Bye-bye dollar (revisited)

[ymu]

It's an interesting opportunity for the Chinese to have a chance of going on a spending spree with their dollars in the US though. Bloody risky but were I a Chinese financier I'd look at buying a couple of the smaller failing banks, with the aim of becoming one of the strongest banks remaining in the US over the long term.

Give the Americans the option of nationalising their own banks or China doing it for them, and they'll become good little socialists in no time.

 

[zoltan]

Hey buddy you think US farmers are hurting now? You have any idea how farm income has risen in the past five years? I have been to farms here in the midwest and my family does a little farming on the side. Its boom time baby.

On top of that US farmers get subsidies from the government for things like ethanol. Now EU subsidies are way out of control so no bitching from that side.

Now there is something the US and EU can do together! Bring down their wasteful, economic distorting direct payments to agricultural producers. The lefties love it as do many economic conservatives who want to cut spending like the current Republican nominee for US president.

Dont agree with your conclusion maybe, but you are right with regard to the way the Subsidies are distorting the notion of free trade ( if thats what you beleive in )

 

[i386]

I lived in China for 22 years - the central bank there holds huge amount of US treasury bond. it's definitely no good to wave US goodbye albeit no good to rain cash on them, either.

In this global financial turmoil nobody could say whom they are depended on and nobody is on a safe boat. IMHO it's just a painful period to consume the extra monetary energy generated during the past decades. Principal thermodynamic laws tell us you can not generate work without wasting energy in another form (mostly heat) and now you see the financial equivalent of this everlasting theory.