Separate names with a comma.
Interested in talking motorbikes with a terrific community of riders?Signup (it's quick and free) to join the discussions and access the full suite of tools and information that Netrider has to offer.
Discussion in 'The Pub' started by DisgruntledDog, Oct 9, 2010.
Oil is the global currency
Oil is paid for in US $ because of a deal that Henry Kissenger did with the Saudies mor that 40 odd years ago.
As soon as oil producing nations decided to accept other currency as payment other than US $ the value of the dollar goes down because it is not needed or in demand to pay for oil - unless of course there is an "incident" that has a effect on oil proces
Sooooo - add those that up with the other stuff and you see that the USA is up the creek
unless there is some sort of "incident" that causes the price of oil to go up past $150 US per barrell - then more US dollars will be needed to buy oil from those that accept US $ such as Saudi Arabia - hence causing the value of the greenback to rise once again
should have the $AUS been used for oil payments it would be the strongest currency as everyone would not only want it but actually need it
So is anyone still advocating far right wing laissez-faire capitalism these days?
Wait a second, we're talking about America, of course so!
God is punishing America for its greed, and it will be righteous, lol.
For a country that modelled its system of government and compared its geographical dominance to that of the Roman republic/empire, it's heading exactly the same direction, self-implosion. Do we care?
US has been up the creek without a paddle for ages.
Something like $50tril debt. The recently released figures of $16tril didnt include the real expensive stuff like health, social security, etc.
To be honest i dont especially care, one way or another the financial system of the world is going down in a huge heap at some point, and there aint no avoiding that, just get ready to weather it as best as you can.
US leading the world into some sort of future? Nah.
We are in the same boat here. Its actually howards fault.
When he signed us up for the FTA with China, he was spruiking on about how it would be worth $10b a year to australia. What he decided not to mention was that it would be worth $40b a year to China.
Erm... $30b down the hole every year, back then... let alone now, when we manufacture nothing... funnily, heading down the exact same path the US is on now.
Can we fund that debt? Nah.
The US economy is not laissez-faire capitalism.
The US federal reserve is a centralized body that sets national interest rates. In a truly free economy, interest rates are determined by market forces rather than central economic planners.
Over the past 20 years, the federal reserve has continually cut interest rates in the face of every slight economic downturn. This flood of cheap money has merely delayed the problem to the point where interest rates cannot be cut any further.
The laws of supply and demand work better than any central bank bureaucrat in determining the correct cost of money, without the political favoritism and secrecy that characterize central banks.
Lasting prosperity will only be possible by a return to true private banking, where interest rates are set by the free market.
Don't you believe it. US is so central to the worlds economy that if they declare bankruptcy, it will probably turn the entire world bankrupt, creating the biggest depression ever conceived.
And I'm probably underestimating it.
And I'm not one for scare tactics.
The US Federal Reserve is private -- its not a government entity - its owned by 13 member banks or something -- there is a lot of hush hush about the US Federal Reserve
Precisely my point .
There aint that much money in the whole damn world.
The Board of Governors certainly is a federal agency
I really doubt that as an eventuality. China and India would be fine without the U.S. Australia will be fine as long as China is doing well and the world will keep turning.
Greenspan admits that Federal Reserve is not answerable to any section of US Federal Government
China was one of the hardest hit economies of the GFC.
Who buys the largest proportion of chinese goods? Similar situation for india. They will both go down in flames.
Who buys the largest portion of Chinese goods, the Chinese. If the U.S went under a few Indian companies might follow suit, on the large though the country will be fine. To me a more likely scenario is the U.S goes broke, India and China step in and buy whatever they don't already own / isn't junk.
The US would represent a significant percentage of the Chinese GDP. Enough to hurt but maybe not enough for a mortal wound. The Chinese are the biggest holder of US debt.
If the US defaults and/or their currency hyperinflates the whole world would be in a depression.
With the advent of peak oil and ever increasing energy prices it's hard to see how the world will continue the way it has over the last 100+ years. The world's economies are based on infinite growth and in a finite world it's got to stop somewhere, sometime. It looks like everywhere and soon.
monetary v resource based economies
you may find this an interesting read
The monetary economy is just an illusion. Money does not have any intrinsic value when all the currencies of the world are fiat currency (not back by gold or similar).
I don't believe that a resources based economy would work. We still have the problem that we use non-renewable resources. If the 7 billion people in the world had a standard half that of Australia we would still run out of resources very quickly.
While it would have been possible to mitigate the peak oil problem we would have had to start 20+ years ago to change the infrastructure. This is something we did not do. We are at peak now.
This minus the india part
China is a powerhouse they dont just buy resources they buy the company!
Certainly if the US goes down there will be a massive shake up, the chinese are well positioned though. For interest read articles by money morning, they sometimes do articles on hypotheticals and i think it is quite insightful