China's economy is built on the strength of the dollar. They dont care what their US Treasuries are worth, as long as their exports continue to look cheap. Why would they risk weakening the dollar by unloading their stash?
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"A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester Freamon -
Why is it automatically assumed to be a closed system incapable of change? The point is they might not have a choice if, a big if, the US defaults. They can be first, be smarter, or cheat.Originally posted by Freamon View Post
Wind the clocks back, the 11th hour 2007, ordinary joe walks up to Fred of RBS and says "Look, you've got to sell all US mortgage securities, do it, do it now" Fred says "You're mad, those debts have triple A ratings, nothing beats owning US debt"
Then wham. All I'm saying is the probability the US will not default is no longer 0%."Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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Obviously if the US defaults then all bets are off. I didn't think the original question was "if the US defaults, will China start selling its treasuries?"...Originally posted by scooterscot View Post"A life, Jimmy, you know what that is? It’s the s*** that happens while you’re waiting for moments that never come." -- Lester FreamonComment
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Put in simple terms for PooperScooter :
1) China can't sell off it's USD without triggering a financial collapse.
2) America can't default without triggering a financial collapse.
Anything outside these known truths is unthinkable.
HTHKnock first as I might be balancing my chakras.Comment
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No it was not. It was my thinking China would be less worse off to act now, than do nothing. The alternative is to continue having a gun pointed at your head.Originally posted by Freamon View Post"Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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Knock first as I might be balancing my chakras.Comment
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Was it not Aristotle who once said " The Law is reason free from passion", in this instance the law is physics applies. We all know the house of cards cannot be an infinite structure, they've got to collapse sometime. And repeating it can't happen because of the consequences that would result is really deserving the attention of natural selection to wield it's sword to protagonist & observer alike.Originally posted by suityou01 View Post"Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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TouchéOriginally posted by suityou01 View Post
How are you this thick?
Are you still working in Germany?"Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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No, so you can't nip up to Gutersloh and "pop a cap in ma ass"Originally posted by scooterscot View Post
I agree with you about the house of cards. It is driving the layman that pays attention to the point of distraction just not knowing.
The one rather sobering thought I had last night was "there must be a reason no one cares". Perhaps the timeline is set, and the powers that be just keep pumping up the tyres when they go flat no matter how many times they have to pull over and do that as they know they will still reach their destination in time.
For your benefit, the metaphor above describes the bicycle with punctures as the global economy and the elite as the cyclist. When the cyclist reaches his destination the bike is discarded.Knock first as I might be balancing my chakras.Comment
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Opportunity to buy on the dips ? I find myself with a significant cash position at the moment and I am steadily buying index trackers as the market drifts lower. Kept some powder dry too which I will wedge in on any big steps down.
They will not default, they will bounce the ceiling after the posturing has been done and points made.Comment
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