Who Holds America's Debts ???

[eatshitndie]

I think US $ continues to weaken because US has been printing more than market demand. Also sentiments are not good with potential of debt default so that brings down $.

americans are hoarding cash and saving more as instinctive reactions to an uncertain future. because the liquidity of usd suddenly cramps up after the housing crash, the fed encourages the treasury to print more to offset the lack of liquidity in the economy, hoping inflation can be tamed. due to lower demands for goods and services and lack of consumer confidence, inflation hasn't been rearing its ugly head just yet. shit will hit the fan if 3 things happen at once or close to each other: supply disruptions to energy cause energy cost to rise resulting in rise of cost in everything dependent on energy, catastrophic destruction of crops and livestock leading to spikes in cost of food and groceries, and the sudden return of consumer and corporate confidence which in turn would open the checkbook floodgates on an otherwise shy spending spell causing too much cash and liquidity chasing shortages (inflation). the treasury needs to constantly and diligently watch liquidity and inflationary trends and rapidly recover freshly printed mint from the market the best way they can. unfortunately, it is not run by the most fiscal conservative leaders and teams today, and any new mint going into the banks and streets will most likely not be recovered, recycled and reduced in a timely manner.

the other major factor of usd decline is the rise of the euro, especially in the demand for the euro as an alternative to the usd since oil started trading in euros not too many years ago. china have already started diversifying their reserve holdings in euros in huge amounts. japan attempted to dump billions of usd not too long ago by disposing of it secretly via switzerland. 2 japanese ministry of finance officials were caught trying to cross with billions of us bonds in a couple of suitcases. and that was just the tip of the iceberg.

 

[Avenger]

http://youtu.be/rG1DUn8mMwk

 

[Spock]

Building technologies will change the way property is assess as an asset. Buildings will be like ipad or mobile phones use and throw, sooner than expected.

It is the land that the house is sitting on that is valuable. It is always about location. Desirable land areas will always appreciate in value unless the world's population is declining.

 

[neddy]

Now that we know that both China and Japan have been buying US debt to prop up the US dollar, so why is the US dollar declining in the first place. Here is a simplistic view.

1. The US imports more from China and Japan than it exports. Partly because Japan protects its own industries and provides subsidies to its own producers and suppliers. Chinese labour is so cheap that it cannot compete.

2. Because China and Japan are net exporters so US consumers have to buy more Yen and RMB to purchase this. This causes USD to decline and the RMB and Yen to rise.

3. If there are no govt intervention, the situation is supposed to correct itself until there is balance in trade. Unfortunately China is so dependent on Cheap labour that they cannot ramp up or develop another model so they keep the good times going by buying more US debts causing the dollar to maintain or rise and keeping the RMB low.

Again, it is the US dollar hegemony in play again.

Hongkong is already in deep shits over hyperinflation - the man on the streets are "suffering" - with regular protests now the norm. I mentioned HK because of its HKD peg to the USD but dependent on RMB China.

I concur with you on the dilemma of China.
1. Japan turn consumerism in 1967, China just did.
2. China still has an underdeveloped financial market as a central-planning-capitalism - if there is no such word exist, we need to introduce one now.
3. China has not reached the development status of Japan when Japan endure the Plaza Accord of 1985.
4. China has too few blue-collar workers and too many university graduates - but its economy is still based on labour-intensive industries.


There is a conspiracy theory about China & US coming together in Jan 2011 to discuss a win-win solution over this US debt crisis. But I doubt so because it will weaken US over its dollar reserve status.

At present, this Opium war in reverse has no winner, China & Japan cannot simply feed US the "opium/debt" it needs indefinitely. (OK, technically, it can still - but Japan & China's declining population will cause a tsunami of the crisis over such inbalances - Think about China's underfunded public healthcare - it is very much worse than its Commie days)

 

[GOD IS MY DOG]

Bro God is My Dog,

I am getting a little bit confused here... if everyone expects USD to crash (Which I highly doubt), and if Rothschild (the Bilderburger Group), owns the world's Financial Institution, why are they getting out of the Gold business?

And if JP Morgan holds majority of shorts on Silver...

