“The European Monetary Union experiment has cost the nation of Germany over $300 billion per year, all for what clearly appears to be a welfare program directed toward the benefit of wasteful inefficient nations not deserving of a low bond yield. After ten years, the cost has been $3 trillion to Germany. It is not a matter of German willingness to continue the Southern Europe Welfare Program, as much as their ability to continue. They cannot continue. They cannot afford it.”
Hayek mentioned offhand in Road to Serfdom the implausibility and absurdity of peoples of Europe consenting to feed vampire nations… and yet here we are
How did our political class get so horribly compromised
^ well its starve yourself or starve the lazy bum countries. Obviously if you choose the former then you countries would be spit on and condemned for your selfishness.
As of June 1, 2010, the Total Public Debt Outstanding was approximately 88.9% of GDP, and for the first time exceeded $13 trillion. The phrase “Public Debt” is employed as a shorthand for “Debt Held by the Public”. The most recent increase in the U.S. debt ceiling to $14.3 trillion by H.J.Res. 45 and was signed into law on February 12, 2010.
Foreign owners of US Treasury Securities (Feb 2010)- 877.5 Billion Dollars - China
- 768.5 Billion Dollars - Japan
- 233.5 Billion Dollars - U.K.
So HH, nevermind Germany i’d be ALOT more worried about your own Backyard. If those foreign investors tire of holding U.S. debt and rush to sell - say goodbye to the Dollar forever and ever. Hello Post War Germany situation !
This exposure to potential financial or political risk should foreign banks stop buying Treasury securities or start selling them heavily was addressed in a recent report issued by the Bank of International Settlements, which stated, “'Foreign investors in U.S. dollar assets have seen big losses measured in dollars, and still bigger ones measured in their own currency. While unlikely, indeed highly improbable for public sector investors, a sudden rush for the exits cannot be ruled out completely.”
On May 20, 2007, Kuwait discontinued pegging its currency exclusively to the dollar, preferring to use the dollar in a basket of currencies. Syria made a similar announcement on June 4, 2007. In September 2009 China, India and Russia said they were interested in buying IMF gold to diversify their dollar-denominated securities…
Everyone sees what’s coming down the tracks, compared to U.S. Europe is bloody sorted.
HH has been pointing the finger at America for a long time. But that still does not dismiss what Europe is doing to Germany. The truth is Germany would be much better off if it left the EU. The EU is a cancer to Germany.
Europe is falling like Dominoes right now. We(HH and I) have already accepted what is going to happen here, but he is using Germany to show why altruism is a joke.
You think the dollar is the only currency about to get destroyed? The Euro and the Dollar are connected, both will hyperinflate to try and save each other.
…it’s not like Germany was dragged kicking and screaming in to the Euro-zone agreement, now was it? In fact, Germany was at the forefront of it’s inception and formation. It will not retreat from the Euro unilaterally…
[quote]ephrem wrote:
…it’s not like Germany was dragged kicking and screaming in to the Euro-zone agreement, now was it? In fact, Germany was at the forefront of it’s inception and formation. It will not retreat from the Euro unilaterally…
[/quote]
Its not like China is being dragged kicking and screaming into loaning the US money either. But we both know China should stop loaning us money, just like Germany should shrug off the EU.
[quote]andrew_live wrote:
For some reason China just doesnt strike me as a country that would do something out of the goodness of their hearts. Ulterior motives anyone?[/quote]
More likely they really do believe in keynesian economics.
[quote]andrew_live wrote:
For some reason China just doesnt strike me as a country that would do something out of the goodness of their hearts. Ulterior motives anyone?[/quote]
Of course, it now owns the US pretty much.
As Mrs Clinton said - how can you argue with your banker.
US is now pretty much China’s small brother, no longer can it unilaterally do anything- everything must be ran through China now - See N. Korea or Iran.
China was always going to rule World Affairs 1 day, they don’t do short sightedness all part of a huge plan. That’s why it hold US debt, now the US cannot argue with it full stop.
I’d much rather the European situation really, at least we can fix our affairs - US is pretty much bankrupt and there’s no way out of it.
