And that, coupled with Misterno's earlier observation, should make it clear why the US talks, but does not walk, the "China must unpeg" line. There is much talking and writing about details that are essentially irrelevant. Misterno has summarized this all very well.
Misterno, your last post is a profound example of a person talking to himself while in public. The question that occurs to me is why bother to post it on a site that involves interaction and argument between people? I will assert again for comment...the limit to printing money with impunity is the acceptance of foreign creditors. This is so becuase currency is debt, it is part of a debt continuum...it is at the non interest bearing end and longer sovereign bonds are supposed to be at the more interest end. THe currency starts the yeild curve at zero and continues to the longest sovereign bond. The viability of the currency as currency, its acceptance in the commerce of the sovereign is limited by the acceptance of the longer term interst bearing bonds. Currency debt is justified by sovereign debt sold to private and foreign purchasers. If and when the longer term debt auctions begin to fail, then the currency will begin to fail. At that point the continuing printing of money will accelerate the collapse of the currency. Since the currency is only backed by the good faith promise of a sovereign, since there is no collateral, the promise is no good when the sovereign is insolvent, the sovereign is insolvent when private and foreign investors will not but the sovereign's debt. If the sovereign itself is the only buyer of its own debt it must stop printing money or its currency will collapse in a matter of weeks and months. That is the way that hyperinflaiton works. That is the history of all hyperinflations. It is key to understand that inflaton cannot take place unless private and foreign parties will buy debt. There is a balance to money printing and the debt markets that limits the ability to increase currency creation with impunity.
THE LOGIC OF THE AMERICAN HEGEMONY The American ideology based upon the individual right to freedom constitutes the conceptual foundation for the American hegemonism. Domestic democracy constitutes the institutional foundation for this simplistic value system, while expansion of democracy as a result of the development of social diversity makes this value system more adaptable to a wider area, thus forming a âtyranny of the majorityâ in concept. This value system has gradually gone beyond white racism and the Protestant âmanifest destiny,â manifesting itself in foreign affairs as a special form of American nationalism, causing the ballooning of hegemonic thinking. Experience in domestic social development has made the Americans rarely mindful of morality while pursuing their national self interest, and made them full of self-righteous desire for world leadership positions. In the meantime, there are still some restrictions to American hegemonism, preventing it from going to fanaticism and short-sightedness, as demonstrated in the self-restraining and self-examining factors embedded in Americaâs checks and balances system, decision making procedures, social structure and cultural traditions. http://www.uscc.gov/researchpapers/...5/05_03_23_logic_of_the_american_hegemony.htm
I am sorry I was not ignoring you. You have valid points but I think your points are mostly valid for any currency other than USD due to the fact that USD is RESERVE CURRENCY That means there is so much to be absorbed by the global economy I mean, if USA prints as much as whatever it is out there, I wonder if anybody would feel it. In other words, USA is pushing the global trade for a reason. The more the trade between countries go up the less the effects of too much USD printing will be felt as inflation. USA is lucky in the sense that the time that it needed to print currency as much was the time that China and other Asian countries exploded their exports to the world thus no inflation was felt in USD terms. There is a surge in commodity prices in USD but I think it is because of speculation not too much USD printing. You said "The viability of the currency as currency, its acceptance in the commerce of the sovereign is limited by the acceptance of the longer term interst bearing bonds." But do other countries have a choice other than USA if USA collapses? What is out there other than accepting US Bonds? As long as the ultimate super power is believed to be non replaceble in any way, its bonds and currency will be priced irrationally like today. Again I was not ignoring you, you seemed to have a better understanding of this than I am. I am just presenting my ideas here. who knows may be I am wrong.
I don't believe it was by luck that Nixon decided to visit China at the same time Bretton Woods was going up in smoke. Now I don't for a moment believe anyone planned the last 40 years, but I certainly do believe that US leadership in a tough spot saw exactly what you're describing as a possible way to keep the game alive a bit longer.
If you'd like to read about financial history and how certain events linked certain actions and decsions, this bloke worth a read. Start here at the main page. No subscription required, lots of free stuff. Although he does sell a book and offers subscriptions, its not required for a great deal of his info. http://www.enterprisecorruption.com/ at the end of the main page is this link http://www.enterprisecorruption.com/?page_id=98 Titled "The Perfect Is The Enemy of the Good" Long read, perhaps twisted, but this guy managed to link times and events and decisions together to form what I'll have to say is one of the most interesting conspiracy theories I've ever read. If you have the time, its well worth a look.
98 till 2011 heat up 100% eletric up 100% property taxes up 50% house value down 30% wages stagant time on computer vs working up 300% that's my situtation
You always wore nice clothes, otherwise someone might call you "dirty jew" The obese were home cooking. Men ate as little as possible so there would be enough for the children.