if a homeowner cannot afford to pay his bills, then everything he has is taken away until it amounts to the debt owed. why can't the same happen to a country, especially when the States are literally just one large corporation with a board of directors called the FED?

Not really thats what the nukes are for =)

I didn't read all the posts, as I just wanted to say:

REALLY??? I MEAN SERIOUSLY?? Am I the only one who thinks, that some guys who would rather start a war, than to reason with each other, shouldn't be in a position to do so?? I mean seriously, instead of obeying to that barbaric enteties, we should hang them... I hope we over here, and the asians over there are smarter than this, and nobody will get motivated to fight each other... would be funny, then they could wrestle it out 1 on 1... or maybe tag team action

reply to post by boondock-saint


Well said boon, the suspense is killin me as well.

The "tensions" at the G20 were huge on the front page of the New York Times. The media wants us to know about this. This is a play for rationale.

Something along the lines of "We tried talking to them at the summit but they didn't want to listen so now, to protect the U.S.A., we need to war/embargo/hurtyousomehow" would be my guess.

If they want us to hear this so loud, there may be a spin.

Problem-Solution brain shampoo, anyone?