yvv
Legendary
Offline
Activity: 1344
Merit: 1000
.
|
|
February 11, 2016, 12:33:37 AM |
|
You create confusion and then people decide not to hold your worthless paper. They would rather hold gold.
Nobody holds US dollars. People hold: - land - houses - public stock - bonds - private equity investments (private stock) - bank deposits (these are not dollars, they are loans to the bank) - CDs - beenie babies And, in fact, many people are short the US dollar. They bought a house with a mortgage. They spent money they didn't have to buy a house, they borrowed it from a bank. And by doing so, they went short the dollar. If you have a $500,000 mortgage and a $1MM house, you are short the dollar to the tune of $500,000. You are hoping the value of the dollar goes down over time again your house value. It is a leveraged bet on real estate. In that situation, they not only have no dollars, they are short (negative) dollars. Nobody holds dollars. Dollars are not an investment. Dollars are a means of exchange. They are what things are priced in. Thinking about the value of something vs. the value of the dollar doesn't even make sense. A dollar is worth a dollar, year after year. It is not an investment. This is not true. Many corruptionists in the world prefer to convert money, which they stole from people, into USD cash. Many poor people in the world, who are robbed by corruptioninsts prefer to save their little money in USD cash. This is a very popular savings asset so far.
|
.
|
|
|
yugo23
|
|
February 11, 2016, 10:36:36 AM |
|
You cant just keep printing yourself out of debt with nothing to back the new currency generated.
Ultimately it just waters down the currency value and ends in hyperinflation.
Which makes your debt worth nothing. And most countries can't but USA can as they have the right to do so and their debt value is fixed in USD...
|
|
|
|
mistanama
|
|
February 14, 2016, 10:27:18 AM |
|
You cant just keep printing yourself out of debt with nothing to back the new currency generated.
Ultimately it just waters down the currency value and ends in hyperinflation.
Which makes your debt worth nothing. And most countries can't but USA can as they have the right to do so and their debt value is fixed in USD... If they do this all the time, people will lose faith in the US dollar and will not accept USD in international trades.
|
|
|
|
Laosai
|
|
February 14, 2016, 10:29:47 AM |
|
You cant just keep printing yourself out of debt with nothing to back the new currency generated.
Ultimately it just waters down the currency value and ends in hyperinflation.
Which makes your debt worth nothing. And most countries can't but USA can as they have the right to do so and their debt value is fixed in USD... If they do this all the time, people will lose faith in the US dollar and will not accept USD in international trades. Well sure. But then who to trade with? Problem being they still have this mother fucker army whcih is the biggest in the world. So if anyone minds what their economy is doing, they'll have to face their military part, and that'll lay some shit.
|
|
|
|
markj113
Legendary
Offline
Activity: 2254
Merit: 1043
|
|
February 14, 2016, 10:34:16 AM |
|
You cant just keep printing yourself out of debt with nothing to back the new currency generated.
Ultimately it just waters down the currency value and ends in hyperinflation.
Which makes your debt worth nothing. And most countries can't but USA can as they have the right to do so and their debt value is fixed in USD... Iran is now only accepting euro's in payment for oil, China and Russia are now making trades directly in Yuan and Ruble bypassing the USD. Russia/China is launching a SWIFT replacement. Zimbabwe has dumped the USD for Yuan as a currency. The USA will lose reserve currency status then your USD will be worth less than toilet paper before you know it due to drowing in debt. Well sure. But then who to trade with?
Problem being they still have this mother fucker army whcih is the biggest in the world. So if anyone minds what their economy is doing, they'll have to face their military part, and that'll lay some shit.
I think if the US decided to start a war with China/Russia it would not end well.
|
|
|
|
Laosai
|
|
February 14, 2016, 10:37:35 AM |
|
You cant just keep printing yourself out of debt with nothing to back the new currency generated.
Ultimately it just waters down the currency value and ends in hyperinflation.
