Russia And China Are Seriously Talking About A Post Dollar World... Are You?

[Christopher]

http://www.youtube.com/watch?v=IAhqqQt35Lk&feature=popt00us10

[VaporAssassin]

Hmmm.... don't know what to say to that.

However, I bet that means more taxes for us to pay!

[Kragax]

Hopefully the next administration will be able to start to recoup our position in the global community. The current administration would be more than happy to turn us into a poor copy of europe. We need strength and determination to accomplish this and right now both are sadly lacking. Weare indeed on a slippery slope. This is not the America I grew up in. It's becoming a nanny state.

[osubckys]

Keynesian theory is criminal IMHO. Compound his assertions, potential hyperinflation and the rescinding of the tax cuts and forecasting for 2011 is a terrifying prospect. The impact of these ideals will have far reaching ramifications.

Thank you for posting this Christopher.

Brian

[JagSol]

This proves the United States...has a bleak future unless action is taken >.<

[noXious]

Priorities in our society have changed with every generation. The hottest cell phone, Lady GaGa, Farmville, and the list goes on. Everyone's out swiping these days, myself included. The difference is that I know how much is in my accounts and my credit limits and thus do not engage in "sprees". Our children are growing up thinking that money is free .. swipe and voila! you have what you want in an instant! Car & Home? Fill out some paperwork and voila! it's yours. What I'm saying isn't directly relevant, but what I'm getting at is this...

Few have actual knowledge of finance, much less micro-, macro- and global economics. No one Not enough people are educated and aware of their own finances to even care. hehe, they "can't afford to give a damn".

With that being said, we must start somewhere. It's our duty, as parents, to teach our children that though we swipe, that money has to come from somewhere and is never free. This should begin very early on. My 3 yo son watches me from his carseat as I swipe for gas. We must sit with them, before they head off to college, and are bombarded with credit offers, and show them our bills, our accounts, our bank statements. It's pertinent that they know what those contracts (car & home) really say and that by simply signing their name could cost them more in the end. Buying a home for $500k and paying an extensive fee to the agent who handles it for you. Amortize for 30 yrs (20 if you can) and pay multiple times more than the principal (which is the $500k) over that 30 yr period (can you say 'second mortgage'?). In that contract you could end up paying for everything if you don't know what you're doing. Fiduciary duty has loopholes too; and as always...greed will exploit them. We need to equip them with as much "in hand" or "hands on" experience as we can so that there is a clear understanding of their responsibility. In this day financial freedom is a myth for most because they have not earned it (via accountability).

My 23 yr old cousin just told me that he is going to file bankruptcy so that his parents can transfer the family's vehicles into his name and then turn around and file bankruptcy themselves (for the 2nd time). Don't worry though! (he says) They're building up my other cousin's credit (since he's 18 now) so that they can buy a house in his name. They all drive nice cars, have the latest fashions and the best cellphones every few months. They still live in a sprawling 5br home with over 3k of living space. There are only 3 of them living in the home. I take that back, my grandmother recently relocated and now lives there too. Who pays for all that money they owe when they all successfully file bankruptcy, circumventing the repossession of those large money items that they will continue to use and have not paid for?

We have very little debt. None if you compare us to most Americans. It isn't easy, but it's a whole helluva lot better than the alternative.

**** .. I want nice things too but I can't have them all at once (we actually save and/or buy things one at a time so that we can have quality things) because I'm responsible and not a leech. It sometimes doesn't seem fair, but it's my principles that will be compromised if I side with the Jones'.

Haysus Kreesto...what is this world coming to.

Ok sorry if I went on a sorta-off-topic rampage. It's just that while this makes sense to us .. it doesn't to very many. They're too self absorbed to fathom what lie beyond their impulsive desires.

On a side note, I think I want to take a few courses to better understand MY MONEY. I know how to stay out of debt, for the most part. I want to learn how to save more and invest wisely.

Gold, huh?

Edited June 22, 2010 by noXious

[FTJoe]

http://seekingalpha.com/article/211202-niall-ferguson-u-s-fiscal-crisis-will-likely-occur-within-2-years?source=hp_wc

http://www.tulving.com/

http://apmex.com/

http://www.bulliondirect.com/

http://www.providentmetals.com/

The guys I follow (a blog) are kind of split up on how badly this will end. My fear is even if we had a slim chance of getting out, the gulf is what is known as a black swan. Still being downplayed as much as possible. BP still in charge, why? I believe this way the current admin and finance knucklheads/Goldman Alumn will be able to say, what we did in QE, stimulus and bailouts would have worked (NOT). But blame BP for the current state of the nation and let us keep working (possible martial law).

