America's default, in Russian. - page 4
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Why on earth would you do that?
TheXpert:
A default in Japan is now more likely
At the moment the Central Bank of Japan is seeking funds for reconstruction and liquidation expenses. Investors don't want to give loans to the country because the national debt already amounts to 200% of GDP and it is more profitable to speculate on the yen, because it will rise in price anyway because it will pay for the repair work, i.e. there will be an increased demand.
An increase of demand and the price of the yen would not be good for the Japanese economy because Japan would lose value as an exporter. Not to mention the fact that the export of Japanese goods is highly questionable because of radiation. That would create a trade deficit, because Japan would need to import goods and it would be difficult for them to export. And Japan does not have any minerals of its own, and all of its energy needs to be purchased abroad.
In general, a bunch of problems that can't be solved by currency interventions alone. And because currency speculators will profit, even though they will profit from other people's woes, which has been clearly demonstrated by the Icelandic experience, the Japanese will have a very tough time; after all, they have to solve their problems which are at hand, and at the same time they have to feed foreign market makers at their own expense.
In short, one would not wish to be Japanese. Let us add here the forecast of seismologists, who promise that earthquakes will continue for about another year, and it makes us very sad.
A default might help in such situations. If the economy collapses and a default is declared, it will be easier to reach an agreement with the creditors on a partial debt forgiveness on condition that the remaining part is repaid more quickly. It is also possible that the JPY may have to be taken off the list of convertible currencies and that its price is regulated tightly using directives from the central bank because it is becoming too attractive to speculators.
And a default, in situations like this, can help. Because if the economy collapses and default is declared, it is easier to reach an agreement with the creditors on a partial debt forgiveness on condition that the remaining part is repaid more quickly. It is also possible that the JPY may have to be taken off the list of convertible currencies and that its price is regulated tightly using directives from the central bank because it is becoming too attractive to speculators.
Uncle Reshetov! Can you tell me more about this simple scheme?
There are a lot of temptations.
Wouldn't the assets of Japanese defaulters go under the hammer all over the world?
And what is the profit for whom?
;)
At the moment the Japanese central bank is seeking funds for reconstruction and liquidation expenses. However, investors are not in a hurry to lend to the country because state debt already amounts to 200% of GDP and it is more profitable to speculate on the yen because it will rise in price anyway due to the fact that it will pay for the repair work with yen, i.e. there will be an increased demand.
An increase of demand and the price of the yen would not be good for the Japanese economy because Japan would lose value as an exporter. Not to mention the fact that the export of Japanese goods is highly questionable because of radiation. That would create a trade deficit, because Japan would need to import goods and it would be difficult for them to export. And Japan does not have any minerals of its own, and all of its energy needs to be purchased abroad.
In general, a bunch of problems that can't be solved by currency interventions alone. And because currency speculators will profit, even though they will profit from other people's woes, which has been clearly demonstrated by the Icelandic experience, the Japanese will be in a tight spot; they will have to solve their problems with no end in sight, and at the same time they have to feed foreign market makers at their own expense.
In short, one would not wish to be Japanese. Let us add seismologists' forecasts, who promise that earthquakes will continue for about a year, and it all makes us very sad.
A default might help in such situations. If the economy collapses and a default is declared, it will be easier to reach an agreement with the creditors on a partial debt forgiveness on condition that the remaining part is repaid more quickly. It is also possible that the Japanese will have to take the yen off the list of convertible currencies and regulate its price strictly using directives from the central bank because it is becoming too attractive for speculators.
A jumble of facts. Horses mixed up, people mixed up...
1.nonsense. The major part of reconstruction in Japan will not be paid by the government but by insurance companies. It is actually a developed market economy and the risk of earthquakes is an absolutely normal insured event and everybody is insured against it.
2. Japan has been living with trade deficits for quite a long period of time before and has not died from it. So? Have you even seen the dynamics of Japan's trade balance in recent years?
3. ".... and all energy will have to be purchased abroad." Wasn't that the case before? Did we produce our own oil? Or gas? And somehow we managed to cope.
4. the yen should be removed from the list of freely convertible currencies? I have never read such nonsense anywhere else....
The fundamental question to the speaker is whether Japan is heading for default, even though speculators around the world are actively encouraging appreciation of the yen. Are the leading hedge funds, banks and speculators the gundos and flooders in the terminology of the speaker? Don't these morons understand that a default of a country ALWAYS leads to a rapid devaluation of the national currency?
No - Reshetkov decisively answers the goondos and trash-talkers! In fact none of them doubts that Japan's economy is rapidly recovering! In fact the whole world knows that Japan has been in economic crisis for the last 10 YEARS! And this earthquake is a unique chance to get out of it, just as the world was pulled out of the Great Depression by the military expenditures of states on the eve of and during World War II.
Especially for the author of this thread I give a prediction (free of charge) - there will be no default of the US and Japan in the next few years.
And in the next 5 to 10 years there is no alternative to the dollar as a world currency.
And the whole world should pray for the economic well-being of the USA. You can have different opinions about the U.S., but if in the current world conditions a catastrophe happens to the U.S. economy, it will be such a shock to the world that even the penguins at the North Pole will feel it. The last time the Great Depression led to world carnage, and now...
Especially for the author of this thread I give a prediction (free of charge) - there will be no default of the US and Japan in the next few years.
And in the next 5 to 10 years there is no alternative to the dollar as a world currency.
And the whole world should pray for the economic well-being of the USA. You can have different opinions about the U.S., but if in the current world conditions a catastrophe happens to the U.S. economy, it will be such a shock to the world that even the penguins at the North Pole will feel it. Last time the Great Depression led to world carnage, and now....
It's not much of a tune...
Torn chunks of lyrics.
Buddy, be good with harmony.
The Great Depression and the Great War - voice your unapologetic causality, if you can...
;)
Not much of a tune...
Torn chunks of text.
Buddy, be good with harmony.
The Great Depression and the Second World War - voice your own unapologetic causality, if you can...
;)
I'm sorry - I tried to put the text in poetry, but it didn't work. And how would you like me to present a textbook on the Fundamentals of Ec Theory in a concise and harmonious way? Such harmony is beyond me.
Reassuring causality in history? No one's been able to do it until now.....
I can't... Try it yourself - dig into the causes of Hitler's rise to power, analyse the state of the German economy during the Weimar Republic, the causes of FDR's first term presidential victory, etc.
Causality in history and economics is a Nobel Prize winner! Gumilev tried to do something similar in history, but he himself criticized the idea in "Ethnogenesis and the Biosphere of the Earth"...
No, no, I can't do it .... I can't do it...
Sorry - tried to put the text in poetry but it didn't work. How would you like me to write a brief and harmonious text about the Basics of Economics? Such harmony is beyond me.
Reassuring causality in history? No one has been able to do that until now.....
I can't... Try it yourself - dig into the reasons for Hitler's rise to power, analyse the state of Germany's economy during the Weimar Republic, the reasons Roosevelt won his first term as president, etc.
Yes...
And the ticks on time arrivals in MT4 correlate with the number 16.
Also because?
;)