Which makes your debt worth nothing. And most countries can't but USA can as they have the right to do so and their debt value is fixed in USD... Iran is now only accepting euro's in payment for oil, China and Russia are now making trades directly in Yuan and Ruble bypassing the USD. Russia/China is launching a SWIFT replacement. Zimbabwe has dumped the euro for Yuan as a currency. The USA will lose reserve currency status then your USD will be worth less than toilet paper before you know it due to drowing in debt. Well sure. But then who to trade with?
Problem being they still have this mother fucker army whcih is the biggest in the world. So if anyone minds what their economy is doing, they'll have to face their military part, and that'll lay some shit.
I think if the US decided to start a war with China/Russia it would not end well. Well f USA crash I don't think it would end well. I don't see them accepting being out of the international game. They'd rather burn the hell of the planet.
|
|
|
|
markj113
Legendary
Offline
Activity: 2254
Merit: 1043
|
|
February 14, 2016, 10:40:23 AM |
|
Every country has a turn at being Reserve currency - The US has had they shot and its naturally coming to an end, next will be China.
|
|
|
|
Laosai
|
|
February 14, 2016, 01:14:28 PM |
|
Every country has a turn at being Reserve currency - The US has had they shot and its naturally coming to an end, next will be China. Lol, cool graph. France was a Reserve currency? I didn't it happened xD Guess you learn something new in your country everyday!
|
|
|
|
Anddos
|
|
February 14, 2016, 01:49:09 PM |
|
I read once that there isn't that much money in the whole world as it is the US debt. To whom is the US so in debt? Mars?
|
| █ █ █ █ █ █ █ █ █
| | █ █ █ █ █ █ █ █ █
| | █ █ █ █ █ █ █ █ █
| ☑
|
|
|
|
markj113
Legendary
Offline
Activity: 2254
Merit: 1043
|
|
February 14, 2016, 02:08:53 PM |
|
I read once that there isn't that much money in the whole world as it is the US debt. To whom is the US so in debt? Mars?
|
|
|
|
Laosai
|
|
February 14, 2016, 02:20:37 PM |
|
I read once that there isn't that much money in the whole world as it is the US debt. To whom is the US so in debt? Mars?
Yeah so it means on average they just owe money to themselves. But to be complete your graph should include the debt of the institutions to other countries ^^
|
|
|
|
BTCGolddigger
Member
Offline
Activity: 93
Merit: 10
|
|
February 15, 2016, 04:11:46 PM |
|
Oh Man Now I have to pay more dam Taxes. But good news BTC will always be safe bet with me.
|
|
|
|
yvv
Legendary
Offline
Activity: 1344
Merit: 1000
.
|
|
February 15, 2016, 06:26:33 PM |
|
I read once that there isn't that much money in the whole world as it is the US debt. To whom is the US so in debt? Mars?
... Yeah so it means on average they just owe money to themselves. But to be complete your graph should include the debt of the institutions to other countries ^^ US government owes most of money to several rich clans in USA and in other countries. These clans own US government through this debt. This is not the same as owing money to themselves.
|
.
|
|
|
Yakamoto
Legendary
Offline
Activity: 1218
Merit: 1007
|
|
February 15, 2016, 06:44:29 PM |
|
I read once that there isn't that much money in the whole world as it is the US debt. To whom is the US so in debt? Mars?
Yeah so it means on average they just owe money to themselves. But to be complete your graph should include the debt of the institutions to other countries ^^ That graph doesn't show them owing money to themselves, it shows that >75% of the debt they owe is to organizations outside of the US government, and thus they still maintain huge amounts of debt that they can't just "wipe away". They also show the percentage of debt owed to different countries, if they had to make a graph for every institution there would be more than 100 articles on the graph.
|
|
|
|
iternetuser
Newbie
Offline
Activity: 7
Merit: 0
|
|
February 15, 2016, 07:39:27 PM Last edit: February 15, 2016, 07:53:01 PM by iternetuser |
|
All new money = debt. All debt comes with interest. Therefore there is not enough money to pay back the debt.
