Perspectives on the global economic changes

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Neshant
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Re: Perspectives on the global economic changes

Post by Neshant »

Its truly out of control.

India desperately needs to avoid this type of system where a few "wise men" are sitting in ivory towers playing around with trillions of dollars and peoples future. Inevitably they fool themselves into thinking they have some great insight into the economy by micro-managing things. The worst part is when they get corrupted by the backdoor bribes offered to them for practising crony capitalism to benefit those special interests while in office.

A good example of that is Tim Geithner who did all the bailouts he could, prevented any prosecution of financial criminals and today sits as head of a big Hedge fund - no doubt a reward for his corruption. Many other Treasury Secretaries have become multi-millionaires as well. Even Bernanke is giving $250K speeches which are filled with nonsense absolving himself of all blame for 2008.
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Re: Perspectives on the global economic changes

Post by panduranghari »

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Who would not want to end the quarter on a high?
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Re: Perspectives on the global economic changes

Post by panduranghari »

Cant wait for the deflation to kick in!!

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Austin
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Re: Perspectives on the global economic changes

Post by Austin »

Backed by stastics in the article its quite mind boggling to say the least

Uncle Sam’s $8 Trillion Annual Debt Churn: Why Washington Is Pertrified Of Honest Interest Rates

By Michael Snyder
I know that headline sounds completely outrageous. But it is actually true. The U.S. government is borrowing about 8 trillion dollars a year, and you are about to see the hard numbers that prove this. When discussing the national debt, most people tend to only focus on the amount that it increases each 12 months. And as I wrote about recently, the U.S. national debt has increased by more than a trillion dollars in fiscal year 2014.

But that does not count the huge amounts of U.S. Treasury securities that the federal government must redeem each year. When these debt instruments hit their maturity date, the U.S. government must pay them off. This is done by borrowing more money to pay off the previous debts. In fiscal year 2013, redemptions of U.S. Treasury securities totaled $7,546,726,000,000 and new debt totaling $8,323,949,000,000 was issued. The final numbers for fiscal year 2014 are likely to be significantly higher than that.

So why does so much government debt come due each year?

Well, in recent years government officials figured out that they could save a lot of money on interest payments by borrowing over shorter time frames. For example, it costs the government far more to borrow money for 10 years than it does for 1 year. So a strategy was hatched to borrow money for very short periods of time and to keep “rolling it over” again and again and again.

This strategy has indeed saved the federal government hundreds of billions of dollars in interest payments, but it has also created a situation where the federal government must borrow about 8 trillion dollars a year just to keep up with the game.

So what happens when the rest of the world decides that it does not want to loan us 8 trillion dollars a year at ultra-low interest rates?

Well, the game will be over and we will be in a massive amount of trouble.


I am about to share with you some numbers that were originally reported by CNS News. As you can see, far more debt is being redeemed and issued today than back during the middle part of the last decade…

2013

Redeemed: $7,546,726,000,000

Issued: $8,323,949,000,000

Increase: $777,223,000,000

2012


Redeemed: $6,804,956,000,000

Issued: $7,924,651,000,000

Increase: $1,119,695,000,000

2011


Redeemed: $7,026,617,000,000

Issued: $8,078,266,000,000

Increase: $1,051,649,000,000

2010

Redeemed: $7,206,965,000,000

Issued: $8,649,171,000,000

Increase: $1,442,206,000,000

2009


Redeemed: $7,306,512,000,000

Issued: $9,027,399,000,000

Increase: $1,720,887,000,000

2008


Redeemed: $4,898,607,000,000

Issued: $5,580,644,000,000

Increase: $682,037,000,000

2007


Redeemed: $4,402,395,000,000

Issued: $4,532,698,000,000

Increase: $130,303,000,000

2006

Redeemed: $4,297,869,000,000

Issued: $4,459,341,000,000

Increase: $161,472,000,000

The only way that this game can continue is if the U.S. government can continue to borrow gigantic piles of money at ridiculously low interest rates.

And our current standard of living greatly depends on the continuation of this game.

If something comes along and rattles this Ponzi scheme, life in America could change radically almost overnight.

