Inflation comparable to that of the Carter era.....

[KB5252]

or worse on the horizon? I've seen it mentioned here before but I recently heard on the radio that China was in the perfect position to make inflation a reality on a scale that would cripple the country and likely give the death blow to our economy.

I don't understand all the factors involved, I was hoping someone with more knowledge would comment. Is this true?

 

[droski]

it's a risk, but i very much doubt that china will kill the golden goose. obama's policies are the real problem. the only way out of this might be to inflate the crap out of the dollar.

 

[KB5252]

it's a risk, but i very much doubt that china will kill the golden goose. obama's policies are the real problem. the only way out of this might be to inflate the crap out of the dollar.

Is it true that China has been purging the US dollar and buying all the gold it can get it's hands on? Would this be an indication that they have intentions to make a move on our economy?

 

[droski]

Is it true that China has been purging the US dollar and buying all the gold it can get it's hands on? Would this be an indication that they have intentions to make a move on our economy?

they might be buying gold, but i don't see how they can "purge" the dollar without killing their own economy. i.e. they need us far more than we need them. obama's protectionism i'm sure isn't making them happy though. edit: is there a specific article or something that details what you are talking about?

 

[KB5252]

they might be buying gold, but i don't see how they can "purge" the dollar without killing their own economy. i.e. they need us far more than we need them. obama's protectionism i'm sure isn't making them happy though. edit: is there a specific article or something that details what you are talking about?

No shaky source (heard it on the radio) which is why I am asking the questions here hoping you and others with a better understanding could shed some light.

FT.com / China - China reveals huge rise in gold reserves - International Monetary Fund, Government

I think this is what they were talking about on the radio. It looks like China wants the IMF to sell them the reserves they hold.

 

[BigPapaVol]

Is it true that China has been purging the US dollar and buying all the gold it can get it's hands on? Would this be an indication that they have intentions to make a move on our economy?

purging the dollar would limit China's ability to trade with us. Regardless of the current circumstances, they aren't advancing their economy or nation without selling heavily into our economy. Them destroying that ability doesn't make any sense. Their artificial maintenance of the yuan and silly levels, subsidized by their broke government, will eventually force them to push hard for all the trade they can generate. I just don't see them being detrimental to our economy anytime soon, as it would push them back to full blow third world status again.

 

[KB5252]

purging the dollar would limit China's ability to trade with us. Regardless of the current circumstances, they aren't advancing their economy or nation without selling heavily into our economy. Them destroying that ability doesn't make any sense. Their artificial maintenance of the yuan and silly levels, subsidized by their broke government, will eventually force them to push hard for all the trade they can generate. I just don't see them being detrimental to our economy anytime soon, as it would push them back to full blow third world status again.

So it looks like if China started a war with money right now they would come out on the short end......Am I reading you correctly?

 

[BigPapaVol]

So it looks like if China started a war with money right now they would come out on the short end......Am I reading you correctly?

it would definitely be a problem for their still fledgling economy and their efforts to feed the 1.4 billion people inhabiting the joint.