North Korea News

[Smitty-48]

The US debt represents a huge chunk of China's wealth, that's their ace in the hole, that's how they leverage without using military force, now that the Chinese can pay in US dollars, everybody wants to do business with them, if the Chinese try to pay in yuan, maybe some third world countries in Africa will take their money, but to buy up what the Chinese like to buy, in Europe and North America, they have to pay in greenbacks, so dumping the dollar is not a viable option, the yuan is propped up by the dollar, they use the dollar to buy goods and services overseas, so they are able to use the yuan internally. Same as the Soviets, the Soviets were totally dependent on the dollar as well, the Soviets actually collapsed, when they ran out of greenbacks.

[StCapps]

The US debt represents a huge chunk of China's wealth, that's their ace in the hole, that's how they leverage without using military force, now that the Chinese can pay in US dollars, everybody wants to do business with them, if the Chinese try to pay in yuan, maybe some third world countries in Africa will take their money, but to buy up what the Chinese like to buy, in Europe and North America, they have to pay in greenbacks, so dumping the dollar is not a viable option, the yuan is propped up by the dollar, they use the dollar to buy goods and services overseas, so they are able to use the yuan internally. Same as the Soviets, the Soviets were totally dependent on the dollar as well, the Soviets actually collapsed, when they ran out of greenbacks.

Like I said, economically the US has China by the balls, contrary to GCF's assertion that it's somehow vice versa. Dude needs to put down the zerohedge and stop parroting their bullshit, he's making a fool of himself, peddling that nonsense in here.

[Smitty-48]

For the Chinese to mount a challenge against King Dollah, they'd have to have transparency and the rule of law, so that ain't getting off the ground anytime soon, America has nothing to worry about, unless and until China overthrows the Communist Party and becomes a functioning democratic capitalist state.

China now, is dining out on American transparency and rule of law, nobody trusts China, they only thing they trust coming out of China, is the dollah.

[StCapps]

When you come at the king, you best not miss.
The Yuan isn't even coming at King Dollar, so they can't hit.
/shrugs

[Smitty-48]

Americans complain about corruption in America, but it's all relative, compared to everybody else, America is the most transparent and least corrupt nation on earth, the strength of King Dollah, is built on the faith that America is the best place in the world to assert your property rights and cash in your IOU's, under the protection of the constitution and associated judiciary, everybody else is much more opaque and unreliable in comparison.

[SuburbanFarmer]

[StCapps]

SIFCLF.

[Smitty-48]

Even if we went back to the gold standard, the flight to quality would be to America then as well, America would be flooded with gold, because America would be the safest place to stash it. The relative transparency and rule of law is the basis of American power, going back to gold wouldn't change that.

Hyperinflation is pure balderdash, in the event of King Gold again, you'd still have to buy your gold in US dollars, the US dollah would be as good as gold, because the whole world would be parking their gold, where again? China? No chance, it would all be going to America.

The Chinese who have gold now, are parking it in America, they can't get their gold out of China fast enough.

[SuburbanFarmer]

Even if we went back to the gold standard, the flight to quality would be to America then as well, America would be flooded with gold, because America would be the safest place to stash it. The relative transparency and rule of law is the basis of American power, going back to gold wouldn't change that.

Hyperinflation is pure balderdash, in the event of King Gold again, you'd still have to buy your gold in US dollars, the US dollah would be as good as gold, because the whole world would be parking their gold, where again? China? No chance, it would all be going to America.

The Chinese who have gold now, are parking it in America, they can't get their gold out of China fast enough.

First of all, if we went to the Gold Standard now, we'd either have to revalue gold at $20,000/oz, or revalue the dollar drastically lower.

Not sure why you think other countries need to "park their gold" anywhere. The Swiss, Indians, and Chinese have bigger gold reserves than anyone. They have no reason to move it overseas.

[heydaralon]

Hell I dont even know what a chink or russian is (is it a country?) and I know to stay away from queerohedge.com