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DownWithInfidels (29.36)

C(sh)itibank is $14.11 away from zero, and new all-time low in $US :)

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July 15, 2008 – Comments (12) | RELATED TICKERS: C

The stupid infidels who are value investing in the valueless are getting what they deserve! I hope C(sh)itibank has pending news of their demise!

Silver at $19.26, C(sh)itibank at $14.11. Two years ago no infidels will believe Silver has a 36% price premium on C(sh)itibank. They believe in the $US and robust US economy instead of Silver and Gold! Those infidels have paid with a significant decline in personal wealth! They will be on the street as beggars, just like the poor people born into that situation in the third world. They have mocked those people and used them as slaves to feed their gluttony and perversion. Now the tables are turned for their retirement. These "baby boomers" of the West have ruined the world, and now they are being punished!

12 Comments – Post Your Own

#1) On July 15, 2008 at 11:11 AM, TDRH (99.66) wrote:

The fed is immasculated, Congress is useless, the dollar continues to lose value, it would appear that your predictions are correct.    I ask you though, which currency will replace the dollar?   The storm will be global, do you  think the poor in the third world will be better off for having us as company? 

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#2) On July 15, 2008 at 2:35 PM, starbucks4ever (97.92) wrote:

TDRH,

Actually yes, I think the thrid world will be better off. Consider the Chinese, for instance. They sell their cheap goodies to Americans, then use dollars to provide cheap refinancing to their bankrupt government.This chain of transactions works like this: 1. We can produce consumer goods cheaply, but we need a buyer who can afford them. 2. Make a leap of faith and imagine that Americans can afford them. 3. Sell our goods to Americans in exchange for their promices to pay us later. 4. Close our eyes, imagine that we made money, rinse and repeat. Now, it's not hard to see by looking at this sequence of steps that America is merely acting as a placeholder. You can drop that link of the chain and replace it with Africa, Asia, Antarctica, even Mars or Pluto if you wish without any detriment to the whole business arrangement. So why not replace it with China instead? Yes, the idea that Chinese consumers can pay for your goods is every bit as good as the idea that American consumers can pay for them, with the additional advantage that now your people get to own some of the goods they produce. China should just write off the US as a deadbeat debt cheat and move on.

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#3) On July 16, 2008 at 3:19 PM, FarelessWorrier (35.73) wrote:

zloj,

Your simplification of the economic relationship between the U.S. and China doesn't hold water. After all, it's companies like Walmart that are buying those cheap Chinese goods. Nobody has to pretend that Walmart can pay -- they're currently sitting on over 8 billion dollars of cash, with total current assets of over 50 billion. Now, I grant you, that's not as much in Euros or Yuan as it once was, but Walmart's Chinese suppliers can take it and convert it into whatever currency they want. I think the Chinese will take that money over what Africa, Antartica, Mars and Pluto have to offer. Actually, China does get some resources from Africa. For example, they have an exclusive deal with Sudan, who supplies them with oil, which is why they stopped the U.N. security council from taking action against the genocide. But, this is a financial forum, not a geopolitical one, so I'll leave it at that.

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#4) On July 17, 2008 at 6:29 PM, StockSpreadsheet (71.79) wrote:

zloj,

The problem with most of Africa and Asia, (including China), is that the people don't have any money to buy the goods China is making.  One of the reasons that China is the manufacturing powerhouse it is now is that the government owned most of the industries and paid their workers very little.  Therefore, the workers couldn't afford what they were producing.  (Over half of their money went to buy food and clothing, so buying a Barbie doll was not high on their list of things they wanted to buy.)  However much value the dollar has lost, it is still worth more than the currencies of most of Africa or Asia, is more spendable around the world for goods, and Americans have more discretionary income than most of the Asians or Africans.

Now granted, as the Chinese people are starting to make more money, they are starting to buy more of the goods that they are producing, (cars, for instance).  Over time, maybe more of China's production will be consumed by the Chinese people instead of being exported.  Also, some of the exports might be redirected from America to Asia, but most of the Asian economies are fairly restrictive on imports and are trying to copy China and be more export-oriented.  This will limit somewhat the ability of China to "drop that link of the chain" and replace an American consumer with an Asian or African consumer.  In the long run it will happen, and the Chinese economy will be better for developing their home market more and the Chinese people will also be better off for it, but it will take years.  You can't do it overnight.  The infrastructure isn't there and a lot of the products are probably fairly America or Western specific.  

Right now, the U.S. is China's biggest export market.  If we crash, they are going to get hit hard.

Craig 

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#5) On July 19, 2008 at 12:12 PM, TDRH (99.66) wrote:

If the US crashes, the impact on developing and third world countries will be 10x worse.   If your largest customer can no longer pay for your products you will feel pain.

Zloj, how does this make the Chinese better off?   Where will the demand for goods come from?  

 

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#6) On July 19, 2008 at 3:59 PM, starbucks4ever (97.92) wrote:

TDRH,

Their larger customer could never pay for their products anyway. That largest customer paid them with his promices to pay, which he never intended to honor. A bank run on the system of false promises will leave that largest customer bankrupt and creditors realizing that they just were tricked into providing their largest customer with consumer toys absolutely for free. The sooner it happens, the less money they will lose on bad loans to the American government.

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#7) On July 22, 2008 at 4:10 AM, podrag (< 20) wrote:

TDRH,

I don't really think so. The US produces nothing fuel for their raging inflationary fires. The sooner the Federal Reserve Note is recognised by the masses as the US Lira/Drachma/Peso/Counterfeit Operation/Piece of Cr@ppola the better for everyone. There will be initial pain of a worldwide currency crisis, but then the world can rebuild on a stable platform without importing inflation from the freeloading West (except Germany) and perpetuating the charade.

And when the FDR is finally rejected people like me and DWI will make out like bandits while you all perish in inflationary hell! AHAHA!

I won't need to go to heaven for the 72 virgins! AHAHAH!

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#8) On July 22, 2008 at 4:06 PM, FarelessWorrier (35.73) wrote:

podrag, get a grip! Prophets of doom have been invariably wrong throughout history. Those aren't very good footsteps to follow in. But, follow if you must... maybe they will lead you to your 72 undesirables.

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#9) On July 24, 2008 at 2:02 PM, FalconBoston (99.75) wrote:

72 virgins doesn't really sound too fun to me!!! I'd rather have 1 virgin and 71 s__ts!!! I f'ing love exclamation points!!!

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#10) On July 28, 2008 at 9:50 AM, GyroDynasty (98.80) wrote:

I hope that movie Zeitgeist was wrong.  I wouldn't want to see this country go through a depression.  All attempts to make things better have only made things worse.  They should stop because they're acting like Ginseng, it's great stuff when you're well, but it can be fatal (it increases the lifespan of any disease) when you're sick. 

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#11) On July 30, 2008 at 10:22 AM, Toprope101 (99.73) wrote:

The worse it gets the more America will think about raising taxes on outsourcing / off shoring companies and lowering tax on US job building companies.  Sooner our later  you will see US production increase and economy follow; be it on a different model than today.  Liberal or Conservative, both are going to work to fix this and get votes.

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#12) On August 09, 2008 at 2:10 PM, cubanstockpicker (20.85) wrote:

toprope, the american government fred these off shore companies from taxes when Dubya stepped in. That was part of his platform. We lost jobs because of that, high paying ones and flipped those $50,000/per year professional jobs and Dubya created more jobs, but now in a less rewarding sector, services.

We should not only be taxing these offshore companies that took american jobs and placed them somewehre else, we should be double taxing them and lowerin the tax rates for companies with american ased everything.

 

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