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S&P cuts US credit rating, China calls for new reserve currency
I am so sorry. The US is broke. This is before even the $70 billion in unfunded entitlements is factored in. Bill Gross of PIMCO worlds biggest bond trader dumped US Treasuries in March: for a reason.You cannot afford the afghan/iraqi/libyan wars. Bring your troops home and rebuild your economy or in 5 years you will have lost reserve currency status and the dollar will be a worthless piece of paper Please watch the category your posts go in to preserve your posting privileges. Move to non-WoT Also observe posting rules with regard to highlight and spacing. World Reacts to US Credit Downgrade: CNN (CNN) -- International reaction to agency Standard and Poor's decision to downgrade the U.S. credit rating for the first time has been mixed. In China -- which holds large amounts of U.S. debt -- a commentary published by the official Xinhua news agency was critical of the U.S. government and questioned whether the U.S. dollar should continue to be the global reserve currency. "China, the largest creditor of the world's sole superpower, has every right now to demand the United States to address its structural debt problems and ensure the safety of China's dollar assets," the commentary said. history shows it is easy to default on foreign creditors or to debase the currency and rob them with depreciation. But they sometimes react with warships eg: britain/german/italy blockade of venezuela in 1902 "International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country." that's the money quote people. China wants the transnational groups to supervise your currency. groups it can control. There are many ways for one country to control another, it doesn't need to invade if it can control your money supply
Still, Australian Prime Minister Julia Gillard urged calm over the U.S. downgrade, pointing out that only one of the three major ratings agencies had taken that decision. look on the bright side, says Big Red. We need a carbon tax to save jobs (!!!) right before she panics Reaction was slow to come out of Europe Saturday, where they are barely solvent and on the verge of currency breakup questions have been raised about how many European leaders -- including the UK's David Cameron, Germany's Angela Merkel and France's Nicolas Sarkozy -- are presently on vacation. inexcusable Asked about China's call for a new global reserve currency, (UK Business Secretary Vince Cable) said it would be "a sensible way for the world to move" but that it would not happen quickly. there you have it folks. Quick as that. you are going to lose world reserve currency status and in case you have any illusions you'd better understand one thing: that is what has buffered the US economy for years. When the Fed prints money and washes it through the system it insulates the US domestically and forces up food and fuel prices in Africa where they use the US$ to pay for things... and it's worth less than before. Africans have subsidised Americans. Lose reserve status and you lose that buffer. The game changes forever. You can no longer afford middle eastern wars that cost you $1 billion a day. In announcing the downgrade, S&P cited "political risks, rising debt burden; outlook negative." More downgrades ahead. I am sorry. I did not want to see this. Posted by: anon1 2011-08-06 |
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