In the United States today, we have a heavily socialized system that hands out checks to nearly half the population. In fact, 49 percent of all Americans live in a home that gets direct monetary benefits from the federal government each month according to the U.S. Census Bureau. And it is hard to believe, but Americans received more than 2 trillion dollars in benefits from the federal government last year alone. At this point, the primary function of the federal government is taking money from some people and giving it to others. In fact, more than 70 percent of all federal spending goes to “dependence-creating programs”, and the government runs approximately 80 different “means-tested welfare programs” right now. But the big problem is that the government is giving out far more money than it is taking in, so it has to borrow the difference. As long as we can continue to borrow at super low interest rates, the status quo can continue.

But a Ponzi scheme like this can only last for so long.


It has been said that when the checks stop coming in, chaos will begin in the streets of America.

The looting that took place when a technical glitch caused the EBT system to go down for a short time in some areas last year and the rioting in the streets of Ferguson, Missouri this year were both small previews of what we will see in the future.

And there is no way that we will be able to “grow” our way out of this problem.

As the Baby Boomers continue to retire, the amount of money that the federal government is handing out each year is projected to absolutely skyrocket. Just consider the following numbers…

-Back in 1965, only one out of every 50 Americans was on Medicaid. Today, more than 70 million Americans are on Medicaid, and it is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

-When Medicare was first established, we were told that it would cost about $12 billion a year by the time 1990 rolled around. Instead, the federal government ended up spending $110 billion on the program in 1990, and the federal government spent approximately $600 billion on the program in 2013.

-It is being projected that the number of Americans on Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.

-At this point, Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years. That comes to approximately $328,404 for every single household in the United States.

-In 1945, there were 42 workers for every retiree receiving Social Security benefits. Today, that number has fallen to 2.5 workers, and if you eliminate all government workers, that leaves only 1.6 private sector workers for every retiree receiving Social Security benefits.

-Right now, there are approximately 63 million Americans collecting Social Security benefits. By 2035, that number is projected to soar to an astounding 91 million.

-Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years.

-The U.S. government is facing a total of 222 trillion dollars in unfunded liabilities during the years ahead. Social Security and Medicare make up the bulk of that.

Yes, things seem somewhat stable for the moment in America today.

But the same thing could have been said about 2007. The stock market was soaring, the economy seemed like it was rolling right along and people were generally optimistic about the future.

Then the financial crisis of 2008 erupted and it seemed like the world was going to end.

Well, the truth is that another great crisis is rapidly approaching, and we are in far worse shape financially than we were back in 2008.


Don’t get blindsided by what is ahead. Evidence of the coming catastrophe is all around you.
Theo_Fidel

Re: Perspectives on the global economic changes

Post by Theo_Fidel »

Meanwhile Gold looks like a pump and dump that has probably destroyed many investors. Sad tale. Still declining.

Note the multiple dead cat bounces. Each lower than the last followed by new lows. Someone lost a ton of money on this....

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Neshant
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Re: Perspectives on the global economic changes

Post by Neshant »

a blast from the past.

A good example of how the justice system in the US has been taken over by the banking cabal.

Rating agencies claim the ratings on debt that they issue are simply an opinion. They issued bogus ratings on hundreds of billions of sub-prime mortgage backed securities that blew up and bankrupted pension funds (which lil old grannies depend on).

Interestingly the US govt requires by law that certain pension funds only invest in high grade investments to protect pensioners.... the high grade investment being determined through ratings issued by rating agencies. So how are their ratings only a matter of opinion?

Banking is a scam not an industry. It produces nothing of value and lives off the output of productive society as a parasite does.
____________
Credit agencies win U.S. legal victory on mortgage ratings

http://www.reuters.com/article/2012/12/ ... KF20121203

(Reuters) - Major credit rating agencies won a fresh legal victory on Monday when a federal appeals court rejected a lawsuit by Ohio pension funds that sought to recoup millions of dollars of losses on risky mortgage debt they said were based on flawed, inflated ratings.

The 6th U.S. Circuit Court of Appeals in Cincinnati upheld the September 2011 dismissal of the lawsuit against Moody's Investors Service, Standard & Poor's and Fitch Ratings.

Investors, regulators and politicians have criticized the agencies for exacerbating the housing and financial crises by awarding high ratings to risky debt that soon turned toxic. The agencies have long said their ratings were protected opinions under the First Amendment to the U.S. Constitution.
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Re: Perspectives on the global economic changes

Post by Neshant »

Theo_Fidel wrote:Meanwhile Gold looks like a pump and dump that has probably destroyed many investors. Sad tale. Still declining.
In currencies other than the US dollar, it has not moved that much in price.

