What is an american way? Exceptionalism? Hollywood? You have an overstretched military that has become quite useless, that is called a last nail in the coffin.
What if these two enemies to the American way are simply organizing a massive coup against the U.S. dollar?
"1"
China has been hoarding US dollars for over 3 decades. They don't trade to us but they sell to us and the USA are their biggest consumer. We give them trillions in. cash for shitty goods to be sold at walmart. China has the power to destroy our economy but at the same time if they did that, they would essentially destroy their number 1 consumer so it's a lose/lose scenario.
China's economy is very dependent on the US. If US stopped all trade their economy would crash. It would be foolish for them to try to devalue the American dollar. Right now we can see that China is holding back shipment of goods to send a statement to the US even though it's hurting their economy.
I will use the getbig example. You can't find exercise equipment because the majority of it is made in China. Power blocks and Iron Master can't get inventory. Look on Amazon and try to find an exercise bench. They are all very limited. Where you could find 12 scott curl bench brands you might be able to find three brands for sale now. Anything that has parts from China are becoming hard to find.
A 20 is worth 20, and a 100 is worth 100, in America.
They literally print money whenever they want.
Just like the stock market. It's a scam.
Not quite my young friend. Due to the effects of inflation, when looking back about 60 years, $20 in 1960 is equivalent in purchasing power to about $175.62 in 2020, a difference of $155.62 over 60 years (https://www.in2013dollars.com/us/inflation/1960?amount=20 (https://www.in2013dollars.com/us/inflation/1960?amount=20)).My point, is that you print it while you got it. Who cares what inflation is, when you can print however much you want? They can always make new denominations. Why do you think criminals have tried to print currency? It's still has value, and if it's coming out by the sheetload.......Still gains to be made.
Printing money drives us to different types of inflation and ultimately changes the effective rate of inflation over time.
You know, the whole gallon of milk today-vs-yesterday argument your grandparents used to make?
"1"
What is it that these massive powers (China & Russia) are up to?
"1"
The game now is how long can the printing outrun the payback/financial reality.
Not quite my young friend. Due to the effects of inflation, when looking back about 60 years, $20 in 1960 is equivalent in purchasing power to about $175.62 in 2020, a difference of $155.62 over 60 years (https://www.in2013dollars.com/us/inflation/1960?amount=20 (https://www.in2013dollars.com/us/inflation/1960?amount=20)).
Printing money drives us to different types of inflation and ultimately changes the effective rate of inflation over time.
You know, the whole gallon of milk today-vs-yesterday argument your grandparents used to make?
"1"
I'm leaning more towards us running into another great depression.
"1"
I would argue that is not possible, and that the game will go on
But it is possible, because its happened before and we can't disregard what history has shown us. Regarding the game going on, all empires crumble sooner or later, that's one thing history has taught us and given us the proper blueprint for. While it is dangerous to apply to the future inductive arguments based on past experience, we do have the broad reasons why past experience was what it was.
While we have me safeguards in place to hedge against a depression as compared to our friends in the 1920s, we are less and less financially bulletproof as we once thought ourselves to be. 2008 showed us that the vast majority of Americans are pretty naive when it comes to basic economics and finances.
The US experiment on Capitalism can't be sustained with so limited capable minds at the helm. If Biden and CUM-LA win, it's over my friend. Chaos and I will hold the line as much as we can via actual firepower, but the plebs will break through the Trojan gates.
"1"
While it's still worth something you can use the devaluing USD to buy gold, silver, ammo, food, water, supplies, etc.gold and silver to save us is a myth. The only thing that can save people is that 1 out of 7 men that actually create value above what he takes from value
You better be getting prepared while there is still time. After November... look out.
Housing is the most honest currency. We got through 1920 depression because people developed land and built houses from the trees on the land. You couldnt borrow much there fore a man had to create value. 2008 is another big lie,
While it's still worth something you can use the devaluing USD to buy gold, silver, ammo, food, water, supplies, etc.
You better be getting prepared while there is still time. After November... look out.
gold and silver to save us is a myth. The only thing that can save people is that 1 out of 7 men that actually create value above what he takes from value
I'm with you on the bolded aforementioned. I am just not convinced on the gold & silver angle. You see the quick pump and dump Buffett is doing with gold? Even he doesn't truly believe, but he sure knows the common masses will fall for anything he farts out.
You can't eat gold & silver brother.
