Posts
1. "... It's an end to two centuries of anglophone dominance by America and Britain ...."
2. "... The dominant economic power will be a communist politburo, a country with a peasant population, no human rights, no property rights, and no intellectual property rights...."
3. ".... By around 2015, the US taxpayers will - just thru interest payments on the debt - be covering the entire cost of the Chinese People's Liberation Army..."
Now, you don't have to agree or disagree with the self-proclaimed politically incorrect doom-monger. And I am not here to endorse the positions of Mark Steyn, The Arena's host Michael Coren, and/or Sun News Network. But I think it is worthwhile to learn where Mark Steyn is coming from and what the viewers are saying.
To watch the 1st episode of The Arena, plis go visit:
www.sunnewsnetwork.ca/show/thearena.html
Viewers' comments are located at:
Ottawasun.com/thearena
(Source of info: Aug 31, 2011 Ottawa Sun article "Death by Debt Load" written by Errol Nazareth of QMI Agency)
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12 comments:
USA is world first top nation in GOLD reserve！
http://en.wikipedia.org/wiki/Gold_reserve
SBB:
I learn something new everyday !!
The Wikipedia/Gold Reserve article contains a table that shows the gold holding (in tonnes) of 114 countries as a percentage share of their nation foreign exchange reserves.
You are right, USA is ranked at number one with the largest holding of 8133.5 tonnes which is the 3rd highest percentage reserve at 74.7% (after Portugal and Greece).
Now according to the following Wikipedia article (http://en.wikipedia.org/wiki/Foreign_exchange_reserves)
".... Official international reserves, the means of official international payments, formerly consisted only of gold, and occasionally silver. But under the Bretton Woods system, the US dollar functioned as a reserve currency, so it too became part of a nation's official international reserve assets. From 1944-1968, the US dollar was convertible into gold through the Federal Reserve System, but after 1968 only central banks could convert dollars into gold from official gold reserves, and after 1973 no individual or institution could convert US dollars into gold from official gold reserves. Since 1973, no major currencies have been convertible into gold from official gold reserves. Individuals and institutions must now buy gold in private markets, just like other commodities. Even though US dollars and other currencies are no longer convertible into gold from official gold reserves, they still can function as official international reserves ...."
So even with 8,133.5 tonnes of gold (74.7% of USA's national forex reserve), it doesn't mean that the US can pay its debt in gold. This is complicated by the fact that the USD is THE international exchange reserve, with China having the LARGEST holding (USD$ 3197 (Jun 2011).
I am not an expert so plis feel free to comment.
Haricot
"it doesn't mean that the US can pay its debt in gold"
I am not an expert either. In theory, the U.S can certainly sell its gold to pay down debt. However, there is no way they will do that. First, even at today's gold price, there is not enough gold to pay off the national debt. Plus imagine how it will impact the gold price if the U.S dump so much gold all of a sudden. You can say "sell them slowly" but what's the point? It is like when you are bankrupt, selling your old mattress and TV would not help. Some nutjobs talk about the gold standard again which will immediately cause limited supply of money around the world. No money, no more economic growth. Which country can afford to go back to gold standard at this point? Is buying gold really a good idea? :)
exile
Dear HBB， I recalled my previous article dated back Dec 23，2008
http://mindnecessity.blogspot.com/2008/12/bretton-woods-agreement-us-promised-to.html
Exile:
I agree !! Unless there is a complete failure of the global economy, gold will remain a commodity.
BTW, when Prez Obama was giving his job speech at the Congress last nite, the Republicans just sit there stone-face. And it didn't take long for Prez-hopeful Bachmann to pour scourging hot tea all over Obama - oooouch !!!!
Haricot
SBB:
I read ur article - good insight, thx !!!
Haricot
Raise taxes on the rich to pay for new job programs sounds like a "good" idea to most middle-class Americans who make less than $250K a year. On the other hand, the so-called "super committee" is supposed to cut spending to help pay down the deficit. How is it going to work? I don't believe Washington can get anything done.
exile
Exile: Here in Canada, I would think those making near $250K a year (before tax) are rich, or at the very high end of "upper middle class". But then there are more rich ppl in the US than in Canada (Ref: http://en.wikipedia.org/wiki/American_middle_class)
Based on media reports, I am under the impression that Prez Obama is really in a bind, both politically and practically !!! Even if the political parties in Washington are willing to put their differences aside (which is very unlikely given the bad blood and election coming up), the fiscal black-hole might be just too deep !!!
Besides, who is willing to lower the standard of living? Any volunteers?
If you really twist their arms, I think those who make $250K a year will call themselves upper middle class. They will fight you tooth and nail if you dare to call them rich :)
exile
Those who make $250K a year, if you twist their arms, they may admit that they are upper middle class. But they will fight you tooth and nails if you dare to call them RICH.
Downsize from a 4,000 sq ft ocean-front home to a modest 2,000 sq ft home in the suburb? How tough is that? :)
exile
Exile:
>> ... They will fight you tooth and nail if you dare to call them rich :)
Many ppl (esp Chinese 暴發戶) like to be seen as being rich and indeed will intentionally show off their material goods (Rolex, Lexus, etc). But I can understand why they will deny being rich during an IRS investigation :O
Exile:
>> .... How tough is that?
The very rich provide EMPLOYMENTS for the poor - the bigger the property, the more servants, chefs, and gardeners they will need to hire. I can see why downsizing is tough !!
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