Tonight: Addicted to Money ABC1, 8.35pm

[Nesti (Mark)]

Mate just called me from Melbourne. Paper says this episode it's good and goes into how China is buying as much as they can using US dollars...saturating the market with dollars is why we are seeing a declining dollar...may cause a run before too long.

http://www.abc.net.au/tv/guide/netw/...-05T203500.htm

http://www.brisbanetimes.com.au/ente...1105-hy7e.html

[renormalised (Carl)]

It's going to be a very interesting show.

[Ian Robinson]

Likely they are spending all those USD they've accumulated by financing the USA's economy for years and more recently by lending them to money to the yanks when the smelly stuff hit the fan this time last year.

Best to spend them or convert them to other worthwhile currencies or other worthwhile stuff before the ar$e falls out the USD and it becomes the new paso.

The USD is falling because the USA is still pretty well stuffed economically and the USD is not a good risk.

[Bassnut (Fred)]

China is just a factory for Wallmart. USA tanks, China tanks. China is stockpiling in the hope the US turns. If you think the US is not a good risk, China is then a worse risk.

[weeasle]

Originally Posted by Bassnut

China is just a factory for Wallmart. USA tanks, China tanks. China is stockpiling in the hope the US turns. If you think the US is not a good risk, China is then a worse risk.

Nice critical thinking. We are all interdependent.. To the people that complain about Chinese economic policy I say if you don't like it then don't buy the goods.. However, one tends to find that consumer options are severly limited as in 1 out of 1000 goods not being chinese supplied nowadays... I am not trying to criticize or negatively comment... just something to think about...

[Nesti (Mark)]

China stopped buying bonds and opted for cash 4 weeks ago. Now they're only buying dollars and dumping the liquidity into the market place buy buying so much. We're seeing that effect on the exchange rate. Not buying bonds will force the Fed to keep printing and accelerate monetization - they must be buying their own bonds with Fed money...putting even more dollars into the market place.

Once the run on the dollar starts - and it will pretty soon I believe - it will trigger a run on the derivatives.

NESTI PREDICTION: A 'Bank Holiday' will signify the commencement of the run. It will be an opportunity for only the biggest of banks to close-up shop, they will tell everyone else that this is to stabilize the economy, but this will be a misdirection.

[Esseth (Alan)]

Set it to tape, but it sounds interesting.

At the moment china is using its massive amount of man power to become an industry powerhouse. If they start moving towards becoming a massive thinktank and they are slowly are, we are going to see a massive leap in technology and its going to be China leading the world not the US any more.

[Nesti (Mark)]

Originally Posted by Esseth

Set it to tape, but it sounds interesting.

At the moment china is using its massive amount of man power to become an industry powerhouse. If they start moving towards becoming a massive thinktank and they are slowly are, we are going to see a massive leap in technology and its going to be China leading the world not the US any more.

I'll go one better for a forum pick-me-up, the Chinese will go to the moon to show the world that, although you have sovereignty, IT is the global driver now.

Found this wonderful T-Shirt explaining the US economic system...may buy one.

[Ian Robinson]

Incorrect .... capitalism (USA style) hung itself ....

[casstony]

When the US economy implodes won't it take the rest of us with it? If we're all in the same boat, the currency of a larger, more powerful country (USA) should be more desirable than ours?