US Default Will Kill Many Here?

[Itsec]

US government has no intention of repaying the principal what so ever.

 

A pdf book on petrodollar recycling.which explains the mechanism of the dollar "pegged" to black gold. How this enables the US government to create demand for fiat USD after its de-link from the gold standard.

Petrodollar:The hidden hand of American hegemony

 

Commodities/Oil is priced exclusively in USD.

 

In 2003, gold was 320 USD per troy ounce. Now it is 1600 USD per troy ounce. Technically the USD should devalue by 5 times. The fact that the commodities/oil is priced exclusively creates an artificiality demand for the USD, allowing it to gradually decline instead of collapsing.

 

Unless the Saud family of Arabia, leader of OPEC wants to be overthrown, oil will still be priced in USD for a very long time to come.

 

In 2000, Iraq decided to switch all their reserves to Euro, and demand their oil to paid for in Euros, the Bush administration invaded Iraq and topple Saddam's regime.

 

hmm.. interesting.. if this is truth, its mean saddam already know their plan to devalue USD since beginning... then the next question is how saddam know before the rest of the world know??

 

[Itsec]

If US defaults, everyone loses.

 

If US don't default, future generation dies.

 

 

what's your view or any assumptions based on your comments?

[Itsec]

Than China should just pull out from US and save the world from being drag down by US.

 

 

even a commoner like you know.. maybe there's hidden agenda behind..

[Itsec]

The thing is what other currency can China and the world convert to? The Euro debt crisis was triggered/escalated when a close door meeting to switched out of USD to Euro took place. Which makes you wonder the Japan's tsunami/nuclear meltdown origins were more sinister.

 

everybody is just like you whether the riches or the investors... speculators.. USD devalue, Euro will follow suit... china under-value their RMB.. Yen all time high and they also need to devalue their currency to boost export..

all the major fiat currencies are devaluing against one and another. Currency war and gov bubble is what we are experiencing now.

 

how about aussie or swiss franc take over as reserve currency? I seriously doubt so.. so what's left?

 

If your chinese is good, how about you grab a book? Currency war - Song Wen Bing

 

 

[Itsec]

it's funny that people thinks China will be biggest loser if US defaults...

 

but actually US citizens are the biggest creditors of US debts (6 trillion public debt vs 4 trillion external debt)

 

for external debt, Japan also comes close to China at 880b (compared to China's 1100b)

other major creditors include Britain, OPEC and Brazil

 

so if US defaults, everyone loses, including their own people

 

 

TR has this artcile which is scary.. and probably we have no ways to validate unless you are an insider.

http://www.temasekreview.com/2011/07/30/si...rovident-funds/

 

yup, but life still goes on. People still need to trade, whether its barter trade or whatever, especially countries like SG who has no resources, need to trade more than ever..

Edited August 1, 2011 by Itsec

[Icedbs]

what's your view or any assumptions based on your comments?

 

Do you really need me to explain this or you really do not know?

[Itsec]

i thk u guys shd jus try to view the US as a highly geared nation. u know the guy who earns 1k and borrows 800, but behaves like a rich man w nice new cars n buys new clothes n then u who earns 2k wonders why he is so rich. afterall they are the no1 economy and as long as they are assured of the income, they can afford tat gearing.

 

what income ?? printing $$?? they print $$$, buying products from China... majority of their manufacturers could have move to China, setup the factory there....i told my wife USD is devaluing and she keep buying stuffs from US website... but every package she received made from China or come from china provinces

 

hmm.. a simple example... (correct me if wrong)

 

i pay u USD for every consumable products u made, but nobody pay me for any consumable products i made... so how i get the $$ to pay you??

 

Beside this and other contributing factors, US trade budget deficits are freaking high...

 

[Itsec]

Do you really need me to explain this or you really do not know?

 

 

I think u have better insight / much better awareness or knowledge than me...

[Itsec]

everybody is just like you whether the riches or the investors... speculators.. USD devalue, Euro will follow suit... china under-value their RMB.. Yen all time high and they also need to devalue their currency to boost export..

all the major fiat currencies are devaluing against one and another. Currency war and gov bubble is what we are experiencing now.

 

how about aussie or swiss franc take over as reserve currency? I seriously doubt so.. so what's left?

 

If your chinese is good, how about you grab a book? Currency war - Song Wen Bing

 

my bad.. is Song Hong Bing

 

 

http://en.wikipedia.org/wiki/Currency_Wars

 

http://sangecon.wordpress.com/2009/10/15/c...-song-hongbing/

Edited August 1, 2011 by Itsec

[Maroon5]

what income ?? printing $$?? they print $$$, buying products from China... majority of their manufacturers could have move to China, setup the factory there....i told my wife USD is devaluing and she keep buying stuffs from US website... but every package she received made from China or come from china provinces

 

hmm.. a simple example... (correct me if wrong)

 

i pay u USD for every consumable products u made, but nobody pay me for any consumable products i made... so how i get the $$ to pay you??

 

Beside this and other contributing factors, US trade budget deficits are freaking high...

 

act its easy to answer your question. u jus need to understand their GDP to see where their sources of income come from. and well they are the biggest importer in the world so trade deficit is expected la.

[LoverofCar]

so confirmed no default now...stock market will shoot up or not?

[Porker]

Will go up but its only temporary. Things will go BOOM very soon

[Icedbs]

I think u have better insight / much better awareness or knowledge than me...

 

I don't have any better insight, but you don't need a genius to tell you that if your income is 2000/month and the bank allow you to take a 10m proprerty loan, surely you will need your kids or your grandchildren to pay it off for you.

 

And that's provided the bank is able to survive with all the bad debbts which is unlikely.

 

 

[Lethalstrike]

If US defaults, everyone loses.

 

If US don't default, future generation dies.

 

The Americans can't have their cake and eat it for every single generation. They had got themselves into such a big mess by their own accord, and it is only right that they have to make amendments. It is just too bad that they have to come at the expense of America's future generations.

 

The world had definitely changed and America will have to let go of its own ego, relinquish its position as the largest consumer continent in this world in order to pay off its debts. And the only way is by allowing other countries to grow in influence and power. But we all knew that will not happen unless there's a World War 3 to unsettle US influence and most importantly, for the world to decouple from the US currency.

[Darthrevan]

i told my wife USD is devaluing and she keep buying stuffs from US website... but every package she received made from China or come from china provinces

 

which merchant is that?

[GoodCar]

that my friend, is the hidden fist of Adam Smith's free market

 

 

Good point

[GoodCar]

Bro..that was bought on credit too.

 

The credit is back up by these ten beast isn'it

 

This is the highest level of sun zhi

[Yewheng]

http://www.channelnewsasia.com/stories/afp...1144404/1/.html

 

SELIGER, Russia: Russian Prime Minister Vladimir Putin on Monday accused the United States of acting as a "parasite" on the world economy by accumulating massive debts that threaten the global financial system.

 

The value of that paper will shrink if US debt is downgraded by a major Western ratings agency and Putin was insistent Monday that the world should be seeking new reserve currencies for trade and savings.

 

"If the US encounters a systemic malfunction, this affects everyone," Putin told the Seliger camp gathering. "There should be other reserve currencies."

 

Putin added that the debt agreement announced by Obama "was not that great overall because it simply delayed the adoption of a more systemic solution.

 

Now.. I think many countries are just waiting for China to do the right thing and the rest of countries will follow suit. So collapse of USD will happen very soon. China should be also thinking of ways to get rid of USD. Supposing once new reserve currencies is formed, that's it for US.

Edited August 1, 2011 by Yewheng