DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - America and the west are in deep economic trouble

**Longwow** · 09-04-2012, 03:22 AM

This rolling the debt over is popularly known as 'kicking the can" down the road...hoping someone will deal with it in the future, except the problem keeps getting worse and worse. In democracies no politician wants to deal with it because it would make them very unpopular to reduce the debt (it would cause a lot of cut backs on big government spending, it may even increase unemployment as government jobs are lost), so they hope someone else will deal with it. Except as I said the problems keep getting bigger and bigger, and if it breaks by itself the problems will be so big that it will cause much pain and suffering.

Foreign countries like China have been buying the bonds and treasuries sold by the US, they own about 1 trillion dollars. This means China is holding on to something that is losing value, and if they try to dump all their dollar assets on the market it will reduce their value even more (over supply and not enough demand = lower prices), so China has to balance this by holding onto the dollar assets and only selling them off slowly and not buying too much of new debt. China is also buying land, oil and other real commodities with the dollars...because if and when the paper dollar becomes worthless they want to be holding something that has real value (like gold, silver, agricultural land in Africa etc)

Yes, the Chinese are playing a very long game here. Very intelligent and strategically placing them in the best position for the future. They are using (exchanging) their Dollars to buy-up the worlds valuable resources. What a great way to offload devaluing dollars. In SunTzu's 'Art of War', you can defeat an enemy without even a fight IF you are able to identify the weaknesses and employ effective strategy. Bleeding an adversary dry can done, not just through war on a battelfield.

Unfortunately, this Aql is not with the Muslims of this age, they are only ever after the US Dollar for wealth projection on silly, wasteful things. This is what Muslims should be doing, buying real strategic assets, transfering them over to their lands and letting those dollars go in a slow process of 'economic rebuilding'.

Muslim nations should look at their own principles of what wealth is and how we gain it. The importance of real, tangible value.

Allahu A'lam

09-04-2012, 03:22 AM	#32
Longwow Join Date Oct 2005 Posts 389 Senior Member	This rolling the debt over is popularly known as 'kicking the can" down the road...hoping someone will deal with it in the future, except the problem keeps getting worse and worse. In democracies no politician wants to deal with it because it would make them very unpopular to reduce the debt (it would cause a lot of cut backs on big government spending, it may even increase unemployment as government jobs are lost), so they hope someone else will deal with it. Except as I said the problems keep getting bigger and bigger, and if it breaks by itself the problems will be so big that it will cause much pain and suffering. Foreign countries like China have been buying the bonds and treasuries sold by the US, they own about 1 trillion dollars. This means China is holding on to something that is losing value, and if they try to dump all their dollar assets on the market it will reduce their value even more (over supply and not enough demand = lower prices), so China has to balance this by holding onto the dollar assets and only selling them off slowly and not buying too much of new debt. China is also buying land, oil and other real commodities with the dollars...because if and when the paper dollar becomes worthless they want to be holding something that has real value (like gold, silver, agricultural land in Africa etc) Yes, the Chinese are playing a very long game here. Very intelligent and strategically placing them in the best position for the future. They are using (exchanging) their Dollars to buy-up the worlds valuable resources. What a great way to offload devaluing dollars. In SunTzu's 'Art of War', you can defeat an enemy without even a fight IF you are able to identify the weaknesses and employ effective strategy. Bleeding an adversary dry can done, not just through war on a battelfield. Unfortunately, this Aql is not with the Muslims of this age, they are only ever after the US Dollar for wealth projection on silly, wasteful things. This is what Muslims should be doing, buying real strategic assets, transfering them over to their lands and letting those dollars go in a slow process of 'economic rebuilding'. Muslim nations should look at their own principles of what wealth is and how we gain it. The importance of real, tangible value. Allahu A'lam
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