0 votes

Hyperinflation Will begin In China And It Will Destroy The Dollar

Interesting!

Hyperinflation Will begin In China And It Will Destroy The Dollar

Eric deCarbonnel
January 20, 2009

The conventional wisdom on China is dead wrong. Specifically, there is a widespread belief, as expressed by Goldman Sachs, that "China will keep the yuan trading within a narrow range in 2009 due concerns about exporters." Worse still, others are even predicting that China will devalue its currency! The sheer wishful thinking is astounding! The idea that "China will keep the dollar peg to help its exporters" ranks all the way up there with "Housing prices always go up" and "You can spend your way to prosperity".

http://www.gold-eagle.com/editorials_08/decarbonnel012009.html

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

SIERRAHPBT I guess your view on China has changed since June

On June 20th, 2008 SIERRAHPBT says:

3 billion people in India and China.. now jz you say those people are backwards peasants. but 30,000 people a day attain middleclass status there.. thats 30,000 people needing oil for cars, electricity, goods and services etc.. spin it how you want but these are facts!

as for me and my home, we shall worship the LORD

Wrong again SIERRAHPBT!

no... my view has not

no... my veiw has not changed. did you even read the article? The US is the one that will take it hard.. China may have some problems but no where near the ones we will have.. Just to give you a lesson in economics.. China.. Largest creditor nation in the world.. USA largest debtor nation in the world.. China 2 Trillion In reserves.. USA 80 Trillion dollar defeceit. China worlds largest EXPORTER.. USA Worlds Largest importer. China worlds largest holder of GOLD reserves... USA can't even compare! China will have problems but if you think they are going to worse then us you are a fool! kinda like that interest rate prediction.. you know the one where you said interest rates would go up in the 4th quarter.. where you called me a cut and paste idiot. gee they lowere down to" 0" that alone goes to show you have no clue about economics.
also what was that other thing you said last spring.. duhh we will go through a slight recession this summer and be on our way out in October.. duhhhhh.. you do not have a clue Jeff give it a rest! Why don't you start pulling up some of your predictions last year.. that would be funny!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

"China will have problems

"China will have problems but if you think they are going to worse then us you are a fool!"

Why must you always resort to calling people names Sierra?

Sierra has the loudest posts on the web.

Here's the calculus:
More "!!!" = more raw truth-telling power
.................
Talk to someone new every day. You'll be surprised what you learn.

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

Hmmm.

If true, this sounds extraordinarily bad. Mainland Asia is the only portion of the world where the economy has not begun to self-destruct.

SUPPORT OUR FOUNDERS' AMERICA
Support the Constitution of the United States

SUPPORT OUR FOUNDERS' AMERICA
Support the Constitution of the United States

Great Article

I thought it was strange China was dropping jobs 2 times or more as America and thousands more factories over there are shutting down. Is this a plan? Here's how World War II happened-many popular leaders were ushered into power by a popular vote and a false flag attack. Chief among them:
FDR from the engineered Great Depression and later by the known attack at Pearl Harbor
Hitler by the bombing of the Reichstag and the failure of their country's economy due mostly to the restrictions of the First World War

Now the global economy is sinking, what will happen in China if their currency hyperinflates-a country with a population of about 1.5 billion ?!!!
And once again the two global giants are in threat of falling hard.
From my perspective this a global game that not only one country should be viewed, but the world as a whole because that's what's being guided.

_ _ _ _ _ _ _ _ _ _
Start getting freedom today by dumping Federal Reserve Notes, Stocks, Banks and anything made outside the USA. Buy precious metals, real estate, businesses, food and guns and get your business community to use local or sound currenc

This is anyone's guess at

This is anyone's guess at this point. There are too many catalysts that could nudge China one way, or the other.

If we try to punish China by imposing tariffs or some other protectionist policy, then China would have no to reason to keep it's currency at it's "Soft peg" to the USD.

If China allowed it's currency to decouple completely, it would drive the value of the RMB vs. USD through the roof. At that point, since China would no longer be exporting to the US, the Chinese would be infinitely wealthier overnight.

The other option would be to continue the soft peg and inflate (like they have been) to maintain cheap exports. I have a hard time thinking that the Chinese will continue the soft-peg for too much longer. I think we'll see some act(s) of financial warfare with China in the very near future.

www.coinaxis.com - ~ Learn more about bitcoin/litecoin, and how they relate to the liberty movement.

Agreed.

They will have no choice but to take action or risk a widespread popular uprising that could destroy their political system.
.................
Talk to someone new every day. You'll be surprised what you learn.

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

Another thing to note is

Another thing to note is that the Chinese have between 30-40% Personal savings rate and very low individual debt. I do believe they'll be much better off than most Americans that have a negative savings rate and extraordinary debt.

www.coinaxis.com - ~ Learn more about bitcoin/litecoin, and how they relate to the liberty movement.

You sound like a person who

You sound like a person who may have personal dealings with China? I'm a relative noob in my dealings, but for me it is very exciting to learn about a completely different society and people. Europe holds little interest for me, but Asia is still a vast, mysterious place that shocks and surprises me each time I go.
.................
Talk to someone new every day. You'll be surprised what you learn.

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

I have several friends from

I have several friends from China and a client that lived in China for 20+ years as a business consultant. I'm certainly not an expert, but I may have a different perspective than what we are fed from the MSM.

My travels to Singapore have also been eye opening. They are quite free in terms of business (just don't spit on the sidewalk!).

The real interesting thing about Asia is it has an ancient history that is rarely recognized (recorded history 2100BC). It's been said that they actually discovered North and South America before the Europeans.

www.coinaxis.com - ~ Learn more about bitcoin/litecoin, and how they relate to the liberty movement.

