American Economics Thread
- Thread starter Bernard
- Start date
This
This going to suck for Trump, suck in so many ways more then one. Maybe if he didn’t decide to be a dick bag towards China, he wouldn’t be in this situation. Only this time, the USA is going to have to bear the consequences along with him. No nation can keep on messing around with the dollar without end like this, it just isn’t acceptable.
It will most likely be Biden's problem since it's likely than not that Trump gets voted out in November.
The GOP will then go back to the old tactic of blaming Biden + Democrats for economic problems just like they did with Obama.
IMO it's one of the reasons why China and many other countries are waiting to see the outcome of the election, because it would dictate foreign policy. It's not in China's interest to create a difficult situation for Biden if he is voted in.
From RT, ex IMF chief warning. Make of it what you will. It's still a good read.
‘Blow-up’ event could COLLAPSE US DOLLAR as America's debt mounts, ex-IMF official warns
The US dollar’s status as the dominant global currency is at risk of being eroded because of mounting government debt, according to Zhu Min, former senior executive with the International Monetary Fund (IMF).
Rest of the article:
‘Blow-up’ event could COLLAPSE US DOLLAR as America's debt mounts, ex-IMF official warns
The US dollar’s status as the dominant global currency is at risk of being eroded because of mounting government debt, according to Zhu Min, former senior executive with the International Monetary Fund (IMF).
Rest of the article:
I've been seeing these kinds of news for months and still hasn't happened. Could it be the same as the predictions from the opposite side that China will collapse and it didn't happen either. How truthful is this?
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One thing to note is that a collapse takes time to happen and yes they have been wrong about China almost all the time because they refuse to understand what drives China forward and the fact that China does strive to improve while all the complainers often ignore that fact. One the other hand, the collapse of the dollar is happening, just that it take a long time but given that the dollar is being printed like crazy right now to prevent the economy from straight up exploding, economic activity has completely stopped and the pandemic is preventing anyone from spending to keep the economy moving and the rioters are causing damage all over, I would say that an economic crisis that is ravaging the states is indeed happening. I would say that should the stimulus package end, things will definitely not end well and would go quite a fair distance to really destroy the trust in the dollar. This is inevitable since the powers that be are making all the wrong choices here
You can track the faith of the dollar as they tend to correlate with gold and silver prices, although you need to account for some profit taking.
Oh look how fast gold went in these few months, from about $1300 to an an ounce to just about $1900 now.
Another thing to know is that China and Russia are the two top gold producers in the world and has banned much of their export.
As for the other two in the top five, Australia and Canada, they seem willing to sell every freaking ore they have for China for the bucks. If you are an investor, you have to know the big guys are hoarding the gold as a reaction to losing their faith on the US dollar and that's going to raise gold prices up.
Yes, you're absolutely right. The Naysayers have been predicting the fall of China or/and USA for sometime. None have been correct so far. But this doesn't mean it's not going to come to past.
One big difference to the two different camps of Naysayers is, in my opinion, prejudice and wishful thinking.
The West Naysayers always assumed China's down fall from their prejudice that authoritarian governments could not have performed any better than liberal democracy, couple this with a bit of xenophobia, or/and self loathing et al Gordon Chang. And you have their doomsday prediction. The only thing is the real world hasn't been kind to them.
Whereas the Naysayers of USA's demise is manly rooted in observations and economic theories.
I think it's a given that China will "Il surpasso" USA economic size sometime in the future. It is not normal for a nation with 4 times the populations to have 1/10th of USA income as far back as only 30 years ago. But that was all due to events in history.
What is uncertain, it is the demise will be accompanied with the lost of the "world currency status". So the USA Naysayers are looking to the USA's debt mountain as proxy for the collapse of USA economy.
What I can reasonably be certain is when the time comes, it is not going to be pretty, because the economics system is built on like a house of cards. With countries dumping the holdings of the dollar, the dollar got no where else to go but home, where it'll put inflationary pressure like never before. Because it'll be a double whammy. More money chasing outputs, and what is being produced goes to foreigners outside the USA leading to reduced supply.
This is one of the reasons why USA is pulling out all the shots to stop China's rise. But it is not if, but when. And this is where no one can agree as to when.