Inflation

Brownslave688

You want a toe? I can get you a toe.
here it comes!!!


Trump just added some pretty big tariffs. Unemployment is very low.


This adds up to wages going up and goods costing more. It's coming.
 

vantexan

Well-Known Member
To expand upon that idea, for ever 1% inflation, every trillion dollars that China has lent the US, China would lose $10 billion dollars.
But who was printing money that caused it to be inflated? And the U.S. has been complaining about Chinese currency manipulation for a long time.
 

vantexan

Well-Known Member
Van gotta be honest, our currency has been manipulated for years.
That's not in the same arena. The U.S. Dollar is the world's reserve currency. There's only so much we can do in terms of the Fed raising and lowering interest rates. On the other hand the Chinese refuse to let their currency float on the open market. As to the loan collateral I referred to. The Chinese consider copper to be semi-precious and use it for collateral on bank loans. They've got huge warehouses everywhere full of it. Problem is the same copper is often used as collateral on multiple loans. If a Chinese company defaults on a loan, which only recently started happening because the Chinese government always backed their companies before, and the copper collateral is taken away, it leaves other loans with no underlying collateral. The Chinese banking system could collapse due to this if their companies start failing. One of the main reasons China manipulates their currency to their advantage is to avoid this. They don't play by the same rules and as their government relaxed restrictions on capitalist enterprise these fundamental banking flaws occurred. And if their banking system did collapse a lot of Western investment would be swept away with it.
 

floridays

Well-Known Member
That's not in the same arena. The U.S. Dollar is the world's reserve currency. There's only so much we can do in terms of the Fed raising and lowering interest rates. On the other hand the Chinese refuse to let their currency float on the open market. As to the loan collateral I referred to. The Chinese consider copper to be semi-precious and use it for collateral on bank loans. They've got huge warehouses everywhere full of it. Problem is the same copper is often used as collateral on multiple loans. If a Chinese company defaults on a loan, which only recently started happening because the Chinese government always backed their companies before, and the copper collateral is taken away, it leaves other loans with no underlying collateral. The Chinese banking system could collapse due to this if their companies start failing. One of the main reasons China manipulates their currency to their advantage is to avoid this. They don't play by the same rules and as their government relaxed restrictions on capitalist enterprise these fundamental banking flaws occurred. And if their banking system did collapse a lot of Western investment would be swept away with it.
Understood, be wary where you put your investment dollars, but printing fiat currency is manipulation as well and being the reserve currency our collapse would have much greater ramifications. The total collapse is inevitable, when is the question, but rest assured unless it is well down the road historians will judge Obama as saving the world economic system and Trump as destroying it. I'm not making a political statement, I'm making an ideological one. That's just one simple man's opinion. We're almost thirty years post Ronald Reagan and revisionists are still blaming him. My basic point was the means of manipulation may be different, but it is manipulation nonetheless.
 
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