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U.S. is currency war's "tomb maker"

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posted on Oct, 15 2010 @ 02:43 PM
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U.S. is currency war's "tomb maker"


www.reuters.com

The United States fired the first shot in the currency war and the rest of the world must be on guard for its deliberate strategy to devalue the dollar, a Chinese economist said in an official newspaper on Thursday.

In a front-page commentary in the overseas edition of the People's Daily, Li Xiangyang described the United States as the conflict's "first maker of tomb figures", a Chinese idiom that means someone who creates a bad precedent.
(visit the link for the full news article)



posted on Oct, 15 2010 @ 02:43 PM
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"The dollar's depreciation may appear to be market-driven. In reality, it is a depreciation coloured by very strong, deliberate actions," Li said in the paper, which serves as the chief mouthpiece of China's ruling Communist Party.

Without a weaker dollar, the United States would have no hope of meeting President Barack Obama's goal to double exports in five years, Li said.

Dollar depreciation will also serve longer-term interests by generating inflation and easing the debt burden that the financial crisis dumped on the U.S. government.

"If the global financial crisis was about nationalising private debt, then in the post-crisis period the urgent need of the United States is to internationalise its national debt," he said.


Some pretty strong rhetoric coming from China these days and I understand well why - the US is trying to put the blame on China (as they refuse to let their currency float) and hence, damaging the US competitive position, but the US has started economic warfare. First on Greece and for long by manipulating the financial markets.



www.reuters.com
(visit the link for the full news article)



posted on Oct, 15 2010 @ 02:49 PM
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... And this is the part where the bankers create international conflict... because no matter how you slice it, they make huge gains on the backs of the people who actually produce wealth.....

Sad and depressing really.

If I wasn't pressed for time I would rant further, but in the meantime I want to thank you for posting this thread! This is fodder for some truly serious discussion... especially regarding monetary policy... and who controls it.... and why.



posted on Oct, 15 2010 @ 03:29 PM
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Im not versed enough on economics to speak about the particulars of this article, however I have followed a rising American consciousness to our Chinese debt and the economic growth of China. It has the appearance of blatant propaganda "steering" public opinion towards both fear of China as well as blame for our economic situation on China. Its amazing how TPTB/Banksters constantly use these types of highly charged misdirections to take attention off of them.


edit on 15-10-2010 by Shadowfoot because: (no reason given)



posted on Oct, 15 2010 @ 03:55 PM
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Apparently your personal wealth in this country hasn't suffered enough. Better devalue the dollar, create inflation and pay back debt at 50 cents on the dollar.

What a brilliant strategy. Thanks government!



posted on Oct, 15 2010 @ 04:25 PM
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reply to post by Mdv2
 


Well I hope the US wins!




posted on Oct, 15 2010 @ 04:28 PM
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Not sure how reliable this is as it comes from WND, but since the IMF has officially announced that they want the Dollar eventually replaced by a new world reserve currency, this could be true:

420 banks demand 1-world currency



posted on Oct, 15 2010 @ 04:36 PM
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reply to post by Mdv2
 


I think it's dubious simply because it's 420 banks....



posted on Oct, 15 2010 @ 07:38 PM
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What would be a better way to spend your money before it become obsolete ?
Abuse it, and I believe that is what USA is doing, devaluing/abusing the dollar before this 1 world currency comes up. China is sure uneasy about this since USA have lots of debt to them, even though lower dollar is good to them, they dont want it to go to low, yet Obama freely creating trillions of money to help himself and a few - Rescue, another rescue, stimulus, healthcare, donation to Israel and another brand new spanking stimulus!. The US Treasury postponed its twice-yearly currency report, putting off a difficult decision on whether to brand China as a currency manipulator, its that bad.

Recent price action has prompted many nations to reconsider their attachment to the US dollar, none more so than the oil exporting nations of the Persian Gulf. The GCC nations peg their currencies to the dollar, and the greenback's recent weakness has created massive inflation in their economy. The GCC makes most of its income in dollars from the sale of oil, but purchases more than 25% of its goods and services from the euro zone region. As a result of a much higher EUR/USD, prices have skyrocketed in the region to the point that many authorities in the region have started to debate the issue of de-pegging and even pricing oil in euros. The trend in the GCC reflects a much larger, more secular phenomenon of the erosion of the dollar's influence in global trade and finance.

Iran have taken a lead in few previous year by introducing a new oil bourse (IOB) based on EUR, Rial and a basket of other currency. This move likely will success but slowly due to EURO problem, then greenback shall lose its domination as world currency.
There are few things that might make dollar become hold worthy,
-make profit (unlikely),
-war (plausible),
-change of economic policy (unlikely- Bernanke now performing quantitative easing),
-appraisal of bankers because its at low (varies).

USD - outlook looks dim and government economy policy to blame, sounds like Greece to me

edit on 15-10-2010 by RainCloud because: (no reason given)



posted on Oct, 15 2010 @ 08:12 PM
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reply to post by Mdv2
 


Out of curiosity I thought China was in violation of the currency reform. China for the longest time controlled how much their currency is worth, allowing for cheaper labor at home, and undercutting other markets in other countries with that technique.

