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Message Board > Malarkey > Woody - maybe it's time to sell your dollars...

August 9, 2007, 15:59
Rincewind
programmer
1505 posts

...before they're worth nada? Apparantly China might release it's 900 billion dollars of US Treasury Bonds on the market which will trigger a dollar crash. You might want to sell your dollars prior to that and buy valuta/goods stable and disconnected from the dollar.

China threatens to trigger US dollar crash
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/08/cnchina108.xml

It wouldn't be very nice if a bread costs over a thousand of dollars. How about swapping your savings in dollars to something else..perhaps Swiss Franks? It doesn't hurt as long as nothing happens, and might save you when it does.

It would be interesting to see how Bush would make sure to steer America into even bigger trouble when this happens, with agressive and violent measures.

[Edited on August 9, 2007 by Rincewind]
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Weblog: http://www.strictlyrational.com updated 24-7-2012
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August 9, 2007, 17:19
Woody
HEAD BLACK MAN
722 posts

Bonds are meant to be cashed in and 900 billion would hardly make a dent so I'm not worried. It looks like politicians are just blowing this up to make themselves look on the ball. If anything they'll be the ones causing shit to go down.
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boredome is the bitter fruit of too much routine
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August 9, 2007, 19:07
Rincewind
programmer
1505 posts

As I understand it (and please rectify me if I'm wrong), the current situation is this:

China has been buying all these bonds to keep the American economy upright, basically financing the USA's overconsumption - this has been in China's benefit as China is exporting a lot of goods to the USA, and with the US economy upright the USA can keep buying those goods.

However, recently there have been propositions by the American Senate to have more import taxes on Chinese goods to limit America's increasing debt in China. This measure would protect Americans from making even more debts in China, but obviously China would scratch their heads as they've been buying all these bunds helping to keep the economy upright to be able to keep exporting their products to the American market. Since they're only buying these dollars to be able to export to the US, they will have no interest in continuing to buy dollars when their export abilities will be severely limited. So now that their export ability to the US is being threatened they are threatening back with the bunds they've been buying.

In other words, America has large debts and China has been playing their debt game along by helping to keep the US economy upright, but as soon as the export ability will be gone they no longer have an interest in supporting US' debt.

Quote:
and 900 billion would hardly make a dent so I'm not worried.


Well apparantly it would have a severe effect on the US dollar value, severe enough to potentially trigger a crash.
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Weblog: http://www.strictlyrational.com updated 24-7-2012
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August 9, 2007, 19:32
Woody
HEAD BLACK MAN
722 posts

Quoting Rincewind:
As I understand it (and please rectify me if I'm wrong)

I'll rectify you all right.
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boredome is the bitter fruit of too much routine
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August 9, 2007, 21:57
Fiona
games are terrible
-9616558 posts

Quoting Woody:
Quoting Rincewind:
As I understand it (and please rectify me if I'm wrong)
I'll rectify you all right.


Someone has been put in ones place.
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laffo
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August 10, 2007, 09:11
Dennis
どこかにいる
2032 posts

A PS3 is 500 USD, here it is 500 EUR (700 USD)

If only I could play PAL games on an NTSC system.
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Kwakkel
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August 10, 2007, 16:33
Caspah
Gladiator
203 posts
maybe its good i just moved to the EU lol.
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"clowns to the left of me, jokers to the right. here i am, stuck in the middle with you." ~Stealers Wheel
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August 11, 2007, 00:34
yonni
None
420 posts
Quoting Dennis:
A PS3 is 500 USD, here it is 500 EUR (700 USD)


What! $500? 500? How come ours are about 400? When yours equate to 250/340?
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August 11, 2007, 10:44
Fiona
games are terrible
-9616558 posts

Tax.
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laffo
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August 30, 2007, 10:51
Dennis
どこかにいる
2032 posts

Quoting yonni:
Quoting Dennis:
A PS3 is 500 USD, here it is 500 EUR (700 USD)

What! $500? 500? How come ours are about 400? When yours equate to 250/340?


It's 499
And $499 (499 U.S. dollars = 365.78 Euros)

So it's cheaper in the USA.

Don't forget there is a deluxe edition (40 GB extra disk space) of the PS3 which costs 599

According to Google:

600 Euros = 407.67 British pounds

There's your 400

[Edited on August 30, 2007 by Dennis]
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Kwakkel
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Message Board > Malarkey > Woody - maybe it's time to sell your dollars...

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