"1"
My point, is that you print it while you got it. Who cares what inflation is, when you can print however much you want? They can always make new denominations. Why do you think criminals have tried to print currency? It's still has value, and if it's coming out by the sheetload.......Still gains to be made.
I'm leaning more towards us running into another great depression.
"1"
Diamonds and Gold.....Humans made it up to make fortunes and laugh at the masses. You create currency to control the economy.
Diamonds, yes. DaBeers.fiat currency allowed for industry without it we would be farming
Banks/bankers do not hoard diamonds, they hoard gold and silver.
Gold is the ultimate store of value and wealth. Made in supernova explosions. It cannot be destroyed. Dig it out of the ground after 1000's of years, no tarnish or rust. The most perfect form of money there ever was.
Fiat currency (created from nothing) is what controls the economy... over time it destroys it. Fiat currencies eventually fail and go to zero. The USD will suffer the same fate.
Housing is "one" of the best hedges against inflation. It allows for the value of your property to rise during inflation, rents to be increased in order to adjust for inflation and facilitates mortgage payoff in lesser time due to increased money on hand. (That's a free lesson to the newbies that know nothing about hedging against inflation).You sell if you cant rent. Or remodel. Any property even in in bad areas will fetch atleast 80k... Excluding detroit
But the conversation changes a bit when a market collapse occurs like in the great depression. Sometimes, having property can backfire if your tenants move out because they can't pay rent and then you are left with a rapidly depreciating liability on your hands. (That's a more advanced lesson I won't teach for free).
"1"
While it's still worth something you can use the devaluing USD to buy gold, silver, ammo, food, water, supplies, etc.
You better be getting prepared while there is still time. After November... look out.
But I am starting to become less inclined in believing that. China could simply become the Walmart to the rest of the civilized & uncivilized world.China has become just as you described thanks to the tpp and trumps trade war
They could simply be playing their cards right to bring about another great depression to the US economy, all the while hedging against the terrible effects of inflation by holding on to 2 of the most powerful assets in the US that might be left (raw land/real estate & US debt). Once the US slowly turns the corner (say in 5-10 yrs after that kind of disaster), they then own a much larger market share of America. China already owns anywhere between 10-15% of US land/real estate. They could double down during a great depression and work their way towards 50%.
Look into some of these "snake-in-the-grass" Chinese banks that are operating in places like California & Seattle under the guise of giving new homeowners low interest rate loans with really sketchy underwriting that often times leads these homeowners (or better said - debt owners) to lose their homes as its part of the overall collateral to the mortgage.
The older I get, the less I trust the Chinese (and by Chinese, I mean their communist central bank). The average Chinese person is just fine and has very little influence in these matters.
"1"
You’re definitely justified in your concerns. Unfortunately - the VAST majority of Americans have very little understanding of economics. Americans have a very naive mentality that - “we’ll be ok - the federal government would never allow us to suffer like that again”
You have absolutely zero economic / financial education do you?
Oh yes, I heard that back on the eve of Y2K. :D
I remember you... you're all in favor of fake money, fake markets, fake economies, fake politicians, etc.
That's really all there is, according to you anyway.
fiat currency allowed for industry without it we would be farming
Correct. And you're a cheerleader for it all.
Why do you hate gold so much? It really seems to offend you.
It's really sad how ignorant he is and what's even more sad is how he content he is being such a loser. By his thinking why don't we just print a 1,000 trillion dollars and make everybody a millionaire? In fact, why don't we keep printing enough paper and make everyone in the world a millionaire? Or even billionaires?100 bucks is a hundred bucks.
It's really how much paper money we can produce that determines the wealth of a nation and not the goods and services a society produces. ::)
It reminds me when my nephew was a little kid, he once asked me, why don't we just make all houses cost only a dollar? That way everyone will get to have a house.
Diamonds, yes. DaBeers.Say who? The powers that be? I guess I better get ready for a no-knock raid on my place. Who decided Gold was priceless? People living hundreds and thousands of years ago. Currency, Gold, Silver it's all the same thing. Trade a shiny bauble and get pastrami sandwich in return.
Banks/bankers do not hoard diamonds, they hoard gold and silver.
Gold is the ultimate store of value and wealth. Made in supernova explosions. It cannot be destroyed. Dig it out of the ground after 1000's of years, no tarnish or rust. The most perfect form of money there ever was.
