March
6th,2009
10:53 PM
the price is insignificant: you would be buying @ 1k an ounce with fiat US currency; i.e. defaulted IOU's. China should certainly move out of dollars into true assets, like gold and oil... there is really nothing to think about.
—jd, usa
 
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March
7th,2009
1:24 AM
RIGHT, JD. THE STICKY WICKET FOR CHINA, HOWEVER, IS THEY ARE DAMNED IF THEY DO AND DAMNED IF THEY DON'T. BUT THE OVERALL UPSIDE WOULD BE THAT THEY DO IT AND FORGET U.S. EXPORTS BECAUSE THEY CAN SURVIVE THAT; WHAT THEY CAN'T SURVIVE IS THE IMPLOSION OF THE YUAN. THAT'S A GOOD REASON TO BET ON THE YUAN.
—HUGH PHILLIPS, USA
 
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March
7th,2009
1:21 PM
1. We must remember that historically Gold has never lost its value and it will never loose it. Once this is understood the decision making process becomes very obvious. GOLD. 2. Look at Gold in 1971 when the money was taken away from the Gold standard and look at Gold today. 3. Money is backed up by Gold. Currency is backed up by debt. Currency will eventually reach its true value ZERO. 4. US economy is the bad apple in the busket. Get rid of it so that the other apples can survive. China and Europe should talk....
—Theo Papadam, Canada
 
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May
16th,2009
5:39 PM
We have to identify the root cause of the problems we are in, which is usury and credit. Usury is the charging of interest on money. Credit is the creation of money out of nothing. The charging of interest is the way to slavery. This is because people may be hoarding money for a rainy day. When more people do this simultaneously, money is removed from circulation, weakening the economy. When this happens, even more people will start hoarding money, because they expect times getting worse. This is the beginning of an economic crisis. Many people will lose their income, and if they do not have money, they must borrow money against interest for unavoidable expenses such as food. As a result, the situation becomes even worse. Credit and interest on money make it possible for an economy to grow above potential during a boom phase. In the boom phase investors add leverage using credit which further intensifies the boom, creating shortages of materials and labour resulting in rising prices. Interest on money entices banks to lend money to leveraged investors during the boom phase. Credit makes it possible to create money out of thin air, which further enables the banks to fuel the boom. When the cycle turns into bust, investors start to deleverage, which further intensifies the bust, creating surplusses of materials and labour resulting in falling prices. What most economists do not see, is that credit and interest on money are the root causes of economic booms and busts. Because gold can be stored without losing value, it does not make sense to lend gold without charging interest. Hoarding money is sometimes be safer than bringing it to the bank, because banks may go bankrupt. Therefore people may be hoarding money for a rainy day. When more people do this simultaneously, money is removed from circulation, weakening the economy and the banks. When this happens, even more people will start hoarding money, because they expect times getting worse. This is the beginning of an economic crisis. Many people will lose their income, and if they do not have money, they must borrow money against interest for unavoidable expenses such as food. As a result, the situation becomes even worse. It is possible to achieve a much greater prosperity, with maximum capital growth without inflation, large debts, economic crises, unproductive government intervention and the unproductive part of the financial sector. Natural selection will ultimately determine the most efficient economic system, despite the political power structures that still exist at this moment. The investigation of alternatives and dissemination of knowledge will accelerate this process, but the ultimate outcome will not change. The most efficient monetary system is based on money with a hoarding fee combined with banning of credit and the charging of interest on money. The theory is described here: http://www.naturalmoney.org/short.html http://www.naturalmoney.org/full-theory.html This is not a joke because famous economists and scientists did see this too: http://www.naturalmoney.org/gift.html Also there is a conversion plan to the new system and a plan to build a sustainable future using this system: http://www.naturalmoney.org/conversionplan.html http://www.naturalmoney.org/buildfuture.html I hope you like it. You do not have to agree with all of it to find it interesting.
—Bart klein Ikink, Netherlands
 
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March
14th,2010
1:01 AM
Can someone in the Chinese banking structure tell me why you keep buying our (US) debt? We have consumed the savings of the current generation as well as that of future generations on the delusion that we can get things without actually paying for them (i.e., work). America's "business model" is no longer valid. Although I love my country, we will soon pay the price for this foolishness. All creditors will be sorry. By way of background, I work for a large American bank on the front lines of the real estate debacle performing workouts of multi-million dollar development & construction loans. There is much more pain to come.
—WS, US
 
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June
10th,2011
1:21 PM
Yay, no one understands economics! China doesn't buy US bonds because it wants to. It buys them because it has to. It buys bonds to control the RMB/USD exchange rate. If China abandoned buying bonds the RMB would skyrocket. That and the Gold market is simply not large enough to accomodate China buying in large quantities. If China went on a massive buying spree the price of gold would surge, but after China stopped buying the price would then fall back down, leaving China with a lot of yellow metal that has no use. The international market for gold is priced in USD. So really you are just hedging against a decline in USD. You could do that by buying Euros or GBP instead. And finally Gold pays no yield. Take it easy. AH
—AH,
 
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