Will China Back The Yuan With Gold?

aeprga said:
Calmer than you are.

Also, too, you shouldn't lash out at me because you don't know the difference between total debt and debt held by the public. Try introspection.
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You continue to project your own hostile attitude onto me. You are but a hack. Nothing more. I do comprehend the total debt that we owe. You seem to think anything not held by the public somehow isn't debt we owe.
 
Abraxas said:
I already told him that China doesn't hold TIPs. Nobody is going to inflation proof a bond maturing in 10, 20 or 30 years.
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You have 'told' people many things in this thread, but have continually failed to back them up with anything substantial. So I think I will wait to see his source.

Also... TIPS are sold with maturities of 5/10/30 years. So yes, people do indeed by TIPS with maturities of 10 and 30 years.
 
Superfreak said:
You have 'told' people many things in this thread, but have continually failed to back them up with anything substantial. So I think I will wait to see his source.

Also... TIPS are sold with maturities of 5/10/30 years. So yes, people do indeed by TIPS with maturities of 10 and 30 years.
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Even if they were inflation proofed, they are not going to be depreciation proofed now are they?
 
Superfreak said:
You continue to project your own hostile attitude onto me. You are but a hack. Nothing more. I do comprehend the total debt that we owe. You seem to think anything not held by the public somehow isn't debt we owe.
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LOL. I'm just telling you that the chart Watermark posted is not "incorrect" as you claimed. It's just a different chart. So . . . yeah. Calemer than you are.
 
Superfreak said:
You have 'told' people many things in this thread, but have continually failed to back them up with anything substantial. So I think I will wait to see his source.

Also... TIPS are sold with maturities of 5/10/30 years. So yes, people do indeed by TIPS with maturities of 10 and 30 years.
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Actually I have just discovered that they are offered with maturities of 5, 10 or 20 years but they are for domestic use as far as I can see not for governments.


How they work. TIPS are sold at auction several times a year in maturities of 5, 10 or 20 years. They pay a fixed rate of interest, but that rate is applied to a fluctuating principal amount of a TIPS bond which rises with inflation or falls with deflation. Interest payments are made every six months. Although TIPS are generally touted as protection against inflation, they also offer some protection against deflation. That's because TIPS guarantee to pay at least their original principal at maturity. Put another way, if prices double during the life of a TIPS bond, a $1,000 TIPS would automatically rise to a principal value of $2,000. If prices fall by 50 percent, however, that $1,000 bond would still have a principal of $1,000. Find more details about TIPS at Treasury Direct.
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http://money.usnews.com/money/blogs...-tips-treasury-inflation-protected-securities
 
Tyrion the Imp said:
People who say we're planning to devalue the dollar are confused, there's not any mechanism in place for the US to devalue the dollar by fiat. We'd have to implement a fixed exchange rate system like China, complete with the capital controls that such a system more or less requires to persist in the long run

Just to be clear, if the dollar drops in value due because it's position as the reserve currency becomes shaky, that's not a "devaluation". That's just supply and demand - if demand for the dollar drops, so does the price. You can sort of cheapen the value of your currency through monetary expansion, as well, but that necessarily comes with domestic inflation, so it's not like you can go crazy with it. You have to consider the overall situation, else you could easily wipe away all your gains from a lower exchange rate value in domestic economic instability, increased prices, and decreased incomes. This also is not technically "devaluation" either, it's basic supply and demand as well - the supply of the dollar goes up, so the price goes down (although, it's important to note that domestic inflation/deflation and the value of the dollar on the exchange rates don't necessarily have to correlate - that's one misconception a lot of people hold).

In contrast, China's currency scheme was "devaluation" in a true sense - the government simply declared that the Yuan would have a certain value (significantly lower than the market would decide), and put measures in place to ensure that it was traded at that value. This allowed them to sort of have their cake and eat it too - they got to lower the Yuan's exchange rate and cheapen their exports without having to convince the world to have less demand for the Yuan or introduce domestic inflation. But it's not like this is free either - the draconian capital controls required to maintain the system hinder China's economic competitiveness. That's why developed economies generally don't do it, and that's why China's moving away from it as well.
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I'll admit I am confused here. If the Fed is printing money that is not devaluing the dollar?
 
Superfreak said:
You have 'told' people many things in this thread, but have continually failed to back them up with anything substantial. So I think I will wait to see his source.

Also... TIPS are sold with maturities of 5/10/30 years. So yes, people do indeed by TIPS with maturities of 10 and 30 years.
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What i love about this thread is that tom is using the same looney tunes type sites he uses to back up his global warming shit. I can't tell you how much I have been laughing. You really have a blind spot!
 
Abraxas said:
Actually I have just discovered that they are offered with maturities of 5, 10 or 20 years but they are for domestic use as far as I can see not for governments.

http://money.usnews.com/money/blogs...-tips-treasury-inflation-protected-securities
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I would suggest you try treasury direct rather than blogs for your information. Your blog link is incorrect.

https://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm

[h=2]Rates & Terms[/h]
  • TIPS are issued in terms of 5, 10, and 30 years.
  • TIPS Inflation Index Ratios can be used to calculate the inflation adjustment to principal on previously issued TIPS.
  • TIPS can be held until maturity or sold before maturity.
 
Darla said:
What i love about this thread is that tom is using the same looney tunes type sites he uses to back up his global warming shit. I can't tell you how much I have been laughing. You really have a blind spot!
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except that is nonsense. The global warming information uses the actual DATA... something you fear mongers tend to avoid. You instead run around screaming either 'consensus!!' or 'denier' and then refuse to discuss the actual data.
 
Abraxas said:
Ok fair enough, but can governments buy them?
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Can they buy TIPs... I would assume that is up to the policies of each individual country. As far as I know, the US does not restrict any country from purchasing them. Though to be clear, I am not certain on that point.
 
Superfreak said:
except that is nonsense. The global warming information uses the actual DATA... something you fear mongers tend to avoid. You instead run around screaming either 'consensus!!' or 'denier' and then refuse to discuss the actual data.
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The consensus was reached by using data you moron!
 
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