The hidden positive amidst Global Financial Chaos!

[notting]

Taking a Macro View. What people don't seem to be noticing about this whole ongoing GFC is China. The roll it played to bring this all about. They kept there currency and labor costs so artificially low by using slave labor and currency manipulation to monopolized global manufacturing and cause much of the stress on countries who continued to try to play fair.
The real danger from this was that companies in countries playing by the rules would go bust or China would try to take them all over and rule the world! But most have managed to stay afloat and recapitalize. The world has been saved even though the crisis still appears to be in play.
The US has taken the first sensible step by printing money to counter what China has done for around 40 years by leveling the currency playing field, some what, as soon as Chinas labour costs became a little more realistic. This will counter some of the currency cheating China has been doing( that no one will talk about openly) and allow liquidity for corporate activity when banks become confident to lend again. There will not be a QE3 because QE1&2 has not even been lent out yet. It's just sitting there! The next logical step is the Euro countries print moeny to do the same when the time is right. That way they will easily afford to bail out countries quite cheaply and the global playing field will be on a more even keel in terms of balanced currency valuation. This means inflation will be an issue and will hurt China most, but will also make commodities most valuable as all money becomes worth less and real things like copper etc are more valuable. India and other asian economies will take up any slack in China weekness as they emerge in a more organic fashion than Chinas manipulated attempt to bankrupt and over take the world. Commodities and equities just get more and more valuable with devalued currencies allover the shop! Chinas cheating backfires on itself-problem solved.

 

[Starcraftmazter]

What do you mean by "solved"? I see nothing other than worldwide economic collapse. Inflation = Tax = People will pay.

But then again I'm a bit of a pessimist I guess....

 

[notting]

Well Europe just prints money, bails out whatever needs it.Currencies r more realisticly balanced. Depts r down commodities r up we r even richer.

 

[konkon]

Taking a Macro View. What people don't seem to be noticing about this whole ongoing GFC is China....There will not be a QE3 because QE1&2 has not even been lent out yet. It's just sitting there!....This means inflation will be an issue and will hurt China most, but will also make commodities most valuable as all money becomes worth less and real things like copper etc are more valuable.....Commodities and equities just get more and more valuable with devalued currencies allover the shop! Chinas cheating backfires on itself-problem solved.

China alone didn't bring all this about. There is a real interest to destabilize the US because it might be seen as a country that prevents international banking conglomerates from issuing more loans to any country it wants to. The US is and has been doing us a favor for decades by unofficially and officially black-listing certain countries for obvious and good reasons. If it was up to those banking cartels and those that control them (not China here - see my point?) money would be lent to almost anyone for any purpose. The international banking cartels (and those that control them), would be making multiple amounts of more money; we're probably talking triple +. Don't forget that those that own your debt are able to control you to some extent, so there is a power-play here too.

There will, I think, be a QE3 down the track, even if it is called something else. But the reason isn't the reason the Fed is suggesting. You mentioned it in your quote and it has to do with inflation; the US, I think, will introduce a QE3 later on because it is a way to get back into the game. By introducing it you are able to export inflation all around the world. And this is exactly what has been happening. Now China wants to keep pegging its currency to the falling USD? Go ahead, but in actual fact China's currency should be appreciating with all its growth and wealth, not depreciating like it is. This stretching effect will end up hurting China, not the US. Things will become rapidly more expensive in China, and a pricing-out effect will occur withing its borders. I'm sure this is occurring right now and has been for years even. A real dilemma and not for the US. And anyone believing the figures and stats in China must be more trustworthy than me. Inflation, the price of housing etc is far worse than what is stated.

I would not back against the US even in the long run. It controls the markets, currencies, geopolitical world, the seas, the skies etc. China is not capitalist and this is a real shortfall for their aspirations of world domination. If it tries to become capitalist it will be hit with even greater problems that it's not use to. I don't think it will become capitalist in the next few decades or even 50 or so years. Don't forget the military etc in China has a lot of pulling power and it won't want to give up any benefits it gets and the power it has. China will become the wealthiest country, but it will be one of the first times a country did it without controlling the world markets, geopolitical world etc.

The US is probably getting ready for the next round of things to come on the geopolitical, economic scene. But it must not privatize any part of the its high end protective services agencies (NSA, CIA, defense etc etc). If it continues to do this or if there is an attempt to do this, their long term control of the geopolitical, economic, electromagnetic etc world will be compromised.

No offense to anyone that went private for whatever reason, but your truer patriots and the ones that have latently secured and reinforced the United States it top spot in controlling markets, currencies, all asset classes, geopolitics, the seas, the skies etc etc, are its traditional defense agencies, not private ones. This should not change!! Now, congress is a real problem for the US. I don't like the way it operates and its inability to be streamlined and cooperative in times like these is a net gain for all those that want to transfer wealth and power from the United States. Perhaps congress deserves to have less power.

 

[notting]

Now, congress is a real problem for the US. I don't like the way it operates and its inability to be streamlined and cooperative in times like these is a net gain for all those that want to transfer wealth and power from the United States. Perhaps congress deserves to have less power.[/QUOTE]

You haven't really made any new points and missed the fact that there are some sizable German banks, and the Euro is a big economy along with US.
The imagined problem with congress, is a classic mistake that the Chinese continue to make. They think that with total control of their communist capitalist decisions, they are quick, effective and easily maneuverable, where as the US and other democracies are burdened by diplomacy, compromise and the need for public support.
China inc with it's force over it's own people has not learn't from it's moronic history and retarded dictators like Mao - the worlds greatest murderer - who had so much power and control that China incs decisions where not debated enough and hence things like - Kill all the flies and mice, kill 10% of people with cruelty to keep them fearful and obedient, breed like flies (to be reversed later to to the equally stupid - one child policy), control what every one thinks with lies, brainwashing and reeducation, cultural revolution etc etc. Such ill considered decision making causes massive damage that will not end well.
Democracy is an imperfect beast but it tends to limit the extremes of stupidity forced onto the poor people like the Chinese with unbridled, unaccountable power.

However to think it is a mistake is a bit generous, when considered from the point of view of the evil leaders, because the evil leaders actually don't care what happens as long as they keep power, wealth etc in their control they don't care what happens afterward when they are gone. So it gets harder and harder until it all erupts. Which it will. Very sad