Cannabis Prices & The Coming Devaluation of the Dollar

[Milhouse]

I really dont get the fact that China, holding $900 billion of U.S. debt, would in any way/shape/form would try to tank the $. If anything, with such a stake in the $, they would be trying to bolster the position of the dollar, at least until they got rid of most of that debt.

I am in the same corner as Bobblehead here...This topic we are on now is much different than the original post. And there is a burst coming for China's economy...NO WAY to sustain 14% growth over the long haul.

 

[whodare]

china is in the process of dumping t bills as we speak, its just done through means that arent easily traced

they are going to take and economic hit for sure but if they hedge well in the right places ie metals then you can bet they will come out the other side ok...

 

[Milhouse]

I think we found a point in which everyone agrees with "The Dollar is Fake"

 

[whodare]

It's a 16:1 ratio. And your question, though it might seem like a simple question it isn't. I'll try to explain. The U.S. dollar was once backed by gold until Nixon tricked the American people and the rest of the world and took the dollar off the gold standard. The entire world used U.S. Dollars as the trade currency because it was backed by gold. When Nixon took the dollar off the gold standard (or should I say Nixon's handlers) He effectively turned the entire worlds monetary system into a fiat monetary system. Now China has been purchasing gold and silver in record amounts. China is the second largest economy compared to the U.S. and they own a large amount of our debt and they produce most of our products. There are two major holders of U.S. debt. Number one is the Federal Reserve Bank (Private Bank) Number two is China. In December China and Russia decided to stop using the U.S. Dollar for trade. The dollar reserves have to go somewhere. The dollar is being killed on purpose and there's countries calling for a new trade currency to be backed by gold. If they monetize gold then gold will explode in price. There's about 3-5 Billion ounces of investable gold available. China is encouraging their citizens to buy gold and silver. Americans are encouraged to sell their gold and silver. Every other store is a we buy gold store. They buy your gold and give you paper. Gold and silver are valued in paper that a private bank prints. What ever price they are telling you doesn't mean anything. What matters is the buying power of gold and silver. Money is only worth what you think it's worth. What if everyone thought the dollar wasn't worth the paper it was printed on. If you want to understand this better start doing some research. Here's a good youtube channel to get you started http://www.youtube.com/user/WealthCycles

hmmm

 

[whodare]

I think we found a point in which everyone agrees with "The Dollar is Fake"

that and if you continue to invest in the dollar or banks or businesses that depend on the dollar you will lose everything if it collapses...

 

[bobblehead]

china is in the process of dumping t bills as we speak, its just done through means that arent easily traced

they are going to take and economic hit for sure but if they hedge well in the right places ie metals then you can bet they will come out the other side ok...

I think it's only smart for them to unload part of their position in t-bills... however they're so heavily invested, that it's not something that's going to happen over the next 5-10 years as stated earlier in this thread.

You have some good points whodare, and w/o the added propaganda.

 

[whodare]

I think it's only smart for them to unload part of their position in t-bills... however they're so heavily invested, that it's not something that's going to happen over the next 5-10 years as stated earlier in this thread.

You have some good points whodare, and w/o the added propaganda.

 

[Milhouse]

I agree Whodare...."I would lose everything if it collapses".

I was doing some reading and came across this article which was interesting, foreign companies are actually increasing their stake in long term treasuries.

http://gulfnews.com/business/economy/us-debt-becomes-more-attractive-1.772928

Now i really cant think of a good reason why countries would place their money in long term investments if the dollar is going to ultimately crumble?

 

[whodare]

because when our dollar tanks in the long term they will own us...

literally, they will own the government

 

[draztik]

I heard China is buying up the ETF SLV and taking physical delivery through the ETF. They are also shorting the silver price with JP Morgan with paper shorts. They are manipulating the spot price with fake paper silver that doesn't exist it only exist on the computer. China is buying the physical silver while the price is manipulated low. When gold and silver revalue the billions in U.S. debt they own will mean nothing.

 

[whodare]

thank you

When gold and silver revalue the billions in U.S. debt they own will mean nothing.

 

[Milhouse]

Hey Draztik..What are your sources that China is continuing to sell of T-Bills? I know they sold like $34b but that was over a year ago. I see they sold another $6b a month or two later but havent seen anything recently. I am having a hard time finding information that they are continuing to sell off.

I just saw another article where China is holding more than $1t. Something like $1.16 Trillion in US Govt debt alone, not to mention the vast holdings in various American businesses.

