tag:blogger.com,1999:blog-6616959642391988608.post6501605489783588298..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Too much hoopla over foreigners' holdings of US debtScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-6616959642391988608.post-40166807545198426842010-02-18T12:13:58.251-08:002010-02-18T12:13:58.251-08:00It's your comment that dollars can't disap...It's your comment that dollars can't disappear but simply reappear in American banks in a different form that I found novel and fun. <br /><br />It's true, I suppose. Dollars don't disappear but rather become digital ether. A little like delinquent mortgages counted as assets, also held in American banks.<br /><br />The conclusion that dollars are here to stay so not to worrypcpb participanthttps://www.blogger.com/profile/08553629249076601149noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-29116849933307536422010-02-18T11:21:26.849-08:002010-02-18T11:21:26.849-08:00If everyone wants out of dollars, then dollars bec...If everyone wants out of dollars, then dollars become a "hot potato" and their velocity increases. This would be a prescription for much higher inflation, and it would be driven by declining demand for dollars/rising money velocity.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-53097967230985705612010-02-18T11:11:29.209-08:002010-02-18T11:11:29.209-08:00But if ROW wants out of dollars so will we. Then ...But if ROW wants out of dollars so will we. Then all hell breaks loose and Everybody In the World (EIW) abandons the dollar, minimizing losses by acting fast.<br /><br />It would seem that the spare dollars you talk about are invested overseas at decreasing rates of conversion, ...the above phenomenon in slow motion.pcpb participanthttps://www.blogger.com/profile/08553629249076601149noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-41080713220269014392010-02-17T17:50:09.594-08:002010-02-17T17:50:09.594-08:00It's easy to understand how trade works if you...It's easy to understand how trade works if you assume just two countries: US and China. China sells us a TV for 1,000. Now what are they going to do with the dollars? They have the following choices: put the money in a bank deposit, buy Treasury bills, notes, or bonds, buy equities, buy real estate, or buy some goods or services from us. Let's say they buy Treasuries. Then tomorrow they Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-44830894089973222092010-02-17T17:00:39.222-08:002010-02-17T17:00:39.222-08:00"A country that has a trade surplus with us m..."A country that has a trade surplus with us must spend its dollars on a) our bonds, b) our stocks, c) our real estate, or d) deposit those dollars in a US bank account. Dollars that figuratively travel overseas to buy foreign goods are always recycled back to the U.S. economy in some form or other." <br /><br />Scott, I do not understand. What keeps the Chinese from exchanging dollars pcpb participanthttps://www.blogger.com/profile/08553629249076601149noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-37594209645485917862010-02-17T08:12:11.162-08:002010-02-17T08:12:11.162-08:00If the US population saves more, the US government...If the US population saves more, the US government needn't be as reliant on foreigners for money.<br /><br />The US population is saving more so...Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-61809357387758171232010-02-17T08:11:28.294-08:002010-02-17T08:11:28.294-08:00This comment has been removed by the author.Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-57107264442995580152010-02-17T06:29:16.956-08:002010-02-17T06:29:16.956-08:00alstry,
The productive capacity of America lies in...alstry,<br />The productive capacity of America lies in the intellectual capital of its citizens, and thus cannot be purchased by outsiders. Take the iphone as an example. Americans creatd the concept. None of it is manufactured here, yet most of the value is added here, and the majority of profits are made here. <br />If it is irrelevant whether a building or buisness located in Chicago is piefarmerhttps://www.blogger.com/profile/04596576632760958227noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-2911939943454016132010-02-17T05:41:02.399-08:002010-02-17T05:41:02.399-08:00Scott,
What if foreigners took their dollars and ...Scott,<br /><br />What if foreigners took their dollars and instead of buying our goods, purchased much of the productive capacity of America and sent the profits back home....what impact would that have on our nation?alstryhttps://www.blogger.com/profile/16025398896639165994noreply@blogger.com