Comments on: Bush and Obama Diss the G20 Financial Summit http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-g20-financial.html Sun, 22 Nov 2009 22:11:10 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-g20-financial.html#comment-25632 Anonymous Thu, 13 Nov 2008 18:24:00 +0000 http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-the-g20-financial-summit/#comment-25632 ndk, why do you see Japanese acceptance of yen strength as contrary to multilateralism? It reminds me of their meek acquiescence late in the Reagan administration when they were pushed to let the yen rise to save western industrial interests. Are you thinking that carry traders are now the dominant interest group, and it's them that Japan is defying? ndk, why do you see Japanese acceptance of yen strength as contrary to multilateralism? It reminds me of their meek acquiescence late in the Reagan administration when they were pushed to let the yen rise to save western industrial interests. Are you thinking that carry traders are now the dominant interest group, and it’s them that Japan is defying?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-g20-financial.html#comment-25627 Anonymous Thu, 13 Nov 2008 17:49:00 +0000 http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-the-g20-financial-summit/#comment-25627 "Somebody somewhere is going to start a scheme to short the entire US/dollar system. The current structure is not sustainable."<br/><br/>Who has that kind of money to be on the other end of a trade that will certainly be propped up by governments around the world ?<br/><br/>-----<br/><br/>Right, I clearly don't have the scheme.<br/><br/>but I would imagine, it would be working on various hard peg on USD. (eg. Saudi's Real) If that peg is broken, USD will sink.<br/><br/>Just like when Yen is moving too fast, carry trade dies and a huge section of US financial market is under water paying Yen loan. (Iran a year ago told Japan they want Yen instead of Dollar for oil)<br/><br/>Who has that kind of money?<br/><br/>Soverign wealth, I thinkis large enough player. If Russia get their act together, they can move around $100-200B with ease.<br/><br/>Or emerging a large free trade area that causes slack in US demand as mean of settlement (thus reducing c.bank reserve need)<br/><br/><br/>... all that are relatively large enough phenomena to alter US dollar function and crash it.<br/><br/>I am not sure if any hedge fund can do it. I can't imagine any scheme yet.<br/><br/>but somebody somewhere I think has a method already cooked up. “Somebody somewhere is going to start a scheme to short the entire US/dollar system. The current structure is not sustainable.”

Who has that kind of money to be on the other end of a trade that will certainly be propped up by governments around the world ?

—–

Right, I clearly don’t have the scheme.

but I would imagine, it would be working on various hard peg on USD. (eg. Saudi’s Real) If that peg is broken, USD will sink.

Just like when Yen is moving too fast, carry trade dies and a huge section of US financial market is under water paying Yen loan. (Iran a year ago told Japan they want Yen instead of Dollar for oil)

Who has that kind of money?

Soverign wealth, I thinkis large enough player. If Russia get their act together, they can move around $100-200B with ease.

Or emerging a large free trade area that causes slack in US demand as mean of settlement (thus reducing c.bank reserve need)

… all that are relatively large enough phenomena to alter US dollar function and crash it.

I am not sure if any hedge fund can do it. I can’t imagine any scheme yet.

but somebody somewhere I think has a method already cooked up.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-g20-financial.html#comment-25603 Anonymous Thu, 13 Nov 2008 16:13:00 +0000 http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-the-g20-financial-summit/#comment-25603 To all the comments here about how America must "stand up" to the rest of the world, you are guys out of your mind?<br/><br/>It is the reckless money printing and debt based consumption that got the whole world into this mess. A head in the sand approach will not get anybody out. Obama is being disingenuous by sending 2 nobody to meet world leaders. The good will the rest of the world have to toward him will evaporate in a matter of hours.<br/><br/>While we are on the subject of G20 meeting, the only useful out come out of this will be a decision by the IMF to sell gold. Asia and gulf countries will buy that gold with the USD and these dollars will be used to bailout euroupe and US. To all the comments here about how America must “stand up” to the rest of the world, you are guys out of your mind?

It is the reckless money printing and debt based consumption that got the whole world into this mess. A head in the sand approach will not get anybody out. Obama is being disingenuous by sending 2 nobody to meet world leaders. The good will the rest of the world have to toward him will evaporate in a matter of hours.

While we are on the subject of G20 meeting, the only useful out come out of this will be a decision by the IMF to sell gold. Asia and gulf countries will buy that gold with the USD and these dollars will be used to bailout euroupe and US.

]]> By: Alfred http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-g20-financial.html#comment-25601 Alfred Thu, 13 Nov 2008 16:07:00 +0000 http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-the-g20-financial-summit/#comment-25601 I thought about the military option as well. No single nation can successfully confront the power of the US military. In that case I suppose the World's nations would rather comply with US leadership. The result of a military confrontation could lead to WWIII and that would mean annihilation of mankind. Of course, in this scenario everybody loses including the US. Given the two options, WWIII or losing world dominance, the latter seems more human. I thought about the military option as well. No single nation can successfully confront the power of the US military. In that case I suppose the World’s nations would rather comply with US leadership. The result of a military confrontation could lead to WWIII and that would mean annihilation of mankind. Of course, in this scenario everybody loses including the US. Given the two options, WWIII or losing world dominance, the latter seems more human.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-g20-financial.html#comment-25600 Anonymous Thu, 13 Nov 2008 16:02:00 +0000 http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-the-g20-financial-summit/#comment-25600 @River<br/><br/>Except the rest of the world prefers to play soccer. Once they find the soccer ball... @River

Except the rest of the world prefers to play soccer. Once they find the soccer ball…

]]> By: Anonymous http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-g20-financial.html#comment-25594 Anonymous Thu, 13 Nov 2008 15:38:00 +0000 http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-the-g20-financial-summit/#comment-25594 "Somebody somewhere is going to start a scheme to short the entire US/dollar system.<br/><br/>The current structure is not sustainable."<br/><br/>Who has that kind of money to be on the other end of a trade that will certainly be propped up by governments around the world that have their financial interests aligned with the U.S.? Also, does said group or individual have adequate military protection? Such a manuever is essentially a statement of war. When Soros became the currency vigilante on Black Wednesday, he was pretty much declaring war on Britain. “Somebody somewhere is going to start a scheme to short the entire US/dollar system.