 

[bobblehead]

Whodare has a point here... Foreign investors can buy US companies, Real Estate, etc... and send all the profits back to their country... Until we implement some sort of gvmt regulation on that... They buy the t-bills to make sure that their investment stays afloat.

 

[whodare]

Whodare has a point here... Foreign investors can buy US companies, Real Estate, etc... and send all the profits back to their country... Until we implement some sort of gvmt regulation on that... They buy the t-bills to make sure that their investment stays afloat.

yep just long enough for them to rape the silver market and get out of debt with us...

it can be prevented, but it takes americans to get their heads out of the sand, i bring this up with everyone i talk too.

and regardless of wether or not it is happening, it could which is scary...

 

[Bobby Stainless]

LOL at the fake dollar talk.

I'll be happy to take all the "fake" dollars you do not want.

 

[Milhouse]

It was interesting to read that until 2009-2010, China was one of the top 3 exporters of Silver to the world but that dropped of ~40% in 2010.

 

[whodare]

It was interesting to read that until 2009-2010, China was one of the top 3 exporters of Silver to the world but that dropped of ~40% in 2010.

starting to put it together

 

[bobblehead]

LOL at the fake dollar talk.

I'll be happy to take all the "fake" dollars you do not want.

Our government doesn't know how much money is really out there. People around the world hold their savings in dollars and/or euros right now, b/c their home country's soft currency is unpredictable. We're talking about savings in a safe. lol... If people were to lose confidence in the dollar all of the sudden, and that paper money found it's way home... we'd be in trouble.

The thing is, we're talking about a major catastrophe... I think it's more likely that the yuan will inch it's way in over time, and the 3 majorly traded currencies will be the dollar, euro, and yuan. Presently, the dollar is king, with preference shifting toward euro... and the yuan gaining in popularity in Asia.

The Yuan still has a long ways to come, and with the Chinese bubble close to bursting... Why would China buy up so many companies and real estate, and then tank our currency? They would take a massive hit on their investment. We don't have a manufacturing economy, so it's not like the roles are about to reverse. They are here to stay. The infrastructure is already in place. They can buy up companies, and take the technology to China... but they don't have the American business culture.

 

[David762]

1980: The Hunt Brothers tried to corner the market.

1980: The Hunt Brothers tried to corner the market.

Attached is a graph of the historical price of silver for the past 35 years or so. As you can see there have been a few drastic swings in this market also

1980: The Hunt Brothers tried to corner the market, IIRC.

There wasn't any radical shift in fiscal policy in 1980 to justify the rapid spike in silver. There was a major shift, however, in 1971 (1972?) when President Nixon put the USA completely on a fiat (no precious metal backing) currency.

OTOH, the US Treasury and NY Federal Reserve have put at least $4 Trillion USD into the marketplace, vastly expanding the M3 money supply. Very little of this money has reached Main Street to ease the current credit (lines of credit) crisis -- the TBTF|TBTJ Banksters and Wall Street are hanging onto that "new money", propping up crony corporations and foreign central banks which coincidentally are also private for-profit banks. The Federal Reserve refused to inform Congress about exactly how much money they have released, nor to whom. As the double-dip recession begins to bottom out, these Banksters will be buying up Main Street USA and the residential & commercial real estate at pennies on the dollar.

Without fundamental changes, including tightening regulations on commodity futures speculation and increased central bank backing of local bank lines of credit to Main Street, the economic meltdown of September 2008 will be repeated, although it will likely be worse than that of the Great Depression. This would still only be the equivalent of a band-aid on a gushing arterial wound. The fiscal fundamentals of the American economy are unsustainable. Major economic change is on it's way.

The Obama regime, chock full of Banker lobbyist/advisors, has merely been "kicking the economic credit/debt crisis down the street". This is the only way that the USA government can continue to justify the tremendous fiscal drain of maintaining 3-1/2 overseas conflicts, the Departments of Defense & Homeland Security and the National Intelligence infrastructure. Without the prospect of propping up the American Exceptionalism mercantile colonial empire that is based on Oil, the USA dollar as the world's reserve currency will end. When it does end, this country will experience hyper-inflation.

 

[whodare]

at bobble

underestimating the enemy is a bad thing to do...

not to say you are but remember this arent democratic countries we are dealing with... regardless what the people of their country want the "elite"/dictators will do what they want...