Quote:
Originally Posted by Balalsubturfyooj
Lenny2, the US dollare is going down in value... and Chinese with their bonds don't want to take a loss on their investment... Take a look at what our Canadian dollar now is worth !
If China demands the bonds and other assets that they are entitled to and the US prints even more money... such will lower the US dollar a lot !
The US keeps on printing money and it keeps on decreasing its value and other countries who have invested in the US dollar are the ones taking the hit !
What do you say to this?
.
|
I reject the premise of your argument.
How are the chinese losing money? They buy a bond, they get their interest every month and at the end of the term their principle is returned to them.
You keep saying the dollar has dropped, I say the Euro and other currencies have risen because they were too low for too long.
Prove me wrong.
If you buy a barrel of oil, and then the price of oil drops $20 what did you lose?
Nothing. You still have a barrel of oil.
Also, prove that the U.S. "keeps printing money" and that is devaluing the dollar.
The fed has had such a tight grip on the printing press the past 4 years it's fucking ridiculous. The reason we haven't had inflation in this country because of higher energy costs is precisely because the fed refuses to monetize that inflation by putting more money into circulation.
Notice that you will almost NEVER see an American citizen complaining about the "falling dollar" because it doesn't affect us. Prices at home are relatively the same and we have steady economic growth and low unemployment. Why should we care if the Chinese take a beating on their bonds (theoretically) or if Europeans doing business in America are making less money because of the currency exchange?
The Canadians and Europeans made fortunes for decades doing business in America because the exchange rates were reversed. Get over it.