China is such a diverse

China is such a diverse place, there is no end to it's surprises. I could spend 3 lifetimes there and still only be exposed to a fraction of it's secrets.
.................
Talk to someone new every day. You'll be surprised what you learn.

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

I dunno, I heard there were a lot of chinamen there ;-)

I remember seeing a film as a kid where they flew over China and it looked really really cool. I'd like to go there sometime if they're not bombing us. In fact, I'd like to hike and camp the great wall if that's even doable.

You should work for the tourism office, "3 lifetimes there and still only be exposed to a fraction of it's secrets". Such eloquence.

really!!!!!!!!!!!!!!!!!!!!!!!

really!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

LMAO!

Captain Kirk: "Sierra, we need more exclamation marks!"
Sierra: "I'm giving it everything we've got, Captain!!!!!!!!!!!!!!!!!!"
.................
Talk to someone new every day. You'll be surprised what you learn.

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

I'm shocked and surprised...

...that anyone would take you seriously, since you love your Lord Obama's Afghanistan policy of unending war.

----

"...a nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people." -John F. Kennedy

----

"...a nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people." -John F. Kennedy

On October 24th, 2008

On October 24th, 2008 FreeJesseVentura says:
I'm in agreement with Obama on this one. Bin Laden's detritus must be crushed, or we will have bus bombings and football stadium bombings, resulting in a police state none of us would be prepared for. I'm still in favor of getting the US the hell out of Iraq.

lol.. can't believe he said that! I see someone never listens to Ron Paul!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

Uh-oh. He's back in "!" mode

Uh-oh. He's back in "!" mode again.
.................
Talk to someone new every day. You'll be surprised what you learn.

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

Good Grief Jesse... OBL is dead stop watching the news!

"All great truths begin as blasphemies."

"Human beings with love and compassion are some of the most beautiful creatures in the universe... Those without are a plague on us all."

Another fine use of the "!"

.................
Talk to someone new every day. You'll be surprised what you learn.

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

Article starts off w/ False Dollar Peg Theory...

China dropped it's Dollar Peg in 2005. This article builds it's entire argument around the idea China may someday drop it's Dollar peg. It did just that 3 1/2 years ago. Sorry, but it's very difficult to take any thing serious after this GLARING mistake in it's premise. I guess it makes for some interesting thought though.

China revalues yuan
Move away from fixed dollar peg could lessen competition for U.S. firms, raise import prices.
July 21, 2005
http://money.cnn.com/2005/07/21/news/international/china_yua...

I think they let it slide

I think they let it slide some but still have a peg.. I don't think they took it totally off.

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

What about the Hong Kong dollar?

I've noticed it has maintained that 7:1 valuation.
.................
Talk to someone new every day. You'll be surprised what you learn.

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

SteveMT's picture

Similar idea: Japan is learning quickly about our Ponzi scheme.

View from Japan:

Unlike Japan, China and Europe, among other nations, the US did not have to tap the market of its own goods and services desperately. Simply put, by just printing money, it could get whatever it wanted from abroad, even without any cash on hand. Instead, the spread of the US debt bubble overseas enhanced the networking power of dollar hegemony, which in return boosted the power of dollar seigniorage. This is all debt-forgiveness resulting from the dollar key-currency system.

"Should the US Federal Reserve have properly managed money supply, being conscious of the role of the world's central bank, today's financial crash should have avoided," Nakatani wrote. "But in reality, Alan Greenspan, who had served as Fed chairman for a long time, gave top priority to economic upturn and accommodated the housing bubble. The dollar's oversupply continued. This is the root cause of today's financial crisis.

But that dollar strength may not last. Once people around the world start to think an excessive dollar supply will diminish the value of the currency, they may start selling dollar-denominated assets all at once, causing devastating damage to the world economy. This is why world leaders such as Japan's Prime Minister Taro Aso have repeatedly expressed support of the dollar in the international financial system, easing people's lingering concern over the greenback.

Early signs of the worst scenario for the US are already beginning to show. International demand for long-term US financial assets fell in November as foreign investors sold Treasury, agency and corporate debt, a government report showed on January 16. Net selling of all long-term assets in November was the most since August 2007, as investors sold bonds issued by Fannie Mae, Freddie Mac and other government-sponsored enterprises for a fourth month in the past five.

Read entire article:
http://www.atimes.com/atimes/Japan/KA23Dh01.html

Do you ever think about the

Do you ever think about the US as the new Great Britian and China is the new US? We have extended ourselves like the old British Empire and will eventually have to come home from around the world. The Chinese will become the new super power and leader. History repeats itself.

Actually, I have made those

Actually, I have made those comparisons. China is estimated to surpass the US ranging from 20 to 50 years in the future (in terms of GDP). Regardless, I'll enjoy seeing the transformations and upheavals along the way.
.................
Talk to someone new every day. You'll be surprised what you learn.

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

Related

Free Market Capitalism...in China?

----

"...a nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people." -John F. Kennedy

----

"...a nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people." -John F. Kennedy

What you are doing is cross-thread spamming.

This is a bannable offense on most web sites.
.................
Talk to someone new every day. You'll be surprised what you learn.

..................
"The main thing that I learned about conspiracy theory is that conspiracy theorists actually believe in a conspiracy because that is more comforting. The truth of the world is that it is chaotic..." —Alan Moore

Man you and JKap have a little war going on here huh?

"All great truths begin as blasphemies."

"Human beings with love and compassion are some of the most beautiful creatures in the universe... Those without are a plague on us all."