Is Hilary a neocon hawk? What Iraq & Libya decisions tell us about her foreign policy

[shady28]

China has no ability to do that. That's not how treasury bonds work.

Second, we have no need for China to buy our bonds. Did you know that China has actually been selling US treasuries, not buying them, for quite awhile now?

Exactly, you didn't even notice.

Just like you to focus in on something not so important.

China in particular liquidated considerable dollars attempting to avoid devaluing the Yuan. They are already taking steps to avoid the use of the USD for purchases of oil.

The United States must have foreign countries to buy our debt. Whether that is China or some other country is immaterial. Without buyers of our debt, we cannot run the massive trade deficits and continue the deficit spending needed to support both the welfare state and our massive military-industrial complex.

No one is saying that the USD is not the reserve currency of the world - it absolutely is.

The US economy is totally dependent on selling debt at this point. This is why it frankly does not matter much who the POTUS is. One of their main jobs as Commander in Chief will be to protect this critical US interest. This means the US will be involved in the middle east. Obama talked a lot of shit about military adventurism before he was elected. I'm sure someone from the Federal Reserve gave him a facts of life talk from which he decided to go the proxy route.

If the POTUS doesn't honor Nixon's deal, we'll get to see what happens when the USD loses its reserve status.


http://energyfuse.org/chinas-currency-on-track-to-challenge-the-u-s-dollar-in-oil-markets/

The U.S. dollar has been the de-facto international reserve currency for seven decades, but its supremacy is being challenged rapidly. China’s forthcoming launch of a crude futures contract to be traded with the yuan is another major step to cement itself as a global economic powerhouse and challenge the U.S. currency’s dominance in oil markets. While China has a long road to travel if it wishes to unseat the dollar, the Asian juggernaut has taken a number of steps to boost its currency’s standing in the global marketplace, but the move to establish a crude futures exchange is among the most significant.
...
There has already been movement in displacing the dollar in oil deals, a trend that has not received much attention in mainstream U.S. outlets. China overtook the U.S. this year as the top importer of crude oil, and as major producers compete for market share from Chinese buyers, they have been willing to do deals in yuan. Both Russia and Iran are accepting the yuan, as are Angola, Venezuela and Sudan. Others are likely to follow.

 

[fskimospy]

Just like you to focus in on something not so important.

China in particular liquidated considerable dollars attempting to avoid devaluing the Yuan. They are already taking steps to avoid the use of the USD for purchases of oil.

The United States must have foreign countries to buy our debt. Whether that is China or some other country is immaterial. Without buyers of our debt, we cannot run the massive trade deficits and continue the deficit spending needed to support both the welfare state and our massive military-industrial complex.

No one is saying that the USD is not the reserve currency of the world - it absolutely is.

We most certainly don't need foreign countries to buy our debt. In fact, foreign countries only own about 1/3 of US debt and in cases where countries like China have stopped buying it other sources (and Americans!) have stepped in to buy it.

As for trade deficits, one of the big reasons they are as large as they are is BECAUSE of countries buying US assets. They aren't doing us a favor, they are doing themselves a favor.

The US deficit as a percentage of GDP last year was about 2.7%, which is pretty close to the level at which it is sustainable in perpetuity. Additionally, as the owner of a large, highly competitive, and well diversified economy we can deficit spend basically all we want in current low inflation conditions. (hello, Japan!)

The US economy is totally dependent on selling debt at this point. This is why it frankly does not matter much who the POTUS is. One of their main jobs as Commander in Chief will be to protect this critical US interest. This means the US will be involved in the middle east. Obama talked a lot of shit about military adventurism before he was elected. I'm sure someone from the Federal Reserve gave him a facts of life talk from which he decided to go the proxy route.

I don't know where you got the idea that our country is dependent on selling treasuries, but it's badly mistaken. Can you provide a source for this claim?

If the POTUS doesn't honor Nixon's deal, we'll get to see what happens when the USD loses its reserve status.

http://energyfuse.org/chinas-currency-on-track-to-challenge-the-u-s-dollar-in-oil-markets/

The US dollar isn't going anywhere as a reserve currency, it's silly to believe otherwise. China attempting to establish the yuan as another reserve currency is not the same thing.

