China's Central Banker: We Own Too Much U.S. Debt
 

China's Central Bank Chairman Zhou Xiaochuan told a Chinese monetary conference last week that ?Foreign-exchange reserves have exceeded the reasonable level that our country actually needs,? which is essentially code for China won't be buying U.S. government debt any more. China's foreign currency reserves exceeded $3 trillion at the end of March, more than $1 trillion of which is U.S. government debt.

The limit on America's national credit card may have been reached.

http://thenewamerican.com/economy/ma...o-much-us-debt

A lot of people own to much US debt.

well, the longer it takes before they let the bubble burst, the more it will hurt....

I think that US(D) is fucked now...

that article is depressing as hell. I remember the inflation of the 70s and it sucked ass. If China stops buying the US debt couldn't that lead to super inflation?

USD is not backed by gold.

Basically, it is as valuable as paper.

Id go one step forward and say the USD is as valuable as toilet tissue and probably will be about as useful.

Exactly. If you got dollars saved in your bank-account I suggest that you invest them into something that wont lose all of it's value. If there is a hyperinflation your money will be completely worthless.

Gerald Celente have foreseen many crashes and other stuff. I think you should listen to him.




USA in a couple of years?
http://moneytipcentral.com/wp-conten...he-streets.jpg

what are you talking about? The Fed can always print up more!

kidding of course, since we went off the gold standard in the US a time of potential economic collapse was almost inevitable. And if you give a group of private companies the power to print as much money as they like and loan it to a government that is desperate for cash you are setting up a system intended to be abused and that's just what the US did at the beginning of the 20th century. Deregulate the financial institutions and bang! Runaway inflation which is the last thing the American economy needs right now.

I am not being a chicken little, I think there is a way to save the economy before hyper-inflation and financial collapse happens but I have no idea how to save it. That is a job for people a hell of a lot smarter than me. I would assume that would include placing very strict regulations in place but in the current political environment I don't see how that would be possible

Time to learn Chinese, and move to SE Asia!

maybe Europe, their economy is strong and they like titties and beer as much as us yanks :)

Yea but... but... the government says we are ok. Are you saying I shouldn't believe them, or the Fed?

I don't think they would lie to me.

Crazy talk.

What WAS I thinking???





:1orglaugh

AS long as you stay out of Canada it's fine by me ;)

Id go one step forward and say the USD is not as valuable as paper as most of it is digital. :Oh crap

i bet that guy has a "heart attack" very soon...and replaced with someone that knows better ;)

time is ripe for someone to be taking massive loans from the usa

wonder who it will be?

You mean Hyper-inflation? That's a radical forecast usually made by Ron Paulians, perpetual gold bugs, anarcho-capitalists and/or anti-Fed / Banker conspiracy theorists.

Here's the inflation data for the past 10 years. You can look at each decade prior to that going back to 1913. The average rate of inflation since then is around 3.2%.

Notice we had slight deflation in 2009 and were faced with a deflationary spiral and credit freeze world wide. That's bad and that's what the FED / Gov't would rather avoid and why they did what they did (monetary / fiscal stimulus). Now before the peanut gallery jumps all over me, I'm not making a value judgment on whether that is good or not, just offering the facts.

IMO, Inflation of the sort that we had in the 70's (stagflation) is possible. But then again, it is possible that we slip back into deflation which would be even worse. The least likely thing you can say at this point is that hyper-inflation is the threat.

Also worth pointing out is that not a single currency in the world today is backed even 1% by gold / silver. The Swiss Franc used to be back 40%, but they had to sell it to join the IMF.

incredible information thank you :thumbsup

Care to name for us some countries not using a fiat currency?

If they were running Windows this never would have happened. Fucking Apple.

as is basically every other currency on earth...

I just want to know where the stolen value goes... every year money you hold onto is worth less value. Well. That value goes SOMEWHERE. Right. Make sense? It doesn't go to the bottom 99.9% of us, as we're not the one printing it and loaning it

same as the Irish bankers ... all fucked up

That's actually treated paper and far more expensive than just regular paper :2 cents:

We lose it through lost purchasing power. Everyone loses it. Obviously, savers lose more because even under normal conditions (say 1-3% inflation) their purchasing power is decreasing. Of course, unless a saver sticks the money in his mattress, there is some return in even the most basic instruments, which is what is designed to offset or exceed the loss due to inflation. This is what a creditor aims to receive in order to be willing to loan the money in the first place. Borrowers put that money to work creating wealth (or attempting to) or by blowing it.

Ideally, we would have 0% inflation, but that is too hard to achieve and it runs the risk of deflation. Deflation causes individuals and businesses to postpone purchases and investment because of falling prices. It can then spiral.

Therefore, moderate, controlled inflation has always been the goal. Inflation prompts borrowing and investment. That's the idea, anyway.