On the impeachment of Brazilian president Dilma Rousseff

@Builder,

The impeachment of Dilma has nothing to do with how the BRICs are doing. Brazil will go on business as usual. Btw, like a badly missed "brick" shot in basketball, the BRICs have pretty much bricked as a challenge to US hegemony. Brazil, India and China have learned from Russia that if you go against US policy, your economy and currency will be punished so don't mess with the US...

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@dphan,

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Brazil, India and China have learned from Russia that if you go against US policy, your economy and currency will be punished so don't mess with the US...

Meaning a political coup, and regime change in Brazil?

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@Builder,

There was no coup or real "regime change" in Brazil. Just a change in the chief thieving party at the head of the helm. There was no real change in leadership so it's business as usual in Brazil.

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@dphan,

Thanks for your opinion.

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@Builder,

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LOL. Poor China indeed.

For exchange, right? Meaning no swapping your money for theirs.

Oh, heavens, that's devastating! People can't give dollars to China and get yuan back. Let's see how bad that makes things for the US. Below is a graph of how much the Chinese yuan is worth compared to the dollar for the past year:

http://i1382.photobucket.com/albums/ah279/LeviStubbs/USD%20per%20Chinese%20Yuan%201%20year_zpsqh2o9cia.jpg

As you can see, the Chinese yuan has been going down against the dollar for most of the past year. If you have a currency going downwards in value against other currencies, it is in your interest to exchange it for a currency that's stable against other currencies or even better, a currency whose value is going up against most other currencies. The US isn't worried about a currency that is going downwards against the dollar saying no exchange for dollars. We don't want the yuan anyway.

Meanwhile, all the Chinese industries that do business with the US-they are quite happy to take our dollars. So is everyone else.

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@Blickers,

Blickers wrote:

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You might have missed the latest from China's admin, refusing US dollars for exchange.

Really??? You mean all those Chinese companies making stuff for American's companies like Apple are not going to accept dollars as payment anymore?

That's terrible. The US companies will just find some other low-wage country who will accept our dollars as payment for their products, and China will go into a Depression. Poor China.

You are exactly right. Not to mention the rather large amount of Treasury Bonds held by China will become largely without value.

I've seen a number of posts on this policy of China. Considering the importance of it to world trade, I'm surprised they are all from the same person.

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What we can see in this discussion is a fair number of leftists making excuses for a corrupt leftist political leader because corrupt or not, she's a leftist.

I don't think conservatives play this game as often as leftists, but of course they have in the past and will in the future.

It is tribalism undermining modern society and I really can't fathom how seemingly intelligent people fall prey to it. What possible benefit does an American leftist gain from Rousseff remaining in power other than to declare "We won!"

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@Blickers,

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Below is a graph of how much the Chinese yuan is worth compared to the dollar for the past year:

China's economy is a closed system, meaning their admin manipulates the exchange rate themselves. It's not an open market, like other currencies.

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@Builder,

Perhaps, but the yuan is still falling against the dollar in the partly market based system the Chinese use to determine the yuan's value. So the fact that China is not accepting US securities as payment in no way means the dollar is in trouble, as you are trying to imply. Chinese companies are certainly accepting the dollar, or else China would go broke quickly.

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@Blickers,

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the yuan is still falling against the dollar in the partly market based system the Chinese use to determine the yuan's value.

Heavy sighs.... China has been rebuked in the past for devaluing the Yuan to the point where they monopolise trade. It's not exactly rocket science. Neither does it take a Yale degree to understand why they won't accept US Bonds any more, simply because they are the world's largest holder of this paper, except maybe for the Federal Reserve themselves, who are now playing a circular swap game, with those bonds, in order to keep the Dow index ticking over.

Taking it to the limit in a fiat economy isn't always the best ploy. China's massive gold holdings are growing by the day, so assuming that their major trading partner (that's you guys) is creating a level playing field for everybody else, is a false assumption they've long realised for the furphy it is.

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@Builder,

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understand why they won't accept US Bonds any more, simply because they are the world's largest holder of this paper, except maybe for the Federal Reserve themselves, who are now playing a circular swap game, with those bonds, in order to keep the Dow index ticking over.

