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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (75834)	12/16/2006 5:03:35 PM
From: kris b	Read Replies (2) \| Respond to of 110194

They can ill afford to piss away even part of that trillion $ currency reserve on busted US consumers I understand, but they created money out of thin air long before they had $ Trillion in reserves. Can't they just print more to cover their loses on US investments? What is the difference whether they are printing against currency reserves or inflating RE values in Shanghai?

To: russwinter who wrote (75834)	12/16/2006 6:41:28 PM
From: GST	Read Replies (1) \| Respond to of 110194

<I think it matters a lot.> On the contrary, this is one of the least important issues for them. The currency reserve gives them a range of benefits that have nothing to do with investment returns. We are mortgaging our economy to them. Bit by bit, they own us. They will call the loan on a schedule of their own making -- when it benefits them most. Our stupendous dependence on their willingness to finance our bad habits lulls us into thinking that our debts to them are their problem. They have problems -- huge problems. But the trillion dollar reserve in dollars is not among them.They have a big giant hand on our balls -- they will squeeze when and as it suits them. Until then, they are the friendly banker that never says no. They will be friendly until we put our entire national household on the table and reach for the dice. After that last throw they will show us to the door -- no smiles. No offers of charity. They will then roll into town pointing to the trophies that they will take home first. The US has illusions of being a superpower in a unipolar world -- some superpower. Let me introduce you to the superpower's new landlord.