The stock market is crashing!!

[Spikesoldier]

China will not be forced to do anything.

so what happens if the dollar takes a shit on the international market? you dont think china would have to react?

they would have to either re-peg it or let the yuan go on the market at its real value, not an artificial one. china's industry would lose its global competitive advantage of having a cheap currency. if they keep the peg with a significantly weak dollar, then they are going to see sky high inflation, which is already a problem over there.

i think we would see a lot of factorys out work and china in real trouble if the yuan had to go by its real value.

 

[Texashiker]

China will absolutely be forced to do something.

China will not be forced to do anything.

They cannot keep accumulating USD assets to fuel their trade deficit,

Sure they can, as long as US debt is for sale, china can keep buying it.

so what happens if the dollar takes a shit on the international market? you dont think china would have to react?

China would probably react by downgrading the US dollar. From there, the chinese yuan will probably replace the dollar on the world market.

 

[ImpulsE69]

I hope the oil companies get burned worse then all, im entirely placing the blame of a second mild recession on their unreasonable stranglehold on energy

Won't happen. They have their mitts in everything. Even if someone smacked their hand they have made so much money, it won't mean a thing.

in other news....oh come on guys. We were out of the recession like 8 months ago according to our government. You know the, "If I smile and say it's so, it's so" speech.

 

[Spikesoldier]

China will not be forced to do anything.




Sure they can, as long as US debt is for sale, china can keep buying it.




China would probably react by downgrading the US dollar. From there, the chinese yuan will probably replace the dollar on the world market.

hahahaha chinese yuan? the world's reserve currency? HAHAHAHAHAHAH

i think we will see the swiss franc as the new reserve if the US and EU both tank.

already, the dollar has lost about 25% of its value vs the swiss franc in the last five months. must be a lot of corrupt people cashing in their dollars into the swiss bank account.

 

[LegendKiller]

China will not be forced to do anything.




Sure they can, as long as US debt is for sale, china can keep buying it.

China can't NOT buy USTs. If they don't buy USTs then they have to buy some other USD denominated asset. To sell the USDs they gain by the US trade surplus they would have to put more USDs into the market, depressing the Yuan, requiring them to depreciate the Yuan through printing, fueling internal inflation. Thus, the only solution is to acquire USTs. They don't want to buy real USD assets, such as RE, otherwise they get hammered on the assets like Japan did.

You aren't very good at this.

China would probably react by downgrading the US dollar. From there, the chinese yuan will probably replace the dollar on the world market.

How can they "downgrade" the USD? First off, they depend on the US consumers buying the cheap stuff in order to create a Chinese middle class. Second, the Yuan couldn't replace the dollar as that would require a non-communist government *AND* the currency to float against all other currencies, freely. They are at least a decade, if not far more, away from that.

 

[Printer Bandit]

http://www.apmex.com/

 

[Texashiker]

China can't NOT buy USTs. If they don't buy USTs then they have to buy some other USD denominated asset.

What are these assets you keep referring to?

Are the chinese buying new york, houston ship channel, interstate hwy 10,,,,,,,?

 

[Spikesoldier]

What are these assets you keep referring to?

Are the chinese buying new york, houston ship channel, interstate hwy 10,,,,,,,?

gold, oil, diamonds, etc

 

[Texashiker]

gold, oil, diamonds, etc

You mean stuff that belongs to someone else besides the government? Are you saying the government is planning on seizing the mineral rights of the citizens?

Unless your talking about the gold that the federal reverse has?

 

[ElFenix]

You mean stuff that belongs to someone else besides the government? Are you saying the government is planning on seizing the mineral rights of the citizens?

Unless your talking about the gold that the federal reverse has?

they give us stuff, we give them dollars. the only thing they can buy with those dollars is buy stuff from people selling things in dollars. that is USTs, real estate, stocks, bonds, etc. they don't want anything other than USTs because japan got burned buying assets other than USTs back in the early 90s.

Assets should not be counted, the only thing that should be considered is income ability.

uh, what do you think the value of an asset is?

 

[Stuxnet]

Yep... I'm taking a beating... awesome.

 

[SP33Demon]

On top of the slide last week, it's a lot in a short time.

Getting ready to make another order for silver.

Silver just tanked 7%. Great move. lol

 

[Texashiker]

China can't NOT buy USTs. If they don't buy USTs then they have to buy some other USD denominated asset.

They cannot keep accumulating USD assets to fuel their trade deficit,

Make up your mind, either china can, or not keep buying US debt?

As long as the us government keeps spending money like a teenage girl with daddies credit card, the chinese government will keep buying that debt.

If we want to stop the chinese from accumulating our debt, then the US government should not spend more money then they take in.

uh, what do you think the value of an asset is?

Income and assets should be treated different when it comes to a government, as compared to a person.

Assets - The government does not own anything, the people as a collective whole own it, the government manages the assets for the people.

Income - The governments income is through taxation.

When it comes to my assets and my income, I am the only person that has a claim to those items, so they belong to me.

 

[MiniDoom]

need more stimulus

 

[spidey07]

Silver just tanked 7%. Great move. lol

Yes it is. This profit taking of gold/silver was expected. Notice I said "getting ready to".

 

[BAMAVOO]

I am taking out a big loan from my 401k, that way I will have to repay that amount and I will at least have that again.

 

[Jeffg010]

Looks like the Dow is coming back up so hopefully we finish strong but I have my doubts. The last 20 mins the dow went up 60-70 points.

 

[FelixDeCat]

Ummmm hello!!


If you buy above 10,000 in the DOW, you are doing it wrong. All you people with short term memories forget just 3 years ago when we fell from 14,000 in the DOW all the day down to 6500!! People bought at 12, 10, 8, 7, etc... We had DOW down 1000 and then up 1000 with two days! It was crazy! That was because of a world wide private credit crises.


Now its a world wide public credit crises. If anything, this reminds me of 2007 when the first cracks of the global credit crises were starting to emerge. It didnt end until 2008.


We may stabilize around 10k, but Ill bet we see sub 10 before 12/31/2011. :'(

 

[FelixDeCat]

need more stimulus

10 years of easy money and borrowing to do it have got us in this mess in the first place.

QE3 is DOA.

 

[Schfifty Five]

Looks like the Dow is coming back up so hopefully we finish strong but I have my doubts. The last 20 mins the dow went up 60-70 points.

What's your definition so of "strong"? Only down 200? 250?

There is no way it will be positive by close of day today.

 

[SP33Demon]

Yes it is. This profit taking of gold/silver was expected. Notice I said "getting ready to".

Ah, I see. Gold seems to be doing fine though. I wouldn't wait much longer on gold/silver though, they will be going up pretty high with the way things are looking.

 

[spidey07]

Big sell off going on. Down $436.

 

[Jeffg010]

What's your definition so of "strong"? Only down 200? 250?

There is no way it will be positive by close of day today.

To have it end on up swing for the end of the day but that ain't happening!

 

[Kroze]

Sure they do. The folks at the top piss all over everyone else whenever the hell they want to. We can't piss on them. See? Pee only goes from top to bottom.

Lol

 

[Kroze]

Looks like the Dow is coming back up so hopefully we finish strong but I have my doubts. The last 20 mins the dow went up 60-70 points.

Nah it got worse