Author Topic: Ben Bernkanke  (Read 6871 times)

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Offline gurn

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Re: Ben Bernkanke
« Reply #25 on: December 17, 2010, 04:26:45 AM »
Heh heh...again.

What was the rate of exchange RMB/USD before QE2?

What is the rate today?

A different question -- what happens to the PRC economy if the Dollar falls sharply in relation to the RMB?

I hear Americans talking so stupidly about China. If you really look at it -- 2 trillion dollars in currency reserves &
almost 1.5 billion people? Those reserves aren't going to take it very far with that kind of population.

I'm not the only one who thinks China is an economic paper tiger.
I could be wrong about that. But I do know, inflation is higher in the PRC than it is in the US.

And I also know that inflation there means starvation. There are a lot of people alive in the PRC
who have experienced periods like that.

I know. I'm a heretic around here on this subject. Tough. I've been there. I've seen it with my own two eyes.
And I know how utterly stupid many Americans are when it comes to understanding the place.

Quote
Roubini: "CHINA (2011)

The RGE report rules out the chances of China allowing a considerable devaluation of the yuan and says the tension with the U.S. over currency will remain in focus.

It says the hangover from the country's fiscal and monetary stimulus is beginning to set in, and that inflation will rise and growth slow.

"Fighting inflation will be the primary goal of monetary policy for at least the first half of 2011, though we do not expect an excessively restrictive lending quota for the banking sector."

http://hken.ibtimes.com/articles/92404/20101215/nouriel-roubini-global-economy-prediction-forecast-outlook-2011-us-china-japan-eurozone-india-brazil.htm

I don't care much for most of Krugman's views. But on the PRC -- unfortunately, he's right.  

Quote
“China has an unloaded water pistol pointed at our heads.” Actually, it’s even better: China can, if it chooses, throw some cold water on us — but it’s a hot day, and we would actually enjoy it."

Krugman - China's Water Pistol

But the questions I asked at the beginning will put people on the path to wisdom about the economy of the PRC.

The problem is -- too many Americans are too stupid & too insular to grasp what's really happening over there.
All you have to do is walk around & keep your eyes open. You'll see big problems opening up right before your eyes.

There is something called the "Rotten Tail". That's what the locals call it in English.
The "Rotten Tail" refers to large abandoned construction projects. You see them in big Chinese cities.

Why are they abandoned? Because the developers got huge, sweet-heart loans from the government. Often these developers
are Party members. Often, they have a family relationship with the lenders.

So they took the money & then they just went home. They stopped paying people. Investors who bought into the projects lost everything. 
In the US, these people would get arrested. In the PRC, they get away with it. And you see these "rotten tail" projects all over the place.
They're not as numerous as 7/11's or Pizza Huts over there. But you see them a lot.

Yeah maybe I know nothing about economics. But I know a phony when I see one. And the PRC is full of them.
« Last Edit: December 17, 2010, 04:39:28 AM by gurn »
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Offline Carl

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Re: Ben Bernkanke
« Reply #26 on: December 17, 2010, 07:27:34 AM »
You kind of answer your own questions a bit gurn and don`t seem to realize it.

You begin with the premise that with a population of 1.5 billion China will do anything to feed them and end with a story about how corrupt and uncaring the ruling party is.

Knock out everything in between and you will have your answer for China`s population problem if the going gets tough,they will let them starve or under cover of darkness simply wipe them out.

If that happens every other scenario is suddenly under a new reality isn`t it?

Offline Chris_

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Re: Ben Bernkanke
« Reply #27 on: December 17, 2010, 08:16:13 AM »
If you're going to criticize the man, at least spell his name correctly.
If you want to worship an orange pile of garbage with a reckless disregard for everything, get on down to Arbys & try our loaded curly fries.

Offline Eupher

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Re: Ben Bernkanke
« Reply #28 on: December 17, 2010, 08:27:53 AM »
I believe the thread was launched by AllentownJake, who clearly was mocking and ridiculing Bernanke. That deliberate misspelling has carried through the thread.
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Offline gurn

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Re: Ben Bernkanke
« Reply #29 on: December 17, 2010, 08:34:27 AM »
If you're going to criticize the man, at least spell his name correctly.

Agree.

My story was not about an unfeeling, uncaring government.  
It's about the printing presses at the PRC Central bank. Get it?

The bottom line is Bernanke did not debase the currency, at least not if you measure it by exchange rates or by overall inflation.

