The dollar is getting stronger ??? - page 8

 
timbo >> :

Why not 80-90%, what scares you so much? Let's skip the exclamation points and put the numbers in an excel spreadsheet.

Let's say your personal GDP is 2 grand a month, which is 24 grand a year. You can borrow at 4% per annum. You only pay the interest, and plan to repay the principal at some point in the distant future, when you get very rich. You borrow 100% of your GDP, i.e. 24 grand, and have your flat remodeled. You pay interest of only 80 monetary units a month.

Bottom line: you get two grand a month, enjoy a quality apartment and pay a percentage of a measly 80 units. Would that bother you? Somehow I don't think so, and that's a debt of 100% of GDP. Why should the US be so stressed out over such nonsense? Just because 11 trillion seems like a big number to you?

Loan me 10 millionquid , I will gladly pay you 4% interest, and I will pay you back the rest when I get rich, OK? 4% a year doesn't bother me.

I know your answer beforehand, so don't give me that shit.

 
JavaDev >> :

timbo lend me 10 million quid, I'll gladly pay you 4% per annum and pay you back the rest when I get rich - OK? 4% a year doesn't bother me.

I know your answer beforehand, so don't write nonsense.

You are not the US, they easily borrow trillions at 4% and below. You are willing to borrow an amount far in excess of your GDP, but find it unacceptable for the US to do so. Why?

 
timbo >> :

Any normal country aims to export more and import less, i.e. to earn more and spend less, which is logical enough. A cheap national currency helps to stimulate these aspirations, exports become more profitable and imports vice versa, which stimulates the development of local production and import substitution. On the positive side, we have Russia in 1998 when after the default the national currency fell by 4 times and this had a very positive effect on the development of local businesses. On the negative side, Russia in 2007, when the oil money and the high ruble exchange rate killed nearly all local production, because it was cheaper to import than to produce. Import absolutely everything, including food. This threatens the loss of food independence.

Consequently, normal countries try to reduce the exchange rate of their currencies. An example is China, which stupidly prints the yuan and buys all the dollars coming from exports, China is spinning the inflation flywheel in the country just to prevent the growth of the national currency. And a strong export-oriented economy automatically appreciates the currency. Why is China buying US bonds? It simply has no choice, its dollars are filthy, it needs something to do with them, somewhere to invest, so it has to invest in bonds.

What part of this is "bullshit bullshit and bullshit", please argue.

No,... you are right about all these economic interconnections and the like....from the point of view of normal economic development it is more likely to be acceptable for each country than unacceptable! But what about those same 98 years you said, when it was decided that all imports and exports would be denominated in USD or EUR, it was not very good for the Russian economy, especially in the period when USD was growing. Hmmm.... Decline from the "oil money" of 2007 in Russia, not surprisingly, initially there is nothing to talk about, here the economic logic simply suffers from times immemorial of formation of Russia and foreign economic relations, or rather to refuse them, at that moment of year all just on this economic background and develop. Here we have ourselves to blame, because there were always "degenerates" in the solutions of such issues, and only after several decades, when Russia has already intervened in foreign trade, began to see at least some acceptable development.Nov the impact on the high cost of oil was not from the high ruble, but from the political actions and manipulation of the same United States, their stone in this garden for chasing oil deposits in different countries has set in motion this growth ... So I do not think there is any point in comparing Russia... the Russian mentality has always been and always will be! The U.S. also stupidly prints its own dollars ... printing them has been going on since World War II and cannot stop printing them ... Only when they woke up to the fact that typing or not typing is only getting worse, they started thinking about how to rectify the situation. GKOs were on the rise until '98 and almost disappeared after that. Again, some country can conduct monetary policy in its own country, while another country considers it an inadmissible regulation and conducts one of the interventions; somewhere the bank can issue additional banknotes and somewhere it cannot. But the U.S. is very different from other countries. It can do this or that and act as a primitive society and all the economic indicators do not really matter ... how good or how right, because the country is in a "crisis" and everything is on the level of global survival.

 
timbo >> :

There is no need to confuse the warm and the soft. A strong economy is in no way incompatible with big debts. And the US economy is the largest economy in the world. The presence of debt just shows that their spending is also the biggest in the world, even more than their income, so they have to borrow. But if debt servicing is not too much of a strain, then why not borrow a trillion or two. Especially if that money is not going to be spent on munchies, but invested in something useful/pleasant/needed in the household.