Fiat currency (created from nothing) is what controls the economy... over time it destroys it. Fiat currencies eventually fail and go to zero. The USD will suffer the same fate.
It reminds me when my nephew was a little kid, he once asked me, why don't we just make all houses cost only a dollar? That way everyone will get to have a house.
Hi Onemorerep! Take vitamin cock!
Don't tell AOC this!
Diamonds and Gold.....Humans made it up to make fortunes and laugh at the masses. You create currency to control the economy.
8)
Did the site auto correct what group's name you put there? ;D
Not quietly but loudly and meticulously
So petro ruble "exist" you stupid arab !.
1 US Dollar = 78.22 Russian Ruble , RK you must be far the most stupid arab on this planet
What u can buy on 1 dollar in US? Tell me! Then I will tell you what I can buy on 78 rubles in Russia
You sell if you cant rent. Or remodel. Any property even in in bad areas will fetch atleast 80k... Excluding detroit
What u can buy on 1 dollar in US? Tell me! Then I will tell you what I can buy on 78 rubles in Russia
What u can buy on 1 dollar in US? Tell me! Then I will tell you what I can buy on 78 rubles in Russia
It's really sad how ignorant he is and what's even more sad is how he content he is being such a loser. By his thinking why don't we just print a 1,000 trillion dollars and make everybody a millionaire? In fact, why don't we keep printing enough paper and make everyone in the world a millionaire? Or even billionaires?
It's really how much paper money we can produce that determines the wealth of a nation and not the goods and services a society produces. ::)
It reminds me when my nephew was a little kid, he once asked me, why don't we just make all houses cost only a dollar? That way everyone will get to have a house.
100 bucks is a hundred bucks.
What u can buy on 1 dollar in US? Tell me! Then I will tell you what I can buy on 78 rubles in Russia
I have a friend who thinks like this, "why do we have to pay rent when the houses are already built?" and other similar childish things. He even started a political party and I've seen him downtown on the street trying to get people interested. He's on FB and different forums preaching and railing against the banks, saying how the workday should be slashed to 4 hours max with the same pay and so on :D
Show us what kind of car you drive, what kind of house you live in, what kind of appliances you have... in other words, your standard of living versus the average middle class in America.
How much paper it takes to obtain goods and services is not in and of itself relevant. You're using Shizzo type thinking. You may very well be right that the Russian equivalent of a U.S. dollar buys much more in Russia then the U.S. but the average yearly income in Russia is around the equivalent to $6,600 in the U.S. An average America can move to Russia and find himself quite wealthy.
Russia's Annual Household Income per Capita reached 6,533.936 USD in Dec 2019, compared with the previous value of 6,353.084 USD in Dec 2018.
https://www.ceicdata.com/en/indicator/russia/annual-household-income-per-capita#:~:text=Russia's%20Annual%20Household%20Income%20per,6%2C353.084%20USD%20in%20Dec%202018.
A hundred bucks today is not worth the same hundred bucks a year ago, nor will it be the same 100 bucks a year from today.The laughter is all on you, pig gh nipples. What the hell does your face and body pics represent? A mixture of Howdie Doody, with a body from the Hellraiser movies. Pork fried rice-skinned, with satellite ears.
The only thing constant is your life. You are in the same position that you are in now five years ago, and will be in the same position five years from now except fatter.
When it comes to picture wars, you always have to post photoshopped pics. I just post an untouched picture of you, a picture that you originally took and posted yourself, and that is all that is needed to elicit laughter and ridicule.
1mr what is your suggestion to protect against the oncoming depression?
I think your posts have been spot on, the Chinese buying up the country is the idea that scares me the most.
The laughter is all on you, pig gh nipples. What the hell does your face and body pics represent? A mixture of Howdie Doody, with a body from the Hellraiser movies. Pork fried rice-skinned, with satellite ears.
Even in the Great Depression of 1929 most people still had jobs although the unemployment rate reached a high of 25% in 1933. A recession is when your neighbor loses his job. A depression is when you lose yours.
Before, there was some type of use for the unskilled workforce, but today (as Elon Musk has suggested in his most recent 2017 summit), the larger issue will become what to do with all these people that have very little functional purpose.
"1"
RK's neighborhood and car. Very sensible and well kept up. I take back anything negative I ever wrote about him.
