Money and Finance
- Richard Duncan Quotes
Another longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren’t necessarily the paragraphs I have put them in below, and there may be things in between that I didn’t highlight). I've been posting a lot of...
- Richard Duncan Quotes
Longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren't necessarily the paragraphs I have put them in below, and there may be things in between that I didn't highlight). “The amount...
- Richard Duncan Quotes
“Before 1971, currencies were pegged either directly or indirectly to gold. Therefore, there was nothing to be gained by creating fiat money in order to buy any other country’s currency. When the fixed exchange rate system ended with the collapse...
- Richard Duncan On The Fed's Flow Of Funds
“The Fed’s Flow of Funds Accounts provides a near-comprehensive set of information about the stock and flow of credit in the United States. Because credit growth now drives economic growth, the flow of funds is the key to understanding developments...
- Robert Huebscher Talks With Bruce Greenwald
Which countries are in a position to play a leadership role in solving the crisis? There is one iron rule that must hold, which is that the sum of all the surpluses and the deficits across all countries has to be zero. Somebody has to eat the surpluses....
Money and Finance
Richard Duncan quotes
Longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren’t necessarily the paragraphs I have put them in below, and there may be things in between that I didn’t highlight).
“…the paper money creation by the PBOC and other currency manipulating central banks, which amounted to nearly $5 trillion between 1999 and 2007 alone, is responsible for destabilizing the world economy, and not differences in the rate of real “savings,” as Bernanke contends.
China’s central bank prints yuan and uses it to buy dollars in order to hold down the value of the yuan to support export-led growth. It is the dollars that the PBOC accumulates in that manner that are “lent” to the United States. The money China pumps into the United States drives up asset prices, drives down interest rates, and funds a wide range of malinvestment.
Many fear that China will stop buying debt from the United States or that it will suddenly dump the U.S. debt it already owns. It won’t. If China stopped buying U.S. debt, its economy would collapse because that would mean that it had stopped manipulating its currency by buying dollars. In that case, its currency would soon double in value and then double again relative to the U.S. dollar as Chinese exporters converted their large export earnings into yuan. That would be more than enough to pop the great Chinese bubble.
So, the bottom line is this: Not only can China not sell the dollar reserves it now owns; it must continue accumulating more dollar reserves each year in line with its massive trade surplus with the United States.”
–Richard Duncan, The New Depression
- Richard Duncan Quotes
Another longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren’t necessarily the paragraphs I have put them in below, and there may be things in between that I didn’t highlight). I've been posting a lot of...
- Richard Duncan Quotes
Longer excerpt from The New Depression (taken from my Kindle highlights, so the excerpts aren't necessarily the paragraphs I have put them in below, and there may be things in between that I didn't highlight). “The amount...
- Richard Duncan Quotes
“Before 1971, currencies were pegged either directly or indirectly to gold. Therefore, there was nothing to be gained by creating fiat money in order to buy any other country’s currency. When the fixed exchange rate system ended with the collapse...
- Richard Duncan On The Fed's Flow Of Funds
“The Fed’s Flow of Funds Accounts provides a near-comprehensive set of information about the stock and flow of credit in the United States. Because credit growth now drives economic growth, the flow of funds is the key to understanding developments...
- Robert Huebscher Talks With Bruce Greenwald
Which countries are in a position to play a leadership role in solving the crisis? There is one iron rule that must hold, which is that the sum of all the surpluses and the deficits across all countries has to be zero. Somebody has to eat the surpluses....