Yes. I know...it's right around the corner.  :yawn:
All these people without jobs are going to cause demand to soar.

What the PRC fears is the USD falling in relation to the RMB. That's why they whine & then rush in to buy more Treasuries.
That's why their midget stalking pony lobs a few missiles at an isolated island or sinks a ship. Do you notice what happens
to the Dollar when they do?

There is already inflation in the PRC. The government is tightening its monetary policy. And that should result in the RMB rising in relation to
Bernanke Dollars - right?

Do you think it will?

heh... Don't listen to their words. Watch what they do.  
 
« Last Edit: December 17, 2010, 08:38:45 AM by gurn »
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Offline Lacarnut

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Re: Ben Bernkanke
« Reply #30 on: December 17, 2010, 11:41:01 AM »
Heh heh...again.

What was the rate of exchange RMB/USD before QE2?

What is the rate today?

A different question -- what happens to the PRC economy if the Dollar falls sharply in relation to the RMB?

I hear Americans talking so stupidly about China. If you really look at it -- 2 trillion dollars in currency reserves &
almost 1.5 billion people? Those reserves aren't going to take it very far with that kind of population.   

I'm not the only one who thinks China is an economic paper tiger.
I could be wrong about that. But I do know, inflation is higher in the PRC than it is in the US.

And I also know that inflation there means starvation. There are a lot of people alive in the PRC
who have experienced periods like that.

I know. I'm a heretic around here on this subject. Tough. I've been there. I've seen it with my own two eyes.
And I know how utterly stupid many Americans are when it comes to understanding the place.

http://hken.ibtimes.com/articles/92404/20101215/nouriel-roubini-global-economy-prediction-forecast-outlook-2011-us-china-japan-eurozone-india-brazil.htm

I don't care much for most of Krugman's views. But on the PRC -- unfortunately, he's right.  

Krugman - China's Water Pistol

But the questions I asked at the beginning will put people on the path to wisdom about the economy of the PRC.

The problem is -- too many Americans are too stupid & too insular to grasp what's really happening over there.
All you have to do is walk around & keep your eyes open. You'll see big problems opening up right before your eyes.

There is something called the "Rotten Tail". That's what the locals call it in English.
The "Rotten Tail" refers to large abandoned construction projects. You see them in big Chinese cities.

Why are they abandoned? Because the developers got huge, sweet-heart loans from the government. Often these developers
are Party members. Often, they have a family relationship with the lenders.

So they took the money & then they just went home. They stopped paying people. Investors who bought into the projects lost everything. 
In the US, these people would get arrested. In the PRC, they get away with it. And you see these "rotten tail" projects all over the place.
They're not as numerous as 7/11's or Pizza Huts over there. But you see them a lot.

Yeah maybe I know nothing about economics. But I know a phony when I see one. And the PRC is full of them.


Hey, hey. Any idiot can check out the rate of exchange on Kitco. Here is a clue for you; it fluctuates from one day to the next. Your gotcha moment is pretty lame. You should go there and learn about inflation and the price of gold, silver. etc. BTW, how many Chinese Pandas coins do you own.?

You are stuck on stupid because the topic is about Helicopter Ben and not how the Chinese live. Their living conditions do not concern me. What concerns me is the mountain of debt we have and the excessive amount of money that is being printed. Do you comprehend. Bernanke is doing a lousy job and inflation will rear its ugly head in the future. The US will relive the Carter years of 17% interest at the rate we are going. Are you prepared; do you have gold, silver in your portfolio? Better get to cracking Junior.

Offline NHSparky

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Re: Ben Bernkanke
« Reply #31 on: December 17, 2010, 11:43:29 AM »
Bottom line, is that it's going to be WORLDWIDE hyperinflation coming, if it isn't already here.

And all those bonds that the Chinese hold?  Well, a trillion dollars just doesn't buy what it used to.  And coupled with the pathetically low interest rates those bonds were issued under, it hurts them a whole hell of a lot worse than it would hurt us to pay them off.

I've said it time and time again--they need us more than we need them.  When trade with the United States alone is nearly 1/3 of their GDP, and the trade deficit is nearly 10 percent of their GDP, imagine how badly in the hurt locker they'd be if we REALLY got serious and started playing hardball with them regarding copyright/trademark infringement, trade issues, etc.
“Any man who thinks he can be happy and prosperous by letting the government take care of him better take a closer look at the American Indian.”  -Henry Ford

Offline Lacarnut

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Re: Ben Bernkanke
« Reply #32 on: December 17, 2010, 12:37:02 PM »
Bottom line, is that it's going to be WORLDWIDE hyperinflation coming, if it isn't already here.