I didn't even know that Russia even produced a car. But I looked it up and they represent 1.8% of the world population. I wonder why they don't try to export them and compete in the international market and go against the US, Germany, Japan, Korea... Even Putin until recently use a car built by Mercedes, as have all the previous Russian leaders. Now he had a custom car built with a host of security systems that is produced in Russia. But you are going to see many of those on the Russian streets.
The car industry exists because that's what Russians are forced to buy.
Russia isnt into cars, you make cars for me.
https://en.wikipedia.org/wiki/List_of_automobile_manufacturers_of_Russia
https://en.wikipedia.org/wiki/List_of_automobile_manufacturers_of_Russia
I already looked it up. You act like Russia not being able to produce quality cars is something to brag about. What kind of car do you own? I already asked you that but you ignored it. Why is that? I think it's obvious to everybody. But I am glad you are
happy living in Russia. Please stay there. But please don't make any comparison to the standard of living there versus the standard of living here. Even someone on welfare here makes more than the $6,600/year there. Poor people here still have cell phones, cars, computers, air condition, TV, cable, more than enough to eat... most people in Russia would love to live here than in Russia. We can, and do, bash our president as much as we want. Try to do that to Putin while living in Russia?
I'm leaning more towards us running into another great depression.
"1"
US is 20.5T GDP
China is 13.5T GDP
Russia is 1.6T GDP
nobody is remotely close to replacing the US.
The QE is fine as we are in deflafion. It is standard to print like mofo to offset outflows from asset classes and everyone is doing it so we are all in the same boat.
Hyperinflation is 50% inflation per month. Majority of thr Western world sits around 1.5% per year. Even with trillions in QE we are all still around 1.5% inflation for this full year.
Interest rates correlate to inflation. Therefore if interest rate are at zero, that answers your inflation question (CPI).
I have a good modern car. I dont make comparisons to the standards of living, you do and try. It's pluses and minuses everywhere. You have a very distorted view on Russia that's your problem not mine and you're lying about poor people in USA with cars, air condition etc etc etc. Your poor people are lying on the streets in a box pumped by meth and antidepressants
US is 20.5T GDP
China is 13.5T GDP
Russia is 1.6T GDP
nobody is remotely close to replacing the US.
The QE is fine as we are in deflafion. It is standard to print like mofo to offset outflows from asset classes and everyone is doing it so we are all in the same boat.
Hyperinflation is 50% inflation per month. Majority of thr Western world sits around 1.5% per year. Even with trillions in QE we are all still around 1.5% inflation for this full year.
Interest rates correlate to inflation. Therefore if interest rate are at zero, that answers your inflation question (CPI).
No body is going to replace USA, you will vanish by itself, just wait for the a November election
5 ways GDP gets it totally wrong as a measure of our success
https://www.weforum.org/agenda/2018/01/gdp-frog-matchbox-david-pilling-growth-delusion/
Actually, you made the comparison to the standards of living by posing the question as to the buying power of your dollar equivalent to ours. The implication is crystal clear. You were trying to be clever but failed because though your dollar is worth more you have very little of it compared to the US. The average annual income in your country is $6,600. In the US it's $63,000. If an average American came to your country with a middle class American income they would be rich with ten times the average income of your people. You were trying to be clever but failed.
It is you that have a distorted view of America. You act like people all around the country are homeless and living in the streets. It's confined to a few Liberal States like California, Hawaii, New York. And these homeless people are not on the streets because they are poor it's because they have mental problems, drug addicts, criminals, and some just choose to live on the streets. Anybody in America if they have an ounce of ambition and willing to work can provide a comfortable living. Maybe if I feel like it I'll run by the housing project near where I live. All those people are there because their income is below the poverty level.
I don't have any problems with you living in Russia, or Russia's standard of living. I'm happy living here in Hawaii near the ocean breathing, fresh clean, ocean air and enjoying the year round good weather. I'll stay here and you stay there.
BTW, isn't there any Russian bbing boards you can post on? Why is everybody in the world drawn to America and everything American and not Russian? I don't think there is a single American on this board that have the slightest interest in going to a Russian message board even if they could speak Russian. Which very few do because it's pretty much a useless language in the rest of the world unlike English which everybody in the world has to learn or wants to learn.
BTW, can you post a picture of your "modern" car? I'll post a picture of my brand new Toyota Tacoma.
LOL! You can spin it anyway you want but no one, not even you, believes the Russian economy and their economic system come close to America. That's why the Soviet Union fell.
