US Default Will Kill Many Here?

[Yewheng]

Why would it be a problem for Apple and Microsoft ? Their greatest assets are talents and U.S. continues to have a huge talent pool for them. It will more costly for them to operate overseas if USD crash. They will continue to export high quality and popular products and services, and people will continue to buy them giving them higher USD profits.

 

when hyperinflation occurs in US, no matter how much profit these companies make, it will just become toilet paper $. So end up possible of these company collapse also.. ( I really don't know, worst case scenario supposing )

Edited August 3, 2011 by Yewheng

[Acieed]

You forgot that U.S. is in many aspects quite self-sufficient in basic necessities. If they are producing their own crops, making their own cars, producing their own machinery, and producing their own oil, why would it have a serious impact to the point their companies will collapse ?

 

They continue to employ American workers, and consume American products. It will nevertheless be a recession and they won't have the same luxury lifestyle, but business goes on.

 

when hyperinflation occurs, no matter how much profit these companies make, it will just become toilet paper $. So end up possible of these company collapse also.. ( I really don't know, worst case scenario supposing )

 

[Merkava]

So based on what u guys have said, can I say that its good to accumlate RMB?

[Yewheng]

So based on what u guys have said, can I say that its good to accumlate RMB?

 

RMB holding most US reserve.. you say leh? Not really good idea. It would be good to accumulate Gold and silver.

[Merkava]

RMB holding most US reserve.. you say leh? Not really good idea. It would be good to accumulate Gold and silver.

 

But if USD going to decouple as a main currency, some big brother going to lead right?

[Acieed]

RMB has been undervalue for years. Though, it is not a freely convertible currency, so how much can you accumulate in cash ? Change with money changer ?

 

Perhaps you could invest in Chinese equities.

 

So based on what u guys have said, can I say that its good to accumlate RMB?

 

[Yewheng]

But if USD going to decouple as a main currency, some big brother going to lead right?

 

True.. but still don't know when or which countries will be going to be reserve currency.

Unless you are very sure that RMB will be the next reserve currency. Than ok lor..

Edited August 3, 2011 by Yewheng

[Lethalstrike]

But if USD going to decouple as a main currency, some big brother going to lead right?

 

Either that or there will be many vying for the position of the big brother. Before anyone mentions RMB, China's influence is still immature despite its growth.

 

 

Edited August 3, 2011 by Lethalstrike

[Joseph22]

I mean if USD collapse.. what will it be like for Apple and Microsoft ? Shift their main base to other country ? or drag down by collapse of USD?

 

Than what will happen to many people who hold iphone, or using Microsoft OS ?

Oh IC.. but i think they wont really have any problem.

 

just shift their base else where.

 

speaking of which. where does Microsoft product their OS??

 

I will think its likely in USA itself. afterall, dont think they need a lot of ppl to do copying of those programme into disk.

[Yewheng]

Oh IC.. but i think they wont really have any problem.

 

just shift their base else where.

 

speaking of which. where does Microsoft product their OS??

 

I will think its likely in USA itself. afterall, dont think they need a lot of ppl to do copying of those programme into disk.

 

Ok.. than it would be still good. [laugh]

[Old-driver]

i can buy ipad 2, Macbook Air, iMac, Mcbook Pro at cheaper price :D

Nooooo... they will have to raise prices are most of their products are made in China

[Icedbs]

But if USD going to decouple as a main currency, some big brother going to lead right?

 

I don't think USD will decouple as the world reserve currency...at least not now.

 

Simply because Euro is just as crap and RMB is not ready. And I don't think the China gov. will want RMB to be the world reserve currency just yet because it will drive up RMB value and make their export uncompetitive.

 

So the final option that I think will happen is to go back to prior 1973...have the USD backed by gold. US would have avoided today's problem if they didn't unpeg themselves from gold in 1973.

 

 

 

 

[Yewheng]

I don't think USD will decouple as the world reserve currency...at least not now.

 

Simply because Euro is just as crap and RMB is not ready. And I don't think the China gov. will want RMB to be the world reserve currency just yet because it will drive up RMB value and make their export uncompetitive.

 

So the final option that I think will happen is to go back to prior 1973...have the USD backed by gold. US would have avoided today's problem if they didn't unpeg themselves from gold in 1973.

 

You make a lot of sense.

 

But I have a question, will gold price drop once US is hit with currency crisis ? I mean you see are, Gold price rise because of currency printing by US. So when USD collapse aren't gold price going to drop? (with reference to other currencies except USD)

Edited August 3, 2011 by Yewheng

[Merkava]

I don't think USD will decouple as the world reserve currency...at least not now.

 

Simply because Euro is just as crap and RMB is not ready. And I don't think the China gov. will want RMB to be the world reserve currency just yet because it will drive up RMB value and make their export uncompetitive.

 

So the final option that I think will happen is to go back to prior 1973...have the USD backed by gold. US would have avoided today's problem if they didn't unpeg themselves from gold in 1973.

 

From my layman pt of view, USD is backed by numerous printing of notes, no backup. Euro is almost dead. Someone, somehow, will have to stand out to lead the world. I do understand China bought alot of toxic assets from US and it makes no sense to revalue their RMB. But problem is, everyone is looking at each other, how are we going to solve this mess?

 

Sorry for my simple explanation...:)

Edited August 3, 2011 by Merkava

[Plim72]

You make a lot of sense.

 

But I have a question, will gold price drop once US is hit with currency crisis ? I mean you see are, Gold price rise because of currency printing by US. So when USD collapse aren't gold price going to drop?

 

logically speaking, value of gold would increase even more as usd dollar drops until a point that is... ask yourself. you prefer to hold precious metal or paper in time of crisis? but there is always a limit...

[Freestylers09]

RMB wont be appreciate ,the most 5..now 5.3

 

Reason v simple la,if so, every export is expensive,..another round of crisis coming..

[Yewheng]

logically speaking, value of gold would increase even more as usd dollar drops until a point that is... ask yourself. you prefer to hold precious metal or paper in time of crisis? but there is always a limit...

 

Than how will people going to restart business in US if gold price rise until no tomorrow when US is backed by gold if it happens in future?

And other countries who want to regrowth US economy will also be super difficult to regrowth due to super high gold price.

So if let's say USD collapse and USD were to return to be back by gold.. that means gold price will start to drop?

 

So am I right to say gold price will rise until collapsed of USD.. after that it will start to drop in value if USD is backed by gold by than.. ? (in terms of other currencies )

Edited August 3, 2011 by Yewheng

[Icedbs]

You make a lot of sense.

 

But I have a question, will gold price drop once US is hit with currency crisis ? I mean you see are, Gold price rise because of currency printing by US. So when USD collapse aren't gold price going to drop (with reference to other currencies except USD)?

 

Gold price rise not just because of the weakness in USD. It also rises because of buying demand as a hedge to inflation or simply as a safe haven (it is not fiat money like other global currencies around the world) when economy turns bad.

 

So if USD collapse, gold price will shoot up simply because of people moving their money to a safer haven.