"Canuck57" wrote in message
...
nom=de=plume wrote:
"Canuck57" wrote in message
...
JohnH, wrote:

Please say it often.
May his days be few;
may another take his office!

Well put. 'bama seems to look worried in going to Asia Pac Rim. Likely
the people who hold much of the US government debt are going to set the
'bama straight on what will happen if Congress and 'bama don't get their
fiscal house in order. That is cut the deficit and debt spending or
else. Want a trade war?

China has over $2 trillion of USDs on cash, more on debt and deficit
trade. 'bama better not try to get tough with them or they might decide
to squish the whole USD to 10 cents on the dollar.

'bama isn't holding any cards in this round. He is a debtor hoping for
a credit extention as no one is lending to the US and Canadian
governments.


You really don't know much about economics or the Chinese. Fortunately,
it doesn't matter much what you know or don't know.

Correct. What we know maters not to the big picture. You and I have zero
influence.

The economics are actually pretty straight-forward. Basically, we need each
other. The Chinese could decide to cash out and that would hurt the US quite
badly, but their economy would be hurt just as much if not more so.

But I follow it for my own reasons, buy and hold investors get squshed
like bugs for events like these. Foe example, acorrect observation would
have had you mostly in cash in the fall of 2008. Which means you wouldn't
have taken the loses most did.

Well, hindsight is usually pretty accurate, but the reality is that a
well-diversified portfolio is almost as good and requires no magic.
Greenspan himself made a near-identical comment somewhat recently.

Well this time, the last place you want to be is bonds, debt, GIC, CD,
money market prefering hard assets in oil, or even bars of gold. Me, I
treat the price of a barrel of oil as a benchmark. Now that China makes
and sells more autos than the US, oil has a future and will price itself
independantly of any one currency. Including a depreciating USD.

Precious metals is not a great long-term investment. You aren't able to take
advantage of market fluctuations. But, to each his own. If you think it's
safe and you can live with the historically poor performance, that's
certainly your decision.

Stocks will continue to do well... the more diversificiation you have, the
better off you'll be.

--
Nom=de=Plume