No body is going to replace USA, you will vanish by itself, just wait for the a November election
5 ways GDP gets it totally wrong as a measure of our
The US doesn't vanish. Look over all these threads, so many calls for collapse yet it hasnt happened. The trillions in QE yet inflation is tracking to 1.5% and interest rates are to be cut further........
It's not about a one day sudden collapse. We are talking different thing like a post WW2 in late 40's USA gdp in the world was like 40%, today it's 15%...
The US doesn't vanish. Look over all these threads, so many calls for collapse yet it hasnt happened. The trillions in QE yet inflation is tracking to 1.5% and interest rates are to be cut further........
It's not about a one day sudden collapse. We are talking different thing like a post WW2 in late 40's USA gdp in the world was like 40%, today it's 15%...
The US and most countries outsourced virtually all manufacturing to China. Then we outsourced calls centres. Then we outsourced tech. Then we outsourced programming. Then we outsourced warehousing etc.
China has grown because of the western world's decision to make it grow. If the US stops, China stops. China even pegs it's currency to the USD.
US is 20.5T GDP
China is 13.5T GDP
Russia is 1.6T GDP
nobody is remotely close to replacing the US.
The QE is fine as we are in deflafion. It is standard to print like mofo to offset outflows from asset classes and everyone is doing it so we are all in the same boat.
Hyperinflation is 50% inflation per month. Majority of thr Western world sits around 1.5% per year. Even with trillions in QE we are all still around 1.5% inflation for this full year.
Interest rates correlate to inflation. Therefore if interest rate are at zero, that answers your inflation question (CPI).
US is 20.5T GDP
China is 13.5T GDP
Russia is 1.6T GDP
nobody is remotely close to replacing the US.
The QE is fine as we are in deflafion. It is standard to print like mofo to offset outflows from asset classes and everyone is doing it so we are all in the same boat.
Hyperinflation is 50% inflation per month. Majority of thr Western world sits around 1.5% per year. Even with trillions in QE we are all still around 1.5% inflation for this full year.
Interest rates correlate to inflation. Therefore if interest rate are at zero, that answers your inflation question (CPI).
"1"
It's hard to understand what onemorerep is trying to convey. It could have been easier to pose a direct and simple question like this - If China & Russia quietly trying to form a coup against the U.S. dollar what we can do about this?
Alright, let us explore some of the different ideas that you have presented here and see if they can be used to validate your claims. You threw out both micro/macroeconomic concepts and we can explore both.
Addressing the MACRO-
First, with regards to a nation replacing the US, it's difficult to even begin to fathom the idea of replacing the USA when in comparison to those two other countries when China (socialist market economy) and Russia (mixed + transition economy) have completely different types of economies. It is literally comparing apples to oranges by way of economic terms. We’re capitalists, they are not. If there was another capitalist world power working closely with both China and Russia, then maybe we would have a suitable replacement, but there isn't. So that idea when presented as a comparison of the 3 towards probable replacement of the USA has no merit.
What we do know is that back in the late 1920s, the USA was one of its kind in terms of its economic prosperity and that didn't stop us from falling into the Great Depression. History is once again repeating itself by way of the US finding itself in a massive debt bubble that is on the verge of bursting. My original question posed in this thread was whether or not China and Russia could be collaborating towards an overthrow of the USA by way of a coup against the dollar. The bilateral foreign market trading between China & Russia has shown us that since 2015 the use of the US dollar for trade between those nations has drastically fallen from over 90% (2015) to just around 46% (2020). This shows us that while the goal might not be to replace the US with another capitalistic superpower, the goal might instead be to simply have it be crushed under the weight of its own debt and by way of de-dollarization/loss of FIAT status due to a lack of use of the USD in foreign markets.
Your comparison of nominal GDP between the US, China and Russia isn't really a great indicator of the overall economic health between the three nations. While one can argue that GDP is a good indicator of the economic health of a particular country, you're using nominal GDP, which mainly shows us that the US is a rich country. Nominal GDP can very easily fool the eyes as we saw in the roaring 1920s, when the nation experienced amazing economic growth boasting of a GDP that grew by 42% and the stock market having over 20% growth per year and then magically by 1929 we had The Great Depression of US history. What we aren't dissecting into is the real GDP per capita, which would in turn show us the true disparity between the standard of living amongst Americans, in other words the true welfare of its citizens. I think if you evaluate the real GDP per capita, you will notice that the USA has been in a rapid decline for the last 1-2 years (full 2019 - couple quarters into 2020), which further shows us that there is a growing disparity between the rich and the poor and the overall purchasing power that our various classes do or do not appreciate.(https://www.bea.gov/index.php/system/files/gdp2q20_2nd.PNG)
Blame it on Coronavirus if you'd like, but to have Q2 2020 (2nd) at -31.7% and previously a Q1 2020 (3rd) at -5.0% is dangerous territory. It's as if we've entered into the perfect storm and we're using Coronavirus as the wool to hide our economic downfall through.