Sorry, I never had faith in the fiscal policy and the Gulf is the final nail (IMHO). For the conspiracy folks, isn't it funny how this happened just after the okay for more offshore was given. Also notice how quiet the environmental groups are?

And finally (who knows if this is true)

http://www.huffingtonpost.com/andy-borowitz/goldman-sachs-reveals-it_b_558774.html

[mcquinn]

The Euro debacle I think will preclude any thought of changing base currencies for a while.

[FTJoe]

it is funny that many people thought the US was toast (currency wise) but then Europe went down the tubes. China I believe will end up in a very good position. And for those keeping score, it started with Greece, courtesy of your friend and mine, possibly the most Evil corporation ever, suckups to the Rothchild's, drumroll please

Goldman Sachs

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=akqC4y5U7MnU

Love the line, it was "legal at the time"

I love this stuff, anyone familiar with the slightly lesser evil brother, JPM? Killed a county in Alabama doing a swear project. One of the best writers ever had the story, 'Looting Main Street' by Matt Taibbi, but now buried in Rolling Stone, synopsis here:

http://www.michaelmoore.com/words/latest-news/looting-main-street

Best is last two paras, JPM owed 647M dollars as part of an agreement when county couldn't pay debt which was impossible and engineered by JPM At least a court killed that and charged JPM, do the math though, they still made tons of money.

Edited June 23, 2010 by FTJoe

[Tim]

No surprises about this. I doubt Russia has a leg to stand on, China is in better shape. However most currencies around the world face big problems. Fiat currency is the issue; central banks cannot control themselves and are proven to consistently inflate their respective currencies. One wonders whether a move toward a hard commodity currency is inevitable. A world currency is scary, but not as much as one may imagine. It is stupendously dubious that the world, as it were, could ever hold together such a scheme. The Euro, for example, is falling apart. This within one continent. I don't think countries 12,000 miles apart will be willing to bail one another out. Fiat currency is a scam perpetuated by the huge financial institutions, the Fed, et al. These guys know how to "make" money, not earn it.

[FTJoe]

Can't do QE without fiat money. Many I kow are collecting PMs, most hope a gold standard is not used. I doubt it, there would be too much pain in that, they like QE, just another bubble, watch gold soar. I thought it would be doing a lot better but as you say, the other currencies are stumbling as well.

[SteveWilliams]

While I certainly agree that a change of the global currency would be devastating the to US economy, and I certainly don't want to see that, can you really blame other countries for wanting to move away from the dollar? When the gold standard was thrown out, and the dollar was adopted as a global currency, there were assurances made that we would not devalue our currency. We have not lived up to our end of the bargain. Late in his second term, GW Bush started printing money like crazy, increasing the amount of currency by astronomical amounts. Obama has continued this trend. I do not blame one or the other, I blame them both. I do not blame one political party, I blame every politician from every political party who allowed us to get to this point and did absolutely nothing to stop it.

As for the whole "It's too big to fail" concept goes, my thoughts on that make my blood boil to the point that I am almost scared to post about it outside of the "Mosh Pit" for fear of going over the edge. I will put it simply though. If something is too big to fail... it won't fail. If something is so grossly mismanaged it collapses, then, I am sorry, but it deserves to fail. What ever happened to people accepting consequences? What ever happened to the concept of "you made your bed, now you have to lie in it"?

If we had allowed to the banks to fail, what would have happened? The American economy would have fallen on very hard times. Over time though, we would recover, and in place of those large banks would be smaller banks. When larger companies close up, that company's customers still have to go somewhere for the product or service. Where do they go? To the companies that are left. The small businesses -- the entrepreneurs -- the companies that our neighbors own -- the companies that people like Chris own. What's so evil about that?

So we think we saved ourselves by bailing out the banks, and bailing out the auto manufacturers, and bailing out other businesses. We haven't. We have slowed the process down, but in the end, we will be hit, and now we are going to be hit harder than if we had never done the bail outs to begin with. Every time the government doles out money for "stimulus" or "bail outs" we are only making the damage worse. It reminds me of my father, soon before he passed away. He would use credit line checks to pay his credit card bills, then use credit cards to make payments on the credit line account. He was paying interest on interest on interest. Every time he did it, he only increased the amount of money he owed without actually gaining anything except a little more time and a larger debt.