One who intends to leave others better off for his having existed.

6/30/11

If credit peaksdoes employment, globalization and peace?

 We have lent a huge amount of money to the US


so of course we are concerned about the safety of our assets


 


Frankly speaking, I do have some worries


 


Chinese Premier Wen Jiabao


 


US Insists China Fears Over Debt Unfounded


The Wall Street Journal


 


If Executive Order 6102, signed on April 5, 1933


let the Federal Reserve confiscate gold for $20.67 per troy ounce


and the government raised the price to $35 not long after


 


did the US government devalue the dollar by 41%?


 


The Gold Reserve Act of 1934…


changed the value of the dollar in gold


from $20.67 to $35 per ounce


 


This price remained until August 15, 1971


when President Richard Nixon


announced that the United States


 would no longer convert dollars to gold at a fixed value


thus abandoning the gold standard for foreign exchange


 


Wikipedia


Have the leaders of most emerging economies


essentially been stealing their citizens’ savings


by lending money to developed economies


to keep currency exchange rates relatively low


to encourage more sales of manufactured goods?


 


If global central bank foreign exchange reserves more than tripled


as the US dollar fell by ~50% since 2000


did Americans buy manufactured goods from foreign nations


with IOUs that are now worth about half as much?


 


Who is the largest holder of US Treasury debt?


 


What could happen


if a generation of underemployed, underpaid


educated and indebted young adults


become disillusioned by their elders’ financial mismanagement


and seek to identify and punish those responsible?

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