 

[TheSlamma]

You're clearly not even capable of staying on topic - a world where the USD is not the reserve. You're thinking about how things work currently. Yes currently everyone needs to sell something to the USA - on credit or otherwise - in order to keep huge caches of dollars. That is the only way they can buy oil in sufficient quantities to keep their economy going.

In our hypothetical of China allying with OPEC and the Yuan becoming the reserve currency, they would not need their huge export market. Everyone would be willing to sell them whatever they wanted to buy, on credit even, in order to get Yuans.

The tables would be turned, completely. We on the other hand would need to figure out what we could manufacture, grow, or dig up to sell for Yuan in order to buy oil. No Yuans, no oil. No oil, no transportation, no power, no oil based products.

And there's no fucking chicken little, only your chicken shit little brain being unable to comprehend a relatively simple deal that is well recognized as being the source of American hegemony for the last 40 years.

https://en.wikipedia.org/wiki/International_use_of_the_U.S._dollar

He's not, his mission is to defy all logic, deny all facts and just get Hillary in and state that Democrats can not possibly do any evil, because republicans.

 

[shady28]

We most certainly don't need foreign countries to buy our debt. In fact, foreign countries only own about 1/3 of US debt and in cases where countries like China have stopped buying it other sources (and Americans!) have stepped in to buy it.

And there's your mental defect in a nutshell.


No you cannot run huge trade deficits over a long period of time without someone buying your debt. To think otherwise is like thinking you can trade with someone without giving them anything in return. The only reason dollars are accepted is because they're needed to buy things elsewhere (like oil), our exports do not justify the value of the dollar. Yours is the concept of thinking things are free; they are not.

China's purchases leveled off yes, but others stepped in and net purchases by foreign countries are still positive. Moreover, individuals overseas also stepped in. I already posted that chart.

 

[fskimospy]

And there's your mental defect in a nutshell.


No you cannot run huge trade deficits over a long period of time without someone buying your debt. To think otherwise is like thinking you can trade with someone without giving them anything in return. The only reason dollars are accepted is because they're needed to buy things elsewhere (like oil), our exports do not justify the value of the dollar. Yours is the concept of thinking things are free; they are not.

China's purchases leveled off yes, but others stepped in and net purchases by foreign countries are still positive. Moreover, individuals overseas also stepped in. I already posted that chart.

No, what happens is that your currencies change in value until the deficit is eliminated due to our exports becoming more competitive and theirs becoming less. Again, they aren't buying treasuries because it helps us, they are doing it because it helps them.

 

[shady28]

No, what happens is that your currencies change in value until the deficit is eliminated due to our exports becoming more competitive and theirs becoming less. Again, they aren't buying treasuries because it helps us, they are doing it because it helps them.

Translation : The value of the dollar collapses and real income for Americans goes to $900/year in current dollar valuations, just like the Chinese.

Sounds about right, no arguments from me.

 

[Jhhnn]

You're clearly not even capable of staying on topic - a world where the USD is not the reserve. You're thinking about how things work currently. Yes currently everyone needs to sell something to the USA - on credit or otherwise - in order to keep huge caches of dollars. That is the only way they can buy oil in sufficient quantities to keep their economy going.

Bullshit premise. Dollars are traded for other currencies in the international money market. Any major currency is instantly convertible to dollars. They don't need dollar reserves to buy oil when they can just buy dollars any time they want. Transactional fees are small. All it takes is most any sort of money in the first place.

 

[fskimospy]

Translation : The value of the dollar collapses and real income for Americans goes to $900/year in current dollar valuations, just like the Chinese.

Sounds about right, no arguments from me.

Nope. You have an extremely poor understanding of economics. The trade deficit is a fairly small percentage of US GDP and the currency correction that would take place between us and one other nation would come nowhere close to doing anything like that.

I don't know where you are getting your information from but you're being duped. I hope you can look beyond them in the future.