http://dailyreckoning.com/monetizing-debt-the-grandest-of-larcenies/ Covering the economy, global markets and world politics. Sun, 22 Nov 2009 06:01:02 -0600 http://wordpress.org/?v=2.8.4 hourly 1 http://dailyreckoning.com/monetizing-debt-the-grandest-of-larcenies/#comment-10827 Burrowbee Mon, 08 Jun 2009 08:29:25 +0000 http://dailyreckoning.com/?p=16190#comment-10827 Lets keep away from the doom-mongering WWIII scenarios. I think there will be currency debasement by the west (US, UK, EU, JP). Meanwhile, China and other "creditor" nations will invest in land and commodities (priced in USD). The US hopes that by debasing their currency, they will force China to float their currency freely (and thereby regain a manufacturing base in the US). But China will keep their currency pegged to the USD and maintain their competitive advantage. Chinese industry continued to prosper whilst commodity prices were high in 2007-08. Why should they not continue to prosper since commodity prices have fallen off a cliff (the rebound in commodity prices is negligible by comparison to their highs in 2008)? We now trade globally. This means there will be a constant flow of wealth from the west to the east until an equilibrium in the value of goods and services is achieved. Lets keep away from the doom-mongering WWIII scenarios.
I think there will be currency debasement by the west (US, UK, EU, JP). Meanwhile, China and other “creditor” nations will invest in land and commodities (priced in USD).
The US hopes that by debasing their currency, they will force China to float their currency freely (and thereby regain a manufacturing base in the US). But China will keep their currency pegged to the USD and maintain their competitive advantage.
Chinese industry continued to prosper whilst commodity prices were high in 2007-08. Why should they not continue to prosper since commodity prices have fallen off a cliff (the rebound in commodity prices is negligible by comparison to their highs in 2008)?
We now trade globally. This means there will be a constant flow of wealth from the west to the east until an equilibrium in the value of goods and services is achieved.

]]> http://dailyreckoning.com/monetizing-debt-the-grandest-of-larcenies/#comment-10797 Ward Scott; Wood Mon, 08 Jun 2009 00:35:12 +0000 http://dailyreckoning.com/?p=16190#comment-10797 I have a question, looking down the road and the collapse of all fiat currencies (paper) does seem to be inevitable, affecting the whole world, does this mean that we are going to start another shooting or nuclear world war against each other or are we going to be smart this time and destroy the central banks instead, the perpetraitors (sic) of this farce to begin with? I have a question, looking down the road and the collapse of all fiat currencies (paper) does seem to be inevitable, affecting the whole world, does this mean that we are going to start another shooting or nuclear world war against each other or are we going to be smart this time and destroy the central banks instead, the perpetraitors (sic) of this farce to begin with?

]]> http://dailyreckoning.com/monetizing-debt-the-grandest-of-larcenies/#comment-10788 Bustossa Sun, 07 Jun 2009 22:28:55 +0000 http://dailyreckoning.com/?p=16190#comment-10788 yeah, i have been saying the same thing: cut spending across the board, the private sector is burning and the public sector is growing???? WTF? yeah, i have been saying the same thing: cut spending across the board, the private sector is burning and the public sector is growing???? WTF?

]]> http://dailyreckoning.com/monetizing-debt-the-grandest-of-larcenies/#comment-10740 Dennis (EU) Sun, 07 Jun 2009 07:17:34 +0000 http://dailyreckoning.com/?p=16190#comment-10740 Japan, Austalia, UK, EU will have to do the same, no other way out either. I guess China will soon realize they are cheated like toddlers by Geither&Co, and will focus more and more on its own huge market potential - doing so putting down a solid foundation, at least for their own future. For the rest I hope WWIII can be prevented (which I don't think). Japan, Austalia, UK, EU will have to do the same, no other way out either.
I guess China will soon realize they are cheated like toddlers by Geither&Co, and will focus more and more on its own huge market potential – doing so putting down a solid foundation, at least for their own future.
For the rest I hope WWIII can be prevented (which I don’t think).

]]> http://dailyreckoning.com/monetizing-debt-the-grandest-of-larcenies/#comment-10642 Monetizing Debt: The Grandest of Larcenies | BuyWithoutYourBank.com Sat, 06 Jun 2009 03:18:38 +0000 http://dailyreckoning.com/?p=16190#comment-10642 [...] is the original:  Monetizing Debt: The Grandest of Larcenies Share with [...] [...] is the original:  Monetizing Debt: The Grandest of Larcenies Share with [...]

]]> http://dailyreckoning.com/monetizing-debt-the-grandest-of-larcenies/#comment-10640 Bluebird Sat, 06 Jun 2009 02:44:45 +0000 http://dailyreckoning.com/?p=16190#comment-10640 Thank you...great article! Thank you…great article!

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