scortez: The Financial problem Of the U.S began in 1971 when president Nixon removed gold as a standard for exchange. By that single act, he made the dollar a currency.The dollar can't be claasified as money,it is simply currency.The dollar possesses no real value.Even America knows it.Prior to 1971,gold backed the dollar but with the action of nixon,the dollar lost it's backing.The debt of America will continue to rise because they have refused to learn from history and nip the problem in the bud.Spending more than they earn has always been their problem.They have also involved themselves in many unprofitable ventures. Expensive wars have been fought and this has eaten very deep into their finances.Countries like China have observed the U.S carefully and have started the pile up of gold.Sooner or later the world will have no choice but to revert back to gold as the standard.The U.S is sure on the path to extinction financially and as a world power.I hope Nigeria learns.

The Gold Standard was a myth since the Federal Reserve has never had in possession the corresponding amount of Gold in proportion to the amount of paper currency they issued.
And also the Federal Reserve is a private entity owned by Bankers .Don't be f00led by the word "Federal" as there is nothing Federal about the Federal Reserve and the dollar they issue is their calling card.

The Federal Reserve came into being in the pioneer era of American History. At that period Americans hoping to venture west deposited their gold in Bank Vaults in the East and got promissory notes which will be honored in their bank branch in small gold rush towns. These small pioneer towns had provision stores that accepted bank notes in exchange for essential goods and supply. The bankers soon realized they could issue far more promissory notes than they amount of Gold they had in possession. They only draw back was the event that all depositors may at one time demand for their Gold. These banks then solved this problem by ensuring that paper currency will be the mainstay by uniting under one singular issuing authority. The Federal Reserve and the dollar it circulates is not controlled by the U.S. government but by BANKS.

I don't trust America. This could be a deliberate ploy to put a clog in the wheel of China's progress.

Don Magic Juan:

By doing what they had to do 6 years ago which was to cut down on Military Spending, reduce Military aid to certain countries like Saudi Arabia, Pakistan and Egypt, cut global aid programs to corrupt countries Such monies if not used to offset their debt should have been invested in improving (relatively low by western standards) Education and Healthcare.

Now this is the total opposite of what Obama did and he only placated the poor and middle class with ObamaCare which they don't want by they way. Obama bailed Banks and GM with these same Bankers and corporate executives laying off workers, downsizing and giving themselves huge bonuses annually since the recession under Obama.

The U.S. recession is being used by Corporate America to lay off workers and reduce wage bills and also get government handouts.
How daft is Obama?

I think it was George W. Bush that bailed banks, I could recall that vividly. Obama's campaign policy included ending recession, which he tackled headstrong as advised by his economic team. The 2 wars were initiated by George W Bush. Obama pulled the troops out of Iraq and deployed more troops to Afghanistan. That much I can remember.

The major policy which is contentious is the Affordable Care Act, which is the bone of contention at the moment, but is it really a bad idea ? This act ensures that every american has health insurance policy and if you do not have a job or source of income, the Federal Government provides funding (credit), to ensure that every citizen has access to medicare. It also introduces auditing measures which will stop clandestine fraud occurring in the health sector in US, where a doctor can raise a quote of $4000 to the federal government for treatment of common cold in the pretense of appendicitis (this is just an illustration, dont quote me).

I think I love it, its going to be expensive but Health is Wealth.

grandstar: only one word describes the situation in the states- LAMENTABLE!

You don't Uncle Sam. America has a solid economic base, not the EXPONENTIAL nonsense you see in China, Russia, Nigeria, etc.

Billyonaire:

I think it was George W. Bush that bailed banks,

@Billyonaire: Obama did bail banks out

Remember the "too big to fail" mantra?

GustavoFring: Billyonaire has seriously upgraded his thought processes.

The knowledge he's exhibiting here is outstanding...

I am even looking for just his post to read

No doubt, you are a man of vast interest in economics and politics, both local and international...

Do you mind sharing the kind of books you read? I wanna be like you when I grow up.

Billyonaire:
Ghadafi and Saddam were targeted and killed for attempting to replace the dollars as trading currency for Petroleum. That's a story for another day. The greatest threat to America's dollars is yet to come. Russia is experimenting with the BitCoin, but I do not see that working at the moment. The world needs to start thinking of a replacement of the dollar as a legal tender.

Keneking: Can someone put Nigeria's economy graphically like this? At least we know how much we are worth as citizens?

If the US stops buying Nigeria's crude oil, Nigeria will collapse, & scatter in six months. Other buyers HAVE NO MONEY TO PAY.

