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I.M.F. Makes China’s Renminbi One of World’s Select Currencies

nytimes.com

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Re: I.M.F. Makes China’s Renminbi One of World’s Select Currencies

#111

Post by tormeh »

adventured wrote: post #40
the-dude wrote: post #36

Earlier quoted context omitted.

> The Euro was widely expected to pose a challenge > to the dollar globally, which has not happened at all. The dollar was trading at about 0.75 to the Euro around 2009. What is a challenge in your eyes? Anyway, these are just opinions ( yours and mine ). Mine: no US rate hike in the foreseeable future, QE4.

The Euro has acted as a strangling device for everyone in the union not named Germany. For Germany, it has enabled them to ride an artificially cheaper currency with their exports (were they using their own currency, it would be far more expensive). For Italy, Spain, Portugal, Greece etc, the currency held them back by being even more expensive than their own currency would have been; for eg Finland, it has prevented…

You're mostly right, unpleasant as that is in this case. One thing's wrong though: The ECB doesn't really have to care, and historically haven't cared, about growth and unemployment. The ECB is printing money because inflation is low, not because growth is low.

Re: I.M.F. Makes China’s Renminbi One of World’s Select Currencies

#112

Post by digi_owl »

throwaway4633 wrote: post #94
rrggrr wrote: post #58

This story masks BAD news. http://blog.mpettis.com/2015/11/chinas-rebalancing-timetable... China's debt today is over 200% of its GDP and may exceed 300% in five years. One hopes the IMF and China agreed on concessions will assist China in rebalancing its economy quickly, because as Petits' posting points out -- a disruptive end is near for the current model.

Debt doesn't really matter when it's your own currency for your own country. For example, imagine you control a cult of 50 people and invent a currency (cultcoin). You can create a debt of 10 billion cultcoins and it won't affect the real wealth of the residents. What really matters more is the exports and imports to the outside world, and the value produced by the residents.

This depends on you talking about national debt or private debt. For national debt, the dynamic you describe holds true. But for private (households, companies) debt it does not as they do not have the capacity to create new money.

Re: I.M.F. Makes China’s Renminbi One of World’s Select Currencies

#113

Post by AC__ »

AC__ wrote: post #13

While you present a compelling argument, I must respectfully disagree. I may catch some flack for saying it, and many people refuse to believe it, but the U.S. is insolvent. The value of the U.S. dollar is artificially propped-up. How long do you truly believe the Russias and Chinas of the world are going to keep using greenbacks? They will feign WWIII, Israel will expand to encompass 'Greater Israel' and U.N. will f…

Lots of downvotes, not much in the way of reasoned response though.

Re: I.M.F. Makes China’s Renminbi One of World’s Select Currencies

#114

Post by AC__ »

dang wrote: post #48
AC__ wrote: post #13

While you present a compelling argument, I must respectfully disagree. I may catch some flack for saying it, and many people refuse to believe it, but the U.S. is insolvent. The value of the U.S. dollar is artificially propped-up. How long do you truly believe the Russias and Chinas of the world are going to keep using greenbacks? They will feign WWIII, Israel will expand to encompass 'Greater Israel' and U.N. will f…

We detached this subthread from https://news.ycombinator.com/item?id=10650774 and marked it off-topic.

Freedom of speech 2.0, it's like freedom of speech except you go in a sound proof room and scream at the wall. Yay "democracy".

Re: I.M.F. Makes China’s Renminbi One of World’s Select Currencies

#115

Post by AC__ »

dools wrote: post #61
AC__ wrote: post #13

While you present a compelling argument, I must respectfully disagree. I may catch some flack for saying it, and many people refuse to believe it, but the U.S. is insolvent. The value of the U.S. dollar is artificially propped-up. How long do you truly believe the Russias and Chinas of the world are going to keep using greenbacks? They will feign WWIII, Israel will expand to encompass 'Greater Israel' and U.N. will f…

The US issues it's own currency and only issues debt in it's own currency. It can't be insolvent.

No the Federal Reserve issues USD, not the US government, most people don't realise this fact and it is the difference between a sovereign nation and whatever the fuck North American countries have become today. Canada, where I'm from, had control of our central banking authority up until 1974, what little sovereignty we had(we are still a constitutional monarchy) was relinquished to international banking interests.