Am I right to say that you are saying that the Gold & Silver Prices are manipulated to soar higher and higher, making everyone storming to buy Gold and Silver, and when they see a critical mass, they start to sell short! ???

Please share more bro! This is something that I've been puzzled... over the last 3 years, alot of people have been ranting on gold and silver... however, I do find something strange...

if the Rothschild pull out of gold definitely it's not a good thing.............ex-British PM Gordon Brown (a Rothschild puppet) sold them 50% of Britain's gold reserves when gold was at all-time low..................


the jews were responsible for the 1st Great Depression and they're cooking up the 2nd one..............they'll buy up everything at super-low prices................


the Chinese communists will fall...............if gold prices crash as they keep asking citizens to buy gold...................if USD crash, China also die.....................either way....................LOL

in time, the Chinese miracle will be just a myth.................

 

[Sperminator]

Bro God is my dog,

I agree with you on the part that the 1st Great Depression is set by the Jews, and this up coming one, the 2nd Great Depression will likewise be caused by Jews.

Isn't it a fact that immediately after the 1st Great Depression, WWII follow suits? And this up coming 2nd Great Depression will lead to a Global War? On a more sinister note, to massively reduce the population?


If Jews were the Chosen ones, how can they commit a crime to Humanity? I doubt they were God's Chosen ones, observing from the evil deeds that they are doing. Hitler was right...

I still find it very difficult to stomach that China could be so vulnerable to the Jews actions, or the bilderburger group's mastermind plan?

 

[GOD IS MY DOG]

don't forget China was nothing before it was turned into a factoiry for the West and Japs...............


China grew from their money and continue to depend on exports to these countries.................


China is like a baby suckling from US and Europe........................what to expect when the 2 mothers get ill ?

 

[GOD IS MY DOG]

don't forget China was nothing before it was turned into a factoiry for the West and Japs...............


China grew from their money and continue to depend on exports to these countries.................


China is like a baby suckling from US and Europe........................what to expect when the 2 mothers get ill ?

 

[hairylee]

Bro God is my dog,

I agree with you on the part that the 1st Great Depression is set by the Jews, and this up coming one, the 2nd Great Depression will likewise be caused by Jews.

Isn't it a fact that immediately after the 1st Great Depression, WWII follow suits? And this up coming 2nd Great Depression will lead to a Global War? On a more sinister note, to massively reduce the population?


If Jews were the Chosen ones, how can they commit a crime to Humanity? I doubt they were God's Chosen ones, observing from the evil deeds that they are doing. Hitler was right...

I still find it very difficult to stomach that China could be so vulnerable to the Jews actions, or the bilderburger group's mastermind plan?

Read somewhere that someone said after the war that Hitler will be proven right after 50 years.
It is 60 years since the war and that prediction is coming true.

 

[Meltdown]

if the Rothschild pull out of gold definitely it's not a good thing.............ex-British PM Gordon Brown (a Rothschild puppet) sold them 50% of Britain's gold reserves when gold was at all-time low..................


the jews were responsible for the 1st Great Depression and they're cooking up the 2nd one..............they'll buy up everything at super-low prices................


the Chinese communists will fall...............if gold prices crash as they keep asking citizens to buy gold...................if USD crash, China also die.....................either way....................LOL

in time, the Chinese miracle will be just a myth.................

SHALOM!

I mentioned in SBF forum many years ago to buy gold when it was below US$400 but most Sinkies were too hopeless and stupid for not following my recommendation back then. Most of them only started to seriously consider buying gold at today's prices of over US$1600 which is at least 300% higher than I recommended.

Most Sinkies don't believe that the Jews control and rule them indirectly. One example is Ben Bernanke, who is Jewish, with his quantitative easing policy. The more US Dollars he prints, the higher the cost of living for the average Sinkie peasant. Tonnes of those excess US Dollars end up flowing into SG properties driving up the prices of HDB flats, private condos, commercial properties, rents, food prices at the hawker centres, and groceries. Not to mention those excess US Dollars also flowing into crude oil futures driving up the prices of fuel, transport cost, and electricity for the average Sinkie peasant.

HAHAHA! I will buy up tonnes of assets around the globe at super low prices when the 2nd Great Depression hits bottom.