Money supply must be constantly increased to pay back old debt. Money supply can only be increased by going further into debt.
why do people keep repeating this myth? Its a zero sum game...
|
|
|
|
HarryKPeters
|
|
February 15, 2016, 09:58:12 PM |
|
How i sthis news? Remember a year ago, and 3 years ago when they raised the debt ceiling? It is happening and it will keep on happening again and again, until they can't raise anymore. I guess it's a matter of years now.
|
|
|
|
Preclus
|
|
February 15, 2016, 10:43:29 PM |
|
This is not true. Many corruptionists in the world prefer to convert money, which they stole from people, into USD cash. Many poor people in the world, who are robbed by corruptioninsts prefer to save their little money in USD cash. This is a very popular savings asset so far.
No, corrupt people do not hold dollars. A bank deposit is not a dollar, it is a loan to a bank. A deposit of dollars in a bank doesn't just sit there. The dollars are lent out by the bank as debt. Nobody "holds dollars". I have the dollars in my wallet, that's it. My holdings are in stocks, bonds, real estate and a variety of other assets. None of those are dollars. The same goes for "corruptioninists", whatever you mean by that.
|
|
|
|
Preclus
|
|
February 15, 2016, 10:58:45 PM |
|
Iran is now only accepting euro's in payment for oil, China and Russia are now making trades directly in Yuan and Ruble bypassing the USD.
Russia/China is launching a SWIFT replacement.
Zimbabwe has dumped the USD for Yuan as a currency.
The USA will lose reserve currency status then your USD will be worth less than toilet paper before you know it due to drowing in debt.
Reality check: 1. Half of Iran's assets are still frozen by the US and other countries, about $50 billion dollars. Of course they don't want to trade in dollars, Iran's biggest trading partner is Europe. Russia the largest oil trading partner with China. Do you know who the #1 producer of oil in the world is? The United States. 2. SWIFT is an international transfer system that is not run by the US and which doesn't have much to do with the dollar. It is under the law of Belgium, if I remember correctly. 3. Zimbabwe did not dump the US currency at all. China forgave $10s of million in debt if they would also use the Yuan as a currency. Zimbabwe uses the South African rand and dollar as currencies and will continue to along with the yuan. 4. There is zero chance the US dollar will be worth "toilet paper" any time in the future. The US dollar has appreciated against almost all major currencies in the last 5 years including the Euro (1.5 -> 1.1), Japanese Yen (1.2 -> .87), Canadian dollar (1 -> .72), Swiss Franc (1.3 -> 1.01). Against the Yuan it's basically been flat in the last 5 years because the Yuan went up and down. It peaked around .165 dollar/cny and is now .15. In the last 5 years, the Russian ruble has collapsed against the dollar. From .034 dollar/rub to .01 dollar/rub
|
|
|
|
Preclus
|
|
February 15, 2016, 11:01:17 PM |
|
I read once that there isn't that much money in the whole world as it is the US debt. To whom is the US so in debt? Mars?
Whatever you were reading was written by someone who knows absolutely nothing about money and economics.
|
|
|
|
yvv
Legendary
Offline
Activity: 1344
Merit: 1000
.
|
|
February 15, 2016, 11:41:32 PM |
|
This is not true. Many corruptionists in the world prefer to convert money, which they stole from people, into USD cash. Many poor people in the world, who are robbed by corruptioninsts prefer to save their little money in USD cash. This is a very popular savings asset so far.
No, corrupt people do not hold dollars. A bank deposit is not a dollar, it is a loan to a bank. A deposit of dollars in a bank doesn't just sit there. The dollars are lent out by the bank as debt. Nobody "holds dollars". I have the dollars in my wallet, that's it. My holdings are in stocks, bonds, real estate and a variety of other assets. None of those are dollars. The same goes for "corruptioninists", whatever you mean by that. Yes, they do. They like cash paper dollars a lot until they launder them. Very, very many other people in the world hold paper dollars. You just don't see all of this from your basement.
|
.
|
|
|
|