That's not the reason, and the Fed is not playing any games. The Fed's actions have brought the US economy into something approaching economic health but prophets of doom never tire of saying they didn't. The US economy is in considerably better shape that it was in 2008, many signs of the US leaving the recession behind, such as 2.3 Million Full Time jobs being created in the last 12 months alone and 5 Million Full Time jobs being created in the last 2 years.

China has stopped pegging the yuan to the dollar directly, and is now allowing the yuan to float to a limited extent. With the yuan now responsive to the market, the belief that China was undervaluing the yuan greatly is now called into question since it is floating downward. This is very probably due to the fact that many in economic world have begun to doubt if China's growth rate is really as high as they claim.

Your claim that China not accepting US bonds as payment for anything is supposedly a sign of the dollar's weakness is exploded. If the dollar was weak compared to the yuan, the yuan would be floating UP, not down.

As far as China buying gold, so what? Russia has been taking on gold and their economy is still a shambles, with a shrinking GDP, high inflation, and a currency that is worth less than half what it was two years ago.

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@Blickers,

A lot of economic info in a few posts.
Why I come to a2k. To learn.

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@panzade,

What's missing in Blickers' explanation is how Russian forces spent their last drachmas showing the west how to deal with insurgents in Syria. Also absent is an awareness that despite Senate hearings identifying all the players guilty of corporate fraud in the GFC, no changes were made and no charges laid, so expect more of the same; meaning taxpayers bailing out criminal entities again.

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@Builder,

Builder wrote:

What's missing in Blickers' explanation is how Russian forces spent their last drachmas showing the west how to deal with insurgents in Syria.

Did a real good job as well.

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Seven co-ordinated bombings happened within minutes of each other in the port of Tartous and in Jableh, further north.

In Tartous, a car bomb was detonated at the city's bus station, Sana said. As rescuers ran to the scene, two suicide bombers also detonated explosives.

Minutes later in Jableh, a car bomb and three suicide attackers struck at a bus station, a power station and a hospital.

One report said a suicide bomber had detonated explosives inside the emergency department of a hospital after helping to carry victims of the first attack there.

Sana said 45 people were killed in Jableh and 33 in Tartous, with many more wounded.

The cities, on Syria's Mediterranean coast, are part of the heartland of President Bashar al-Assad and have, until now, escaped the worst of the civil war.

http://www.bbc.co.uk/news/world-middle-east-36365843

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@izzythepush,

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Did a real good job as well.

Hallmarks of a well-organised and funded military force right there, Izzy

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@Builder,

Not that well organised.

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New satellite imagery appears to reveal extensive damage to a strategically significant airbase in central Syria used by Russian forces after an attack by so-called Islamic State (IS).

Four helicopters and 20 lorries were destroyed in a series of fires inside the T4 base last week, the images from intelligence company Stratfor suggest.

http://www.bbc.co.uk/news/world-middle-east-36368346

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@Builder,

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What's missing in Blickers' explanation is how Russian forces spent their last drachmas showing the west how to deal with insurgents in Syria.

It's not "missing". It wasn't there because allegedly you were talking about China not accepting US bonds for payment, and now you're talking about Syria. Of course, praise for the Russian effort there are right at the top of the list of the paid Russian troll effort based in St. Petersburg, Russia, so it was inevitable that you would waste no time getting to it. Your intimation that the dollar is not considered valuable has been shown to be wrong, so now you are going on about anything at all that you think shows the US in a bad light and Russia in a good one-not that your statement did that.

As for Russia being broke, it certainly is. It's GDP dropped 35% from 2014 to 2015. Inflation is 11%. GDP per capita, as of 2014, was $6,844, (compared to the US' $52,118 and the UK's $40,968). And the ruble is worth less than half of what it was two years ago. Russia is in a Depression, in an economy that even in the best of times would be considered a Depression by advanced countries. Note the ruble for the past two years:

http://i1382.photobucket.com/albums/ah279/LeviStubbs/Ruble%20v%20Dollar%20May%202016_zpsigbbfj4c.jpg

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On the impeachment of Brazilian president Dilma Rousseff

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