Darrell

Roger Wiegand: After Bitter Winter, Brace for Spring Meltdown

Yellowhoard, you are correct about China, they are putting their cash hoard to productive use; China intent is to create a sustaining wealth creating society that can support itself. China may make incorrect invest decisions during this transition process, but they are steadfast in their goals and I expect them to rebuild their society in the manner they choose, and not in the manner of think tank policy makers.

It is unfortunate for us that our leadership thinks, since our dollar is accepted as legal tender in most countries in the world, we are a wealth producing society that is so prosperous that it is producing excess capital. The exact opposite is the truth.

Best to you.

On March 18 Yellowhoard wrote:
I suspect China will spend their dollars on dams, highways, airports, water projects, etc...the kinds of things that we should be doing.

They will buy fewer US bonds and more natural resource assets.

This will result in higher prices here for raw materials and higher interest rates here as well.

Then, we will get the bill for this spendfest.

With big time inflation, higher interest rates and massively higher taxes, at best, we will have massive unemployment and the food riots won't be too destuctive to civil order.



On Mar 18 11:01 AM Darrell wrote:

> Yellowhoard, don’t you know that all the debt that our government
> owes to the rest of the world is dominated in dollars? If China,
> Russia, or any other country wants us to pay off our debt, all the
> Federal Reserve has to do is issue more dollars. So instead of holding
> a bag of debt one will be holding a bag of dollars.
>
> And forget about foreign dollar holders not buying any more treasuries;
> what are they going to do with their dollar holdings? One can do
> one of three things with their dollars or any other currency: spend
> it, invest it, or save it.
>
> If your goal is to preserve your capital, then invest it in wealth
> creating opportunities. Best to you!

Roger Wiegand: After Bitter Winter, Brace for Spring Meltdown

Yellowhoard, don’t you know that all the debt that our government owes to the rest of the world is dominated in dollars? If China, Russia, or any other country wants us to pay off our debt, all the Federal Reserve has to do is issue more dollars. So instead of holding a bag of debt one will be holding a bag of dollars.

And forget about foreign dollar holders not buying any more treasuries; what are they going to do with their dollar holdings? One can do one of three things with their dollars or any other currency: spend it, invest it, or save it.

If your goal is to preserve your capital, then invest it in wealth creating opportunities. Best to you!