Aside from the shortcomings of using nominal GDP as a comparison between nations, you can't forget the fact that depending on which nation you live in, GDP is nothing more than a number given that places like China can artificially increase their GDP at will by way of underhanded methods (building ghost towns, central bank providing equity to smaller companies redistributing wealth to boost GDP etc).
Again, the question raised was whether China & Russia could be collaborating towards a coup of the US dollar, which in turn could propel us towards another great depression by massive devaluation of the dollar and likely loss of our FIAT status.
Addressing the MICRO-
We are not in active deflation. The last time we were in a state of deflation was between 2007 & 2008. Please show where any US economist, the chair of the federal reserve or even our president has suggested that we are in active deflation. That is not happening at all at this point. We could get there, but we aren’t there.
The idea brought forth earlier is that if our economy continues to drop and we continue to print money & pump out stimulus packages (redistribution of wealth), that we can then head into inflation territory, inflation that if left unchecked can lead us into hyperinflation. Some online have been arguing that we are very much heading towards hyperinflation given numerous factors including: our GDP shrinking by over 30% during the second quarter (even if artificially by way of covid) + a deficit to outlay ratio that is topping over 60% (when the hyperinflation threshold is more around 40%) + the obvious devaluation of the US dollar by way of continued QE and lowering of interest rates. In other words, the writing is on the wall for what our future might have in store for us.
VERY Good chat..
"1"
P.S. Apologize for any grammatical errors or slight miscalculations within original post, as I typed this in early during my morning walk and I was still half asleep.
You typed all this on your phone while walking?!!!
Alright, let us explore some of the different ideas that you have presented here and see if they can be used to validate your claims. You threw out both micro/macroeconomic concepts and we can explore both.
Addressing the MACRO-
First, with regards to a nation replacing the US, it's difficult to even begin to fathom the idea of replacing the USA when in comparison to those two other countries when China (socialist market economy) and Russia (mixed + transition economy) have completely different types of economies. It is literally comparing apples to oranges by way of economic terms. We’re capitalists, they are not. If there was another capitalist world power working closely with both China and Russia, then maybe we would have a suitable replacement, but there isn't. So that idea when presented as a comparison of the 3 towards probable replacement of the USA has no merit.
What we do know is that back in the late 1920s, the USA was one of its kind in terms of its economic prosperity and that didn't stop us from falling into the Great Depression. History is once again repeating itself by way of the US finding itself in a massive debt bubble that is on the verge of bursting. My original question posed in this thread was whether or not China and Russia could be collaborating towards an overthrow of the USA by way of a coup against the dollar. The bilateral foreign market trading between China & Russia has shown us that since 2015 the use of the US dollar for trade between those nations has drastically fallen from over 90% (2015) to just around 46% (2020). This shows us that while the goal might not be to replace the US with another capitalistic superpower, the goal might instead be to simply have it be crushed under the weight of its own debt and by way of de-dollarization/loss of FIAT status due to a lack of use of the USD in foreign markets.
Your comparison of nominal GDP between the US, China and Russia isn't really a great indicator of the overall economic health.
Addressing the MICRO-
We are not in active deflation. The last time we were in a state of deflation was between 2007 & 2008. Please show where any US economist, the chair of the federal reserve or even our president has suggested that we are in active deflation. That is not happening at all at this point. We could get there, but we aren’t there.
The idea brought forth earlier is that if our economy continues to drop and we continue to print money & pump out stimulus packages (redistribution of wealth), that we can then head into inflation territory, inflation that if left unchecked can lead us into hyperinflation. Some online have been arguing that we are very much heading towards hyperinflation given numerous factors including: our GDP shrinking by over 30% during the second quarter (even if artificially by way of covid) + a deficit to outlay ratio that is topping over 60% (when the hyperinflation threshold is more around 40%) + the obvious devaluation of the US dollar by way of continued QE and lowering of interest rates. In other words, the writing is on the wall for what our future might have in store for us.
