Originally Posted by layback40

Dont know what the fuss is all about.
I wish I had borrowed $US 1M back a while ago when the $A was worth about 50c US.
Interest rates here have been between 6 & 7% every place. I have had $A 200K in my Biz account for the last couple of years at 7%.
$US 1M brought over here Would have started at $A2 M, earned $A 150K per year interest & now could transfer 1/2 it back as the exchange rate is now $US 1.02 = $A1. About a $US1.05 M profit allowing for interest charges. Easy money!!
Exchange rates fluctuate all the time.
You cant blame your banks for not lending in the USA when they can double their money other places.

Originally Posted by LaRondo

China is operating on the same premises. The common interest of greed keeps the ship afloat. At the moment.

Originally Posted by Craig

This is all based on a (somewhat irrational) fear that the US federal reserve is putting too much cash into circulation and will eventually cause the dollar to become devalued (inflation). In reality, the US economy has exactly the opposite problem at the moment; even with very low interest rates capital investment is very slow and job creation is suffering. It is possible that the fed could go too far, but that doesn't appear to be a concern in the short term (except to a very vocal minority of economists).

Originally Posted by LaRondo

What is silly is, to think of it as a "domesday scenario". The collapse of a system would only result in the birth of a new system.

Here is where you fail to understand the subject:

It's not about the US as a Superpower, or China as such. It is about us as a population of individuals and the depriviation of real prosperity.

The FED is putting cash into circulation ever since it's creation per federal reserve act, with that manipulating economies throughout time and (more recently) global boundaries.

The FED's actual advantage is the fact, they are the inital creation of such a sytems, being the carot in the string in front of your nose, kind of a thing and China has recently opened up the gates for international investments. This is how they complement eachother. At the moment.

Once they stop complementing each other and begin to oppose each other the Dollar will be utterly irrelevant.

The same way why we are being deprived of the choice to run our vehicles on CNG from domestic resources, because the OPEC would dump the Dollar in a heartbeat if we wouldn't buy their oil anymore in such volumes.

Originally Posted by layback40

Or maybe they are holding too many $US & not getting a return.
Well I guess they get their 35 minutes of fame on youtube.

Originally Posted by Craig

I have to go with Gordon Gekko on this one; greed works, and I have no reason to believe it will stop working anytime soon.

Originally Posted by Craig

This is all based on a (somewhat irrational) fear that the US federal reserve is putting too much cash into circulation and will eventually cause the dollar to become devalued (inflation). In reality, the US economy has exactly the opposite problem at the moment; even with very low interest rates capital investment is very slow and job creation is suffering. It is possible that the fed could go too far, but that doesn't appear to be a concern in the short term (except to a very vocal minority of economists).

Originally Posted by LaRondo

It doesn't work in your favor though. And who is Gordon Gekko anyways? A stupid, ignorant fart in the wind, planted in your mind by a likewise maliciously oriented Hollywood movie industry. The creation of makebelief.

Originally Posted by Craig

That was what is normally referred to as a joke.

If you want to spend time and effort worrying about this, have a ball; most of us have more immediate problems that don't involve restructuring the world's financial markets. Sorry to be the one to have to tell you this, but the world is not going to collapse anytime soon and we are all going to have to go on dealing with our little day-to-day issues. I understand that reality is boring, and it doesn't get many hits on YouTube or sell investments in gold.

Originally Posted by Craig

I understand your argument completely, I just don't agree.

Let me guess, you would also be in favor of the US returning to the gold standard and eliminating the fed?

Originally Posted by LaRondo

I like the way how you take on speaking for "All of us". How could I have figured you're under "immediate problems", when spending day after day uploading beatup posts to a forum like this. My bad.
Reality sits very well with me and unless otherwise indicated the US currency is in pretty bad shape, causing most of what you refer to as "immediate problems".

Hey, but you're innocent, you didn't create the situation, you're just playing along with it, trying to catch the carrot dangling from the stick. Collapse or no collapse, doesn't really matter. Nobody can tell the future, right?

Thanks for the conversation.

Originally Posted by Craig

Sorry that I'm not worried, but I believe "most of us" including the vast majority of economists think the system is working just fine. If I didn't think that US currency was safe, I wouldn't be holding it. If I'm wrong, I'll pay the price and you can laugh at me.

I'll play the game by whatever rules happen to exist at the moment, and I'll still win. You can either play the game or stand on the sidelines and complain about the rules, your choice.

Originally Posted by LaRondo

I am sure you prefer to believe this way, it would be stupid to "believe" otherwise.

It wasn't my intention to get anybody worried, rather to have a discussion about the subject, which ofcourse would unfold on a more philosophical level then on a level of monetary accountability, as I am sure that noone in the imidiate vicinity of this thread has enough clout to take any influence at all. (not even SRJ, mind me)

I like the way how you go from a destabilized Dollar currency to a world collapse in your post #38.

Me thinks, you ougtha see something real good before you can tell something's pretty bad. It's all a matter of standards.

Originally Posted by Craig

OK, for the sake of discussion; what exactly do you think should be done to avoid this collapse?

Originally Posted by Craig

I assume that this nonsense is a response to the fed putting some cash into circulation, maybe they should all go buy gold at $1400 and see how that works over the long term (talk about bubbles).