Look out,it's coming! - Truckers' Trucking Forum

Carolina Thunder · **^ Top** #1 10.07.2009

Quote:

Tuesday, 6 October 2009.

Sean O'Grady: China will overtake America, the only question is when

Few things would be more powerfully symbolic of the shift in the balance of global economic power than to have oil traded in the Chinese renminbi rather than the American dollar.

True, no one is going to price a barrel of West Texas Intermediate Crude in renminbi tomorrow. But you can see how that could change. Oil is traded in dollars for economic reasons – not sentimental ones. The oil business pretty much started in the US (vividly portrayed in the film There Will be Blood), the giant oil companies are still mostly American, and the US has long been the world's largest consumer, importer and one of the largest producers of oil. The presidency of George W Bush offered ample evidence of the intimate connections between politics and oil. And the dollar is easily the most traded currency in the world. As such, it makes sense to trade oil in dollars.

Yet the financial tectonic plates are shifting – fast. Yesterday the president of the World Bank, Robert Zoellick, articulated what must be weighing on the minds of many Western policy-makers. A legacy of the current crisis "may be a recognition of changed economic power relations". In other words, the recession has accelerated the rise of China. The brutal truth is that for most of the next decade China's economy will grow by more than 10 per cent a year; America's by less than 2 per cent. China will soon be the world's largest economy, and largest creditor nation, a position enjoyed by a pre-eminent America in the 1950s. China will also be the largest consumer of oil, which will help push trading in it and other commodities towards a "basket" of currencies.

Now America is the world's greatest debtor, she can no longer sustain her role as protector of the world's only reserve currency in the long term. The humbling of Wall Street was proof that the American system was not invincible. Suddenly, a G20 embracing China, India and the other emerging powers is the only forum that matters. China has helped bail out our banks. Spats with the Americans and Europeans are set to grow more bitter. Yesterday the head of the IMF, Dominique Strauss-Kahn and the president of the European Central Bank, Jean-Claude Trichet, resumed their attack on the value of the yuan. Next will come an increasing US resentment at the vast debts built up with China, and, in turn, Chinese nervousness about their long-term worth.

And that is the paradox. China holds approaching $3 trillion in dollar assets, so she cannot afford to see the dollar collapse. Longer term, China does want to become less reliant on the dollar as a place to keep its savings. America needs China to buy her Treasury bills; and China needs America to buy her exports. They are like two drunken giants leaning on each other. Yet a sobering reckoning of some sorts seems inevitable; and it is difficult to see how both can be winners.

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I think Glenn Beck has been saying this kind of stuff for the last 2 years at least......but of corse, He is just out of his mind. I wonder if the Dem's well be calling this media outlet nothing more than a bunch of racist fear mongers?

Mooney · **^ Top** #2 10.07.2009

Quote:

Originally Posted by Carolina Thunder

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I think Glenn Beck has been saying this kind of stuff for the last 2 years at least......but of corse, He is just out of his mind. I wonder if the Dem's well be calling this media outlet nothing more than a bunch of racist fear mongers?

China wants no part of pricing anything in their currency. They would have to let the market set the price for their currency.

Carolina Thunder · **^ Top** #3 10.07.2009

Quote:

Originally Posted by Mooney

China wants no part of pricing anything in their currency. They would have to let the market set the price for their currency.

I dont know, i would think that China's currency is much more stable than our is. Which is why they have been buying up various commodity's like Gold,silver and real estate properties ( just to name a few ) in not only their own country but other parts of the world as well. What they are trying to do is insulate themselves from the coming dollar collapse which will be VERY bad for all concerned! They, like most other countries are doing this because they see that the things we are doing as a nation will end up causing a massive economic collapse in this country that will ripple around the world.

Which is why you are seeing these types of article in news papers around the world but you WONT see anything like this from US media outlets because the Government does want them to print anything that takes away from the supposid good job that they (government) are doing.

I dont think it's so much the fact that China or any other nation wants to use their own currency rather, they want a one world currency that wont be as dependent on the stability of one nation.

...but time will tell i guess.

dangerous dave · **^ Top** #4 10.08.2009

Time will tell indeed. As the congress and FED vacume the value out of our dollar by spending, borrowing, and inflating. Its the inflating that is running the other countries out of the dollar. Our government has spent irresponsibly for too long. Now it thinks it can solve the problem by "doubling down" on the old bets. Won't work. Get ready for a roller coaster ride that dips you into the cess-pool over and over.

Dave

Carolina Thunder · **^ Top** #5 10.09.2009

Quote:

Originally Posted by dangerous dave

Time will tell indeed. As the congress and FED vacume the value out of our dollar by spending, borrowing, and inflating. Its the inflating that is running the other countries out of the dollar. Our government has spent irresponsibly for too long. Now it thinks it can solve the problem by "doubling down" on the old bets. Won't work. Get ready for a roller coaster ride that dips you into the cess-pool over and over.

Dave

Better get your bible and your guns ready!

danc694u · **^ Top** #6 10.09.2009

The Asian market just took steps to prop the Dollar up.

They didn't like the way their trade was looking aside China, with the falling dollar.

Quote:

The central banks of several Asian countries that are fearful of the impact a weak dollar will have on their exports, intervened in the markets on Thursday to buy the troubled U.S. currency.

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dangerous dave · **^ Top** #7 10.09.2009

Quote:

Originally Posted by danc694u

The Asian market just took steps to prop the Dollar up.

They didn't like the way their trade was looking aside China, with the falling dollar.

Just doing so to delay till they can dump more dollars, save their own hind ends. That and maybe a VERY small hope our clueless pols will turn off printing presses and spending. They might as well be poopin in one hand and wishing in the other to see which fills up first.

Dave

Carolina Thunder · **^ Top** #8 10.09.2009

Quote:

Originally Posted by dangerous dave

Just doing so to delay till they can dump more dollars, save their own hind ends. That and maybe a VERY small hope our clueless pols will turn off printing presses and spending. They might as well be poopin in one hand and wishing in the other to see which fills up first.

Dave

It's like this. People dont want to see it,dont want to know about it or just dont give a damn about it! But the time is coming when they will care about it but by then it will be to late to do anything about it.

All of you that refuse to open your eyes,remember these days well. In 20 years your going to have to explain to your kids why you stood by and let your country fall!

Mooney · **^ Top** #9 10.09.2009

An overnight devaluation of the U.S. Dollar is on the horizon.

dangerous dave · **^ Top** #10 10.09.2009

What's the phrase? Screwed, blued, and tatooed?

Dave

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