will china become the world leader?

[froggy]

The demise of the dollar - Business News, Business - The Independent... of the new world order, Arab states have launched secret moves with China, ..... Tuesday that Gulf Arab states were in secret talks with Russia, China, ...
The demise of the dollar - Business News, Business - The Independent

 

[CrusaderFrank]

Obama and the Dems are working with the Federal Reserve to destroy the US Dollar...nothing to see...move along...Amero on the horizon

 

[California Girl]

My opinion is that yea, China will overtake the US as the leading superpower within a few years. It would have taken longer had that ass in the WH not destroyed our future within 10 months of taking office.

 

[Modbert]

My opinion is that yea, China will overtake the US as the leading superpower within a few years. It would have taken longer had that ass in the WH not destroyed our future within 10 months of taking office.

Or maybe just going back the last eight years in general too. All those wars certainly didn't help our bankroll by any means.

 

[CrusaderFrank]

Did anyone else notice how it only took Obama and the Dems a few months before the Capital Markets started thinking about downgrading our AAA Credit rating?

The Stimulus is a Faliure, we need mo' stimulus!

 

[Xenophon]

Good, the US was never meant to be anything but a free country.

All that 'world leader' crap is a residual of FDR's 'run the world' ideas.

 

[California Girl]

My opinion is that yea, China will overtake the US as the leading superpower within a few years. It would have taken longer had that ass in the WH not destroyed our future within 10 months of taking office.

Or maybe just going back the last eight years in general too. All those wars certainly didn't help our bankroll by any means.

Yep, it's all about Bush.

Hells teeth, Doggie, you are one dumb fuck.

 

[California Girl]

Good, the US was never meant to be anything but a free country.

All that 'world leader' crap is a residual of FDR's 'run the world' ideas.

True. The US was founded to be a beacon of a democratic republic. It was not founded to be the worlds policeman or savior of the Universe.

The founders vision was for a country of free people who could show the world, through example, of the benefits of allowing individuals the freedom to live without a controlling government. We are supposed to be the example for others to envy and emulate.

I have no problem with us being that.

 

[Lonestar_logic]

My opinion is that yea, China will overtake the US as the leading superpower within a few years. It would have taken longer had that ass in the WH not destroyed our future within 10 months of taking office.

Or maybe just going back the last eight years in general too. All those wars certainly didn't help our bankroll by any means.

Why is it that you idiots keep going back to the Bush years? This is Obama's mess now, get used to it!!

 

[Mr.Fitnah]

My opinion is that yea, China will overtake the US as the leading superpower within a few years. It would have taken longer had that ass in the WH not destroyed our future within 10 months of taking office.

Or maybe just going back the last eight years in general too. All those wars certainly didn't help our bankroll by any means.

Why is it that you idiots keep going back to the Bush years? This is Obama's mess now, get used to it!!

He didn't inherit anything, he ran to make it his problem

 

[Lonestar_logic]

Or maybe just going back the last eight years in general too. All those wars certainly didn't help our bankroll by any means.

Why is it that you idiots keep going back to the Bush years? This is Obama's mess now, get used to it!!

He didn't inherit anything, he ran to make it his problem

True. The idiots on the left who were once stuck in the "blame Bush " syndrome are apparently morphing into the "hate Fox", "hate Beck", "hate hannity", "hate Rush", 'hate every free-thinking American that opposes Obama" syndrome.

A question for you Obama' lovers:

What the fuck has Obama done that was good for this country since taking office?

 

[Xenophon]

Good, the US was never meant to be anything but a free country.

All that 'world leader' crap is a residual of FDR's 'run the world' ideas.

True. The US was founded to be a beacon of a democratic republic. It was not founded to be the worlds policeman or savior of the Universe.

The founders vision was for a country of free people who could show the world, through example, of the benefits of allowing individuals the freedom to live without a controlling government. We are supposed to be the example for others to envy and emulate.

I have no problem with us being that.

Numerous brush wars and two world wars have distorted that.

I very much like the idea of minding our business and letting teh world handle the problems they create.

 

[Shorebreak]

China won't be a world leader.

They may become a regional leader, but they won't be a world leader. Just like the US. We're no longer going to be a world economic leader. We'll be absorbed economically into a regional system with other nations, and the banks who have been restructuring our global system will have us compete with other regions for lowest cost, such as the EU, the AU, ASEAN, MERCOSUR, and MEFTA.