In any case, I plan to buy gold sometime this year after a 2 year hiatus. Hopefully I'll have the funds coming in to do so and I will nibble my way in.

No one knowth the hour when the paper currency racket comes to an end. Most people don't realise how close it came to ending in 2008.
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Re: Perspectives on the global economic changes

Post by Austin »

Oil prices ended last week in freefall as the world’s largest group of producers from petro-states in the Middle East dithered over whether to cut output

World on the brink of oil war as Opec bickers over price
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Re: Perspectives on the global economic changes

Post by panduranghari »

^^^
If the secular stagnationists are right, advanced economies now suffer from persistently inadequate demand, so that depression is their normal state, except when spending is supported by bubbles. If that’s true, bubbles aren’t the root of the problem; they’re actually a good thing while they last, because they prop up demand. Unfortunately, they’re not sustainable—so what we need urgently are policies to support demand on a continuing basis, which is an issue very different from questions of financial regulation.

Wolf actually does address this issue briefly, suggesting that the answer might lie in deficit spending financed by the government’s printing press. But this radical suggestion is, as I said, overshadowed by his calls for more financial regulation. It’s the morality play aspect again: the idea that we need to don a hairshirt and repent our sins resonates with many people, while the idea that we may need to abandon conventional notions of fiscal and monetary virtue has few takers.
:eek:

This is a Ride of valkyrie moment. :D
What we got instead, however, was a wrongheaded obsession with deficits and unprecedented fiscal austerity, which greatly deepened and extended the slump.
This man is a moron.
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Re: Perspectives on the global economic changes

Post by Austin »

China surpasses US as world's largest economy based on key measure
China has surpassed the US in terms of GDP based on purchasing power parity (PPP), becoming the largest in the world by this measure, International Monetary Fund estimates show.

In 2014 China reached $17.6 trillion or 16.48 percent of the world’s purchasing-power-adjusted GDP, while the US made slightly less, 16.28 percent or $17.4 trillion, the FT reported citing IMF data.

PPP is recognized as the best way to compare the size of economies rather than using volatile exchange rates, which rarely reflect the true cost of goods and services. Thus a trillion US dollars are worth a lot more in China than in the US.

On the purchasing power basis, China is overtaking the US right about now and becoming the world’s biggest economy, according to the forecast.

The US has been the global leader since overtaking the UK in 1872. Most economists previously thought China would pull ahead in 2019.

According to IMF estimates, in 2015 the gap between China and the US will increase to almost a trillion dollars: Chinese GDP PPP will amount to $19.23 trillion against $18.286 trillion in the US.

However in terms of a real GDP the United States remains the undisputed world leader with $16.8 trillion output, significantly outpacing China with $10.4 trillion.
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Re: Perspectives on the global economic changes

Post by svinayak »

The Calm Before the Storm
Physical gold is being accumulated and used in exchanges but very discretely as of now. In a recent report mentioned in the UK Telegraph it is revealed that a record number of super-rich elite are buying gold bullion bars weighting 12.5 Kg. The report says “The gold buying secrets of the UK come as it was recently revealed the number of 12.5kg gold bars being bought by wealthy customers has increased 243% so far this year, when compared to the same period last year.”

The geopolitical and economic environment in the last few months was in my view the calm before the storm. All the economic issues both in Europe and the US and all the geopolitical conflicts I mentioned above, or a combination of them have the potential to degenerate “unexpectedly”. Both the economic and political environments are uncertain and will surprise the complacent markets.
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Re: Perspectives on the global economic changes

Post by Neshant »

Austin wrote:China surpasses US as world's largest economy based on key measure
The question is how are those country's GDP measured.

A lot of useless crap is counted as part of GDP.

A vast amount of banking is nothing more than leveraged speculation on BS and moving paper around. It produces nothing of any worth yet factors into a country's GDP calculation.

Until there is some standardized measure of GDP, its worthless.

