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Originally posted by Kidicious
Pump it into their economy. Duh.
Pump it into their economy. Duh.
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Like he said, as a heat source? To "pump it into their economy" they would need to buy things with it, yes? -
Actually, I heard they were going to use it in their confetti-making industry.
12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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All sorts of things. Build roads etc.. Keynesian policy.Originally posted by KrazyHorse
By doing what? What specifically will they do with wagonloads of paper money?I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Yes of course. But they don't buy US goods and services. They just trade the USD.Originally posted by Darius871
Like he said, as a heat source? To "pump it into their economy" they would need to buy things with it, yes?I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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So what? My point is that selling an interest-bearing security to China is different than giving them hard currency.It's all proportional though.Comment
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So they're going to pay Chinese workers in US dollars to build roads? What will those Chinese workers do with that paper money?12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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It is different, but given the laughable return China earns on its "investment" it is not very different.Originally posted by Naked Gents Rut
So what? My point is that selling an interest-bearing security to China is different than giving them hard currency.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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No either pay for their imports with USD or trade the USD for the currency that they need to buy the imports.Originally posted by KrazyHorse
So they're going to pay Chinese workers in US dollars to build roads? What will those Chinese workers do with that paper money?I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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What I love is watching US investors in China turn dozens of percent on their investment while the Chinese government earns 2%
12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Whose imports are they buying? If it's the US then THAT'S WHAT I'VE BEEN SAYING.Originally posted by Kidicious
No either pay for their imports with USD or trade the USD for the currency that they need to buy the imports.
If it's not the US, then somebody else is going to have all those dollar bills and will eventually buy US products with them. Or not. In fact, it's better for the US if nobody ever tries to exchange those dollars for US goods. It's a debt obligation which never needs to be repaid. It's a free lunch.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Trade it for what? For the Yuan? What countries outside China even have enough Yuan to make up for the mountains of USD China would need to get rid of? And even if they do, where do you think they will spend the USD they got from China?Originally posted by Kidicious
Yes of course. But they don't buy US goods and services. They just trade the USD.Comment
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And somebody else ends up with USD. And they buy US goods and services. Why does the existence of a middleman change anything?Originally posted by Kidicious
Yes of course. But they don't buy US goods and services. They just trade the USD.
12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
-
Clever chinese bastards. They've taken all the green pieces of paper I could print, and all they gave me was boatloads of consumer goods.
12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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The fact that the U.S. is paying the Chinese interest to borrow Chinese money to pay for Chinese exports (at however sweet a rate) seems quite different than paying for Chinese exports in hard currency, which would actually make the U.S. money via seignorage.It is different, but given the laughable return China earns on its "investment" it is not very different.Comment
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A lot of people don't know that China actually imports quite a lot. Mostly from other asian nations and oil.Originally posted by KrazyHorse
Whose imports are they buying? If it's the US then THAT'S WHAT I'VE BEEN SAYING.
Some sure, because the value of the dollar will fall, but it's a net negative effect.If it's not the US, then somebody else is going to have all those dollar bills and will eventually buy US products with them. Or not.
No it's not. You don't seem to keep in mind the fact that we're talking about a depression here. Exports are dear.In fact, it's better for the US if nobody ever tries to exchange those dollars for US goods. It's a debt obligation which never needs to be repaid. It's a free lunch.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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