China Gets Ready

Off Topic Politics & World Issues
1

"Gold traders are playing close attention to reports from Beijing that the China is thinking of boosting its gold reserves from 600 tonnes to nearer 4,000 tonnes to diversify away from paper currencies. “If true, this is a very material change,” he said.

Mr Fitzpatrick said Britain had made a mistake selling off half its gold at the bottom of the market between 1999 to 2002. “People have started to question the value of government debt,” he said.

Citigroup said the blast-off was likely to occur within two years, and possibly as soon as 2009."

https://lodgeus.com/cgi-bin/nph-gowingo.cgi/000010A/http/www.economicroadmap.com/2008/11/fear-of-a-darker-and-more-dangerous-reality.html

The new hegemon usually has a huge stock of gold and a very positive trade surplus, just like the USA did in 1945.

Good luck to the rest of the world, with the Chinese in charge.

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When they do that they can effectively say, “Screw you America.”

You pay now!

3

[quote]LIFTICVSMAXIMVS wrote:
When they do that they can effectively say, “Screw you America.”

You pay now![/quote]

And America can stop trading with them. The Chinese aren’t as ignorant as you are. Then again - they are actually in the game and not just a talker.

4

[quote]rainjack wrote:
LIFTICVSMAXIMVS wrote:
When they do that they can effectively say, “Screw you America.”

You pay now!

And America can stop trading with them. The Chinese aren’t as ignorant as you are. Then again - they are actually in the game and not just a talker.
[/quote]

And what benefit does America get from not trading with them, genius?

We don’t produce anything.

5

[quote]LIFTICVSMAXIMVS wrote:
rainjack wrote:
LIFTICVSMAXIMVS wrote:
When they do that they can effectively say, “Screw you America.”

You pay now!

And America can stop trading with them. The Chinese aren’t as ignorant as you are. Then again - they are actually in the game and not just a talker.

And what benefit does America get from not trading with them, genius?

We don’t produce anything.[/quote]

Your utter fucking stupidity is more pronounced after a break than I thought it would be.

Go read a fucking book, redefine some more words, and leave the real world to those who actually participate in it.

6

[quote]rainjack wrote:
LIFTICVSMAXIMVS wrote:
rainjack wrote:
LIFTICVSMAXIMVS wrote:
When they do that they can effectively say, “Screw you America.”

You pay now!

And America can stop trading with them. The Chinese aren’t as ignorant as you are. Then again - they are actually in the game and not just a talker.

And what benefit does America get from not trading with them, genius?

We don’t produce anything.

Your utter fucking stupidity is more pronounced after a break than I thought it would be.

Go read a fucking book, redefine some more words, and leave the real world to those who actually participate in it.
[/quote]

Sure, I’ll read whatever books you have read in the last month if you read what I have read. I’ll do you one better, I won’t post again until I have finished reading them if you also follow suit. Deal?

Now, answer my question you mental midget.

7

[quote]LIFTICVSMAXIMVS wrote:
rainjack wrote:
LIFTICVSMAXIMVS wrote:
rainjack wrote:
LIFTICVSMAXIMVS wrote:
When they do that they can effectively say, “Screw you America.”

You pay now!

And America can stop trading with them. The Chinese aren’t as ignorant as you are. Then again - they are actually in the game and not just a talker.

And what benefit does America get from not trading with them, genius?

We don’t produce anything.

Your utter fucking stupidity is more pronounced after a break than I thought it would be.

Go read a fucking book, redefine some more words, and leave the real world to those who actually participate in it.

Sure, I’ll read whatever books you have read in the last month if you read what I have read. I’ll do you one better, I won’t post again until I have finished reading them if you also follow suit. Deal?

Now, answer my question you mental midget.[/quote]

Your question does not deserve an answer. Especially since you are so proud of all your reading. One would think that a kid as well read as you say you are to be smarter than a fucking cow turd.

Reading means dick in the real world. I’ll tell you what - you make as much money as I have in the last 3 months, and then perhaps I will listen to 1/10th of the utter fucking shit you spew on here.

Until then, I much prefer where I am sitting to that which you only read about.

Go read some more books, poser. Eventually something will have to sink in, and you won’t have to ask such stupid questions.

8

[quote]rainjack wrote:
LIFTICVSMAXIMVS wrote:
rainjack wrote:
LIFTICVSMAXIMVS wrote:
rainjack wrote:
LIFTICVSMAXIMVS wrote:
When they do that they can effectively say, “Screw you America.”

You pay now!

And America can stop trading with them. The Chinese aren’t as ignorant as you are. Then again - they are actually in the game and not just a talker.

And what benefit does America get from not trading with them, genius?

We don’t produce anything.

Your utter fucking stupidity is more pronounced after a break than I thought it would be.

Go read a fucking book, redefine some more words, and leave the real world to those who actually participate in it.

