China threatens 'nuclear option' of dollar sales

[anangel4u]

wrong thread.

Lets see if this is the right one.

http://www.rr-bb.com/showthread.php?t=10532


They should be merged.

[Issachar]

Imho, rondaben gets the hit-the-nail-on-the-head award for the day! :)

This situation gets my attention more than any terrorist cell that might be in the country. Likewise.

I have seen this said once a year for 3 years now. It's kind of like earthquake prediction .... it's for sure but when, is iffy.

No one really should have been saying exactly this anyway for three years. China, until recently, hasn't been quite in the position to really do this until now.

Issachar

[ddg1263]

Well the markets are not concerned about the threats at all. It is probably an empty threat at best.

[Rondaben]

The markets are only up because they believe that the FED MUST lower interest rates soon to re-float the boat. This is born out by looking at the gold market (rising on inflationary fears), and the dollar index (falling pretty strongly) on fears that the FED will do just that.

[tml1432]

I am watching the pres talk to the press about something after meeting with the fed... www.foxnews.com

something about expanding free trade and keeping taxes low... I am trying to listen and work and be here all at once...

[Just A Clay Pot]

Yep, this is the leash that will keep the US from interferring with a move on Taiwan. It's a shame, but I think the government has just been waiting for a good reason to get out of the committment to protect Taiwan.

Of course, when the Amero is rolled out, can you think of a better time to aim for a cashless society? I would bet there will be a huge push to keep things as electronic as possible throughout all sectors of the economy.

Just think about this, too...

If there is a full attack on Israel by the Islamic nations of the area (such as that in Ezekiel), and if Israel wins (as we expect it will, although badly damaged in the process), that would allow Israel a great deal of control over access to the oil fields of the area. They might even try to punish China and other nations for helping their enemies. I'm pretty sure that would drive all sorts of nations, especially out of the East, to attack Israel. All they would have to do is eliminate Israel, and they would win the oil game.

Of course, if things played out like this, they might have a little problem with a certain Man returning to the area to protect Israel and to set up His kingdom....

[GAB]

If China dumps dollars, they'd be making a big mistake. Currencies fluctuate up and down. Dumping cheap dollars to buy expensive Euros or yen would mean China loses a good deal of its worth, because the dollar will rise again against these currencies.

[4JesusLove]

China doing this has gone on for years. This isn't the 1st time this has happened. IMO thats why we see so much stuff coming out of China to the US. We have been force fed their goods at bond (gun) point.

[Issachar]

Dumping cheap dollars to buy expensive Euros or yen would mean China loses a good deal of its worth, ... That would be true if the dollar were going to go back up ... so maybe they'd consider cutting their losses?

Oh, but you said that ...
because the dollar will rise again against these currencies. I'm curious as to why you believe this? That would be very interesting if it did. It would certainly defy certain economic natural laws. But then our Lord violated certain natural laws too at times; i.e. walking on water.

There is only a driving down of the dollar by the Fed. The US has been a fiat economy for many decades now. Historically, a fiat system ALWAYS implodes. The have to by their very design. Inflation is an intrinsic part of fiat systems. The dollar has been losing value for nearly 100 years now and especially since August 15, 1971 when Mr. Nixon did his thing; severing the dollar totally from a standard ... gold in the case of the US.

I suppose the dollar go up in value RELATIVE to the Euro if the Euro crashes, but that doesn't seem likely in the near future since so many are switched to it or considering switching to it.

Do you think it will go up by assumption? Assumption that it is cyclical? While some things are cyclical in economies, not all things are or no economy would have ever failed but in fact, we know that most economies that have ever existed have failed.

Issachar

[Rondaben]

The ECB has opened up the spigots to avert a liquidity crisis in Europe. The Fed will likewise have to "open the discount window" like Cramer was crying for a few days ago....

If they do, the dollar is going to slide even faster...The music is winding down