They have big debts because of their big minds rather than a strong economy, these debts have been going on for decades, and the USA makes no secret of the fact that they have nothing to pay them back, so where does the healthy economic logic come from... there is no such thing... Now they are thinking in economic terms, but before they had to think this way, and they thought in a different way, politically. As far as I remember not so long ago the U.S. experienced capital outflows and investments in advanced economic sectors, this does not necessarily indicate a strong economy ... Europe experienced decline along with the outflow, but investments did not flee ... all because the U.S. cannot be counted on as an economically healthy country, ... At this point, investments went to other countries, not even at the best interest rates, but there was greater security and guarantee in this investment. No one was going to lend them a trillion or even a billion at that time, because everyone knows the result will be a default. I do agree that the levels of GDP and inflation have room for action, but again, the percentage is not far off. Then again, all the economic manipulations a year ago did not bode well, and led not to any kind of exit, but to a drop in the refinancing rate, which again has not had the best effect on the economy. This "rotten country USA", according to reports from various agencies in recent years, there has been a steady decline in these indicators, everything speaks for itself that the country does not have a generally healthy economy, and their dollar value was originally just inflated, ... hence just was such a background of a developed country but no more. Again, I only assume that measures to address this decline as a possible economic power will be critical and just daring.... everything is possible down to military-political conflicts, referring to simple resentment in some small country, a conflict will be unleashed, and since almost every country is under the care of larger states that will somehow belong to the same big 7 or whatever,...will solve this conflict by settlement, since in almost every foreign economic affairs the USA is tied to it, cannot simply give up, cannot destroy the structure (maybe not the best working), cannot simply let it fall into decay, cannot stereotype. And in the way of settlement, the U.S. will simply go with its own terms that are mostly advantageous to them. That is how the crisis issue will be resolved! Stupidly at the level of survival. Countries understand this at this point ... Hence they did not just set up a forum to address the issue, all countries understand this, it is easier for them to help the U.S. rather than wait for something unpredictable. As for the facts... Facts are history ... and regarding all economic reports, the assumption is that they can unjustifiably underestimate and overestimate ... in Russia at least that's what happens with inflation. So my point of view is just that the dollar will grow ... or the other currencies will pick it up (the dollar will fall by some percentage and all other currencies will pick it up by the same percentage ... growth will also occur ... but it won't fall below 10 rubles or rise above 50 rubles, and things will stay the way they are.

 
Bid >> :

Only a dickhead understands a dickhead.

>> that's why no one here understands Timba.

Yeah you're wrong here.... Everyone has a point of view and simply everyone defends it..... if a person does not agree with that point of view it is his right, but that does not give a reason to call the original source of the opposing point of view "censorship" incorrect! And if it is a matter of understanding an opposing viewpoint but not adopting that viewpoint, then the person who does not understand is more likely to "censor" as he is most likely simply not as privy to aspects of that viewpoint as his opponent is!

 
timbo, I am amazed you, you are like Don Quixote, trying to explain "quantum physics" on fingers (referring to all available info. resources) to some ignoramus, who with tenderness "sucked out of his finger" the idea about "end of the world", kindly provided to him by propaganda. No need to "put salt" on his inflamed mentality. The leader said the States are doomed, so they are doomed! It makes him feel better. You know, export-import, GDP, self-regulating economic system, ....
 
Galaxy >>:
Вождь сказал что Штатам хана, значит хана!

I was just wondering, who is the Leader?

 
HideYourRichess >> :

I was just wondering, who's the Chief? >> who are we talking about?

Oh, yeah, that's right, now you've got two of them.

 
Galaxy >> :

Oh, yeah, that's right, now you've got two of them.

All right, let's make it two. But who are they? What are their last names?

 
Galaxy писал(а) >>
timbo, I am amazed at you, you are like Don Quixote, trying to explain "quantum physics" on your fingers (with links to info. resources available to everyone) to the local ignoramuses, who are grinning at the "end of the world" idea, kindly provided to them by propaganda. No need to "put salt" on their inflamed mentality. The leader said the States are doomed, so they are doomed! It makes them feel better. You know, export-import, GDP, self-regulating economic system, ....

Did you say everything? Two imbeciles.

read the other link now.

h ttp://www.chrismartenson.com/blog/federal-reserve-buys-more-100-mortgages-issued-2009/28343#

Reason: