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Post by jeffolie on Aug 15, 2007 7:52:03 GMT -6
It also clearly demonstrated that there are now two competing global centers that can create cash out of thin air. Washington has lost its monopoly.
I doubt this is lost on either China or Russia, who also both want in on that game. Next year, Russian oil traded in Roubles, forcing the west to start earning Roubles? The Chinese are a little further behind, but if they can keep the Yuan non convertible until after the Olympics, forcing all attending, spectators, media, corporate types, to have to convert currencies into local yuan, the closure of the games would be a good time for them to go convertible. With $1.3 billion in reserves, the yuan is a virtual reserve currency anyway. The dollars rally may be relatively short lived. But it will be interesting watching some of the shorts squeezed first. Mr. Paulson is having his strong dollar for a while.
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Post by unlawflcombatnt on Aug 15, 2007 22:15:53 GMT -6
We need to return to the gold standard. Though it would be a "painful" adjustment, it's the only way to end perpetual artificial money creation, and the never-ending bubbles that result.
And the Fed needs to stop spewing it's nonsense about the benefits of "financial innovation" and creation of "new financial instruments." All these "innovations" amount to are ways to spend money even more money that doesn't exist, and make unlimited credit available to anyone who has a pulse, regardless of whether they can pay it back.
And enough about "spreading of risk." The "risk" should be completely confined to the "risk-takers," not shared with unwitting bystanders throughout the world.
Gamblers should gamble with their own money, not that of others. And especially not those who have no intentions of taking any risk with their own money.
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