The US Federal Reserve has doubled the amount of money in the US economy in the last 12 mnths.It is now filtering down to the real economy.China is not happy since it owns $1 trillion in US debt.
What we don't know is;how many of Aust financial institutions still have investments in the USA?

China is loaning us over $300 billion for infrastructure and stimulus packages.China like other countries is slowly divesting themselves of US dollars.

I just wonder if Kevin Rudd has read the fine print of our loan agreements with China.Could China be loaning us US dollars in order to reduce their exposure to the inevitable collapse of the dollar?

Does anyone have the terms and conditions of this loan agreement?

obama is to make a statement on monday
about finance
could it be the long awaited audit of the fed
yeah i know im dreaming

could it be the introduction of the amero?
yeah i know name changing cant eradicte the debt
but embassies have been busy converting their us dollars into local currency units

all that cash could cause hyperinflation
but those troubled securities..[constructive treasonous fraud..stil sits on the books]

anyhow that cash wont cause inflation...cause the dollar is deeflating..meaning american prices will be going up..as the dollar or euro falls...fiat money for ursury is the real issue...and all bills being debt..clever lawyers have inverted things as they are...

but all debt ursury money was created on our signature [our promise to repay...that is what has gone wrong...we created it with a blue ink sig-nature..that created a security..they on sold

anyhow the new reserve currency will be the carbon credit..a compulsory global tax going direct to bankers...who rebuild industry...while doubling the cost of everything..

with a carbon tax who's price will be speculated up..by the securities traders...who via deception even securitised/monetised bad debt...lol...who..via an ever fewer carbon credits cap..furtyher speculate raioty bonus..upon its an ever shrinking carbon credit issue...

that wil get ever more bonus for the smartest guys in the room..who know the value of scarcity/and need...restrict supply..insures good bonus

Sheesh, I did not need to guess who had started this thread :)

Arjay, just relax and see the big picture here. China has been trying
to manipulate things for years, by purposefully keeping their
currency low, hoarding US dollars and flooding them back to the
US as cheap loans.

If they land up losing value on their hoarded $, well it serves them
right. If they try to liquidate their $, the rest of their reserves
will crash in value and they will burn their main export market.
So they are kind of caught between a rock and a hard place.

Yes, they are now realising that they are trapped, so are diverting
resources to other stores of value, like Australian mines,
commodities like copper, etc.

The thing is, the American $ has been overvalued for ages, as
America becomes poorer and Asia becomes wealthier. At some point
this has to be reflected in the currencies, something which
the Americans have stated for ages. Now the realities of the
market place will eventually make it happen.

Given Australia's huge current account deficit, at some point the
Aussie $ needs to join the US $ in going down, although our healthy
mining sector has prevented it from happening so far.

The rest of the Australian economy is largely uncompetitive in global
terms

A poorer US will mean a shrinking market for Chinese products, & thus a shrinking market, or a reducing price, for our raw materials.

I think it would be a good idea to tighten our seat belts, & our purse strings, to prepare for some bumpy road ahead.

Certainly not the time to be playing silly buggers with any cap & trade rubbish. My electricity bill has doubled in 6 years, with a slight reduction in usage. I don't need any ideologically driven extra costs, with a fixed income, now.

I would love to see my kids build some safty margin into their expenditure, especially as a couple are in good time industries.

Yes it is a worry. As well I see we have done exactly the same,
borrowed very large sums of money which can only be paid back by
printing it.
No matter however they did it we are heading for inflation.

The politicians do not understand control engineering.
Binary Kevin must have either a fire hose or nothing.
He has no idea that as things improve you start backing off with the
water flow. It is known as Proportional, Integral and derivative.

If you do not apply these terms to a control system it will go into
either a wild oscillation or just sag.

We are in the hands of fools who know it all.

Yabby.This collapse is unpresidented in our history.Never before has the world been so awash with inflated currencies.It is not business as usual.The real productive economy has been perverted by the monetary greed.So with the next stage of collapse ,do they simply create more cyber money?The Banks and their parasites have to take a loss at some time.They can not keep stealing from the people by creating money from nothing.There is no productivity to it!

OUG the Ron Paul movement have 282 Congressmen supporting an audit of the US Federal Reserve.Barney Frank says there will be a complete audit of the US Fed.Barney said that the house will probably pass it in October 09.The devil will be in the detail and the constraints put on any investigation.There will be much stalling so don't expect too much.

Hasbeen;don't take this lying down.We are being shafted to save banks/corporates and impotent Govts.Let your local member know how you feel.

Bazz I totally agree.Kevin must stop the borrowing for stimulus and borrow only for infrastructure that will add to productivity.Had we not signed th Bretton Woods agreement of 1940, we would be able to create our own credit like Hitler did and make this country much stronger and prosperous.We are borrowing from an international system that create money from nothing and loan it back to us at interest.It is theft!