 

[mdn2000]

Bush years are very relevant to our times and the rule of Obama, Bush is completely in bed with the UN, Timothy Geithner ties the current administration to the UN through Kissinger.

Will China become the worlds leader, a better question is will Maoist Marxism become the worlds leading political power, consider that Obama is a Marxist who appointed Anita Dunn who praises Mao, Consider Obama and his personal freind Bill Ayers who is a Mao Marxists and the idea is very plausible.

 

[California Girl]

Bush years are very relevant to our times and the rule of Obama, Bush is completely in bed with the UN, Timothy Geithner ties the current administration to the UN through Kissinger.

Will China become the worlds leader, a better question is will Maoist Marxism become the worlds leading political power, consider that Obama is a Marxist who appointed Anita Dunn who praises Mao, Consider Obama and his personal freind Bill Ayers who is a Mao Marxists and the idea is very plausible.

Our Government's connections to and support for Marxist ideals goes far deeper than Anita and Bill.

 

[Lonestar_logic]

Bush years are very relevant to our times and the rule of Obama, Bush is completely in bed with the UN, Timothy Geithner ties the current administration to the UN through Kissinger.

Will China become the worlds leader, a better question is will Maoist Marxism become the worlds leading political power, consider that Obama is a Marxist who appointed Anita Dunn who praises Mao, Consider Obama and his personal freind Bill Ayers who is a Mao Marxists and the idea is very plausible.

Bush is in Crawford Texas enjoying his retirement. What evidence do you have that backs up your claim that "Bush is completely in bed with the UN,"?

 

[Rothbardian]

Well, yes the Fed seems like it is eagerly wanting to destroy the dollar and soon. However, if that happens before China is able to diversify out of it they will be in dire straights like us.

With the Lisbon treaty finally passed I have a feeling the power will shift back to the east.

 

[Rothbardian]

Bush years are very relevant to our times and the rule of Obama, Bush is completely in bed with the UN, Timothy Geithner ties the current administration to the UN through Kissinger.

Will China become the worlds leader, a better question is will Maoist Marxism become the worlds leading political power, consider that Obama is a Marxist who appointed Anita Dunn who praises Mao, Consider Obama and his personal freind Bill Ayers who is a Mao Marxists and the idea is very plausible.

Bush is in Crawford Texas enjoying his retirement. What evidence do you have that backs up your claim that "Bush is completely in bed with the UN,"?

Is Bush in bed with the UN itself? No, he never listened to them. Was he influences by the "elite" who run the UN, absolutely.

 

[froggy]

Trade Deficits Have Depressed Bond Yields for 20 Years … »
Warren Buffett Fears Foreign Ownership …
In a rather remarkable article published by Wall Street Week and Fortune Magazine, “Why I’m Not Buying the U.S. Dollar“, Warren Buffett, the Sage of Omaha, claims that the trade deficit will lead to foreigners taking over the United States and that this is a very, very bad thing.

He sees the country’s “net worth” as being “transferred overseas” at an alarming rate and that this will lead to “major trouble”. He predicts that Americans will have to work “extra hours” to service the foreign debt. He sees the trade deficit as “a problem that will test all our abilities to find a solution”.

He foresees that eventually foreigners will “sell most of [the U.S. debt they hold] to Squanderville [i.e., American] residents for Squanderbucks [i.e., U.S. dollars] and use the proceeds to buy Squanderville [i.e., U.S.] land. And eventually the [foreigners will] own all of Squanderville [i.e., the United States].


What Mr. Buffett fails to understand is that the “trade deficit” is due to foreign exporters willingness to accept dollars and not to American’s propensity to “squander” their savings.

Is Mr. Buffett’s “Problem” Real?
Because foreign exporters are eager to accept dollars to settle their trades, these dollars accumulate in U.S. banks and, in turn, in various credit instruments. But, so what? Like many other fretters about the “trade deficit”, Mr. Buffett does not take into consideration that, unlike third world countries, America’s “debt” to “foreigners” is denominated in U.S. dollars which are printed by the U.S. Treasury.

Americans will never have to work “extra hours” to pay off foreign debt any more than residents of Kansas have to work overtime to pay off a state “trade deficit” with Arkansas.

Even if the foreign exporter elects to leave the proceeds from the sale of goods to Americans in a U.S.bank and if the Bank decides not to loan money to spendthift Americans, the bank will invest the funds in U.S. Treasury bills, driving down interest rates. (The Federal Reserve will always issue Treasury bills, even if the government is running a fiscal surplus, because open market operations are fundamental to their “control” of interest rates.)

