Hmmm...you are wise to take what the Chinese say with a grain of salt.

Too many talking heads and pundits are saying "happy days are here again", and "the stock market is at an all-time high', blah blah blah. They tend to do this to try and get people suckered back into the market, to try and boost their confidence in order to get them to loosen their purse strings and go long on stocks.

The sad thing about this is, things seem to be heading towards a bubble, and like all bubbles, when they get too big, they pop.

Right now, the markets are flying high. Too high, if you ask me, considering the state of everything else. The stock market appears to be completely disconnected from reality.

The prices of crude oil, and eventually gasoline, are ripping to the upside. It will be hitting the pumps soon enough, and people are going to get very upset when they fill up their vehicles. Good for the oil companies and associated industries, bad for the average person who's wages are not going up to match inflation. Gone grocery shopping lately??

Be careful of these loud "roars". Too much stock manipulation, not enough reality checks. The Chinese know this as well.

I call BS! Open your eyes and look around you. Do you see ANYTHING going on that indicates economic or employment growth? Don't know about you but I am done with being miss led and outright lied to!

Originally posted by FissionSurplus
Hmmm...you are wise to take what the Chinese say with a grain of salt.

The Chinese and the USA are at economic war.

If I was holding over a Trillion dollars in US treasury bonds, I would also be tempted to talk their value up.

Especially if I was planning on quietly getting out of US treasury bonds or even dumping them on the market.

Fact is, the Americans have successfully exported inflation to China (via quantitative easing - printing money to you and I) pushing up Chinese production costs while simultaneously weakening their own currency to help US exports.

The Chinese are not happy.

Expect them to be all smiles.

Hasnt China got the biggest reserves of $US?

Maybe theyre trying to convince others its a good bet so they can dump theirs without losing a bundle.

Besides the US at the moment China has the most to lose it if dies

a positive news story on the state of the american dollar? alot of people that were hoping for the demise of america for whatever reasons, are not going to be happy with this. lol i hope this report is true and that our economy will get back on track because times have been tough and americans have been at each others throats for some time now. bring down the price of gas and bring jobs/benefits/pensions back!!!

Strange things from china considering that they along with Russia are buying up huge amounts of gold despite record prices. Id say China is saying one thing and doing another!

Originally posted by conspiracy nut
a positive news story on the state of the american dollar? alot of people that were hoping for the demise of america for whatever reasons, are not going to be happy with this.

i hope this report is true and that our economy will get back on track

I think you will find that there is plenty of fight left in the USA.

It is also too easy to forget that China has its own economic problems:

- Massive local government borrowing
- An inexhaustible labor supply that has now been exhausted leading to ever rising wages &
- An economic growth model based on an unsustainable level of exports and fixed asset investment.

In the long run though, a country as industrious with China with 1.3 billion people is going to rise and rise, in much the same manner as the USA did in the 19th century.

Roars back?...really? More like whimpers and cowers in the corner afraid of getting the hose again....

I agree with a poster above. They release statements like this as a means of putting the restless herds of sheep in a calm and consuming mood. "Hey, China thinks we're number one again...let's go buy things we got no money for!"

I don't buy it...or much anything else these days.

The economy is limping forward a little bit...in some areas better than others. I have been fortunate since the beginning of the 4th quarter of 2012 and it seems to be continuing well this year. However, I am not rolling into the local bar and buying drinks for everyone. I have seen these types of economic times before...it's a stagger, a leap forward, a step back...a pause...kinda like a drunk trying to walk home from the local pool hall...

The economists said back when everything hit the crapper in 07/08 that it would take a decade or more to recover. Though things are crawling out of the pit, there is still a long-long way to go and it will never be the way it was before. I know a lot of people that are finally wising up...they don't frivolously spend their hard earned money on stupid crap anymore and ...thanks to the "great recession" prob never will again.

I second the opinion of the Chinese using the ancient book from Sun Tzu on the Art of War. Say one thing, do another.

Originally posted by jimmiec
I second the opinion of the Chinese using the ancient book from Sun Tzu on the Art of War. Say one thing, do another.

They have also been buying in large quantities of gold. A gold backed RMB is not a realistic option. There just isn't enough gold in the world to gold back a reserve currency.

But what are they planning with the gold?

I agree with most of the above posts. The US still has some fight left in it, and will continue to pull some aces out of the deck, but it won't last forever, and in the long run we're in decline, while other powers may rise through this transition.

Another factor to take into consideration is how the shale oil and fracking will impact the environment and exacerbate the ecological destruction we're unleashing across the globe. I guess the way the western elites may be looking at it is:

This is end game. We pulled out our cheap energy, polluted our cities, then spent time repairing the damage locally, and sucking the rest of the world dry. Now that our con game (petrodollar) is almost up, we must do what is necessary to come back on top. We will attempt this by any means, especially considering if we don't take the steps, other countries will.

Originally posted by ollncasino

Originally posted by jimmiec
I second the opinion of the Chinese using the ancient book from Sun Tzu on the Art of War. Say one thing, do another.

They have also been buying in large quantities of gold. A gold backed RMB is not a realistic option. There just isn't enough gold in the world to gold back a reserve currency.

But what are they planning with the gold?

Good question. Seems to me that, thanks to these "currency wars" we have going on, there will eventually be a currency "reset". Plus, they use fractional reserves of gold to back currency, it's not a one-to-one ratio.

Our Fort Knox is mostly empty. When Germany asked for a bunch of its gold back, they had to give the fed 7 years to give back 150 tons. The obvious reason is because the fed doesn't have it! They have to try and get it back anyway they can, hence the current market squeeze on the precious metals I'm currently seeing.

If they let gold and silver go in a true free market, both would be a great deal higher. But in order to buy what they need, they have to keep the price down. When they get what they need, they'll stop manipulating the price and it'll shoot up like it's rocket powered. Another reason why the stock market is kept artificially high right now. High stock market usually entices people to get out of precious metals and into other things.

However, the proof is in the pudding. China and India are buying it up, as much as they can, every day. We are bankrupt in terms of gold. All we have is oil and natural gas.....hence the aggressive drilling, deeper exploration of existing oil fields, and fracking the hell out of the land. It's all we've got.