The current structure is not sustainable.”

Who has that kind of money to be on the other end of a trade that will certainly be propped up by governments around the world that have their financial interests aligned with the U.S.? Also, does said group or individual have adequate military protection? Such a manuever is essentially a statement of war. When Soros became the currency vigilante on Black Wednesday, he was pretty much declaring war on Britain.

]]> By: Alfred http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-g20-financial.html#comment-25592 Alfred Thu, 13 Nov 2008 15:35:00 +0000 http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-the-g20-financial-summit/#comment-25592 The same way one cannot bully a terminally ill lung cancer patient into not smoking cigarettes, US leaders will not be bullied into vast concessions on a financial summit. Since Lehman it is absolutely clear that if the US financial system goes down the rest of the world goes down with it. It is like the cowboy from Texas said: "We are in this together...."<br/>But when we do come out of it together, the world according to greenback will be different. The mighty dollar will have lost its hegemony status and as an essential pillar the US will lose its World dominating status. The same way one cannot bully a terminally ill lung cancer patient into not smoking cigarettes, US leaders will not be bullied into vast concessions on a financial summit. Since Lehman it is absolutely clear that if the US financial system goes down the rest of the world goes down with it. It is like the cowboy from Texas said: “We are in this together….”
But when we do come out of it together, the world according to greenback will be different. The mighty dollar will have lost its hegemony status and as an essential pillar the US will lose its World dominating status.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-g20-financial.html#comment-25591 Anonymous Thu, 13 Nov 2008 15:31:00 +0000 http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-the-g20-financial-summit/#comment-25591 "What if China point blank demands the dollar to be demoted to the rank of North American Peso?... hmmm… Or would that be more like a promotion?...<br/><br/>What would Paulson do then?"<br/><br/>He should do nothing. Our policies are not determined by the Chinese, our policies are determined by Americans. I would gladly accept a lower standard of living to ensure that foreign governments with not the best intentions in mind do not control my government and by extension myself.<br/><br/>Ultimately, the Chinese are going to stop buying treasuries at some point. Bernanke's job, Paulson's job, and Paulson's successor's job is to prepare us to be in decent shape when that day comes. “What if China point blank demands the dollar to be demoted to the rank of North American Peso?… hmmm… Or would that be more like a promotion?…

What would Paulson do then?”

He should do nothing. Our policies are not determined by the Chinese, our policies are determined by Americans. I would gladly accept a lower standard of living to ensure that foreign governments with not the best intentions in mind do not control my government and by extension myself.

Ultimately, the Chinese are going to stop buying treasuries at some point. Bernanke’s job, Paulson’s job, and Paulson’s successor’s job is to prepare us to be in decent shape when that day comes.

]]> By: S http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-g20-financial.html#comment-25577 S Thu, 13 Nov 2008 13:40:00 +0000 http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-the-g20-financial-summit/#comment-25577 As I sit here with the street blocked off so Bush can meet with Abdullah that is the tell. OF course the US is going to dismiss the call for regime change. Russia who can;t keep its market even open is calling for a new regime. The US is tanking the rest of the world with its malignancy exports (read $) and it is in US interest to do so to retian its stanglehold on hegemony. The meeting with abdullah tells you that Bush gets it. The ultimate arbitor will be the petro states and comodities in dollars. Once that goes so to does US suprememcy. So Bush and co calling for no change is anything but a shock. The problem for the US is that the system is bankrupt and will not be long tolerated regardless. Last gasps of a dying system As I sit here with the street blocked off so Bush can meet with Abdullah that is the tell. OF course the US is going to dismiss the call for regime change. Russia who can;t keep its market even open is calling for a new regime. The US is tanking the rest of the world with its malignancy exports (read $) and it is in US interest to do so to retian its stanglehold on hegemony. The meeting with abdullah tells you that Bush gets it. The ultimate arbitor will be the petro states and comodities in dollars. Once that goes so to does US suprememcy. So Bush and co calling for no change is anything but a shock. The problem for the US is that the system is bankrupt and will not be long tolerated regardless. Last gasps of a dying system

]]> By: River http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-g20-financial.html#comment-25555 River Thu, 13 Nov 2008 10:57:00 +0000 http://www.nakedcapitalism.com/2008/11/bush-and-obama-diss-the-g20-financial-summit/#comment-25555 Were you ever in a pick up baseball game as a kid? Did the kid that owned the bat and ball get ticked off and threaten to take his bat/ball and go home? <br/><br/>It is only a matter of time untill the world finds another bat/ball to continue the game. The spoiled brat will not be invited to the next game. Were you ever in a pick up baseball game as a kid? Did the kid that owned the bat and ball get ticked off and threaten to take his bat/ball and go home?

It is only a matter of time untill the world finds another bat/ball to continue the game. The spoiled brat will not be invited to the next game.

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