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Discussion Starter · #1 ·
Bill Holter-Gold Only Insurance for Coming Financial Armageddon
China can set $50,000 gold to deflate US Dollar confidence.
Russia and China can move to refuse Dollars and Euros in need be.
Economics = War or no War in the end.
When no gold is for sale China will make the call on the dollar.
All these people that "have something for sale" also want a country left to live in when the dust settles.
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https://www.youtube.com/watch?v=ryYDDbDwxMo
 

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Why would China want to undermine or destroy the dollar? It is holding (because it bought) billions of dollars of U.S. treasury bonds, savings bonds, notes and bills, ALL of which are payable in U.S. dollars. It is the largest investor in the world in U.S. securities. If China destroys the value of the dollar, then it will be paid in worthless currency.


China refusing to accept U.S. dollars? Too bad. The terms of the issuance of these bonds,notes and bills expressly state that they are payable in U.S. dollars. If China wants to send the payments back, then fine. Who cares? The U.S. just gets its money back, and China is out of luck.


Mannyrock
 

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Poverty is practically non-existent in the US and poverty worldwide is in decline and may cease to exist in our lifetimes. I mean real poverty, not flat screen TV and cell phone and a car and obesity poverty. It's hard to agree with gloom and doom statements.

How is gold connected to the major currencies of the world? I don't think it is.
 

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The U.S. has not been on the gold standard for more than 40 years. The U.S. does not represent or even pretend that every dollar the government prints is backed-up by a dollar's worth of gold in Fort Knox.


And, if China wants to destroy the U.S. economy, then the way to do it is no secret. All they have to do is sell all of their U.S. stocks, bonds, notes etc. and half price. Dump them on the world market in a fire sale. Why would this destroy the U.S.? Because, once this has been done, nobody will want to buy any new bonds or securities issued by the U.S. government at full price. And, this would mean that the U.S. government could not keep borrowing money (by issuing these instruments). If the government can't borrow, it collapses. Our entire government is based on borrow and spend, because the government spends far more money than it collects in tax dollars. (This is what is meant by deficit spending.)


This is why Greece is currently collapsing. It is so broke and in debt, that nobody wants to lend them any more money to keep their government afloat. They collect very little in taxes, and spend massive amounts on welare. (Would you like to buy a bond issued by Greece? What do you think the chances of getting paid at maturity would be?) The only folks who will lend them money is the EU, because they fear that a collapse of Greece would drag down the value of the Euro, which is their currency as well.



Mannyrock
 

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Discussion Starter · #5 ·
China has no reason to want to destroy the US economy at this time just as most here recognize.
It is to thier advantage the way things are. The US surpresses the price of gold, China buys gold. The US exports manufacturing, China, world corporations, build factories in China and the Middle East.
The US or EU weakens thier currency, China plays that game to and maintains some balance of trade.
When China, Russia and the other BRICS countries have had enough of Western/US bullying they can crash The western system. Then the war will certainly be on.
 
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