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Forums - Politics Discussion - China will not be lending the US much more money, wants US currency replaced!

Zlejedi on 07 August 2011
Soleron said:
Kantor said:
Fun fact: China does not own all of America's debt. Not even close. They own somewhere in the realm of $1.2 trillion of it, which makes them the single largest holder, but still puts them below 10% of the total pie. Indeed, only $4.5 trillion of the $14.5 trillion debt is held by foreign countries. A great deal of it is held by the government itself.

Yes. Most of that is pensions. I actually think they should just say "All pensions are cut by 20%" and then the debt would be correspondingly reduced. If spendng cuts are on the table why not pension cuts, as they would have much more effect on the debt?

Great idea. Hmm remind me when does the next election in USA start ? :)



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Rath on 07 August 2011
snakenobi said:
Viper1 said:
snakenobi said:
Viper1 said:

Replacing the world currency is no easy thing to undertake and would require many, many years to transition. Even as bad as the US dollar is right now, it's still the most stable of the major currencies.

I agree with China on the halting the purchase of T-bonds (which I think they should have stopped doing many years ago) but I don't think they'll bet able to get a new reserve currency standard going unless the US dramatically implodes.


stable?

they keep it that way by borrowing

 

no currency is stable for long

the country needs to keep it at the level of borrow

5 midgets are standing in line.  The one at the end is the tallest of all 5.  Does that mean he's tall or just taller than the others?


When I said the US dollar was the most stable, that doesn't mean it is stable, just more so than the other major curencies.


and i said its not

us government is just keeping it stable but that won't go for long as they can't just keep on borrowing.

you have to repay the debt too.

 

dollar is stable as US isn't the country it used to be and the government is borrowing to keep it at the old rate

The only other really major currency in the world is the Euro and compared to that the US Dollar is rock solid.

Also a world reserve currency would probably turn out badly - it'd require a whole lot of leaders from a whole lot of countries to agree on stuff occasionally.



Edouble24 on 07 August 2011
crissindahouse said:
Rpruett said:
SpartenOmega117 said:
china is the new superpower so it can do what it wants. at least that's what the US did when it was a superpower.

They have a long, long way to go till they reach our status.  Don't believe all the doom day non-sense.  They are rapidly becoming a strong country, but in the grand scheme of things, they have a very long way to go still and that's to even be at our 'current' state.


i wonder what you think what your status is? all countries i have been in the past think that the usa is nothing than a country which like to make war. you haven't a big status as big economy state or whatever. the only thing everyone is connecting with the usa is war. sry to say that but it is like it is.

noone in europe thinks you have a biger status than china. china is the world leader it would be stupid to think otherwise. sure the stock exchange is very dependet of the usa but they have their own unlogical rules. without the stock exchange it wouldn't be a problem for the world with a broke usa but yeah we all have seen the exchange changes all like we can see with greece. unimportant country for the economy but whole europe has panic because of the stock exchange...

Regardless of what everyone may think, the United States has, by far, the largest economy and GDP. Thus we're the world leader in that regard.



homer on 07 August 2011
SpartenOmega117 said:
Rpruett said:
SpartenOmega117 said:
china is the new superpower so it can do what it wants. at least that's what the US did when it was a superpower.

They have a long, long way to go till they reach our status.  Don't believe all the doom day non-sense.  They are rapidly becoming a strong country, but in the grand scheme of things, they have a very long way to go still and that's to even be at our 'current' state.


If there was anything i learned from taking WHAP class is that China has always throughout history been a major power. China is basically a superpower now. They don't have a long way to go. Almost every country bascally depends on China to make everything. What will happen if all of that gets cut off?

Ap world history? I remember taking that class. Do you remember what book you used?

OT: Foreshadowing towards a one world currency???



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Krusnik on 07 August 2011

i almost had a headache reading though this thread....some of the ignorance in this thread is painful
like this one

"you haven't a big status as big economy state or whatever. the only thing everyone is connecting with the usa is war. sry to say that but it is like it is."

WTF!! and im not even american
Listen regardless of all the troubles the country has been experiencing and putting the obvious anti- american slant to the discussion aside there one undisputable fact.. America is the world's largest market and importer foreign goods most of the worlds leading economies gain success from (and still are) American consumption.



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dahuman on 07 August 2011
Zlejedi said:
Soleron said:
Kantor said:
Fun fact: China does not own all of America's debt. Not even close. They own somewhere in the realm of $1.2 trillion of it, which makes them the single largest holder, but still puts them below 10% of the total pie. Indeed, only $4.5 trillion of the $14.5 trillion debt is held by foreign countries. A great deal of it is held by the government itself.

Yes. Most of that is pensions. I actually think they should just say "All pensions are cut by 20%" and then the debt would be correspondingly reduced. If spendng cuts are on the table why not pension cuts, as they would have much more effect on the debt?

Great idea. Hmm remind me when does the next election in USA start ? :)

it's not going to matter, not how politic works, there are too many hurdles and bullshit to overcome even if the elected official wants to really change something.



kitler53 on 07 August 2011
SpartenOmega117 said:
Rpruett said:
SpartenOmega117 said:
china is the new superpower so it can do what it wants. at least that's what the US did when it was a superpower.

They have a long, long way to go till they reach our status.  Don't believe all the doom day non-sense.  They are rapidly becoming a strong country, but in the grand scheme of things, they have a very long way to go still and that's to even be at our 'current' state.


If there was anything i learned from taking WHAP class is that China has always throughout history been a major power. China is basically a superpower now. They don't have a long way to go. Almost every country bascally depends on China to make everything. What will happen if all of that gets cut off?

and china depends on almost every country to export their shit ... what will happen when that get's cut off?

... i go to china on occasion and trust me, they have a long long way to go to reach the same level as the US is even in our current damaged state.  unemployment is high, the workers are realizing they are being exploited, an they are getting very angry.  china has just as many if no more woes to worry about as the US and everyone else atm.



NJ5 on 07 August 2011
Rath said:

The only other really major currency in the world is the Euro and compared to that the US Dollar is rock solid.


I don't agree with this statement. Not only does the US have many of the same debt (and other) problems that some European countries have, but also the US and Europe are highly dependent on each other economy-wise (especially highly intertwined banks and exports/imports). If one goes down, there will hardly be anything in the world which is rock solid, economy-wise.



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Netyaroze on 07 August 2011

Can someone explain me why the Dollar is rocksolid and the Euro isnt ?



Rath on 07 August 2011
Netyaroze said:
Can someone explain me why the Dollar is rocksolid and the Euro isnt ?

Dollar isn't rock solid. I said it was relatively rock solid in comparison to the Euro.

The Eurozone has massive problems - Ireland, Italy, Spain, Portugal and Greece are all sitting on the edge of default and some of them are almost certain to do so. This leaves economically stable countries (notably Germany) propping up the zone which leaves them pretty unhappy.

The USA is not going to default on its debts - some areas of the Eurozone are. That is the main difference in outlook for the currencies.

 

@NJ5 - I agree that they are highly intertwined and I don't think either currency will collapse but in terms of economic stability I think the USA is much better off than the Eurozone at the moment.