Great Depression of 2016

[rufus]

It looks like they have enough ammo to shoot us all six or seven times. Beware of idiots with firearms. If those federal employees are anything like the ones I worked with, something bad will happen even if it was not intended. The post office could go to war against USDA or homeland security or maybe the social security administration. We would probably all catch a stray bullet.

This is not a good sign!

 

[rufus]

http://en.ria.ru/russia/20140520/18...o-Expand-Payments-in-National-Currencies.html

It looks like the Chinese currency will play a much larger part in international trade.

When the British pound lost its position as a reserve currency, it lost forty per cent of its value. I guess we will find out what will happen with the dollar sooner than we expected.

 

[hemet dennis]

http://en.ria.ru/russia/20140520/18...o-Expand-Payments-in-National-Currencies.html

It looks like the Chinese currency will play a much larger part in international trade.

When the British pound lost its position as a reserve currency, it lost forty per cent of its value. I guess we will find out what will happen with the dollar sooner than we expected.

The pound is still considered a reserve currency. It is the worlds third highest held currency, behind the dollar and the euro.

The pound used to be the highest held currency, but it lost that position because the pound was losing forty percent of it's value. It didn't lose value because it wasn't the highest held, it wasn't the highest held because it was losing value.

And China and Russia using their own currency for trade between themselves isn't a big shocker.

 

[hemet dennis]

http://en.ria.ru/russia/20140520/18...o-Expand-Payments-in-National-Currencies.html

It looks like the Chinese currency will play a much larger part in international trade.

When the British pound lost its position as a reserve currency, it lost forty per cent of its value. I guess we will find out what will happen with the dollar sooner than we expected.

I ran across this post that says it better then I can.

"Historic Trade Deal Russia & China – Will this Dethrone the USD?
Posted on May 22, 2014 by Martin Armstrong
Reply
QUESTION: My question is this:
Russia and China making bilateral trade not using USD, China doing so with other countries etc. the buzz now is USD falling from grace. Yet is seems to me that as long as currencies out there are relating in any way with USD, and oil is priced in USD then in some manner they cannot disengage from it. So the question is: Is there any way to disengage from the USD?
Thank you for your time, attention and possible answer.
Kind regards,
IW
ANSWER: Trade is not the determining factor behind a currency’s value. Russia and China are trying to side-step the USD, but that is really a fleeting ef fort. The yuan is less that 10% of trade flows and the euro is even below the yuan. The key behind the dollar remains the simple fact that this is the RESERVE CURRENCY. What does that really mean? That is more than just saying so.
The USD is an extremely deep currency into which capital flows take place and park on a global basis. The euro failed in this regard because they did not consolidate the debts of all member states even though they have been federalizing Europe. Europe is no different from the state debt level in the USA – not ready for reserve status and way too much different security risks among the members.
The currencies of Russia and China are not ready for prime time. There is too much political instability right now and that undermines the value of a currency aside from the fact that people can trade in them, that is nice, but they then quickly covert to dollars. The process of dethroning the dollar is nonetheless underway. However, that will not be accomplished by trade. The way that will happen is only when we see the inevitable systemic collapse in government debts. That will begin in Europe, then hit Japan, and the USA will be last.
Both China and Russia had difficulty in selling their bonds this time around. Without the ability to park huge amounts of money into these currencies, there is no possible hope of undermining the dollar. Trade flows are just too tiny – it is the capital investment flows that count. Just ask yourself are you willing to buy bonds from China and Russia? Do you really think they would be a safer investment than the US? If you are honest in your answers you will see the reality distinguished from the same nonsense as usual that the dollar will collapse and somehow the rest of the world will just watch in amazement. These are people with opinions that are as biased as ever and have been saying the same thing all the time. That does not cut it when it comes to parking serious money.
Foreign countries issue debt in dollar to sell them taking on the currency risk. China’s previous debt that it defaulted on during the Great Depression was likewise denominated in foreign currencies at that time. You can buy their bonds and Russian bonds from the 1930s for framing. You cannot do that with US bonds."

 

[rufus]

Yes Dennis, it all comes down to capital flows. When the Arabs decide to move their money from one currency to another it will shift the balance. China is, I believe, moving toward metals. Paper money can be disavowed. I have a ton of Chinese currency from the 1930's, all worthless. We still keep it just in case.

This "Quantatative Easing" has put so much currency into the banks, but so far it hasn't worked out into circulation. What happens when it does is another question. I guess we will find out when and if it happens.

http://blogs.marketwatch.com/capito...thinks-theres-a-ticking-time-bomb-at-the-fed/

Playing with the money supply just puts off the inevitable.

 

[rufus]

http://www.ft.com/intl/cms/s/0/697cb884-e3f0-11e3-a73a-00144feabdc0.html#axzz32kSxdbsd

I am afraid they have put so much money into the system that they have lost control. Where has all of that money gone? The banks are holding on to a lot of it, but a lot has been loaned out overseas. What will happen when they attempt to rectify the problem? I guess we will find out soon enough.

 

[hemet dennis]

http://www.ft.com/intl/cms/s/0/697cb884-e3f0-11e3-a73a-00144feabdc0.html#axzz32kSxdbsd

I am afraid they have put so much money into the system that they have lost control. Where has all of that money gone? The banks are holding on to a lot of it, but a lot has been loaned out overseas. What will happen when they attempt to rectify the problem? I guess we will find out soon enough.

What problem ?

 

[EweSheep]

Yes, what problem?

 

[hemet dennis]

How many veterans do we have here ?
I am one, and I question the need for V.A. health services now that we have Obamacare.

I was wondering what others thought about this.

 

[rebelcowboysnb]

The only veteran that has talked about it is paying the penalty an doing without cause he cant afford it. Pretty much like most everyone else here.