[quote]andrew_live wrote:
For some reason China just doesnt strike me as a country that would do something out of the goodness of their hearts. Ulterior motives anyone?[/quote]
Of course, it now owns the US pretty much.
As Mrs Clinton said - how can you argue with your banker.
US is now pretty much China’s small brother, no longer can it unilaterally do anything- everything must be ran through China now - See N. Korea or Iran.
China was always going to rule World Affairs 1 day, they don’t do short sightedness all part of a huge plan. That’s why it hold US debt, now the US cannot argue with it full stop.
I’d much rather the European situation really, at least we can fix our affairs - US is pretty much bankrupt and there’s no way out of it.
[/quote]
You realize that you guys are going to enter the crisis first right? And just like when we printed money for you, you will print money to “save” us. You are going down with us.
What has this to do with altruism?
You cannot just take a word and make a first grader equation out of it.
Why not substitute altruism with “evil thoughts”, “immorality” or “mindless consumerism”. See, works just as good!
A bunch of extremely complex issues are the reason why we pour billions into wrong hands these days.
Lobbysim, hypercomplexity, political culture, education … the list is endless.
The simplest reason that even you should grasp is: the plebs have a better lobby these days in the western world.
[quote]andrew_live wrote:
For some reason China just doesnt strike me as a country that would do something out of the goodness of their hearts. Ulterior motives anyone?[/quote]
Of course, it now owns the US pretty much.
As Mrs Clinton said - how can you argue with your banker.
US is now pretty much China’s small brother, no longer can it unilaterally do anything- everything must be ran through China now - See N. Korea or Iran.
China was always going to rule World Affairs 1 day, they don’t do short sightedness all part of a huge plan. That’s why it hold US debt, now the US cannot argue with it full stop.
I’d much rather the European situation really, at least we can fix our affairs - US is pretty much bankrupt and there’s no way out of it.
[/quote]
You realize that you guys are going to enter the crisis first right? And just like when we printed money for you, you will print money to “save” us. You are going down with us.[/quote]
…it’s not going to be pretty, that’s for sure, but let’s look at a couple of differences:
Many western europeans aren’t burdened by debt to the extent many americans are. I’m not sure how this will affect us, but i can imagine that when the bottom falls out, it’s less of a factor to deal with.
Russia. It’s immense natural resources is a major bargaining chip for the russian in support of the EU. It would mean a greater russian influence, but personally; i like Russia.
Local economies. Europe is still a quilt of nations that sustain themselves if need be. I’m not so sure the majority of american states are self-sufficient. Are you?
Last but not least: what does any of us stand to gain by a total and utter global economic collaps? Iow, the system is not a natural system of buying and selling, but rather an ideology that results in capatalism. I see no reason why countries can’t make different agreements [that may lead to less profit] to prevent chaos and anarchy. OTOH, that’s probably naieve…
You realize that you guys are going to enter the crisis first right? And just like when we printed money for you, you will print money to “save” us. You are going down with us.[/quote]
Eh you do realize that the UK is not in the euro right - we will do just fine thanks out on our Island and watch the Dollar & Euro blow up !
You realize that you guys are going to enter the crisis first right? And just like when we printed money for you, you will print money to “save” us. You are going down with us.[/quote]
Eh you do realize that the UK is not in the euro right - we will do just fine thanks out on our Island and watch the Dollar & Euro blow up !
God Bless the Sterling ![/quote]
The vast majority of world debt is denominated in US dollars. Not gold. Not silver. Not the Sterling. Not the Yuan.
The US dollar.
As Europe continues to implode, there will be a greater demand for the dollar. I have said this for the last six months, when everyone was saying the dollar would plummet and gold would rocket. In that time gold has basically remained the same, the Euro has plummeted and the Dollar has taken off.
As Deflation continues to exert itself in the coming five years or so this trend will continue.
You don’t want to be in the Sterling.
You definitely do not want to be in the Euro.
Having said this, the cratering of the Euro looks to be near a short term bottom and due some kind of bounce. It will probably be just enough to sucker the most people in for maximum damage.