Otherwise you get countries like Greece which are playing around with their GDP calculation to make it look bigger so their debt to GDP ratio appears smaller.
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Re: Perspectives on the global economic changes

Post by Liu »

Neshant wrote:
Austin wrote:China surpasses US as world's largest economy based on key measure
The question is how are those country's GDP measured.
A lot of useless crap is counted as part of GDP.
A vast amount of banking is nothing more than leveraged speculation on BS and moving paper around. It produces nothing of any worth yet factors into a country's GDP calculation.
Until there is some standardized measure of GDP, its worthless.
Otherwise you get countries like Greece which are playing around with their GDP calculation to make it look bigger so their debt to GDP ratio appears smaller.
well,GDP is just one of many indicators that cam metric economic scale,as well as eletricity consumption,car sales, seaport freight……… and GDP might be the sole indicator showing USA's economy is still larger than China.
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Re: Perspectives on the global economic changes

Post by Liu »

if metriced by raw resource consumption,eletrcity consumption,auto sales or many other indicators,Chinese economy surpassed USa many years ago.
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Re: Perspectives on the global economic changes

Post by Neshant »

A whole lot of that raw resource and electricity consumption is to produce goods for the US exported via Walmart..etc at next to no profit for the supplier. All China gets in return is an IOU.

Its really then US that is consuming that raw and finished resource, not China.
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Re: Perspectives on the global economic changes

Post by Liu »

Neshant wrote:A whole lot of that raw resource and electricity consumption is to produce goods for the US exported via Walmart..etc at next to no profit for the supplier. All China gets in return is an IOU.
Its really then US that is consuming that raw and finished resource, not China.
then,how about auto sales,household appliance sales,house sales,food sales? chinese buys much more those goods than Usa many years ago. case is quite clear that Gdp is just the last indicator acknowledges that Chinese economy has surpass Usa's
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Re: Perspectives on the global economic changes

Post by Liu »

Neshant wrote:A whole lot of that raw resource and electricity consumption is to produce goods for the US exported via Walmart..etc at next to no profit for the supplier. All China gets in return is an IOU.
Its really then US that is consuming that raw and finished resource, not China.
BYW,I can hardly know which item Usa now consuming more than China...........from food to clothes,from auto to houses,,from phones,to Ac,from chip to ship,from electricity to freight,from coal to ores,,,from raw resource to finished goods,chinese buy much more than Usa
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Re: Perspectives on the global economic changes

Post by Austin »

I guess the only thing remaining now for China to make Renminbi towards full capital account convertibility and then gradually as a form of reserve currency.

On some parameter PPP would be more appropriate to compare while on some like goods .trade services nominal GDP would be more appropriate.
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Re: Perspectives on the global economic changes

Post by Austin »

Budget Breakeven Oil Prices for Major Oil Exporters

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Neshant
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Re: Perspectives on the global economic changes

Post by Neshant »

Liu wrote: then,how about auto sales,household appliance sales,house sales,food sales?
Half of the stuff China is producing is going to the western world and the only thing its getting for those goods is IOU paper.

In 2008 China woke up to the fact that it was sitting on a ton of IOU toilet paper and panicked. Its since tried to spend it all internally as fast as it can before the IOUs were devalued by the west. Along with that there's been a ton of money printing to hold down the value of the local currency. All that money has gone into real estate building & speculation and other questionable loans. Basically nobody knows if that capital has been profitably allocated since it was spent by govt rather than by free market supply & demand.

So its just a matter of time before that time bomb goes off. And then we'll know what the GDP of the country is - the real GDP I mean.
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Re: Perspectives on the global economic changes

Post by Liu »

Neshant wrote:
Liu wrote: then,how about auto sales,household appliance sales,house sales,food sales?
Half of the stuff China is producing is going to the western world and the only thing its getting for those goods is IOU paper.

In 2008 China woke up to the fact that it was sitting on a ton of IOU toilet paper and panicked. Its since tried to spend it all internally as fast as it can before the IOUs were devalued by the west. Along with that there's been a ton of money printing to hold down the value of the local currency. All that money has gone into real estate building & speculation and other questionable loans. Basically nobody knows if that capital has been profitably allocated since it was spent by govt rather than by free market supply & demand.