The Treasury pays interest on its debt simply by crediting the creditor’s bank account with a U.S. bank. The U.S. bank, in turn, reinvests this deposit in new Treasury bills and therefore no one has to work “extra hours”, since debt repayable with your own vouchers really never needs to be repaid.

Mr. Buffett must be thinking we are still living in the age of the gold standard, when a nation’s money was backed by precious metal that it could not create out of thin air. Instead, we are living in the magnificent days of fiat money, Central Banks, and government-condoned inflation.

Should Foreigners Be Banned From Owning U.S. Real Estate?
Even if foreigners decide to use the dollars generated by the trade deficit to buy up (oh, horror of horrors!) U.S. land, this would only give the U.S. government the right to tax them on their property, rather than have the obligation to pay them interest.

If Mr. Buffett really thinks foreigners are going to rush to buy U.S. land, why doesn’t he start buying real estate instead of foreign currency? Just recall how Arab and Japanese billionaires were taken to the cleaners after buying up American “prime real estate” over the last generation.

Generally, just buying real estate to hold, without investing in improvements, results in tax revenues for the state, local, and federal government, cash flow for lucky Americans who sell the property, and a headache for the new owner.

Of course, to invest wisely in such properties, it would be necessary to make improvements, which, in turn, would create jobs for Americans. I, for one, would be happy to see Chinese businessmen buying up the decaying wharfs of New York City, transforming them into modern shopping malls with parks, fountains, and walkways.

Presumably, Mr. Buffett would prefer for, say, the Japanese to tear down Rockefeller Center and export the building, brick by brick, to rebuild in Tokyo, since this would help to reduce the “trade deficit” and keep America’s “net worth” from draining away.

Is Government Intervention Justified?
To resolve his “problem”, Mr. Buffett proposes a government-run scheme for rationing the right to trade with the U.S. through “Import Certificates,” which, of course, would be contrary to the World Trade Organization treaty that the U.S. adhered to under President Clinton.

In other words, Warren Buffett, perhaps the richest man in America, a prominent supporter of the Democratic Party and “limousine liberal” supreme, is proposing that Big Government intervene in the free market and ration rights to import and export goods and services to stop the country’s “net worth from being transferred overseas”.

Of course, under certain circumstances, the country might have a reasonable motive to intervene in foreign trade for the general good. For example, if, in the interests of national security and defense, it was deemed necessary to reindustrialize, regaining lost manufacturing capacity in order to remain “the arsenal of democracy”, this might be a justification for government intervention in foreign trade.

But Mr. Buffett’s xenophobic worries about the nation’s “net worth being transferred overseas” hardly seems to be a plausible justification for government intervention, however emotionally appealing to the uneducated proletariat.

What is Mr. Buffett Telling Us?
If the Sage of Omaha doesn’t really understand what the “trade deficit” signifies, and if Fortune Magazine and Wall Street Week share his lack of comprehension, this provides us with a useful look inside the minds of the wealthy liberal elite who might, just possibly, be running the United States after 2008, when, as almost half of the population fervently hopes, President Hillary Clinton will take the oath of office.

In his article, Mr. Buffett admits that his scheme for “Import Certificates” would inflict more than a little pain on both Americans and foreigners, but this is OK since it all would be for the “greater good”. For students of Capital Flow Analysis, Mr. Buffett’s article should be stashed away to read again in 2008, in the unhappy event that the Democratic Party regains control of government.

Tags: foreign investors, trade deficit, warren buffet
This entry was posted on Wednesday, March 9th, 2005 at 11:51 am and is filed under Foreign Investors. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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[Lonestar_logic]

Bush years are very relevant to our times and the rule of Obama, Bush is completely in bed with the UN, Timothy Geithner ties the current administration to the UN through Kissinger.

Will China become the worlds leader, a better question is will Maoist Marxism become the worlds leading political power, consider that Obama is a Marxist who appointed Anita Dunn who praises Mao, Consider Obama and his personal freind Bill Ayers who is a Mao Marxists and the idea is very plausible.

Bush is in Crawford Texas enjoying his retirement. What evidence do you have that backs up your claim that "Bush is completely in bed with the UN,"?

Is Bush in bed with the UN itself? No, he never listened to them. Was he influences by the "elite" who run the UN, absolutely.

Who are the "elite" that run the U.N.?