Sure, I’ll read whatever books you have read in the last month if you read what I have read. I’ll do you one better, I won’t post again until I have finished reading them if you also follow suit. Deal?

Now, answer my question you mental midget.

Your question does not deserve an answer. Especially since you are so proud of all your reading. One would think that a kid as well read as you say you are to be smarter than a fucking cow turd.

Reading means dick in the real world. I’ll tell you what - you make as much money as I have in the last 3 months, and then perhaps I will listen to 1/10th of the utter fucking shit you spew on here.

Until then, I much prefer where I am sitting to that which you only read about.

Go read some more books, poser. Eventually something will have to sink in, and you won’t have to ask such stupid questions.

[/quote]

I have a question on this, more why do we care? Are we worried of a Chinese invasion if they say they want money from us? I know they have ramped up submarine production and stuff like that and the whole we are an honorable country, but what does all of this debt really mean.

Gold is just a currency it means nothing more than the money it backs, we do not need to function as a country ourselves.

I know that probably doesn’t make sense, I am not a political science or finance buff, just curious.

9

[quote]apbt55 wrote:
I have a question on this, more why do we care? Are we worried of a Chinese invasion if they say they want money from us? I know they have ramped up submarine production and stuff like that and the whole we are an honorable country, but what does all of this debt really mean.

Gold is just a currency it means nothing more than the money it backs, we do not need to function as a country ourselves.

I know that probably doesn’t make sense, I am not a political science or finance buff, just curious.[/quote]

China owns an ass load of our debt. US Bonds are the safest investment on the planet, and every country that has a brain owns a chunk of us.

If China is trying to hoard gold, which may or may not be the case, some think that means China will no longer wish to invest in the US, and want their money back.

Even if they do that, they would have to sell it on the open market, as US bonds are not pay-on-demand debt. Each bond has specific terms - of which, the US is in control of when they will buy the bonds back.

You are more astute about this subject than the book worm will ever be. You are right - it’s not that big of a deal, unless you are holding gold, and the Chinese do start buying it up. It will make the price skyrocket, but that’s about all it will do.

10

[quote]rainjack wrote:
apbt55 wrote:
I have a question on this, more why do we care? Are we worried of a Chinese invasion if they say they want money from us? I know they have ramped up submarine production and stuff like that and the whole we are an honorable country, but what does all of this debt really mean.

Gold is just a currency it means nothing more than the money it backs, we do not need to function as a country ourselves.

I know that probably doesn’t make sense, I am not a political science or finance buff, just curious.

China owns an ass load of our debt. US Bonds are the safest investment on the planet, and every country that has a brain owns a chunk of us.

If China is trying to hoard gold, which may or may not be the case, some think that means China will no longer wish to invest in the US, and want their money back.

Even if they do that, they would have to sell it on the open market, as US bonds are not pay-on-demand debt. Each bond has specific terms - of which, the US is in control of when they will buy the bonds back.

You are more astute about this subject than the book worm will ever be. You are right - it’s not that big of a deal, unless you are holding gold, and the Chinese do start buying it up. It will make the price skyrocket, but that’s about all it will do. [/quote]

China is nothing without a market for its products.If the West stops buying their product(which is feasible,they don’t manufacture anything that is not duplicated to some extent in Western economies),they will have an economic and social collapse.I don’t see them ever calling in debt unilaterally without consulting the debt holders and working things out to everyone’s satisfaction.

What for me the current economic crisis has pointed out is that nothing is independent anymore.Everything is connected.

11

The US is not the only market for Chinese made products. Chinese businesses will sell anywhere they can. That is a fact.

The fundamentals that make the Chinese economy strong compared to the American economy is that the Chinese as a whole have virtually no debt and they produce more than they consume.

Anyone that still incorrectly believes, like RJ, that consumption drives the economy must ask the question why China hasn’t decided to start consuming its way to more wealth? After all, they have a much larger population with which to consume the stuff they already produce.

12

[quote]Neuromancer wrote:
rainjack wrote:
apbt55 wrote:
I have a question on this, more why do we care? Are we worried of a Chinese invasion if they say they want money from us? I know they have ramped up submarine production and stuff like that and the whole we are an honorable country, but what does all of this debt really mean.

Gold is just a currency it means nothing more than the money it backs, we do not need to function as a country ourselves.

I know that probably doesn’t make sense, I am not a political science or finance buff, just curious.

China owns an ass load of our debt. US Bonds are the safest investment on the planet, and every country that has a brain owns a chunk of us.

If China is trying to hoard gold, which may or may not be the case, some think that means China will no longer wish to invest in the US, and want their money back.

Even if they do that, they would have to sell it on the open market, as US bonds are not pay-on-demand debt. Each bond has specific terms - of which, the US is in control of when they will buy the bonds back.

You are more astute about this subject than the book worm will ever be. You are right - it’s not that big of a deal, unless you are holding gold, and the Chinese do start buying it up. It will make the price skyrocket, but that’s about all it will do.