How do I know when it hits bottom?
When most Gentiles have sold almost everything crying and whining about their massive losses. I also expect many of them to commit suicides. That's a good indication of the market hitting bottom.

The Jews are the smartest, wealthiest, savviest, shrewdest, most influential, and most powerful group of people in the world.

The reality is that the Jews indirectly control and rule the world. Look at what happened to Saddam Hussein when he refused to listen to the Jews.

I Love Israel!

God Bless Israel and the Jewish people!!!

<iframe width="480" height="390" src="http://www.youtube.com/embed/NZ10DZHy5Ko" frameborder="0" allowfullscreen></iframe>

 

[Sperminator]

What I am learning from Meltdown is that if you can't beat them, Join them!

shadow the jews... but to the expense of other people's savings, and lives! KNNBCCB!

 

[Sperminator]

Read somewhere that someone said after the war that Hitler will be proven right after 50 years.
It is 60 years since the war and that prediction is coming true.

dear uncle hairylee,

could you point to me the link for my reading satisfaction on this sinister prediction?

 

[Jah_rastafar_I]

SHALOM!

I mentioned in SBF forum many years ago to buy gold when it was below US$400

Oh yeah sure just like we have tons of fortune tellers that show up predicting diasters yrs and yrs ago.

 

[Ah Hai]

[h=1]Soros hedge fund is now a $25 billion family matter[/h]By Ben Rooney @CNNMoney July 26, 2011: 1:01 PM ET

The hedge fund founded by George Soros will no longer accept money from private investors.


NEW YORK (CNNMoney) -- Soros Fund Management, the hedge fund founded by billionaire investor George Soros, has officially closed its doors to outside investors, according to a letter to clients Tuesday.
The fund's Quantum Group will complete its transition to a "family office" ahead of regulatory changes due to take effect early next year that could result in increased scrutiny for hedge funds that manage money for private investors.

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As part of the change, the fund will return $1 billion to private investors by the end of the year, according to a person familiar with the matter. That translates to about 3% of the $25 billion the fund has under management.
Keith Anderson, the fund's chief investment officer, will step down.
The fund "remains committed to its goal of producing superior returns for its clients and will continue to conduct its business to the highest standards of the industry," the letter states. "Going forward, however, our investment advisory services will only be available to Soros family accounts and related entities."
The transition has been in the works for over ten years, according to the letter. It said the fund has "effectively operated as a family office" since Soros announced in 2000 that the flagship Quantum Fund would become an endowment.
The fund was able to accept funds from outside investors using exemptions from rules that require private investment advisers to register with the Securities and Exchange Commission. But those exemptions will no longer be available starting in March 2012.
Soros Fund Management has invested private capital for nearly 40 years. The fund is active in markets around the world, trading assets such as stocks, currencies and commodities.
George Soros, the fund's founder, is best known for his bold bets in the currency market, including a 1992 trade against the British pound that won him an estimated $1 billion.
He has also gained notoriety in recent years for his support of liberal causes, such as a $100 million donation to Human Rights Watch announced last year.
First Published: July 26, 2011: 12:59 PM ET

 

[Ah Hai]

[h=1]Federal Reserve won't solve debt ceiling crisis[/h]By Chris Isidore @CNNMoney July 26, 2011: 10:50 AM ET

Try as he might, Federal Reserve Chairman Ben Bernanke probably can't come to the rescue if the debt ceiling is not raised and markets begin to crash.


NEW YORK (CNNMoney) -- If Congress doesn't come together on a debt ceiling deal by next week and markets start tumbling, don't expect the Federal Reserve to come riding to the rescue.
The central bank won't sit idly by if the financial system starts to meltdown in the aftermath of the federal government running out of authority to borrow. But experts say stabilizing bond or stock prices will likely be beyond the Fed's control.

