marlon menezes wrote:
> I agree that anything that promotes to increase consumption versus savings in
> the US economy will not
> be able to revive the economy. But what "wealth" is the US sending over? It
> is just printing money, which
> foreign countries (specially China) keep buying! For now at least, it is the
> consuming nations that are
> keeping their wealth. Talk about having your cake and eating it to.
Marlon,
One of these days, the Chinese govt will figure that it really does not need US
treasury bonds that yield a
whopping 1% annual return. That's when they will unlock the value of the bonds
they already hold to buy
US innovators.
> Chinese banks are almost as screwed as the US banks and perhaps in the longer
> term, they may actually
> be in greater trouble. Chinese banks are govt. controlled, which has meant
> that they have been forced to
> make investments that no sane investor would make. The Chinese banking system
> is opaque and is not
> beholden to reporting their financial results, using normal accounting
> standards.
Chinese banks have lost half their value in the past 18 months.
US banks have lost 95% of their value in the same period.
Obviously one set of banks is being run better than the other.
This is not difficult to see. It is only difficult to accept.
> They will be paying 25cents, because it will actually be worth 25cents! That
> is what printing money with
> abandon does to one's currency.
Don't forget the untalented Ben Bernarke.
He has gone on record saying that his cure for deflation is to drop money from
helicopters!
I do hope you are holding some gold.
Mervyn1650Lobo
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