So its just a matter of time before that time bomb goes off. And then we'll know what the GDP of the country is - the real GDP I mean.
well, most of "made in china" are consumed by chinese themselves. for example, chinese made 23m autos,and bought 22.5m auto. chinese produce 50%+ of global household appliances sivh as AC and celllphones,and buy 30%+ of them. chinese produce 1/4 of global good,and consume more. chinese produce 1/2 of global cement,almost all of them are consumed in china.
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Re: Perspectives on the global economic changes

Post by Liu »

BTW, to China,USD is not useless ,as long as china can buy abroad raw resource and hightech industry goods with USD. Of course,If China can buy abroad rsw resource and hightech goods with RMB directly, china would needn't USD any more.
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Re: Perspectives on the global economic changes

Post by Austin »

Liu wrote:BTW, to China,USD is not useless ,as long as china can buy abroad raw resource and hightech industry goods with USD. Of course,If China can buy abroad rsw resource and hightech goods with RMB directly, china would needn't USD any more.
Does China CB plans to make RMB full capital account convertible in near future ?

They could float the RMB over wide margin and support it if it gets weaker but on the down side of RMB gets stronger it will affect Chinese export prospects significantly.
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Re: Perspectives on the global economic changes

Post by Neshant »

Liu wrote:BTW, to China,USD is not useless ,as long as china can buy abroad raw resource and hightech industry goods with USD. .
Its not really a question of useless or not. The USD will always have some worth.

However when you produce something at a 10% profit margin, and the currency in which you store those profits declines by 10%.... essentially the goods you have produced have been for free!

Exactly how the cost and profit is calculated is a mystery.
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Re: Perspectives on the global economic changes

Post by Liu »

Austin wrote:
Liu wrote:BTW, to China,USD is not useless ,as long as china can buy abroad raw resource and hightech industry goods with USD. Of course,If China can buy abroad rsw resource and hightech goods with RMB directly, china would needn't USD any more.
Does China CB plans to make RMB full capital account convertible in near future ?

They could float the RMB over wide margin and support it if it gets weaker but on the down side of RMB gets stronger it will affect Chinese export prospects significantly.
RMB might not be capital account convertible forever. swap agreement is enough for china to buy foreign raw resource with RMB and replace USD with RMB gradually.
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Re: Perspectives on the global economic changes

Post by Liu »

Neshant wrote:
Liu wrote:BTW, to China,USD is not useless ,as long as china can buy abroad raw resource and hightech industry goods with USD. .
Its not really a question of useless or not. The USD will always have some worth.

However when you produce something at a 10% profit margin, and the currency in which you store those profits declines by 10%.... essentially the goods you have produced have been for free!

Exactly how the cost and profit is calculated is a mystery.
the primary goal why China holds 4 T USD is not to buy RMB/JPY/GBP/EORO with USD,but to buy raw resource . so, when oil price is down, USD is appreciating to China.
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Re: Perspectives on the global economic changes

Post by Neshant »

Raw resources are priced in USD. Relative to raw resources, USD has been on a decline since 2000.

What was the price of oil then and what is the price of oil now.
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Re: Perspectives on the global economic changes

Post by Liu »

Neshant wrote:Raw resources are priced in USD. Relative to raw resources, USD has been on a decline since 2000.

What was the price of oil then and what is the price of oil now.
well, such devalue is acceptable to China ,while CHINA' yearly nominal GDP increased from 1T USD in 2000 to 10 T USD now. in a word, in the past decade, autos and other expensive goods have been more and more affordable to common chinese. that is why chinese bought only 2M autos in 2000,but buy 22M autos in 2013. In 2000, auto sale in China was only 1/9 of USA's while now it is larger than USA+JAPAN.
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Re: Perspectives on the global economic changes

Post by ldev »

UK, first western government to issue renminbi denominated bonds
Britain began to take orders for its first government bond denominated in renminbi on Tuesday, after finance minister George Osborne announced plans for the issuance last month.

The finance ministry said in September that the three-year bond was likely to have a size of around 2 billion yuan (203.23 million pounds), and would be used to finance Britain's foreign reserves.
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Re: Perspectives on the global economic changes

Post by svinayak »

http://schiffgold.com/commentaries/gold ... old-video/


5:02 – China’s official gold holdings are unknown, because the Chinese don’t want the world to know how much more gold they intend to buy.
6:00 – There will be support for gold at the $1200 level, because there are big buyers for the metal in emerging markets across the world, not just China.
6:32 – When confidence in the US dollar disappears, people will turn to gold. When that happens, $1200 per ounce gold will seem cheap.
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Re: Perspectives on the global economic changes

