The drug addict’s fix for the ailing US economy
Guo Shuqing, the chairman of state-controlled China Construction Bank (CCB), also said he is exploring the possibility of issuing loans to trading companies in yuan, allowing Chinese and foreign companies to settle their bills in yuan rather than in dollars.
via Top Chinese banker Guo Shuqing calls for wider use of yuan – Telegraph.
A friend of mine overseas sent this to me this morning. More good news for the American economy. Thank God for our hero Hank Paulson — just imagine where we’d be if not for him! Why, we might be issuing bonds in pesos, or tugriks!
Here’s what’s going to start happening, now that we’ve just about finished borrowing megatrillions to pay off the errors of the Paulson era. Since we can’t actually pay all of that money back to our creditors, our national economic strategy is going to be to devalue the dollar. A nice strategy for economic revival: print money to get out of a crisis, then devalue your debts away instead of paying them. Like taking speed to wake up in the morning and thorazine to sleep at night. Much better than exercise and a proper diet.
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We are so fucked
Do you mean Obama can’t go overseas, do a song & dance, and convince the rest of the world our economy is strong and not to devalue the dollar?
What would have happened if McCain was president? Would the dollar stay artificially high out of fear of attack? The new US Foreign policy would be — You’re either with the dollar, or you’re against US!
Filed under International blow back from domestic stupidity.
Under that heading, take a closer look at the suit filed to block the sale of Chrysler and presumably liquidate it by a Indiana GOP member still amazed that the state went blue and has just awoken from shock that Indiana voted for the Black Guy.
The particulars behind the suit. One of the three pension funds has 7.8 billion in assets. The douche bag from hell that filed the suit bought the Chrysler bonds in the secondary market at 43 cents on the dollar.
He was offered 29 Cents on the dollar. Assuming the three pension funds split the loss, it would come to about 1.7 million a piece. On a 7.8 Billion dollar fund, the loss is so far below 1% I stopped after all the 000s.
So why would they then spend millions of their pension fund member money to recover 1.7 million? (Lawyer fees) Yes they are from Indiana and that probably has something to do with it. Yes the the lead whiner is a member in Good Standing of the GOP. Technically he may be on some solid ground legally. This is why I got many people screaming at me “The Rule of Law”. Really? The same assholes from last year are now bitching about the rule of law?
Financially he is walking in pure shit. Why? Lets just say he is successful and the conservative court takes it up and holds for the creditors. What happens with the GM case. Oops. Now Ford was a little smarter than the other two in that they drew down all available credit before their bankers could yank it.
But they have admitted they would go under if the parts suppliers went under. So what this guy has done is set up the state and the country for a depression because He don’t want no Back Folk in a White House.
The fact that he is doing this on behalf union pensions seems lost on him. The fact that the state will probably go bankrupt seems lost on him. The Japanese Car makers are also dependent on those parts suppliers, so no help there.
As we go through these economic convolutions of stupid and screaming stupid, the hole keeps getting deeper. Of course I could speculate that Goldman Sachs has a shit load of Credit Default Swaps they are rubbing their greedy little hands over if the auto industry is liquidated, but no , I won’t go there.
Someone mentioned to me about Penske buying Saturn “Isn’t that great?”. Sure, if GM survives, they’ll build a few cars for him, but ultimately he plans to outsource production to to to…China.
There is no doubt there has been many decades of stupidity by the car makers and labor. But now that the silly season is over and all the chips are on the table, we have one GOP pos who is single handedly going to uphold the Rule of Law.
If Ruthy decides to send it to the rest of the court , you can count on the conservative side voting to hear the case. They really don’t have to render much of an opinion. They can just hear it and sit on it while GM , Ford and Chrysler fold and the Japanese Car makers decide it’s time to go home before they lose all their shit they have here.
Even if this passes as a fart in the wind, I am certain that the GOP will do whatever it can wherever it can to make sure that anyone who had the unmitigated audacity to support a non-white Christian suffers. It won’t matter if they are suffering. It’s the drug thing again.
They’ll get so high seeing all the damage they caused and continue to cause that they just won’t feel any pain.
Sure be nice if the Ds would grow a pair and get some people , anyone, to replace the economic team they have now. Lettuce? Hell yes.
and then having your neighbor for detox…
and then having your neighbor pay for detox…
I find it rather humorous that among the options generally discussed for fixing our national fiscal problems, there is pretty much no consideration of the most simple solution; raising taxes.
Why is our highest income tax bracket so low? There are people making tens of millions, and it starts at hundreds of thousands.
Our real fiscal problems started when we decided back in the 80s that we’d rather not pay for running our government. I’m sure we could probably stand to walk our tax rates back up a bit.
Reading this just takes me into that depression cliche of rock and hard place. I think I prefer that the Chinese trade in yuan rather than release our dollars into the world economy. oi.
The United States has a unique approach to a lot of things. Education, diplomacy, politics, media, and as we are witnessing now, fiscal policy and economics. If someone had the common sense to choose a plan and stick with it, at least something would be happening. Instead, we have a bunch of half-assed ideas, all of which are being applied at the same time. The rise of ADHD economics is a scary thing to witness.
The political chutzpah doesn’t exist to execute a comprehensive economic recovery package. Instead, lots of little generic band-aids are put on whoever’s district is screaming the loudest. As reprehensible as this is, it is the reality in the U.S., at least for now.