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"They don't have the power to dictate what the markets are going to do," said Dan Seiver, a finance professor at San Diego State University. "If the Fed tried to stem the tide, they couldn't do it. They'd be spitting into the wind."
Since the financial crisis of 2008, the Fed pushed trillions of dollars into the economy to restart growth and job creation, with mixed results. Most recently, it purchased $600 billion in long-term Treasuries through a process known as quantitative easing or QE2.
[h=2]Famous Fed flubs[/h]Fed Chairman Ben Bernanke has repeatedly warned Congress that it's important for the debt ceiling to be raised. He testified before both House and Senate committees earlier this month that failure to do so would have a "calamitous" effect on the economy, jobs and future government deficits.
But the Fed probably won't trot out QE3 as an emergency response to a debt ceiling breach, at least not right away.
"I don't think the Fed is going to try to bail out the mistakes of Congress," said Lyle Gramley, a retired Fed governor. "What the Fed has left in the way of ammunition, they would wait and use when they see the economy is responding badly to events." But he said that will come months down the road, not days or hours after the deadline is breached.
If the United States credit rating is downgraded and markets begin to respond, the Fed likely will move to pump some cash into the system -- at least enough to make sure banks can still function normally in a period when there are doubts about the value of U.S. Treasuries.
William Poole, former president of the St. Louis Fed, and now senior economic adviser for Merk Investments, likens such action to the Fed's response to the wake of the 1987 stock market crash or the 9/11 terrorist attacks, or even the actions of the Bank of Japan in the wake of March's earthquake and tsunami.
But while those actions may soothe markets and relieve some of the fallout, they won't solve the underlying problem because the Fedcan't pay the government's bills.
"The Fed clearly could make a difference as it did in those cases," Poole said. "But it can't resolve the problem. The situation would have to be resolved by the Congress increasing debt limit."

 

[Cestbon]

USA is bleeding to dead. There no why out unless they start very serious spending cut. Cut military and welfare.
War inn IRAQ and Afgan cost US at least $2 trillion in last 10 year. Included interest will be at least $3 trillion.
Osama play a good mind and war game by killing it economy.
Very soon USA- United State of America will split to few country just like the USSR. Because gov cannot manage to control anymore. Some rich state may ask for split and some state have conflict with federal gov on military spending and war policy because not many willing go to war.

 

[annexa]

Thanks to all the very insght forummers here educating us (me, not know about the rest reading). I find it very disturbing when the world's biggest economy is going to the dumps and yet as one of Asia's 2 financial centers, there is NOTHING in the news. No analysis, no NOTHING. It is like the gahmen thinks we are stupid and not understand or don't want us to understand.

I add my 2 lousy cents worth. USA should do at least 1 of 2 things to solve this stupid debt issue.

They can cede New Mexico State to China for USD1Trillion. And give all the illegal migrant problem to China plus get the PLA to guard their Mexico border for free.
They can also cede the US 7th Fleet to China for USD10Billion and cut back their military expenses.

 

[GOD IS MY DOG]

one thing is for sure...................when global depression comes, a lot of FTs will be leaving s'pore................


imagine how much property will plunge.....................i say 50% minimum.................


things will be much much worse than the Asian financial Crisis when property plunged close to 40% or more ?

 

[GOD IS MY DOG]

Thanks to all the very insght forummers here educating us (me, not know about the rest reading). I find it very disturbing when the world's biggest economy is going to the dumps and yet as one of Asia's 2 financial centers, there is NOTHING in the news. No analysis, no NOTHING. It is like the gahmen thinks we are stupid and not understand or don't want us to understand.

I add my 2 lousy cents worth. USA should do at least 1 of 2 things to solve this stupid debt issue.

They can cede New Mexico State to China for USD1Trillion. And give all the illegal migrant problem to China plus get the PLA to guard their Mexico border for free.
They can also cede the US 7th Fleet to China for USD10Billion and cut back their military expenses.

USA must have a revolution 1st to get rid of all the jewish-owned politicians............

then abolish the Federal Reserve.....................

pay all foreign debts with oil in US.......................US has more oil than the whole middle east combined !

 

[Qantas]

USA must have a revolution 1st to get rid of all the jewish-owned politicians............

then abolish the Federal Reserve.....................

pay all foreign debts with oil in US.......................US has more oil than the whole middle east combined !

No way the owners of the Fed will allow it to be abolished. Two past Presidents tried to take back the power from the Fed to issue bank notes but were mysteriously assasinated. Your guess is as good as mine. The Jews will not want to cede their note-issuing powers.