I am not the China lover you and your country has loved them by buying all their goods at the expense of your own manufacturing base which has been decimated in your eagerness. As for your statement on leverage just more stupidity. Bet you think going into Iraq made economic sense as well!! Really your handle should be Fool not Poole.
the whole china thing was retarded from the start sending our infrastructure over to a communist country so we can have ipods and plasma screens which all end up in the trash in 3 years - was just plain dumb (thanks clinton) and the war in iraq was just the final icing on the stupid cake, but i said that long before the war even started (thanks bush) you still havent explained the downside of the USA giving china a kick in the ass, just called me a bunch of names, brilliant debating skills you have the way i see it USA has nothing to lose buy telling china to F-off there will be short term economic pain, long term gain Europe can deal with china decimating them then (which is already happening)
They didn't pump 41B of new liquidity. 42.5B came into expiry that day; this was merely a heavy rollover.
You dont think you would become an economic paraiha with a stupid act like that? mate your are an idiot how could your trade policy but trusted if something like that was proposed. For a country that preaches free trade (only when it suits) such a policy is so protectionist it borders on the absurd. Who would be next country to get a policy like this targeted at them India, Brazil any country that produces cheap goods your consumers crave. Because they will get them from somewhere. Once again looking for an easy way out instead of facing up to your own problems
who said i was in favor of free trade? i dont remember saying that? you think the chinese have free trade? china has the COMPLETE OPPOSITE of free trade and they are kicking ass (managed currency AND massive restrictions to non-chinese on EVERYTHING), you should really think a situation through before trying to debate it. all countries should be forced to keep a balanced trade account with others. If they dont, then they should pay some sort of penalty to even it out, simple as that, thats my take on world economics (and the penalty should work in both directions) free trade is BS, all it helps is multinational companies and politicians if you polled the average american I guarantee you they would say these 3 things 1) free trade sucks 2) china sucks 3) bush sucks (in no particular order)
Precisely. You have to introduce two-way risk into a one-way market. Otherwise you just let it get out of control too fast.
Poole, Have you thought of that, if we and our government don't borrow money to buy cheap import, this will not be a problem? It doesn't matter how cheap the stuff is, as long as you are not spending more than you earn. There is no problem. This apply to the government too. When there is a recession, that means we earn less. Instead of tighten our belt and spend less, Feds' answer is to borrow money it doesn't has (print them) and spend it to simulate growth. We suppose to repay those "loan" when economy is good which we NEVER do. This is the same as if I get laid off. I borrow money to buy my company's product and hope it will hire me back. Remember, before Federal Reserve, we don't have this problem, but we do have more recessions.
i think i say this, verbatim, aloud (usually to myself) about 10x/day. i guess it is just the reality of nobody wanting to put $ into anything BUT treasuries if they are holding dollars. that said, i am with Jim Rogers in that i believe the 10 and 30 year US treasuries are going to be one of the great shorts over the next many years- it's timing that entry that has me perplexed/on the sidelines (good thing!).