It is debt, and the unwillingness to make good such debt if called upon to do so, which guts the dollar. It is also the fact of the "inability" to make good on the debt - it was the direct tax power on the people in distinction to the Euro (as an example) that gave the dollar weight. However, as time goes on the rest of the world can see that the ruling and moneyed elite in America intend to gut the people so the debt cannot be paid, as it grows exponentially - so the call for other currency is more than the size of the debt, it is the worlds recognition that there is no concern for the financial condition of the American people.
Couple with this the propagation into the world community of bogus financial instruments, and you see the reason for the worlds withdrawal from the dollar. I can also assure the world that soon it will be unsafe for the elites who are doing this in the states, as it becomes increasingly apparent to the American people that they have been gutted and abandoned. The entire power structure will be decimated and rise again in the image of the people.
Couple with this the propagation into the world community of bogus financial instruments, and you see the reason for the worlds withdrawal from the dollar. I can also assure the world that soon it will be unsafe for the elites who are doing this in the states, as it becomes increasingly apparent to the American people that they have been gutted and abandoned. The entire power structure will be decimated and rise again in the image of the people. It is at this point we will tell the rest of the oppressed people of the world to do the same to their oppressors.
China is very concerned that the Federal Reserve has doubled the monetary base (money supply) since 9.10.08. China has trillions of dollars worth of US dollar denominated securities.
Anand, As I see it, one of, and not the only, problem with US capitalism is its embrace of a short run horizon. It would appear to me there is little concern for the long run and leaving something meaningful behind for future generations to benefit from. The overriding paradigm is "make money while you can now" even if it means "driving your company into the ground" in the process. The "product" is no longer something the company needs to feel proud of, if it can be a means toward making a "killing" in terms of profits. Quality doesn't mean quality as much as it means a dollar in my pocket.
You may or may not agree with me (and of course, this is my "gut" feeling and I can't "empirically" substantiate it without diffculty). [As an aside, this is what makes economic model making so difficult if not impossible -> the fact that business decisionmaking is highly subjective; we are studying human behavior, after all!!] Nevertheless, if what I said is so, then it doesn't bode well for the future of the wider US economy because the private sector will end up either degrading it signifcantly or even destroying it altogether in pursuit of its short term profit maximizing goals. As you can see, I'm increasingly skeptical of what has long been considered the bedrock foundation of capitalist free enterprise; namely that "pursuit of the narrow self interest is identical to the pursuit of what is best for wider society."
Just some disjointed thoughts...
{P.S. No need to respond, V, as I know what you are going to say :) }
To be sure, it is also the expansion of the base, which will turn the value of the money eventually into a tailspin. The dollar is baseless except for the blood, sweat and tears of the people (fiat), but there will be none of this to back expansion. The value of the money invested is based on real economy, it will never match the printing press
hehehe - well Mara, other than the FACT that you have one "anomaly" repeated historically through early kingdoms, to feudalism, and into capitalism, I would have thought people would have learned a little more than stumping for "adjustments," apparently not.
Mara, businesses try to maximize the NPV of their profits. The companies with high valuations need to demonstrate that they have a strategy for long run product development.
I am less concerned about the short term focus than you are. Do you think that Google, MSFT, ORCL, CSCO, NVDA and INTC are too short term focused? Why?
It is debt, and the unwillingness to make good such debt if called upon to do so, which guts the dollar. It is also the fact of the "inability" to make good on the debt - it was the direct tax power on the people in distinction to the Euro (as an example) that gave the dollar weight. However, as time goes on the rest of the world can see that the ruling and moneyed elite in America intend to gut the people so the debt cannot be paid, as it grows exponentially - so the call for other currency is more than the size of the debt, it is the worlds recognition that there is no concern for the financial condition of the American people.
ReplyDeleteCouple with this the propagation into the world community of bogus financial instruments, and you see the reason for the worlds withdrawal from the dollar. I can also assure the world that soon it will be unsafe for the elites who are doing this in the states, as it becomes increasingly apparent to the American people that they have been gutted and abandoned. The entire power structure will be decimated and rise again in the image of the people.
ReplyDeleteCouple with this the propagation into the world community of bogus financial instruments, and you see the reason for the worlds withdrawal from the dollar. I can also assure the world that soon it will be unsafe for the elites who are doing this in the states, as it becomes increasingly apparent to the American people that they have been gutted and abandoned. The entire power structure will be decimated and rise again in the image of the people. It is at this point we will tell the rest of the oppressed people of the world to do the same to their oppressors.
ReplyDeleteChina is very concerned that the Federal Reserve has doubled the monetary base (money supply) since 9.10.08. China has trillions of dollars worth of US dollar denominated securities.
ReplyDeleteAnand,
ReplyDeleteAs I see it, one of, and not the only, problem with US capitalism is its embrace of a short run horizon. It would appear to me there is little concern for the long run and leaving something meaningful behind for future generations to benefit from. The overriding paradigm is "make money while you can now" even if it means "driving your company into the ground" in the process. The "product" is no longer something the company needs to feel proud of, if it can be a means toward making a "killing" in terms of profits. Quality doesn't mean quality as much as it means a dollar in my pocket.
You may or may not agree with me (and of course, this is my "gut" feeling and I can't "empirically" substantiate it without diffculty). [As an aside, this is what makes economic model making so difficult if not impossible -> the fact that business decisionmaking is highly subjective; we are studying human behavior, after all!!] Nevertheless, if what I said is so, then it doesn't bode well for the future of the wider US economy because the private sector will end up either degrading it signifcantly or even destroying it altogether in pursuit of its short term profit maximizing goals. As you can see, I'm increasingly skeptical of what has long been considered the bedrock foundation of capitalist free enterprise; namely that "pursuit of the narrow self interest is identical to the pursuit of what is best for wider society."
Just some disjointed thoughts...
{P.S. No need to respond, V, as I know what you are going to say :) }
To be sure, it is also the expansion of the base, which will turn the value of the money eventually into a tailspin. The dollar is baseless except for the blood, sweat and tears of the people (fiat), but there will be none of this to back expansion. The value of the money invested is based on real economy, it will never match the printing press
ReplyDeletehehehe - well Mara, other than the FACT that you have one "anomaly" repeated historically through early kingdoms, to feudalism, and into capitalism, I would have thought people would have learned a little more than stumping for "adjustments," apparently not.
ReplyDeleteI am also concerned about inflation spiking up. I my God, v agrees with me! How horrible :lol:
ReplyDeleteMara, businesses try to maximize the NPV of their profits. The companies with high valuations need to demonstrate that they have a strategy for long run product development.
ReplyDeleteI am less concerned about the short term focus than you are. Do you think that Google, MSFT, ORCL, CSCO, NVDA and INTC are too short term focused? Why?
You missed my point.
ReplyDeleteActually, ...
Don't even bother.