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Old Jul 06, 2011, 09:53 PM
LcJ
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It appears that China might also have debt problems!

Just saw this and for some reason it made me wonder what is really going on anywhere.
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Old Jul 07, 2011, 01:01 PM
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Articles at Von Mises note that China is not free from inexorable economic laws any more than they can avoid gravity. Their enormous control and access to manipulation of human and natural resources can hide the huge imbalances they are creating with the artificially low reminbi, but not forever.

As they assume more and more bad debt the malinvestment created by these fatal decisions will become increasingly difficult to hide, and at some point the reckoning will come. One VMi austrian economist calculated they were leveraged something like 2000:1 (or even worse) and concluded that when they blow up, it will make the US problems look like playtime.
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Old Jul 07, 2011, 04:05 PM
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Of course china is in debt ALL of the london colonial countries are in debt

When china "buys our debt" it is their banks "london colonials" banks just providing us credit in exchange for bonds to put us more in debt

I didn't think you guys understood it and so explains your opinions about money

explains alot

Most people don't get the banking thing

You should demand explanations about the international banking

People with plenty of money,, "I got mine Jack!" so don't care attitude and no drive to learn
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Old Jul 07, 2011, 04:25 PM
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My understanding is that they urgently need ongoing debt service payments from us to provide loans and subsidies to their less urban provinces and localities. The direct and indirect corruption siphoned off of this by local officials and the well connected is what keeps their whole system afloat. Not all that unlike ours in that respect I suppose.
If we default on our payments, the whole house of cards comes down which could be very destabilizing to China. Probably more so than here and the effects are likely to be a lot more abrupt. the situation would really go into the blender and the outcome could be very good, very bad or something in between.
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Old Jul 07, 2011, 05:36 PM
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There is no way to know what China's current account balances really are. I am willing to bet that they don't know themselves. But they are living on borrowed time and can juggle the balls for only so long.
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Old Jul 07, 2011, 08:53 PM
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Originally Posted by Indiana_Geoff View Post
There is no way to know what China's current account balances really are. I am willing to bet that they don't know themselves. But they are living on borrowed time and can juggle the balls for only so long.
Sounds familiar
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Old Jul 07, 2011, 09:18 PM
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I am guessing that soon a person will come along with a new currency for the world, a new plan.... and everybody is gonna jump on it and go for it, just like the masses of "dependents" jumped on the Obama hope and change rhetoric.

Clean slate, a start over. So to speak. Will it work? Not long term, but it doesn't have too. It will be short termed, But it really on has to last as long as the next cycle in life.

What comes after the age of information? age of currency........
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Old Jul 07, 2011, 09:20 PM
LcJ
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Originally Posted by Metieval View Post
I am guessing that soon a person will come along with a new currency for the world, a new plan.... and everybody is gonna jump on it and go for it, just like the masses of "dependents" jumped on the Obama hope and change rhetoric.

Clean slate, a start over. So to speak. Will it work? Not long term, but it doesn't have too. It will be short termed, But it really on has to last as long as the next cycle in life.

What comes after the age of information? age of currency........
Maybe sticks and stones till we develop bows and arrows.......
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Old Jul 07, 2011, 09:23 PM
LcJ
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Originally Posted by Piperpi View Post
Of course china is in debt ALL of the london colonial countries are in debt

When china "buys our debt" it is their banks "london colonials" banks just providing us credit in exchange for bonds to put us more in debt

I didn't think you guys understood it and so explains your opinions about money

explains alot

Most people don't get the banking thing

You should demand explanations about the international banking

People with plenty of money,, "I got mine Jack!" so don't care attitude and no drive to learn
Evidently you think no one else has read TJ!
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Old Jul 08, 2011, 02:26 AM
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China isn't in trouble - it's just adjusting itself to fit into the puzzle - China has two massive (truly massive) advantages over the rest of the world.

A huge reserve of labour

A huge reserve of natural resources

Add to that, the most innovative (historically) and imaginative peoples on the planet and I think that you have the recipe for doing what you want when you want it!
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Old Jul 08, 2011, 07:05 AM
LcJ
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Originally Posted by ENGINETORQUE View Post
China isn't in trouble - it's just adjusting itself to fit into the puzzle - China has two massive (truly massive) advantages over the rest of the world.

A huge reserve of labour

A huge reserve of natural resources

Add to that, the most innovative (historically) and imaginative peoples on the planet and I think that you have the recipe for doing what you want when you want it!
and they really listen to those who protest but sometimes the dead are hard to hear.
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Old Jul 08, 2011, 07:38 AM
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and they really listen to those who protest but sometimes the dead are hard to hear.
Yes ,true. ET forgot to list that advantage.

See the kind of people the USA hires because that is also not far from the truth.

To bad the big book didnt teach these complex morals
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Old Jul 08, 2011, 07:41 AM
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There's business and then there's morals - the two can go together, but often don't!

Everytime you shop at Walmart or buy Chinese you probably support an immoral chain of transaction!
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