"Permit me to issue and control the money of a nation, and I care not who makes its laws!" - Mayer Amschel Rothschild

Re: I.M.F. Makes China’s Renminbi One of World’s Select Currencies

#116

Post by dools »

AC__ wrote: post #115
dools wrote: post #61

Earlier quoted context omitted.

The US issues it's own currency and only issues debt in it's own currency. It can't be insolvent.

No the Federal Reserve issues USD, not the US government, most people don't realise this fact and it is the difference between a sovereign nation and whatever the fuck North American countries have become today. Canada, where I'm from, had control of our central banking authority up until 1974, what little sovereignty we had(we are still a constitutional monarchy) was relinquished to international banking interests.…

Firstly, anyone who mentions the name Rothschild in a conversation about economics cannot be taken seriously.

Secondly, the government creates dollars by spending -- when the US government spends, money is created. When the US government taxes, money is destroyed[1].

Same is true for the RBA in australia, it's even on their website[2]:

"As the Australian Government is a customer of the Reserve Bank, these payment flows can be very large. Expenditure by the Government adds ES funds to the account of the recipient (or their financial institution), while tax receipts have the opposite effect."

The US has several bizarre, self-imposed constraints like the "debt limit" and some crazy mechanism for the fed to buy treasury bills from the government that goes via the private banking system for no good reason but the net effect is the same. Government spending creates money and taxation destroys it.

In terms of ownership and control, the RBA is owned by the Commonwealth (probably the same for Canada) and the Fed is owned by private companies because of concerns about government control when it was setup (even though the Fed and the Treasury co-operate so much they might as well be the same institution) but ownership is very different from ownership of a normal company[3].

[1] http://www.mecpoc.org/2011/07/who-can-really-print-money-the...

[2] http://www.rba.gov.au/mkt-operations/dom-mkt-oper.html

[3] http://www.federalreserve.gov/faqs/about_14986.htm

Re: I.M.F. Makes China’s Renminbi One of World’s Select Currencies

#117

Post by AC__ »

dools wrote: post #116
AC__ wrote: post #115

Earlier quoted context omitted.

No the Federal Reserve issues USD, not the US government, most people don't realise this fact and it is the difference between a sovereign nation and whatever the fuck North American countries have become today. Canada, where I'm from, had control of our central banking authority up until 1974, what little sovereignty we had(we are still a constitutional monarchy) was relinquished to international banking interests.…

Firstly, anyone who mentions the name Rothschild in a conversation about economics cannot be taken seriously. Secondly, the government creates dollars by spending -- when the US government spends, money is created. When the US government taxes, money is destroyed[1]. Same is true for the RBA in australia, it's even on their website[2]: "As the Australian Government is a customer of the Reserve Bank, these payment flo…

Fuck off https://en.wikipedia.org/wiki/Rothschild_family

Re: I.M.F. Makes China’s Renminbi One of World’s Select Currencies

#118

Post by dools »

AC__ wrote: post #117
dools wrote: post #116

Earlier quoted context omitted.

Firstly, anyone who mentions the name Rothschild in a conversation about economics cannot be taken seriously. Secondly, the government creates dollars by spending -- when the US government spends, money is created. When the US government taxes, money is destroyed[1]. Same is true for the RBA in australia, it's even on their website[2]: "As the Australian Government is a customer of the Reserve Bank, these payment flo…

Fuck off https://en.wikipedia.org/wiki/Rothschild_family

An interesting lecture on the psychology of conspiracy theories: http://m.youtube.com/#/watch?v=jqXgE0HMMLw

Re: I.M.F. Makes China’s Renminbi One of World’s Select Currencies

#119

Post by justincormack »

mikeash wrote: post #80
justincormack wrote: post #77

Earlier quoted context omitted.

Not true, there was still debt, so unbacked money.

How much of currency reserves at the time consisted of debt?

Depends when you were talking about exactly. Currency reserves were not necessarily a thing. In most countries all banks were private, so there were no official reserves. For example the Bank of England was only nationalised in 1946. Fractional reserve banking has been around for centuries.
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