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Subject: Has the economic crisis end US financial hegemony?
analdestroyer    10/29/2008 2:45:59 AM
Does the economic crisis, which send not only the US but potentially the world economy down the gutter will marks the end of free market capitalism and starts the new era of state capitalism pioneered by china? and will it make the world starts learning to live without the US?, In year 2006, some Economic gurus has already predicted that after Beijing Olympic 2008, the world economic will meltdown. I think it's about time for everybody to develop a "parallel economy". That means, continue dealing with the US wherever contracts are in place, but also start looking for alternatives in other countries. So when the final crash comes, you'll be ready to continue - not quite "as usual", but my point is that is similar to a person being able to live without a leg that had to be cut off due to whatever medical condition. It's not nice, it's not the ideal solution, but it's possible. even the Russian president Medvev proposed just that to the European Union! In very clear terms he recommended them to forget about that (the US) and to go on with our lives. this according to And looking at how things are developing, I can tell you already that this will happen in the future, how does the US gain the world confidence back after this disaster?
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analdestroyer       10/29/2008 2:49:02 AM
i apologize for the triple posts as it showed server error in my browser, so i thought i post again
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analdestroyer       10/29/2008 2:58:35 AM
i apologize for the triple posts as it showed server error in my browser, so i thought i post again
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verong       10/30/2008 10:40:34 PM
The economy is not in that bad a shape. all that is required is for the bankrupcy system to take out the bad banks and help the rest by reducing the number of banks. the reason  the banks are in such bad shape is that the fed funds rate was so low then they went up so fast it hampered the economic expansion by trying to expand it to fast then curtail it to fast then expand it to fast again. fundementally we should have a fed funds rate of about 1.50% or less. the investment of government money into banks as a way of giving them money was a bad idea in that some of these banks will not be able to rebuild fast enough to please wall st. forced amalgamation is a good plan which some have succeeded in doing IE bear sterns and you can see where some will ignore the government like lehman brothers which simply could not make money off its balance sheet. Now why can we not deflate the economy now like we did in the early 1990 period. 1. banks do not have large % of high yield loans or bonds to fall back on which means they can not make enough money to cover expenses anymore. 2. only a few superior rated debts are in the 15% range anymore and most of them are US treasury bills of the late 1970 to early 1980 which means the banking system is cash rich and just can not in the present market make money due to others competing for the small number of debtors that are able to make payments on such debts even at such low % rates
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Necromancer    No Anal - US hegemony is thankfully alive   10/31/2008 2:43:33 AM
Obviously I am biased- here are the deatils- OPEC sells oil in dollars till this day and so dollar is still the oil currency. The financial crisis is a global crisis the French have more skeletons than US. Yes China has 2trillion US dollars but Bernake can print that much in a week. The irony of the crisis is - US is still the golden goose that China needs to sell too. So...US loses a bit but China loses with it.
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HIPAR       11/5/2008 11:47:55 AM
I do not advocate the US be an isolationist economically or in any respect of international matters.  But, I do invite  the rest of the world to 'go it alone' if you really do believe the US to be a liability.
---  CHAS

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