I hope everyone gets their mortgages under 5.5% because we're going to get to 7% faster than the baby bullet CalTrain.
So, we'll hit 6% and then stop for no apparent reason?
Weak U.S. 5-year debt auction raises worries
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Re: Weak U.S. 5-year debt auction raises worries
#22Earlier quoted context omitted.
hyperinflation has to do with a loss of faith in the currency. Foreign debt holders know that this America empire is sailing into sunset, and has no way to pay its trillions of dollars back. They'll all dump it one night, causing the dollar to drop 30-40%
30-40% is not hyperinflation.
30%-40% first night
Re: Weak U.S. 5-year debt auction raises worries
#23Earlier quoted context omitted.
Even if this happened (which I very much doubt it will because Japan, China etc. don't want to write off 40% of their holdings or get into a vicious economic war with the US), that's a long way from hyperinflation and general fiscal Armageddon. US business would love the dollar to fall by 30%, our exports would soar and those companies that depend heavily on manufacturing in China could probably use other hard curren…
True....to a degree. Our agriculture exports would soar. But alot of other things we produce are complex/advanced products, which depends on cheap parts/oil from....other countries. As for the military, well, China will pick a good time to crash the dollar (when they've liquidated most of their dollar reserves). Then they'll be able to bring US to its knees without firing a single bullet. Why shouldn't they? it's the…
China's is an command, export-based economy. Eviscerating its trading partners wouldn't be wise: high-interest rates and weak dollars in the US hurt the Chinese economy--like it or not, our fortunes are intertwined.
Empires are founded on more than just manufacturing capacity. Lacking a dynamic, principled base for its society, when the Chinese economy collapses it will not recover. The Chinese bubble will burst: http://www.foreignpolicy.com/articles/2009/07/23/the_china_b...
Upshot: don't finance your customers, or China 2009 == Lucent 1999