Kaigangio wrote:@ serah,
the segemia fellow might be right...the rapid increase in the US dollars supply due to printing has caused a significant wealth movement from the US to Asia (read china, india, south korea and japan) and Europe.
of importance here is China and india which have benefited quite alot from the inflow of dollars which has generally financed the rapid growth of their economies, providing the capital to develop their competitive export sector...
the Asian economies high rates of individual savings have greatly helped finance their domestic growth as well as finance the US deficits (through the purchases of US TBs). This has continued to allow the USA to maintain its privileged position of retaining the $US dollar as the world's reserve currency; and allowing it to retain its global military and political dominance...
the trouble is if the beneficiaries decline to buy more into these debts (read TBs) and call in what is already owed to them by US...the US will instantly ran bankrupt...when you see these major economies start to lobby for another reserve currency then you know which direction the whole economic circus is headed....
well put
look at the countries where wealth is being "exported" all except china are key US allies. south korea and japan also rely on the US military for defense
all the countries you have mentioned depend on the US and EU for their exports. what if today the US decides to ban imports from china? can chinas economy survive on its own? look at it this way... what if a boss(CEO or MD) told all the workers(CHINA) to help in saving their company(US) by telling them to move their savings from their individual accounts to the company account as an investment and also to help in keeping the company afloat. if the workers held a strike and decided to move their savings from the company account and the company collapses who benefits and who looses?
the US prints money to try to weaken the dola to boost its own exports. this is the only country that can print its currency in a major scale and use it to pay for its imports and everybody is happy including china. this means the dola is still overvalued.
look at who is calling for the dola to be replaced - iran, venezuela? what are they sugesting as a replacement?
the whole world depends on the US economy if anything goes wrong we all suffer.
Politics is just things to keep the people divided and foolish and put your trust in men and none of them can do nothing for you...