Originally Posted by Don Zeko
If you want to have a conversation about this, why don't you tell me what you actually think and what's wrong with my argument instead of snottily asserting your intellectual superiority? Until you do that, I don't see much point in answering your random questions.
My questions weren't random. I'm sorry you thought my questions "snotty," but it seems that my crime was to overestimate your intelligence despite the fact that you habitually underestimate mine.
1. Paper money is fiat. Originally, paper served as receipts for gold. We had this conversation months ago. If the amount of gold stays the same, but the number of dollars goes up, then each dollar is worth less.
2. Since we went off the gold standard and the Saudis accepted dollars as if they were still backed by gold, and Asia accepted dollars as the trade currency, fiat became "as good as gold." The reason we aren't Weimar is because people accept
our dollars. If the people believe the emperor wears clothes, it's true. Recent footage of North Korea is proof. People are just as delusional here; the difference is in the manifestations.
3. China sees that we're debasing our currency. And if that's not the reason for the recent move, then it knows that we're quite likely to do so. Our massive debt necessitates it. Do you think the agreement with Japan was just a coincidence? Dollar's fine! Nothing to see!
Of course, your news sources will tell you that China is a currency manipulator. Give me a fucking break. Economics is symmetrical. There are debits and credits, and rising values on one side means falling values on the other. The news only gives you half the information so you have to fill in the blanks. China holds $1 trillion of our debt. A strong dollar makes them
richer. So, if they are weakening their yuan to boost exports, it also makes their US debt holdings worth less
. This is all bullshit politics and you will suck on whatever teat Charles Foster Kane wishes upon you.
Try reading Jon Huntsman's China related Wikileaks.