China is nothing without a market for its products.If the West stops buying their product(which is feasible,they don’t manufacture anything that is not duplicated to some extent in Western economies),they will have an economic and social collapse.I don’t see them ever calling in debt unilaterally without consulting the debt holders and working things out to everyone’s satisfaction.

What for me the current economic crisis has pointed out is that nothing is independent anymore.Everything is connected.[/quote]

Yet one more person with more common sense than the book worm idiot.

13

[quote]LIFTICVSMAXIMVS wrote:
The US is not the only market for Chinese made products. Chinese businesses will sell anywhere they can. That is a fact.

The fundamentals that make the Chinese economy strong compared to the American economy is that the Chinese as a whole have virtually no debt and they produce more than they consume.

Anyone that still incorrectly believes, like RJ, that consumption drives the economy must ask the question why China hasn’t decided to start consuming its way to more wealth? After all, they have a much larger population with which to consume the stuff they already produce.[/quote]

I agree that the US is not the only market,but it is certainly the biggest one.

Seeing how the current conditions have led to so many factories closing in China,and seeing the discontent of the employees on some segments on tv,how do you think the population would react to wholesale layoffs and unemployment?There would be civil unrest.I think this would make the political rulers there very,very uncomfortable.

This is certainly what would happen if there was a sharp drop off in US demand for their products,in my opinion.

14

[quote]LIFTICVSMAXIMVS wrote:
The US is not the only market for Chinese made products. Chinese businesses will sell anywhere they can. That is a fact.

The fundamentals that make the Chinese economy strong compared to the American economy is that the Chinese as a whole have virtually no debt and they produce more than they consume.

Anyone that still incorrectly believes, like RJ, that consumption drives the economy must ask the question why China hasn’t decided to start consuming its way to more wealth? After all, they have a much larger population with which to consume the stuff they already produce.[/quote]

You get more fucking stupid with each post.

Go back to your books. You have no place in this discussion.

I bet your wife has to tell you to come inside when it is raining, too.

Seriously - are you really this fucking stupid, or are you just begging a fight?

15

[quote]Neuromancer wrote:
LIFTICVSMAXIMVS wrote:
The US is not the only market for Chinese made products. Chinese businesses will sell anywhere they can. That is a fact.

The fundamentals that make the Chinese economy strong compared to the American economy is that the Chinese as a whole have virtually no debt and they produce more than they consume.

Anyone that still incorrectly believes, like RJ, that consumption drives the economy must ask the question why China hasn’t decided to start consuming its way to more wealth? After all, they have a much larger population with which to consume the stuff they already produce.

I agree that the US is not the only market,but it is certainly the biggest one.[/quote]

Do you forget that China is its own market for consumption which is about 20% of the entire world population?

The Chinese do not need any one to consume what they are capable of producing. They only stand to benefit with trading if they are actually getting something out of the deal. As it stands now all they are getting is American IOU’s. When do you suppose we are going to pay those back with actual goods and services?

It does not change the fact that they are more economically stable than the US. They are not bankrupt and they could refit their factories to produce more viable goods for themselves. Whether they choose to do it is besides the point. I am pretty sure they will bounce back fast than US businesses will.

Besides every major investor says you are wrong and are buying China right now. They are not buying American.

16

[quote]rainjack wrote:
You get more fucking stupid with each post.
[/quote]

Hush, peon.

17

[quote]LIFTICVSMAXIMVS wrote:
rainjack wrote:
You get more fucking stupid with each post.

Hush, peon.[/quote]

You first dipshit.

You don’t get it. You never have, and you never will. China needs us. You think they are going to demand payment for their loans. There is no way in hell they would do that, and even if they did, there is no way to force the US to pay up.

The US is, far and away China’s biggest customer, yet you don’t think demand has a fucking thing to do with international trade.

Seriously, you are one stupid fuck.

18

[quote]rainjack wrote:

Seriously, you are one stupid fuck. [/quote]

I said hush!

19

[quote]LIFTICVSMAXIMVS wrote:

Anyone that still incorrectly believes, like RJ, that consumption drives the economy must ask the question why China hasn’t decided to start consuming its way to more wealth? After all, they have a much larger population with which to consume the stuff they already produce.[/quote]

Dude, you are HILARIOUS.

You should take this act on the road…

Definitely - consumption is not what drives an economy…

Oh shit, that was actually hard for me to type with a serious face. I usually think RJ is a bit over the top, but if anyone deserves one of his spectacular verbal beat-downs, it’s you.

Good luck in life - I think you’re going to need it.

20

BTW - your irrational fear of China reminds me of that South Park episode where Cartman has vicious nightmares about the booming Chinese economy and an inevitable take-over of the U.S.

What’s next - you going to show up at a P.F. Changs with some fake buckteeth and glasses in an attempt to ascertain the invasion plan? ; )