And all those bonds that the Chinese hold?  Well, a trillion dollars just doesn't buy what it used to.  And coupled with the pathetically low interest rates those bonds were issued under, it hurts them a whole hell of a lot worse than it would hurt us to pay them off.

I've said it time and time again--they need us more than we need them.  When trade with the United States alone is nearly 1/3 of their GDP, and the trade deficit is nearly 10 percent of their GDP, imagine how badly in the hurt locker they'd be if we REALLY got serious and started playing hardball with them regarding copyright/trademark infringement, trade issues, etc.
Yep, the Chinese are worried about the US devaluing the dollar. Uncle Ben plan is do that cause it reduces the value of those bonds. Something that (Gurn) does not comprehend.

Prices of commodities like wheat, corn, sugar, cotton, etc has increased in price dramatically in the last year. Inflation is on the way, big time. Gold and silver has jumped up because investors see the hand writing on the wall. The dollar is being devalued and spending is out of control. Helicopter Ben is full of shit when he says it is not.  

Offline gurn

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Re: Ben Bernkanke
« Reply #33 on: December 17, 2010, 07:20:56 PM »
Bottom line, is that it's going to be WORLDWIDE hyperinflation coming, if it isn't already here.

And all those bonds that the Chinese hold?  Well, a trillion dollars just doesn't buy what it used to.  And coupled with the pathetically low interest rates those bonds were issued under, it hurts them a whole hell of a lot worse than it would hurt us to pay them off.

I've said it time and time again--they need us more than we need them.  When trade with the United States alone is nearly 1/3 of their GDP, and the trade deficit is nearly 10 percent of their GDP, imagine how badly in the hurt locker they'd be if we REALLY got serious and started playing hardball with them regarding copyright/trademark infringement, trade issues, etc.

Right. That's what I'm saying. 3 trillion hard currency reserves. 1.5 billion people?
How much does that equal per capita? (Interesting calculation).

The US has the leverage in this situation and it is too stupid to notice.
Bernanke noticed. That's partly what QE2 was designed for.

But I don't buy the hyper-inflation part for the US.
In the developing world? Yeah. In China - maybe.

In the US - no. The US is looking at deflation. Consumer demand is going the opposite direction.
That's what Ben is fearing too. That's why I am one of the few apparently,
who think Bernanke is exactly the right man for that job right now.
His specialty area of expertise is the Great Depression.

But always on the PRC - so many Americans are so utterly stupid.
In the trading relationship, Krugman's right. China has a water pistol aimed at us.
The US has a howitzer aimed at them.

But so many Americans have bought into PRC propaganda of the 'miraculous Rising China'.  
I live outside the US. I see it where I live.

The difference is -- people where I live aren't as stupid as most Americans.

Never listen to what the PRC leaders say. Watch what they do.  
They'll whine about Bernanke. Then they'll rush in and buy more bonds.
They'll trigger a proxy conflict with their midget stalking pony.
Eventually, they will trigger a war to hold on to their power.

The US is already at war with the PRC. It needs to wake up to that fact.
« Last Edit: December 17, 2010, 07:35:51 PM by gurn »
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Offline NHSparky

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Re: Ben Bernkanke
« Reply #34 on: December 17, 2010, 07:34:22 PM »
Right. That's what I'm saying. The US has the leverage in this situation and it is too stupid to notice.
Bernanke noticed. That's partly what QE2 was designed for.

But I don't buy the hyper-inflation part for the US.

In the developing world? Yeah. In China - maybe.

In the US - no. The US is looking at deflation. That's what Ben is fearing too. That's why I am one of the few apparently,
who think Bernanke is exactly the right man for that job right now.

But always on the PRC - Americans are so utterly stupid.

Never listen to what those leaders say. Watch what they do.  

Haven't bought food or gas lately, have ya?  Look at the prices for each.  Yes, they are tied to one another, and yes, the rise in oil is brought on partly because of a weaker dollar, but even if one strengthens the dollar, we're not in any great danger of deflation because of the money currently in circulation.

The current administration has yet to find the "OFF" switch on the printing press, and it's catching up to us.
“Any man who thinks he can be happy and prosperous by letting the government take care of him better take a closer look at the American Indian.”  -Henry Ford