China may have found a way out of its dollar trap - leaving the dollar behind to pursue commodities.
Obama's fellow Nobel-winners like Paul Krugman were cockily boasting that "if you owe the bank a hundred thousand dollars, the bank owns you - but if you owe the bank a hundred billion dollars, you own the bank." This was being used by some profligate lefty Americans to justify a false sense of confidence and complacency.
Not so fast, Kruggy baby. The bankers didn't get to be bankers in the first place by being a bunch of suckers. You can't trap such people so easily, and the latest Chinese moves are showing that they are wily enough to move back to the barter system if necessary. Capitalist lenders, including the Chinese, seem to know more about the value and nature of capital than perpetually indebted borrowers do, and they understand that tangible goods are ultimately what the value of all money is based upon (commodities being the most fungible of tangible assets.) The American fiat economy is about to learn a harsh lesson.
But what will India do?
5 comments:
umm, beg?
The good thing is 60 years of kkkangress has made us really good in that department
umm, beg?
The good thing is 60 years of kkkangress has made us really good in that department
Well, if you notice, China again pegged its currency to the Dollar. The biggest sufferers are Europeans, who lose their competitiveness further. But then, these Dhimmi Europeans don't have the balls to take on the Hans.
nice analysis
India's predominantly english-speaking services sector is tied to the english-speaking western world. If they really want to diversify away from the US, then Indians are either going to have to learn some new languages like Spanish, or else they'll have to diversify beyond the services sector and into manufacturing. It's a lot easier to sell your manufactured goods across linguistic boundaries than it is to sell services which are often tied to language.
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