VERY Good chat..
"1"
P.S. Apologize for any grammatical errors or slight miscalculations within original post, as I typed this in early during my morning walk and I was still half asleep.
Don't apologise. My typos are from my crap Samsung keyboard. I should have answered in clearer detail before but i made it short as i was looking at house plans and enjoying a nice bottle of wine.
GDP is a representation of monetary flow. There is more money flowing through the US across a vast makeup of industried than any other economy which means it is much more stable compared to any of the other currencies.
Eg i pay you USD100 today and tomorrow it's worth the same, the next day, the next and so on. Most keep USD on hand and so they avoid paying rates to convert (cost saving). I pay you RUB100 and fuck me you will run to the bank to exchange before it does God knows what. You can't keep a stash of RUB because of wild fluctuations so you will pay to convert.
I have had this same conversation with Asian customers wanting to constantly change between their local currency and the EUR for payments (small businesses, roughly EUR2M/yr purchases). I tell them all, you will wind up on the EUR due to fluctuations in their own currency. Sure as shit, all of them ended back on the EUR after their local currencies suffered massive swings. You need stability in a currency for a stable global economy to transact.
Ultimately, talk of removing the USD as the global currency requires an alternative which is equally as stable. For that, you want to look at 20.5T flow of currency as a comparison of what is required to take it's place. China is still way off and no one is about to adopt the yuan.
I hope i answered that better this time?
Regarding deflation, i guess i need to be clearer again. I have many posts into why and how relating to QE but to avoid every post being a wall of text that nobody reads, i try to post brief answers. I barely post now as a result as my short answers end up requiring massive explanations :(
Remove QE, you have deflation. QE is being used to plug the outflows. Pure and simple, we are treading water. We are not going into hyperinflation (50% inflation per month).
What so called 'experts' are not factoring into their predictions is that QE is an input in leui of what is supposed to be there already. in other words QE is not 'incremental to', it is 'instead of' which is why all this inflation predictions have been wrong and will continue to be wrong in the current climate........ once they stabilise, then you will find out what their inflation target is.
https://www.weforum.org/agenda/2018/01/gdp-frog-matchbox-david-pilling-growth-delusion/
I didn't make a comparison I was replying to teutonic night 1 who was trying to make a point nor I was responding you. You're not that much richer than Russians, more likely you're much more indebted and can be thrown out of a home very easily. Russians can live and move anywhere and come to every board they would like. Like Russians coming to the USA to spread the Russian world and semen, unlike you, a typical american that will never become a Russian. You're black?
Dumbo, you are just too bumped to be Russian.So why don't you live in Monaco, Singapore or Sydney when is so easy to go !.
Yeah, superhot chicks a lining up just for you on Cote d'Azur, Aussie Gold Coast & Waikiki !.
You are not streetwise by Western standard so stop pretending !.
Regarding 'black' (skin), some of them play for Russia at the World Cup 2018 (in Russia) :D
Why, not tell us about millions of Mongoloids in Russia , o dear ::) !.
Perhaps you own a malyenkaya dacha on Nevsky Prospekt ;D ;D ;D
(small house in upper classy Nevsky Avenue)
If pellius is only arrogant and naive, you're only stupid
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I so sorry that small bread is so expensive in US, I cun buy 20 like this in Russia on 8 $
(https://sun9-10.userapi.com/kpC1TsudovuRH_Tv9lIieRdt4gl2WXJu9eLmeA/n9sajQaQ0AY.jpg)
I live in a fellow BRICS country.Welcome
Do not need a visa to visit Russia.
If pellius is only arrogant and naive, you're only stupid
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I so sorry that small bread is so expensive in US, I cun buy 20 like this in Russia on 8 $
(https://sun9-10.userapi.com/kpC1TsudovuRH_Tv9lIieRdt4gl2WXJu9eLmeA/n9sajQaQ0AY.jpg)
Although I'm always up for a good argument this one I will cede to you. If you are happy in Russia and I am happy in Hawaii it's all good with me. I have no desire to try to convince you that you are unhappy and hate Russia. Being loyal to your homeland is a great trait to have. I only wish we had more people here that share your appreciation and gratitude.
No sarcasm btw, all sincere.