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House Price Crash Forum


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  1. More ad hom. What do you mean by "various guises"? I post under this account and that's it.
  2. What do you mean by "various guises" exactly? Can you only manage ad hominem attacks?
  3. The Americans should sell the Chinese some cruise missiles, within 6 months the Chinese would be re-exporting exact copies back to the US for a fraction of the cost. Such a "just in time" supply chain would come in very handy in times of crisis, such as a potential conflict over Taiwan.
  4. Quite, the only thing the Chinese can do is to slowly try and realise the purchasing power of these bonds whilst they're still worth something, they can exchange this for inflation proof equity stakes and access to natural resources, I think that's exactly what we're seeing with bond prices over the last couple of weeks and announcements in regards Blackstone and the huge sovereign hedgefund. It's a calculated gamble, maybe it's worth sacrificing half their stock of Treasuries if they can salvage real value from the other half, the alternative is 100% of nothing (worthless dollars on maturity). The Weimar republic didn't hyperinflate for fun, they did it to destroy the real value of debts owned to creditor nations.
  5. The fact such a site exists at all tells you all you need to know as an investor.
  6. Ok, so the Chinese wait until maturity, how will the Americans pay? The Fed will just print the required dollars in order to pay down the nominal face value of the bonds and the purchasing power of the dollar will just go through the floor. Dollars are nothing more than Treasury promissory notes in a more liquid form. What the Chinese should do is exchange the Treasuries for real assets and infrastructure in the US, things that cannot be inflated out of existence, which is exactly what they're now doing. The US is quite happy for foreign creditors to sit on bits of paper that can and will be inflated away at will, however as we've seen with Duabi Ports and Unocal they're less happy with creditors returning these IOU's back to the US in exchange for real assets. The US is in the position of a mortgagee that is coming to the end of its loan agreement, except the bank decided long ago to take half the equity in the house instead of an increasingly worthless mortgage payment. This isn't some form of competition with Peter Schiff.
  7. 13 years and she's still holding out? She's one tough cookie.
  8. The Chinese would be mad to leave these bonds until maturity, the yanks cannot pay, all the they can do is print up another set of IOU but this time in dollar bill form, billions upon billions of them. Anyway, if the Chinese just stop buying new treasuries it will collapse the value of their existing holdings way before these notes expire.
  9. Me, the American establishment would never undertake such a self-inflicted wound, nothing good has come out of it, economically or militarily. Another thread ruined by the tin-hat brigade.
  10. You assume we even have a pot to pi$$ in, let alone offshore bounty.
  11. She wasn't one of those mail order things, was she?
  12. Too true, Osama Bin Laden had de facto responsibility for monetary policy post 9/11. However, it was a perfect storm, the bursting of the dotcom bubble, crashing stock markets, the collapse of Enron and alike and millenialists kicking off with a wave of violence across the world. The USS Cole attack and intifada were amongst the first signs of trouble, though there were earlier indications with the embassy bombings and Iraqi saber rattling in 1998. Post 2000 every western institution was found to be lacking, corrupt and justifiably under attack, from government to corporations and even the catholic church. You couldn't trust anything, not even a US election, and so it continues, our whole framework is simply patched up. The West has been decaying for decades, the decline has simply become exponential and all too apparent to be hidden. Our leaders know we're heading towards a huge monetary or energy crisis, which ever comes first. edit: btw, nothing good ever comes out of easy money, it represents the wholesale misallocation of capital and resources that can take years to resolve.
  13. Err... the yanks would just print dollars to pay them back, in which case the dollar would become worthless. Once you monetise debt it kicks off a hyperinflation, there's already enough IOU's out there to cause hyperinflation but at the moment they're all locked away in other bits of worthless paper called treasuries.
  14. Lord Harris appears to be somewhat of a carpet eater.
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