Retarded Commie
No matter how one twists or turns, the US wins if China dumps US treasuries.Originally Posted by Anebriated
China occasionally manages US treasuries in a fashion that people often claim as “dumping”.
However, the typical reason is China needs to support the Yuan (sell dollar and stabilize or increase the price of the Yuan) to stop capital flight.
https://mishtalk.com/economics/who-w...pital%20flight.
This is what would happen If China sold it all.
Last edited by Solkern; 10-10-2023 at 09:34 AM.
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Thats not entirely true, they can simply stop using them and the USD in transactions. The reason the USD stays propped up is because it has the best use case of any currency. If nobody is using it the value evaporates. So I guess I should be more clear when I say "dump" as it doesn't necessarily need to be selling. Also the US cant afford to have the dollar drop like that so they would just print more money(devaluing the currency even further) and buy them back themselves to kick the can down the road but prevent the all out collapse. We are in stagflation right now whether people want to admit it or not. At the very least we are staring at a major depression.
I get that it seems like fearmongering, and I really hope that im wrong, but I'd rather be scared and prepared than ignorant and caught with my pants down like I was in '08.
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Retarded Commie
Umm no, China NEEDS US bonds. I don’t think you get that. America can survive without China, but China can’t survive without America. China has always maintained a relative amount of US treasury bonds and dollar reserves, and it only changes based on their needs. China is an export country, with the majority of that going to America. China would collapse if it sold all its bonds or stop buying them as needed. They would have no way to prop up their currency, stabilize their economy, buy commodities from abroad or even sell products to the states.
You understanding that having a weaker dollar is good for America right?
China can’t just “stop” using the dollar, China needs US treasury bonds for their own economy.
These two said it best.
America should just cut off US dollar supply to China, and China economy will collapse immediately.
Without billions of US dollars trade surplus, China cannot print trilions of Yuan yearly to subsidise all the R&D to make better high technology to compete against America high technology corporations.
Also China printing trillions of Yuan every year to build the biggest infrastructure in the world. ALL PAID BY AMERICAN CONSUMERS.
American consumers are stupidly helping China to buy the best technology and scientists from around the world, to destroy American empire. This OXYMORON behavior of American Congress is mind boggling.
America high technology should get the high technology supply chain from Taiwan and Thailand and all their problems solved. Taiwan should allow import of cheap labor from China and North Korea to reduce smartphone production cost.
America can survive without China trade. America partner and loyal allies such as Japan, South Korea, Taiwan, Thailand, Phillipines should be leveraged to contain China now.
China is actually subsidizing our consumption to keep its factories at work in a loop that works until it stops. China has no alternative but to recycle it’s trade surplus and finance our trade deficit. They need to keep selling to us and therefore they will continue to build dollar reserves. The cost of not selling to the US would be high unemployment in China. It is not practical to think that many dollars can go to other buyers. What, for example, does Germany want with more dollars? So China can either hold US treasuries, buy American products or use the dollars to buy real goods (commodities). For all the reasons mentioned above the commodity purchases are not wise. Buying American products will import unemployment as opposed to exporting it. That is not going to happen. Buying assets in America is risky if done by foreigners at scale. Those assets could be expropriated or heavily taxed. Not fair, but. In the end we may see our currency devalue because we have bankrupted ourselves and then those cumulative Chinese surpluses will be paid for at a fraction of their original cost in real terms. Or they will bankrupt themselves by investing in receivables that will never be paid (i.e. our trade deficits) as well as their own pretend bank loans.
Last edited by Solkern; 10-10-2023 at 10:01 AM.
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do you understand what BRICS is trying to accomplish here? like really understand? They are creating a world economy outside of the USD control that has almost equal buying power. There is a reason China is among the largest buyers of gold and has been for the last decade. They have been using USD to increase their gold reserves so that as it continues to collapse on itself they have a hedge and the new BRICS system is based on having tangible assets, giving further security. One day the switch will flip and you will understand.
(population - GDP)
China: 1.4b - 17.7t
India: 1.4b - 3.1t
Russia: 143m - 1.7t
brazil: 214m - 1.6t
US: 331m - 23.3t
EU: 748m - 24t
this is just the start. OPEC nations are getting ready to join BRICS as well. they are already accepting payment in other currencies than the USD for the first time since WWII. the articial system that has propped us up is gone. the tides are turning.
https://www.gold.org/goldhub/data/go...saAkfwEALw_wcB
Last edited by Anebriated; 10-10-2023 at 10:25 AM.
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I spit that hot FIYAAA!!!
Not going to lie, I was disappointed to find out this thread isn’t a retrospective critical review discussion of the Eddie Murphy film.
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They're already here in the country if you haven't noticed.
https://x.com/kylenabecker/status/17...606095913?s=20
Click it and listen instead of just reading the caption. Pretty big crowd of these cunts, and right in Times Square.
Your thoughts? Keep in mind our border is wide fucking open too, even if you try to pretend it isn't.
Stop being soy.
Last edited by Methais; 10-10-2023 at 10:40 AM.
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Coming 2 America 2 was 2 awful to watch.
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Retarded Commie
They are “trying”? No, BRICS isn’t trying, one or two countries in BRICS is “trying”, Russia is one of them(or the only one). That’s a BIG difference and a quite important distinction, but you do understand, that it’s just not going to happen?
If you understand the Geopolitical landscape like you say you do. You’d understand why BRICs will never create their own currency or drop the dollar. I work in the financial sector, I’ve worked in major banks in China, the UAE and Russia. BRICs have too many different competing interest, along with failing economies like Russia, US allies in BRICS as well, India and China hate each other. BRICs as an economic powerhouse taking over America or the G7/8 will never happen.
China going to a BRICS currency goes against everything their government stands for, you realize this right? China would lose control of their ability to manipulate their currency, and they would want full control of the BRICS currency, which the others would never support. Next, it would weaken the Chinese economy, as they would be propping up BRICS completely while dealing with failures such as Russia. Also, the Chinese economy is in fucking shambles right now, and it won’t get better in the near to mid future, quite possibly ever.
Accepting other currencies, you think it’s all doom and gloom, those payments are going to be few and far between, mainly for a few reasons. 1. Transparency. 2. Government. 3. Consistency. 4. Reliability. 5. The size of our economy. 6. The dollar 59.79% of total foreign reserves. In comparison, the Euro accounts for 19.66%, while the Chinese renminbi accounts for just 2.76% of global reserves. China could expand its market share by twenty-fold and still lag the U.S. dollar by a wide margin. 7. History. 8. Military. 9. Technology 10. These importance of the American economy.
Put simply, replacing the U.S. dollar in foreign reserves is easier said than done.
Last edited by Solkern; 10-10-2023 at 11:04 AM.
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Lol, an entire thread devoted to the xenophobia of the far right. Last I checked we haven't been in state of war with Mexico is more than a hundred years and yet the couch potato militants would have you believe this is a passive invasion attempt. So sad.
I spit that hot FIYAAA!!!
I didn’t see it but I heard the same. We’ve had so many awful films & shows capitalizing on people’s nostalgia of beloved classics that I’ve become cautious about watching them.
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