Upon their entrance into the WTO I thought one of the conditions was free floating their economy (which is undervalued based on their economic strength).

Couple this new mess to the tariff war brewing over market access.

@Greece comment

China has offered to buy up their entire debt. Chinas estimated cash reserves on hand are close to 2.5 trillion.


edit on 15-10-2010 by Xcathdra because: (no reason given)



posted on Oct, 16 2010 @ 05:45 AM
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Originally posted by HunkaHunka
reply to post by Mdv2
 


I think it's dubious simply because it's 420 banks....


What does the number 420 stand for?

Either way, I posted this some time ago: Official: IMF Website speaks of New World Currency



posted on Oct, 16 2010 @ 01:32 PM
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Oh, the irony!

The Chinese spent the better part of 30 years ARTIFICIALLY valuing the Yuan.

They went so far as to "pin" their currency to the USD and set a very tight range of fluctuation which they would not allow their currency to break through. This meant that the Yuan spent decades being less valued than the dollar despite soaring trade imbalances with countries all around the world. That's how the imbalances got so extreme.

They cheat and steal, ignore international patent laws, manipulate currency for decades and then come out of the gates doing finger pointing and hurling denials.

If the world thought American greed and influence was bad, wait til we all get a hold of the new shot callers, LOL.
edit on 16-10-2010 by Fiberx because: typos, as usual.



posted on Oct, 16 2010 @ 02:05 PM
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Originally posted by Mdv2

Originally posted by HunkaHunka
reply to post by Mdv2
 


I think it's dubious simply because it's 420 banks....


What does the number 420 stand for?




Sounds like you have a search project....



posted on Oct, 16 2010 @ 05:14 PM
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Originally posted by Xcathdra
reply to post by Mdv2
 


@Greece comment

China has offered to buy up their entire debt. Chinas estimated cash reserves on hand are close to 2.5 trillion.



This is news to me, I havent follow up with financial these days , if they manage to buy the entire stuff, the EUR is the way to go. But EUR is already appreciated, now, do I see another country being bought ?


If all Greece debt bought up by China, then China will have their say on EU countries matter too, at least on Greece, but some EU countries themselves are pretty strong, now a conflict will come up later. Even if Greece dont want to consolidate its debt to China, China still have other PIIGS country to buy.

On America side, China was performing its monetary power on some political stuff, nothing new about that. Maybe Bernanke is trying to push China aside ? Yeah, China really play it dirty, but they are smart too.

As I mention in other forum and predicted by Baba Vanga
, China is already the next super power.
Uncle Sam and greenback - thanks for all the fish.



posted on Oct, 16 2010 @ 08:20 PM
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Reuters - China offers to buy Greek debt


(Reuters) - China offered on Saturday to buy Greek government bonds when Athens resumes issuing, in a show of support for the country whose debt burden pushed the euro zone into crisis and required an international bailout.


For some reason I can't get Bloomberg to load up. They have an article that puts Chinese currency reserves at around 2.65 Trillion.

China is currently trying to work with the EU countries with debt issues in order to strengthen the Euro, which a lot of countries are looking to, to replace the US Dollar.



posted on Oct, 16 2010 @ 09:08 PM
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reply to post by Mdv2
 


Get ready for currency wars and hyperinflation. The elections with conservatives taking office will only be a band aid and will not fix the plunging dollar right away. Time will tell if the newly elected conservatives will have the intestinal fortitude to resend these tax and spend insane programs. China holds most of our debt not to mention Saudi Arabia. Would this be the reason the President bowed down to the leaders of those countries? Since our country is technically broke could we say that the president's salary and Congress salaries are being paid by those countries? China is a communist country. Is China pushing their communist agenda thru the president and Democrat controlled Congress? ^Y^

www.moneyandmarkets.com...

edit on 16-10-2010 by amari because: (no reason given)



posted on Oct, 16 2010 @ 09:16 PM
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reply to post by amari
 


I would assume the Chinese Government is pushing their agenda with all members of Congress, and not just Democrats. China holds the bulk of our debt, so why they are interested in a currency and trade war is lost on me. Its kind of like buying a 300 million dollar painting, only to damage it intentionally bringing its value down and destroying the investment.

Depending on what conspiracy theories you believe in, this is one of them. Supposedly the US will use Gold reserves in an attempt to pay off our debt, while China forces an issue with the currency, dumps their reserves in Gold, forcing the price down, and undercutting the US's ability to get out from under their thumb.

Like I said, its a conspiracy theory.

Whomever we get in Congress, party politics aside, had better pay attention to the people and stop the wreckless spending. It used to be considered honorable to go into public service - the pay was low but the retirement was decent to make up for it. Now days, government sector jobs pay more than their private sector counterparts.

I am all for a balanced budget amendment, not spending more than we take it, and using tax money specifically for why its taxed.If it means a loss in service then we will adapt and deal with it. Until our house is in order, we are screwed.



posted on Oct, 16 2010 @ 09:17 PM
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And the games go on........

2nd




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