First of all the US will not default. If a deal is not reached by oct 17,dat doesn't mean there is default, because the US can prioritize their payment.You can only say there is a default when interest payment on bonds securities are not paid as at when dew.
So investors like china and japan are sure to have their payment, and they know that, but china has their interest also so it is normal 4 them to speak out and position themselves as growing world power.
It is important 4 us to know how china got to been the second largest economy. Their economy is driven by exportation, meaning less comsumption @ home leading to having more to export there by getting excess revenue which they could Js saved as a fixed savings or invest on us securities so that they get interest on purchase of the securities.
To be cont.....

CFCfan: ^^
On point! The Federal Reserve is mainly a private bank, even though the President nominates it's Chairman.

That is just wrong.Totally wrong!

emmanuel4758: rusia vs chinko who take control abi na anoda world war

What is wrong with you?

Can't you be serious for once seeing that a very serious issue is being discussed?

Can't you just relax, read and learn?

Stop being a nuisance here, abeg!

Or better still, find your level at other less serious sections/threads such as the whatsapp/2go thread.

---

By the way, I am enjoying the debate on this thread.
The whole world will definitely be affected by America's downfall.
May God help us o!

Don Magic Juan:

The Gold Standard was a myth since the Federal Reserve has never had in possession the corresponding amount of Gold in proportion to the amount of paper currency they issued.
And also the Federal Reserve is a private entity owned by Bankers .Don't be f00led by the word "Federal" as there is nothing Federal about the Federal Reserve and the dollar they issue is their calling card.

The Federal Reserve came into being in the pioneer era of American History. At that period Americans hoping to venture west deposited their gold in Bank Vaults in the East and got promissory notes which will be honored in their bank branch in small gold rush towns. These small pioneer towns had provision stores that accepted bank notes in exchange for essential goods and supply. The bankers soon realized they could issue far more promissory notes than they amount of Gold they had in possession. They only draw back was the event that all depositors may at one time demand for their Gold. These banks then solved this problem by ensuring that paper currency will be the mainstay by uniting under one singular issuing authority. The Federal Reserve and the dollar it circulates is not controlled by the U.S. government but by BANKS.

A little or "half" knowledge is more dangerous than no knowledge

Obama didn't enact TARP, but he administered it.

http://www.cbsnews.com/8301-503544_162-20013452-503544.html

http://www.dailyfinance.com/2010/01/27/obama-bailing-out-the-banks-was-necessary-but-i-hated-it/

http://www.economist.com/news/books-and-arts/21565142-how-america-bailed-out-banks-rather-its-citizens-crisis-mismanagement

Ola one:
@Billyonaire: Obama did bail banks out

Remember the "too big to fail" mantra?

That was George Bush my friend, Merrill Lynch was bought over by Bank of America using Government financing options, Lehman Brothers, Fanni Mae went under too and government paid off most of their debt ownerships. The housing bubble was saved by the Government liquidity injection. Wachovia was bought over by Wells Fargo, Washington Mutual was bought over by JPMorgan Chase. All these were made possible under the Government bail out programme of my good friend, George W Bush.

Ola one: Obama didn't enact TARP, but he administered it.

http://www.cbsnews.com/8301-503544_162-20013452-503544.html

http://www.dailyfinance.com/2010/01/27/obama-bailing-out-the-banks-was-necessary-but-i-hated-it/

http://www.economist.com/news/books-and-arts/21565142-how-america-bailed-out-banks-rather-its-citizens-crisis-mismanagement

Now you are talking.

Ola one: I don't trust America. This could be a deliberate ploy to put a clog in the wheel of China's progress.

my thought. it is economy war. america understand the game.

Ola one: I don't trust America. This could be a deliberate ploy to put a clog in the wheel of China's progress.

China is a smart country run by elite brains. They have already made provision to cushion the effect of ANY default. Cash swap was initiated some days ago. Investing massively in other countries including America's Treasury Bill was a great and calculated move by China. Devaluing their currency purposefully to flood the world with their cheap goods succeeded in grounding most factories in America and that was also an excellent move.

Most factories in USA became franchise outlets for Chinese products, and now this ? China has investments in most countries and could easily plough back some cash to re-ignite their economy but America will lose the only thing that keeps its wheel of progress running, which is their Dollar/Federal Reserve Paradox.

If America chose to purposefully default, China and Japan will be the biggest losers, but America will lose more at the long run, because the only thing that kept the world running to them was their Fiscal Policy and stable banking economic equation. That trust is about to be eroded.

Billyonaire:

China is a smart country run by elite brains. They have already made provision to cushion the effect of ANY default. Cash swap was initiated some days ago. Investing massively in other countries including America's Treasury Bill was a great and calculated move by China. Devaluing their currency purposefully to flood the world with their cheap goods succeeded in grounding most factories in America and that was also an excellent move.

