US Continue To Ignore Warning From China To Address Its Structural Debt Problems

In March 2009, China and Russia suggested the world adopt a single global currency. The goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies."

useconomy.about.com...
In other words, China is sick off the world economy being at the mercy of the bumbling criminals that run the United States. They are also sick of the United States and its people getting a free ride. On the backs of the rest of us. So am i. So are many.

China, the largest creditor of the world's sole superpower, has every right now to demand the United States to address its structural debt problems and ensure the safety of China's dollar assets.

I agree. China does have every right to demand that the US address its dysfunctional government. We all have the right to demand that the US be responsible since they are to blame for causing the GFC. The US is the problem, not the solution.

International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country.

The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone.

news.xinhuanet.com...
Instead of heeding the warnings of China and others, the US has continued to add to their debt. Their audacity knows no bounds. They spit in the face of the rest of the world by refusing to address their problems. The global MSM thinks they can use countries like Greece as a scapegoat. It is clear who the real problem is. It is clear who needs to be cut loose. International supervision of the status of the USD and international supervision of the decisions made by the US government is a must. They have proven that they cannot be trusted. There is talk of another US credit downgrade in 2013

S&P has already indicated that more credit downgrades may still follow. Thus, if no substantial cuts were made to the U.S. gigantic military expenditure and bloated social welfare costs, the downgrade would prove to be only a prelude to more devastating credit rating cuts, which will further roil the global financial markets all along the way.

www.cnbc.com...

"We expect that a sudden fiscal adjustment could occur if all current tax and spending provisions, set to either expire or take effect near the end of 2012, go forward in accordance with current law," S&P said on Friday.

hmm. We have Bernanke and the Federal Reserve pull the strings of the economy, independent of Washington and basically giving orders to the US politicians. And we also have Ratings Agencies advising on policy. We also have the Suprem Court, or 'unelected group of people' as Obama calls them, that has power over US politics. Then we have a US congress that will not compromise so they fail to pass even a budget. And they wheel out the joke idea of a 'Super Commitee' to top it off. US politics is a very bad joke.

S&P said the U.S. economy still faces "significant" risks, adding that "we believe the risk of returning to recession in the U.S. is about 20 percent."

www.reuters.com...
"about 20 percent" Ok losers. Thats sounds about right.

It is stupid to me that MSM is using Greece and in a broader sense, the whole of Europe as the scapegoat for the economic problems facing the West. The United States destroyed the West causing the GFC. The United States continues to ignore warnings from the rest of the world to live within their means. The United states cannot be trusted with the reserve. The United States cannot be trusted to do the right thing.

The US dollar didn't become the reserve because America wanted it to. It became the reserve because people use it. Everywhere.


China has no more right to tell the American government what to do than we do them.

One word. Tibet.

A currency external to any nation does on the surface sound the best solution however it is just as open to abuse as any other currency, it all depends upon how it is run and, perhaps more importantly "who" runs it. God forbid that the Rothschild's do it, it would be even worse, and can you actually imagine a world where the Rothschild's didn't have their grubby little fingers in the honey pot?

The currency would have to be issued for use against conventional currencies, for example a country wants the equivalent of a billion dollars in this new currency, they would have to deposit a billion dollars of their own currency, otherwise the new one will be just a fiat as the old, however I doubt they would do it that way and again just start adding zeros to peoples accounts as they do now to manufacture money and debt.

The only way the system can be truly fixed is to abolish central banks, go back to local banks with a central clearing house. Oh and reign in the stock exchange, take the gambling out of it

Originally posted by dorkfish87
The US dollar didn't become the reserve because America wanted it to. It became the reserve because people use it. Everywhere.


China has no more right to tell the American government what to do than we do them.

One word. Tibet.

That is not true at all.

What do you base that on? Why do people talk when they have nothing to back it up and no knowledge of a topic? The Reserve was decided upon towards the end of WW2. It changed from sterling to USD and it was set up so that everything favoured the UD on purpose. You can google it. I have written about it in other threads also.

China has every right in the world to tell America what to do. America are beggers. Just like Greece. Do you think the IMF cant tell Greece what to do? Well they are.

The people of Tibet are mostly moochers that live on government hand outs. The Dalai Lama is a US puppet that is rolled out to annoy China. The moochers of Tibet need to get with the program. Do you think they have Tent Cities in Tibet?

Originally posted by PrinceDreamer
A currency external to any nation does on the surface sound the best solution however it is just as open to abuse as any other currency, it all depends upon how it is run and, perhaps more importantly "who" runs it. God forbid that the Rothschild's do it, it would be even worse, and can you actually imagine a world where the Rothschild's didn't have their grubby little fingers in the honey pot?

The currency would have to be issued for use against conventional currencies, for example a country wants the equivalent of a billion dollars in this new currency, they would have to deposit a billion dollars of their own currency, otherwise the new one will be just a fiat as the old, however I doubt they would do it that way and again just start adding zeros to peoples accounts as they do now to manufacture money and debt.

The only way the system can be truly fixed is to abolish central banks, go back to local banks with a central clearing house. Oh and reign in the stock exchange, take the gambling out of it

Sounds good to me.



