Originally posted by jay dawg
wow leo, that is very insightful! of coarse i somehow knew it would be! coming from you. 8) *
i heard asians own most of the buildings in new york.... is this true?
During the years of the Japanese Miracle, there was a huge trade imbalance, with the Japanese having billions of dollars that were almost entirely worthless. they could by oil with them, and some food stuffs, but everything else they could buy from themselves, as it should be. So what did they do with all those dollars? Well, they invested them in American Real Estate and Equity Markets. Arab Oil Shieks also own a lot of America.
You know, it is almost kind of dangerous for so many dollar assets to be held by foreign powers. If they wanted to they could simply dump their dollars and dollar assets into the middle of Times Square and walk away from it all. It would be trillions of Dollars of Free Money... and you know what that would do? it would cause an utter collapse in the value of the Dollar as a stable international currency. The World would immediately be driven to find replacement currencies.
and the Americans are only making the situation more dangerous day be day as they shut down more and more of their own productive capacities and so have less and less to sell for any of the trillions of dollars that are floating around the world. Scarcity would improve the value of the dollar, but the Americans are still dumping them into the World Banks at still under 4% interest. Sooner or later it will occur to some few Economic Geniuses that there is absolutely nothing solid holding us the value of the dollar and somebody is going to yell SELL. and so will come the end of America as a World Power.
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