Most factories in USA became franchise outlets for Chinese products, and now this ? China has investments in most countries and could easily plough back some cash to re-ignite their economy but America will lose the only thing that keeps its wheel of progress running, which is their Dollar/Federal Reserve Paradox.

If America chose to purposefully default, China and Japan will be the biggest losers, but America will lose more at the long run, because the only thing that kept the world running to them was their Fiscal Policy and stable banking economic equation. That trust is about to be eroded.

How will America lose more in the long run when there are no credible alternatives to the dollar?

And the CIA will swarm any country that tries to introduce another platform. Don't forget, America controls the world's banking sector hence the telling effect of America's sanctions on any country she decides to punish.

Case in study: Iran

Virgin Finder:

What is wrong with you?

Can't you be serious for once seeing that a very serious issue is being discussed?

Can't you just relax, read and learn?

Stop being a nuisance here, abeg!

Or better still, find your level at other less serious sections/threads such as the whatsapp/2go thread.

---

By the way, I am enjoying the debate on this thread.
The whole world will definitely be affected by America's downfall.
May God help us o!

anoda yaba left escapoo i no get ur time sha

Donmams: The fact is any individual or country that oppresses muslims will eventually be destroyed by the Almighty Himself. America is on its way to extinction. So is GEJ.

The Muslims keep their gold safe at Fort Brags. Even Gaddafi kept Libya's in the US, where no one man can ever be stronger than the nation, and do whatever he liked with Other People's Money, OPM.

ckkris: The Muslims keep their gold safe at Fort Brags. Even Gaddafi kept Libya's in the US, where no one man can ever be stronger than the nation, and do whatever he liked with Other People's Money, OPM.

Don't mind the guy

0monnakoda:
A little or "half" knowledge is more dangerous than no knowledge

From the official Federal Reserve website:
"It is considered an
independent central bank because
its monetary policy decisions do not
have to be approved by the
President or anyone else in the
executive or legislative branches of
government, it does not receive
funding appropriated by the
Congress, and the terms of the
members of the Board of Governors
span multiple presidential and
congressional terms."

http://www.federalreserve.gov/faqs/about_14986.htm

Perhaps it is in fact you with half knowledge and verbal diarrhoea. In your haste to type a pithy put-down, you have betrayed your own lack of knowledge. Typical Nigerian. All sound and no sense.

manny4life:


[size=16pt]U.S. Debt clock..[/size]

For real time activity, http://www.usdebtclock.org/


BEIJING –With days to go before the United States debt default deadline, Beijing aired its frustrations with the shutdown Sunday, saying it was time to consider a “de-Americanized” world order.
P
With $1.28 trillion in U.S. Treasuries, China is easily the biggest foreign holder of American debt.

China has also funneled billions of dollars into private American investments – to the tune of an estimated $54 billion in 2012 alone.

“As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world,” according to a stinging op-ed article by state news agency, Xinhua.
Advertise | AdChoices

The article, published Sunday, conveyed Beijing’s frustration with the spending and debt impasse that has paralyzed Washington for more than two weeks.

"Days when the destinies of others are in the hands of a hypocritical nation have to be terminated, and a new world order should be put in place, according to which all nations, big or small, poor or rich, can have their key interests respected and protected on an equal footing,” the piece added.

Should Congress not come to an agreement by Thursday’s deadline on a new raised debt ceiling – the upper limit set by Congress on the amount of money the Federal government may borrow – China’s potential losses stand to be devastating.

Prior to Sunday’s commentary article, Chinese officials had been more measured in their analysis of the U.S. budget impasse. Last week, Vice-Finance Minister Zhu Guangyao noted only that “we have to see that the clock is ticking.”

To many in China, the restraint on the part of China’s ruling Communist Party over its second-largest trade partner’s government problems was perhaps based in the belief that neither party, Democrat or Republican, would allow the U.S. to not honor its financial obligations.

“If we are really rational, I cannot imagine why someone would dare to bear this kind of responsibility because any real default will have a huge impact not only on the U.S. and China, but on the global economy,” said Professor Zhao Longkai, a dean at the Guanghua School of Management at Beijing University. “It’s hard for us to imagine anyone can be that crazy to push the limit to that level.”

Zhao said the patience China had shown until recently was rooted not only in Beijing’s confidence in America’s ability to deal with the budgetary crisis, but also its own burgeoning self-confidence.

“For average Chinese people [the budget crisis] is a show there and we’ve seen it before… we also know that it's not only the United States that we are relying on, we have a lot of other investments,” Zhao said.

The Xinhua commentary may raise eyebrows in Washington, but Beijing’s frustration underscores a key point: Despite a desire to diversify its holdings, the Chinese government continues to buy U.S. Treasury bonds out of political and economic necessity.

As long as China’s domestic growth and stability are boosted by American debt, the deep ties between the two countries will likely endure.

Guys let us be look at this holistically. US economic hegemony is owing the world to ransom but that does not mean you have to kill a baby to love your husband. No. Replacing US dollar with China's option or regarding China's cry against US laughter is a no option. The country china is worst compare to US. This is a country that tolerates all form atrocities from other countries leaders as long as they are allowed market in such country. This is a country that manipulates their currencies just to appear sound economically. China os full of deception that will one day return the world back to the stone age. China is not a princinpled country. Forget that they try their corrupt leaders, what happens to them encouraging all round social justice in the world. Forget they will remain second best forever.

Ola one:
How will America lose more in the long run when there are no credible alternatives to the dollar?

And the CIA will swarm any country that tries to introduce another platform. Don't forget, America controls the world's banking sector hence the telling effect of America's sanctions on any country she decides to punish.

Case in study: Iran

I think the problem here is the fear America. Russia during the Syria war imbroglio prove to the world that there is a political alternative to USA. Chinese have proven that there is Economic Alternative to USA. And this default whether it happens or not will present an alternative to the dollar. Watch out. The truth is, from this stand point, the world knows that their investments are no more safe in USA. Remove that fear away and you will see that there is a new World Order. Sometimes stay off American Channels and tune to Chinese channels and see the number of countries signing deals everyday with the about to announced Economic numero uno - China. London Mayor with High ranking members of British parliaments sign exchange deals with China last week.

.

.

cocoduck:
hohho ho ho I laff in chingchong. not that wicked as you said. The fact is that China has always eyed the role of the US so it is not surprising that they inflate their economic growth figures and build gigantic structures that no body uses. google China's ghost cities.

Every country eyes America's role, but very few hav d ability or resources to challenge for dat role. China has the man power, the land the technology and to an extent, the leadership. Those gigantic structures as u said are mostly found in their EFZs like Shanghai also places like Macau, Hong Kong, Taiwan are not excluded, attract huge investments.
China is also the home of substandard product manufacturing, hence "chinko", fake batteries, tvs, electronics etc... These goods are later exported to other nations. Those tall buildings are very much useful... Also note dat China is very strict on internet contents within it's teritory, hence you can't just Google anyhow about China and hold on to every search result as reliable or authentic. Verify it properly... Please correct me if am wrong...

While most of China’s major economic competitors around the world have seen their currencies climb against the dollar by 20 percent, 30 percent, 40 percent … even 50 percent in the last eight months … the Chinese yuan has been virtually unchanged.

That’s because China controls the value of its currency. And that creates a major advantage for Beijing in the competition for world exports. It’s a primary reason China has been able to achieve such a rapid rise in global economic power.
China’s currency policies have long been a problem for the United States. Cheap Chinese goods and cheap credit fueled a consumption binge for U.S. consumers and a massive trade deficit.
Its authority to determine the value of its own currency and to stockpile U.S. dollars through one-way trade has put China in a position of strength against the rest of the world.

loswhite: While most of China’s major economic competitors around the world have seen their currencies climb against the dollar by 20 percent, 30 percent, 40 percent … even 50 percent in the last eight months … the Chinese yuan has been virtually unchanged.

That’s because China controls the value of its currency. And that creates a major advantage for Beijing in the competition for world exports. It’s a primary reason China has been able to achieve such a rapid rise in global economic power.
China’s currency policies have long been a problem for the United States. Cheap Chinese goods and cheap credit fueled a consumption binge for U.S. consumers and a massive trade deficit.
Its authority to determine the value of its own currency and to stockpile U.S. dollars through one-way trade has put China in a position of strength against the rest of the world.

Please Explain the bold paragraph especially stockpiling dollars via one-way trade.

Billyonaire:

I think the problem here is the fear America. Russia during the Syria war imbroglio prove to the world that there is a political alternative to USA. Chinese have proven that there is Economic Alternative to USA. And this default whether it happens or not will present an alternative to the dollar. Watch out. The truth is, from this stand point, the world knows that their investments are no more safe in USA. Remove that fear away and you will see that there is a new World Order. Sometimes stay off American Channels and tune to Chinese channels and see the number of countries signing deals everyday with the about to announced Economic numero uno - China. London Mayor with High ranking members of British parliaments sign exchange deals with China last week.

Exactly. the propaganda used by the American and British media is impressive and hard to see, but once one understands d dynamics involved in international political economy, they'll appreciate this ur post. Once in a while people watch CCTV, no be everyday be for CNN, especially in times like this.

America oni baje!





*zooms out*