Paper "AMERO" will replace the dollar by spring!? - page 34
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US sacrifices the dollar to save its economyChina ready to seek an alternative to the dollar with Russia
US sacrifices dollar to save its economy
Loud headline. But here's what's really going on - http://www.bloomberg.com/apps/news?pid=20601110&sid=aT16m2FlyQRs
Obama wants the trillion to be paid by private investors, i.e. nobody is going to turn on the printing press, at least for that matter, and the dollar is safe on that front. Depending on the conditions, there could be quite a lot of people willing to buy.
Already now crowds of adventurous investors are scouring the auctions and buying American real estate. A large new house can be bought for $3,000 to $5,000 and rented out for $200,300 a week. There is a risk that this house will never increase in value - the main purpose of the investment - but with rent, this high-risk purchase will break even in 4-5 months and become a net profit. Many are willing to take the risk.
China is ready to look for an alternative to the dollar together with Russia.
The funniest thing is that Kudrin, who took part in the preparations for the G20 meeting, said that there will be no "other" reserve currency for the next 30 years.
US sacrificing the dollar to save its economy
Rather than take our word for it, think about the manipulation of currency and commodity exchange rates. "Gonna" doesn't mean they will, but the temporary targets have been met. The billions proclaimed in 'programmes' are also virtual for now. Actually these trillions are nowhere to be seen. To declare "one thing", to actually give "another". Again, "virtual billions" are declared guarantees, not real money spent and put into circulation, they do not spur inflation.
Loud headline. But here's what's really going on - http://www.bloomberg.com/apps/news?pid=20601110&sid=aT16m2FlyQRs
Obama wants the trillion to be paid by private investors, i.e. no one is going to turn on the printing press, at least not for that matter, and there is no threat to the dollar on that front. Depending on the conditions, there could be quite a lot of people willing to buy.
Already now crowds of adventurous investors are scouring the auctions and buying American real estate. A large new house can be bought for $3,000 to $5,000 and rented out for $200,300 a week. There is a risk that this house will never increase in value - the main purpose of the investment - but with rent, this high-risk purchase will break even in 4-5 months and become a net profit. Many are willing to take the risk.
1. where are these houses?
2. Have I got it right, the bond buyback (short-term) is a step to ease the burden on the budget to wait for (the low interest rate) their economic activity to pick up.
3) What about taxes?
In a depression, Keynes proposed to cut taxes, but if the printing press is not going to work ( the money will be collected from the taxpayers) then we cannot talk about cutting taxes and the economy will not improve.
P.S. Now I know why they're going after UBS...
Foreign Press Review for 23 March
Wall Street Journal
www.wsj.com
Geithner bets on private capital
US Treasury Secretary Timothy Geithner has said in an interview with the publication that the government cannot deal with the financial crisis on its own. The secretary believes the only way to rid banks of troubled assets - which are at the heart of the financial crisis - is to work with the private sector, even as Wall Street entrepreneurs face criticism from the public and politicians alike.
US insurers see AIG's bailout as unfairThe government bailout of the insurance company American International Group has caused concern among other members of the commercial insurance market. In their view, the company has received undue advantages.
The Washington Post
www.washingtonpost.com
Foreign companies have their eyes on anti-crisis dollars
Prince Felipe of Spain and his wife, Princess Letizia, visited New York and Washington last week on an unusual mission - to hammer out contracts for Spanish companies as part of a plan to rescue the US economy. The publication notes that US firms are not alone in hoping to share in the cash from the $787bn anti-crisis and are actively using their lobbying capabilities in Washington.
Globe and Mail (Canada)
www.theglobeandmail.com
Russia will be asked to explain its military movements in the Arctic
Russian diplomat Dmitry Trofimov, who oversees political affairs at the Russian Embassy, is to answer questions from the Canadian House of Commons defence committee on the movement of bombers and possibly nuclear submarines near Canadian air and sea lines in the Arctic. The reason for the conversation was the flight of two Russian bombers, which Canadian authorities regarded as an invasion of Canadian airspace.
The FR has just said that it will buy back long bonds. If you have 10-year bonds and you know the FR will buy them back, what do you do? Probably blow the price all the way up. That way their yield will fall, which is exactly what happened. Look at short-term papers, if the yields go up, it's really not okay.
it's strange to read the same information backwards. You explained it to me, the yields will go up if people get rid of bonds. (Which is why yields are going up by the skin of their teeth).
It says three times they failed to break through the 3% level, i.e. the people get rid of them, but the Fed won't, which it states explicitly that it will buy them back. So it turns out that America's creditors no longer believe in the economy and are getting rid of the bonds.
You said it yourself for a couple of pages and now it's the other way around. You are a techie, think about it.
P.S. No matter what they say about the power and might of America, there is no smoke without fire.
To understand why AIG - it is AIG that provides pensions to members of Congress.
If this company collapses, a huge number of people could find themselves without pensions, health insurance, etc. It could cause a social explosion. People need to be reassured.
Washington's secret trump card
By the way, it is my deep conviction that the USSR did not collapse because of evil Kissinger's shenanigans, manipulation of oil prices and unleashing the Strategic Defence Initiative... although the Americans take credit for it... but they are, as Taleb said, "fooled by chance"... too much to take credit for...
The Union collapsed primarily for internal reasons... not the least of which was the change of generations - the departure of the 'old guard' nurtured by Stalin (Khrushchev, Brezhnev) and the coming to power of Gorbachev, who was not as paranoid as his predecessors and therefore did not want to keep the whole country at gunpoint... and that was the only way to hold the Union together - by fear of execution, because it was created that way... and when that fear disappeared, hatred came...