Post by Austin »

From the Gold news buy I have been following about China , it seems the official purchase and the one via HK backdoor channel the Gold Reserves of China is estimated at 4000 T similar to German Gold Reserves , Officially Chinese put another figure for what ever reasons
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Re: Perspectives on the global economic changes

Post by Neshant »

svinayak wrote:6:32 – When confidence in the US dollar disappears, people will turn to gold. When that happens, $1200 per ounce gold will seem cheap.
Peter Schiff sells gold. So his opinions are biased in favor of gold.
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Re: Perspectives on the global economic changes

Post by Neshant »

Liu wrote:well, such devalue is acceptable to China ,while CHINA' yearly nominal GDP increased from 1T USD in 2000 to 10 T USD now.
1:10 is roughly where the price of oil went from 2000 to 2014.

Is it growth or is it inflation that you are importing.

A lil bit from column A and a lil bit from column B perhaps.
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Re: Perspectives on the global economic changes

Post by Austin »

World Needs Six Reserve Currencies | Medvedev Exclusive | CNBC International

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Re: Perspectives on the global economic changes

Post by Liu »

Austin wrote:From the Gold news buy I have been following about China , it seems the official purchase and the one via HK backdoor channel the Gold Reserves of China is estimated at 4000 T similar to German Gold Reserves , Officially Chinese put another figure for what ever reasons
montaty swap is more feazible way to buy enough raw oversea raw resource than gold reserve
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Re: Perspectives on the global economic changes

Post by Neshant »

Dr. Joseph Tainter : The Collapse of Complex Societies

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Re: Perspectives on the global economic changes

Post by panduranghari »

Neshant wrote:
svinayak wrote:6:32 – When confidence in the US dollar disappears, people will turn to gold. When that happens, $1200 per ounce gold will seem cheap.
Peter Schiff sells gold. So his opinions are biased in favor of gold.
Kingdom of moltz

Schiff has been influenced by his father , Irwin, who wrote the above linked must read free ebook. Did you know Irwin is in jail at a tender age of 85. If you read the above ebook, you'll know why Peter is so pro gold. And if you do not reassess your opinion about gold after reading it, then you are a true keynesian.
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Re: Perspectives on the global economic changes

Post by kmkraoind »

Don't expect another round of QE: Boston Fed's Rosengren

Extent of inequality in US 'greatly concerns me': Fed Chair Yellen

This time they will justify another QE in the name of "inequality." It seems US is more worried about stock market collapse and they do not want Chinese trillion$ to buy US companies cheaply.
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Re: Perspectives on the global economic changes

Post by Austin »

I wonder what good is the low Debt and high reserves for Russia if it does not help credit rating ? Or Credit Rating has just become a political tool for geo-strategic objectives
Economic Development Minister Alexei Ulyukayev . "Now, really, there are expectations, there is talk, there are rumors that the possible actions of the international rating agencies to reduce the sovereign rating of the Russian Federation", - said Uljukaev reporters Tuesday.

According to him, if such a decision is taken, it will be strange and economically unjustified decision. "What is the rating of the rating agencies? Rating long-term solvency, solvency. This is, simply put, is the belief that we are able to pay off our foreign debt , "- said Uljukaev.

He added that today the country's external debt - less than 3% of GDP and public debt all - 11% of GDP, one of the lowest in the world. "That is, if desired, the debt can be repaid in one year", - said
Uljukaev, adding that Russia's Reserve Fund and National Welfare Fund significantly exceed this value. In 2014, the budget was in surplus, the draft budget for 2015-2017. a miserable deficit, besides the country has a fiscal rule and a policy of floating exchange rate, which is "Powerful damper" against the decline in oil prices.

"Therefore, from whatever side you look, macroeconomic and financial structures are very stable, and the risk that this meager foreign debt somehow miraculously not be extinguished, no," - said Uljukaev.

"Actions for the revision of the sovereign rating of Russia downwards in this situation would have meant either a strange incompetence, or, perhaps, political partisanship that it would probably be closer to reality," - said the Minister.
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Why do European countries like Germany and Italy which has low growth and high Debt to GDP Ratio end up paying 2-4 % of their Bonds , while countries like India and Russia and BRICS which has high growth and low Debt end up paying 8-9 % for their bonds ?

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