EURUSD - Trends, Forecasts and Implications (Part 3) - page 556
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that's the moment we're waiting for, it'll go down faster than it went up...
The situation on H1:
that's the moment we're waiting for, it'll go down faster than it went up...
It's fun to be with you, but we have to go to open the kebab season. It's +22 today. Have a nice W-O-R-D !!!
I don't follow gold, but I heard a speech on RBC...it said that gold should reach the 1600 level and then correct to 1000 or 1100.
The situation is like this:
It's fun to be with you, but we have to go to open the kebab season. It's +22 today. Have a nice W-O-R-D !!!
Wanderer.
I didn't just send Margaret my opinion on Gold.
And it turns out she's not into gold, doesn't wear chains or rings, keeps quid and euros in her pockets and goes)))
About national debts and defaults.
In capitalist economies with private central banks, the government borrows money from the central bank at interest. Consider a very simple example of the government investing in the economy:
Suppose the government needs to do $100 worth of work. This $100 has to stay in the economy so that the citizens of the country can use it for mutual settlements. The government prints a $100 bond and sells it to the central bank at a discount of 2.5%. After a year, the government repays the $103 debt. But the 100$ should not leave the economy, because citizens need it for mutual settlements. In addition, some money is withdrawn from circulation due to savings, buying dollars for foreign currency. The economy may be growing, and the population may be increasing. These factors require an increase in the money supply to be able to settle accounts. As a result, the government has to increase the turnover by another 10%, for example. Therefore at the end of the year the government pays off the old debt and borrows the new one. After 20 years, just to maintain the ability to settle accounts the debt of the government would increase from 100 USD to 625 USD 6 times.
Nothing fatal has happened. The money supply serves the needs of the economy and inflation fluctuates within acceptable limits. However, some comrades who don't like to think and are not very good at Excel will scare people with a critical increase in the national debt. Especially ridiculous is such intimidation when the national debt is expressed in volumes of national currency, which the Central Bank can create in any amount. A government can only default in such cases if it does not please the central bank and the central bank decides to bankrupt it, or if it is profitable for the central bank to screw the buyers of government bonds, thereby punishing the enemies of its own country.
The more developed the capitalist economy and the higher the value of its currency, the greater the necessary volume of money supply. The purchase of currency by foreign investors and the use of that currency in the form of savings, increase the need for additional emission manifold. Therefore the amount of public debt expressed in national currency can serve as an indicator of the strength of the capitalist economy.
If we consider the example of Greece, with its huge national debt in Euros, which the Central Bank of Greece cannot print, such debt is a sign of potential bankruptcy. The Greek government has borrowed other people's money for kudos. The debt will either have to be worked off and repaid or it will go bankrupt with all the ensuing consequences.
When the authors cite the example of US government debt and intimidate readers with the bankruptcy of the government of the currently strongest country on the planet, they look extremely stupid and ridiculous, not understanding either the cause of such debt or the reason for its stable growth and maintenance. If the U.S. government decided to return the debt to the Central Bank by withdrawing all dollars from circulation, not only would the U.S. economy come to a permanent halt, but all countries where dollars are used as a reserve currency or as a savings currency would also come to a permanent halt.
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