And you are correct. Central Banks are the problem. They have too much power and cannot be trusted.

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Germ I have a question, maybe you will answer it maybe you won't.

What happens to china's economy when the US collapses?

The way I see it when America no longer gets a "free ride" with the reserve currency, America will be forced back into a production and industrial based economy. It is what we had in the 50'-60's. How was China doing then BTW?

I agree with you to a certain point. The US does need to disentangle ourselves from world politics and economies. We need to place America first (kinda like China does now).

It will take China 60 years to put into place a system to feed themselves, thus giving the US time to rebuild our economy and then we can try again.

Originally posted by 200Plus
Germ I have a question, maybe you will answer it maybe you won't.

What happens to china's economy when the US collapses?

The way I see it when America no longer gets a "free ride" with the reserve currency, America will be forced back into a production and industrial based economy. It is what we had in the 50'-60's. How was China doing then BTW?

I agree with you to a certain point. The US does need to disentangle ourselves from world politics and economies. We need to place America first (kinda like China does now).

It will take China 60 years to put into place a system to feed themselves, thus giving the US time to rebuild our economy and then we can try again.

I think people underestimate the rest of the world. It is more than Europe and The United States. China got a bump from the last GFC. It didnt hurt them. We in Australia got a bump as well. The BRICS have made their own Bank and China is better prepared for the next GFC than the last one.

Taking wealth from Americans will increase wealth in places like developing nations. The developing nations are behind China and the BRICS. The world does not need the US consumers spending an infated dollar. The world can create new consumers as living standards rise in developing nations. The world does not need the US in any shape or form.

Germanicus... are you sure you are not a People's Party member?

You are at this pro-Chinese-government stuff so frequently it is like you are being paid to do this.

What really makes you believe that the Chinese will be good stewards of the world economy and social scene? The Chinese have proven they are just as capitalist as the next guy (albeit state-controlled capitalist), and are willing to pollute as much as the world will allow them, and put out all sorts of contaminated and unregulated products till people stop accepting them. Quality controll happens on the production side... not on the consumer side.

Chinese political action is unabashedly aimed at acruing as much Chinese benefit as possible. The Chinese fund just as many proxy wars, and send weapons and aid to African countries to so both sides can anihilate one another so they can step in to buy their farmland and mines, much like the US does elsewhere.

The Chinese are not interested in Australia. They are interested in gutting it of resources, then dumping it.

Wo shou yi dianr zhong wen. Wo xi huan zhong guo ren.

I speak some Chinese, and I have a lot respect for the Chinese people and culture.

I am disgusted by the modern Chiense Government.

What is your actual basis for supporting the Chinese government Germanicus? What good do you think they will achieve will extra economic power?

I am not so worried though... because the Chinese are about to overthrow their government... hopefully they get something better rather than worse.

reply to post by joeraynor

Germanicus... are you sure you are not a People's Party member?

You are at this pro-Chinese-government stuff so frequently it is like you are being paid to do this.

I am sick of America. They have military in the Asia Pacific. I hate that they are in the middle east. Now that they are 'shifting focus' to where I live I have had enough.

I have also almost lost patients with the blissfully ignorant American public. Always defending their government on an international level before resuming their petty partisan bickering nonsense. They are selfish.

The emerging nations are backing China and the BRICs. Why do you think that is?

America is a monster. I cant understand why so many people have trouble with that. How on earth could China be worse than America?

You do not know what Chinas intentions are. I like their State Capitalism and it obviously works. Americas capitalism obviously does not work.

Why on earth would I prefer America over China?

One of the biggest issues with a central global currency is the issue of trust. If any one faction has control what is to stop them going rogue behind closed doors? What is to stop a mutiny or some other assault? With so much centralised power it will be quite a prize for any self serving megalomaniac to get their hands on. Then what happens if there are too many people involved in the decisions and a divisions occur? Do the knifes come out to sort it out? Who has the final say and what checks and balances are their to make such a large, centralised system works responsibly?

The SDR (Special Drawing Right) from the International Monetary Fund does look to hold some promise in over coming the conflict on the foreign exchange markets while limiting the risks of such a powerful centralised system. This is done by spreading the risk over many currencies as the accounting of global supply and demand builds. With the right direction it can ease and build into a more responsible global trading mechanism.

The Euro test has shown many flaws, injustice and redistribution as a single cultural currency is imposed on many different cultures. Taking economic management away from the national state has also relegated government from a social to a business organisation as there is reduced capability to work and direct economic forces within and external to the nation.

If a global currency is to introduced then I would like to see a unanimous vote in the UN General Assembly as to its structure and definition. I do think that it is very important to respect other currencies and work in conjunction rather than replace as there will always be other ways people will trade. If we fail to recognise this then we fail to defend our self determination.


reply to post by dorkfish87

The US dollar didn't become the reserve because America wanted it to. It became the reserve because people use it. Everywhere.

The rise of the petro dollar and having the global oil trade limited to USD provided the dispersion of US currency around the world. Iraq and Libya have tried trading oil in other currencies and we know what happened there. Russia and China have been more successful in recently detaching oil trade in USD as their size and military helps a lot.

reply to post by kwakakev


That picture looks pretty Australian. Where is it?

If a global currency is to introduced then I would like to see a unanimous vote in the UN General Assembly as to its structure and definition.

And yeah. Me too. It seems clear that we need something that we all feel is fair.

reply to post by Germanicus


It is near Manning George, Northern WA. It is quite typical of much of the Australian landscape and quite similar to what you could find in many of the states, not sure about Tasmania though as have not been there yet.

Originally posted by kwakakev
reply to post by Germanicus

 

It is near Manning George, Northern WA. It is quite typical of much of the Australian landscape and quite similar to what you could find in many of the states, not sure about Tasmania though as have not been there yet.

It looks alot like where i live in central NSW. Australia has a distinct harsh feeling dryness in alot of it. Bit greener in Tasmania.

I hate that they [the US] are in the middle east.

The Chinese will do just as much in the Middle East. They have indicated they are going to build bases, and they have conducted all sorts of wargames there.

I have also almost lost patients with the blissfully ignorant American public. Always defending their government on an international level before resuming their petty partisan bickering nonsense.

And you have preference for the Chinese propaganda machine that does not even let its citizens accidently self-educate with google. The Chinese are not even allowed to speak out in any form, and it is miraculous if they learn something the government did not teach them.

America is a monster. I cant understand why so many people have trouble with that. How on earth could China be worse than America?

Quite easily. Your "anything is better than America, so let's back China" argument is like saying... "These are rotten eggs! I guess we will have to eat the rancid meat instead!"

Do you really want to throw off one world dictator and enthrone an even more brazen one?

I like their State Capitalism and it obviously works.

Capitalism is capitalism. It drains resources and it puts all the power in the hands of industry, and destroys everything it can't make use of. The Chinese are no different in this sense... they pollute like there is no tomorrow and deplete everything in sight like it is their birthright to do it. Capitalism must be regulated and reined in... it was not right when the US did it, and it is not right for a country of1.3 billion people to do it in turn. It was grossly unsustainable for the US to do it... do you think four times as many people can do it without gross consequences for the world biosystem?

The Chinese cannot hope to offer the western lifestyle to all of its people. The west cannot offer the western lifestyle to all of its people. But China chooses to willingly deplete the earth to try. You really want to give another abusive superpower free reign to destroy the earth?

reply to post by joeraynor

The Chinese cannot hope to offer the western lifestyle to all of its people. The west cannot offer the western lifestyle to all of its people. But China chooses to willingly deplete the earth to try. You really want to give another abusive superpower free reign to destroy the earth?

Yes. Westerners are starting to make me sick to be honest. We are all selfish and greedy. We have been exploiting third world countries for decades and we didnt care. I want the power to move to the East. The American government are parasitic devils.

Imagine if everything switched. If the west fell apart and the East and emerging nations like the BRICS took control and exploited us. That would be awesome. I hope its in our lifetime so all these jerks know how it feels to be living in a third world. America looks more and more like a third world nation every day. Tent Cities and half a population on food stamps. Amongst other things.

Why shouldnt the East take over? The west has failed.

reply to post by Germanicus


It is about 20% on foodstamps, but yeah, same difference, too many.

I could honestly see the Chinese people being good world leaders... they are humble and good-hearted. They need to destroy their government again though. They can't keep on the same path as they have been traveling. I think that is what it comes down to. We need to overthrow these oppressive governments. The Chinese need to overthrow their failed communist state, and the US needs to overthrow its failed banking-corporatetocracy which controlls the government and media, and exploits everything it sees.

Originally posted by joeraynor
reply to post by Germanicus

 

It is about 20% on foodstamps, but yeah, same difference, too many.

I could honestly see the Chinese people being good world leaders... they are humble and good-hearted. They need to destroy their government again though. They can't keep on the same path as they have been traveling. I think that is what it comes down to. We need to overthrow these oppressive governments. The Chinese need to overthrow their failed communist state, and the US needs to overthrow its failed banking-corporatetocracy which controlls the government and media, and exploits everything it sees.

Half are on benifits. And over 43 million on food Stamps.

Almost half of all Americans live in a household where at least one member received government benefits in the first quarter of 2011, according to a new report. Data from the Census Bureau revealed that 49.1 per cent of the population live in a household which gets at least one kind of government benefit with many likely to receive more than one. The figure marks a steep rise in the amount of people claiming benefits, in the early 1980s only 30 per cent of the population were in a household that got government hand-outs, reported the Wall Street Journal. Read more: www.dailymail.co.uk...

www.dailymail.co.uk...
I agree that China could be worse. But I do not think America are good. I also think its close to the time we should roll the dice.

And this is because China treats it's citizens sooooo well, has an upstanding government policy, commits no crimes and is in no way corrupt. Yeahh right!

Originally posted by Gridrebel
And this is because China treats it's citizens sooooo well, has an upstanding government policy, commits no crimes and is in no way corrupt. Yeahh right!

They are no worse than the US.

The US has no excuse. Having tent cities in America is a horrible thing to see.