Worst Case: The Day The Dollar Falls Part 4/6

[chadberry75]

monei is not weal

[QuintusSecundus]

So much for globalization and the mutual benefits of outsourcing they've always campaigned for in the media. Now all the production facilities have been relocated to China, America is just consuming and the debt is skyrocketing.

[kurtzuleger]

US unfunded medicare and social security liabilities reported by their board of trustees for 2009 is over 100 trillion dollars. Many baby boomers retiring and not paying in to that anymore and for the next coming years. This will lead to higher taxes with a dollar that will be worth less and less. .....Also be aware that by 2012 over 1.2 trillion dollars in ALTA-A and OPTION ARMS (adjustable rate mortgages will readjust. We already know the default rate on these ARMS is around 60 %.

[kurtzuleger]

squeezetruck what justbourlier is saying is that the longer it goes the worst correction we will have justboulier is correct in that we need to have this end sooner than later.

[salahuddin786]

China cannot be defeated by Military so the US will collapse it by Economics - China take out you $ from the US NOW

[justbourlier]

China would suffer if the dollar tanked as well. They hold SOOO much of the US debt, that it'll cost them, plus most of their products are purchased by american consumers. However, once China weather's that, they'll be in a much better place.

[highwingprop]

Well, I agree, but the Asians themselves are perfectly capable of purchasing the things that they themselves produce.

[justbourlier]

yup, pretty soon they'll be the big consumers, along with the OPEC nations, and living a better life because of it.

[surferaw949]

Think so? Are you under the false and oft-quoted belief that they hold 2 Trillion in US dollars. Nope. The most they were ever reported to hold (official figure) was 800 billion, and with the exchange swaps, stimulus, and purchases of gold/commodities, there are reports that total holdings are barely half that now. They have a diminishing interest in maintaining the value of the dollar.

[justbourlier]

They own almost a quarter of our treasury debt. Without an audit of the fed, there's no telling how much they actually own tho since they could easily buy bonds thru other central banks. I'm definitely in agreement with you that they're losing interesting in maintaining the value of the dollar. In all honesty, I hope they do, so we can get through the pain earlier. The more this goes on, the worse it's going to hurt when the house of cards falls.

[squeezetruck]

lol what

[walker8989]

5000 views and 13 ratings?