Its Official: china Pursuing new Strategic Bomber

originally posted by: BASSPLYR
a reply to: anzha

Hey anzha. You hink theyre trying to build a Bone or a B2? I figure a B2 with the electronics suite comparable to a bricked out playstation 4.

Doesnt matter. Either way theyll get spotted and spanked the second they enter us airspace. We have something specifically to detect that type of incursion.

They're not there to threaten the USA directly. They will be very threatening to Japan, Taiwan, Vietnam, Phillipines, Korea, Singapore, Indonesia, India, and Australia. And even Russia.

originally posted by: intrptr
a reply to: Aliensun

They don't even have to fire a shot, just dump our enormous debt, switch to a new currency and disrupt oil production.

Game over.

That is not how the bond market works. They can not "just dump bonds". And large scale moves would devalue the bonds they hold. This in turn would crash the bond market and the Chinese economy. The RMB desperately needs the acquisition of U.S. debt to maintain the peg to the USD. Dumping the U.S. debt would cause the RMB to go parabolic. This would completely wreck their economy. Remember foreign govts. and institutions only hold ~28% of U.S. debt.

a reply to: Imperium Americana

You left out switching to new currency. They been buying up gold to back it. They're not stupid, they see the writing on the wall.

Why are China and Russia buying tons of gold?

originally posted by: intrptr
a reply to: Imperium Americana

You left out switching to new currency.

They already have their own currency. What else are they going to do?

They been buying up gold to back it. They're not stupid, they see the writing on the wall.

OK, and what is that going to do?

2015, Chinese gold reserves are 53.31 million troy ounces.

www.cnbc.com...

Multiply by a gold price of $1350 per ounce, that is about $72 billion dollars worth.

Their currency reserves (bonds) are $3 trillion, i.e. $3000 billion dollars worth. The financial market is much deeper than the commodity market (especially gold) and there is no possible way for China or any other large developed market nation to maintain a substantial fraction of currency reserves in gold.

a reply to: mbkennel

Yeah, but at the same time, if we see a global collapse of the whole fiat currency house of cards, then whoever has the gold, will by default make the rules.

All it takes is a non-zero chance of the former happening in the next decade or two for it to suddenly make sense for nation-states to hedge against that catastrophic possibility by building gold reserves of their own.

Back on topic though, I wonder what the odds are that it's the "B-2-sized flying parallelogram with wingtips" design that's been speculated about over the past couple years.

Even if it's RCS can barely beat Senior Peg's, it will still be a tremendous game-changer in terms of geopolitical politics.

It doesn't have to be anywhere near as good as what we've got, all it has to be is good enough to terrorize China's neighbors and the rest of the world at large.

Money.ya gotta spend it on something...like Ghost cities..

a reply to: mbkennel

there is no possible way for China or any other large developed market nation to maintain a substantial fraction of currency reserves in gold.

You searched the whole country did you? How would you know what is in 'reserve'?

I wouldn't put a lot of stock in a countries 'official reserve' numbers.

That goes for any/every country.

originally posted by: intrptr
a reply to: Imperium Americana

You left out switching to new currency. They been buying up gold to back it. They're not stupid, they see the writing on the wall.

Why are China and Russia buying tons of gold?

Oh no! They pull that guess what happens...the petro-dollar falls. Then guess what happens. The U.S. pull all restrictions on oil and natural gas exports. Chinese gold back securities then flow into the U.S to pay of it's heavily depreciated liabilities. The U.S. sits on 8kmt of gold. China has like 1.8kmt. No one is worried.

a reply to: Imperium Americana

Chinese gold back securities then flow into the U.S to pay of it's heavily depreciated liabilities. The U.S. sits on 8kmt of gold. China has like 1.8kmt. No one is worried.

You seen inside Fort Knox, lately? No-one has. Neither does anyone know exactly how much gold every nation has. They of course have their 'official' holdings...

originally posted by: Imperium Americana

originally posted by: intrptr
a reply to: Imperium Americana

You left out switching to new currency. They been buying up gold to back it. They're not stupid, they see the writing on the wall.

Why are China and Russia buying tons of gold?

Oh no! They pull that guess what happens...the petro-dollar falls.

Does anybody know what the 'petro-dollar' actually was? It was the dollars earned and owned by the Mideast members of OPEC in the 1970's as they jacked up the price successfully, and then returning back into the world financial system.

Then guess what happens. The U.S. pull all restrictions on oil and natural gas exports. Chinese gold back securities then flow into the U.S to pay of it's heavily depreciated liabilities. The U.S. sits on 8kmt of gold. China has like 1.8kmt. No one is worried.

The dominance of the US dollar in the world financial system is not because of petroleum. The petroleum trade is insignificant next to the bond trade and the currency trade. Dollars are used because people who earn money like to keep them in dollars and transact in dollars because of the deep financial access they can get for banking accounts and investments worldwide.

After dollar is of course euro. People need to put their money somewhere and it will be in dollars and euros until there is a better alternative. The Chinese yuan could be it because of their economic power, but the Chinese are preventing that. There is not a free worldwide trade in Chinese bonds and currency, in and out, and a stable regulatory regime. If you were a foreigner, would you trust your billion in a Chinese bank, or a German bank? You're much more likely to keep your money and have legal rights in Germany and USA than in China. That's why dollars and euros are reserve currencies.

originally posted by: Imperium Americana

originally posted by: intrptr
a reply to: Imperium Americana

You left out switching to new currency. They been buying up gold to back it. They're not stupid, they see the writing on the wall.

Why are China and Russia buying tons of gold?

Oh no! They pull that guess what happens...the petro-dollar falls.

Does anybody know what the 'petro-dollar' actually was? It was the dollars earned and owned by the Mideast members of OPEC in the 1970's as they jacked up the price successfully, and then returning back into the world financial system.

Then guess what happens. The U.S. pull all restrictions on oil and natural gas exports. Chinese gold back securities then flow into the U.S to pay of it's heavily depreciated liabilities. The U.S. sits on 8kmt of gold. China has like 1.8kmt. No one is worried.

The dominance of the US dollar in the world financial system is not because of petroleum. The petroleum trade is insignificant next to the bond trade and the currency trade. Dollars are used because people who earn money like to keep them in dollars and transact in dollars because of the deep financial access they can get for banking accounts and investments worldwide.

After dollar is of course euro. People need to put their money somewhere and it will be in dollars and euros until there is a better alternative. The Chinese yuan could be it because of their economic power, but the Chinese are preventing that. There is not a free worldwide trade in Chinese bonds and currency, in and out, and a stable regulatory regime. If you were a foreigner, would you trust your billion in a Chinese bank, or a German bank? You're much more likely to keep your money and have legal rights in Germany and USA than in China. That's why dollars and euros are reserve currencies.

a reply to: mbkennel

It's getting off topic but come next month the Chinese yuan is entering the IMF's SDR, will be traded globally and will force China to reduce the amount they control their own currency. That is actually a good thing for the dollar since the yaun will go up in value compared to the dollar and keep more production domestic.