VICE @HBO and YouTube

[Gatefan1976]

THIS.

They will prevail using this tactic, and the participants will go along willingly...provided China does not morph into a draconian force as it currently exists in its own borders. TBH, most of China's behavior is a desperate need to control its population to available resources ratio without expanding its national territory. By expanding itself economically, it is effectively colonizing other nations without firing a single shot or deploying a single soldier. And this is all being made possible by the use of fiat money which has no intrinsic or real value other than what it is given by (literally) The Powers That Be. Using the power bought by having the most of this fiat money (China), the resources of other countries can be controlled and distributed by merely controlling enterprises within those countries. This is all economic and not imperialistic.

Its a winning strategy, whether the US likes it or not. How they deal with threats to this strategy is not their concern because the US is running around playing cop for them. And they openly control their Muslim population by restricting their activities:

http://www.alarabiya.net/articles/2012/08/04/230285.html

I think that any sort of Muslim extremism will be met with harsh retaliation if it hits China directly.

Hmmm..............................

 

[YJ02]

The Chinese market won't crash, at least not within our lifetime. They're the new emerging economical power right now. In fact, the US economy will become irrelevant long before China's economy reaches its homeostasis. There is already a trend happening internationally to move off the US Dollar as the standard global trade currency in favor of the Chinese Yuan. Just to name a few countries:

Australia
Brazil
Argentinia
Indonesia
India
Iran
UAE
Belarus
Hong Kong
South Korea
Russia
Japan
Malaysia
Venezuela
Syria
Cuba
Turkey
Dubai

As the US loses its grip on being the world's reserve currency, we'll see its trading value continue to drop over the long term and take down with it other currencies heavily dependent on the US.

OK--I'll take your word for it

but isn't part of what makes China and its currency so attractive the rate at which we (USA) borrows from China and the amount of bonds (or whatever) they hold in the US?

 

[Bluce Ree]

OK--I'll take your word for it

but isn't part of what makes China and its currency so attractive the rate at which we (USA) borrows from China and the amount of bonds (or whatever) they hold in the US?

No. Increased holding in a currency increases its value. Thus, the US dollar would increase in value as demand for it increases but that's no longer happening as it gets abandoned.

What makes the Chinese currency attractive is the prospect of direct trade with China, Chinese foreign investment and its growing economy. The Chinese can buy oil directly from Venezuela, for example, without having to use the US dollar as the trade currency.

 

[Overmind One]

No. Increased holding in a currency increases its value. Thus, the US dollar would increase in value as demand for it increases but that's no longer happening as it gets abandoned.

What makes the Chinese currency attractive is the prospect of direct trade with China, Chinese foreign investment and its growing economy. The Chinese can buy oil directly from Venezuela, for example, without having to use the US dollar as the trade currency.

The Chinese RIGHT NOW have the ability to crash the US dollar. They could literally do it in a single day. But that only means the end of the US dollar as the preferred currency. Nations converting or investing in Yuan (China) or Yen (Japan) could make the dolar basically worthless as an international currency.

 

[Bluce Ree]

The Chinese RIGHT NOW have the ability to crash the US dollar. They could literally do it in a single day. But that only means the end of the US dollar as the preferred currency. Nations converting or investing in Yuan (China) or Yen (Japan) could make the dolar basically worthless as an international currency.

It's worse than that. If the Chinese dump their current holdings of US dollars into the market, it will tank its value. Currency is no different than commodities when it comes to trade. Dump excess into the market and suddenly supply exceeds demand and the value drops.

 

[Overmind One]

It's worse than that. If the Chinese dump their current holdings of US dollars into the market, it will tank its value. Currency is no different than commodities when it comes to trade. Dump excess into the market and suddenly supply exceeds demand and the value drops.

That is EXACTLY the scenario I was envisioning. I used to think that the Chinese could suddenly "call in their debt", but they cant according to the terms of the loans. But they dont need to call it in if it is devalued so much it cannot be used for payment of the interest let alone the principal. Even Japan owns 800bn of US Treasuries. I have ranted about fiat money before. With no intrinsic value, it is played like any other commodity, just as you said earlier.

 

[shavedape]

That is EXACTLY the scenario I was envisioning. I used to think that the Chinese could suddenly "call in their debt", but they cant according to the terms of the loans. But they dont need to call it in if it is devalued so much it cannot be used for payment of the interest let alone the principal. Even Japan owns 800bn of US Treasuries. I have ranted about fiat money before. With no intrinsic value, it is played like any other commodity, just as you said earlier.

I'm not a "gold bug" by any means, but there is something to be said about having a gold standard for currency. Of course politicians don't like that as it means they are more restricted when it comes to playing their little games with our scrilla. I won't hold my breath for anything to change any time soon though.

 

[YJ02]

Anyone see last nights Vice? I found watching the skinny white guy reporter doing Laamb wrestling in Senegal quite entertaining.

 

[shavedape]

I didn't see the one about wrestling but I saw the one about the riots going on all over the place. Then they did the piece about the African gals being force-fed to become fat to get a husband. I found that one to be, well, forced in terms of legitimate reporting. Truth is, if I wanted to find examples of any agenda that I was pushing I could do it, like with the force feeding thing. That was just dumb.

I'm starting to wonder about the legitimacy of VICE when it comes to serious issues.