tag:blogger.com,1999:blog-502356674750161309.post3330459521189310377..comments2009-02-12T20:28:53.252-08:00Eric deCarbonnelhttp://www.blogger.com/profile/08023745289801416061noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-502356674750161309.post-38027600530950200462009-02-12T20:28:00.000-08:002009-02-12T20:28:00.000-08:00John Williams: $100 Bills Will Become Worthless<BR/><BR/>http://www.lewrockwell.com/blog/lewrw/archives/025319.htmldisinterhttp://disinter.wordpress.com/noreply@blogger.comtag:blogger.com,1999:blog-502356674750161309.post-19032067320347250372009-02-12T20:10:00.000-08:002009-02-12T20:10:00.000-08:00China really has its sh#t together. What they're doing is what the Japanese FAILED to do and that is cash in. <BR/><BR/>The Japanese were so focused on exportation, they forgot that the only reason you export is so that you can import. They tried putting their dollars in US real estate, domestic real estate at exactly the wrong time which exascerbated the severity of the recession they had. <BR/><BR/>The Chinese are trying to get something for their dollars before they're debased. They see the writing on the wall. They are still poor, but have all the elements for a continued, prolonged economic expansion making the case stronger for decoupling. <BR/><BR/>They recently bought a large stake in Rio Tinto, which is an excellent play considering the value of Rio Tinto in this temporary period of delevering. They are going for REAL STUFF. They have the manufacturing capacity, they need the commodity one. Nothing better than investing those dollars during this artificially strong dollar period.<BR/><BR/>The Chinese have all the components to make a decoupling happen. They need to get with OPEC and devise a new currency. They need to solve their political issues that seem to be coming out during this deflationary period (look out for the die hard commies in the party.) Finally, they need to spur domestic consumption to raise the standard of living for their citizens. <BR/><BR/>If China can pull it off (and it is a HUGE if considering their political problems) they can be at the forefront of a new global renaissance.Anonymousnoreply@blogger.com