Understanding the US - Again

The Strategic Issues & International Relations Forum is a venue to discuss issues pertaining to India's security environment, her strategic outlook on global affairs and as well as the effect of international relations in the Indian Subcontinent. We request members to kindly stay within the mandate of this forum and keep their exchanges of views, on a civilised level, however vehemently any disagreement may be felt. All feedback regarding forum usage may be sent to the moderators using the Feedback Form or by clicking the Report Post Icon in any objectionable post for proper action. Please note that the views expressed by the Members and Moderators on these discussion boards are that of the individuals only and do not reflect the official policy or view of the Bharat-Rakshak.com Website. Copyright Violation is strictly prohibited and may result in revocation of your posting rights - please read the FAQ for full details. Users must also abide by the Forum Guidelines at all times.
Zynda
BRFite
Posts: 1777
Joined: 07 Jan 2006 00:37
Location: J4

Re: Understanding the US - Again

Postby Zynda » 24 Mar 2020 19:44


Does this even matter? It seems like USD is the king and US just print $ its way out of any crisis without penalties.

chanakyaa
BRFite
Posts: 1331
Joined: 18 Sep 2009 00:09
Location: Hiding in Karakoram

Re: Understanding the US - Again

Postby chanakyaa » 24 Mar 2020 19:57

From the perspective of average people or casual finance types, NO, it probably doesn't matter (beyond roti, kapada, makan). From the perspective of government heads or heads of national central banks of world, this is a big deal. Consider this. India's foreign reserve is ~$500bn. The stimulus (taking into account all sources) is expected to grow to $3 trillion (i.e. 6 time India's reserves). Since there is no physical printing of money (its all digital), its all monetary accounting entries. Question is where is the money coming from? If the inflation is low, where is the newly created money going to? I believe that this is effectively a transfer of wealth from the rest of the world.

Mort, for now, I'm placing my bets on re-election of DJT by a small margin and the likelihood (small) of DJT doing something radical about debt. In the meantime, $2+ trillion is a clever pre-election wealth distribution schemes.

komal
BRFite
Posts: 492
Joined: 29 Oct 2007 14:47

Re: Understanding the US - Again

Postby komal » 25 Mar 2020 20:25

FED has hired Blackrock to manage and oversee their $4 trillion injection. Blackrock's first order of business was to have the FED buy an exchange-traded bond fund sponsored by --- Blackrock. The value of that fund went up nearly 20%.

Thomas Jefferson said that eternal vigilance is the price of freedom.

There is also an old Tamil saying that you can awaken the sleeping.

Mort Walker
BRF Oldie
Posts: 8122
Joined: 31 May 2004 11:31
Location: The rings around Uranus.

Re: Understanding the US - Again

Postby Mort Walker » 25 Mar 2020 20:47

komal wrote:FED has hired Blackrock to manage and oversee their $4 trillion injection. Blackrock's first order of business was to have the FED buy an exchange-traded bond fund sponsored by --- Blackrock. The value of that fund went up nearly 20%.

Thomas Jefferson said that eternal vigilance is the price of freedom.

There is also an old Tamil saying that you can awaken the sleeping.


In 2008-09 the Fed injected $4T. It is estimated that this time around, that amount may be exceeded to $6T or more according Larry Kudlow.
Using Blackrock is not unusual as they already have a track record of managing hundreds of billions dollars for US federal employee and military pensions. Blackrock and Barclays have a long association with the US government for some time.

In 2009, the Obama administration gave a payroll tax holiday, amounts to about 9.1% of pay, to all US taxpayers. This time around it was poo-pooed by the Democrats as they want to inflict as much damage on the middle class to win an election.

vera_k
BRF Oldie
Posts: 3050
Joined: 20 Nov 2006 13:45

Re: Understanding the US - Again

Postby vera_k » 25 Mar 2020 20:48

Liquidity appears to have improved. All my margin calls have been rescinded, plus more credit has been extended.

ramana
Forum Moderator
Posts: 54175
Joined: 01 Jan 1970 05:30

Re: Understanding the US - Again

Postby ramana » 25 Mar 2020 21:22

vera, Liquidity has been a problem since 3 weeks when the Feds lowered the interest rate by 0.5%.
That started the jitters.
Then the oil price war.

chetak
BRF Oldie
Posts: 21839
Joined: 16 May 2008 12:00

Re: Understanding the US - Again

Postby chetak » 26 Mar 2020 18:38

“Chinese corporations operating in America must not be eligible for the upcoming trillion-dollar bailout, now or ever."

Rep.@mattgaetz has proposed a bill that would prevent funds from flowing into #China.

ramana
Forum Moderator
Posts: 54175
Joined: 01 Jan 1970 05:30

Re: Understanding the US - Again

Postby ramana » 26 Mar 2020 21:26

chetak wrote:
“Chinese corporations operating in America must not be eligible for the upcoming trillion-dollar bailout, now or ever."

Rep.@mattgaetz has proposed a bill that would prevent funds from flowing into #China.


We shall see the de-globalization and creating national markets as an end result.
I expect many such measures will be enacted.
But if US de-globalizes then don't expect $ dominance.

Mort Walker
BRF Oldie
Posts: 8122
Joined: 31 May 2004 11:31
Location: The rings around Uranus.

Re: Understanding the US - Again

Postby Mort Walker » 26 Mar 2020 21:45

ramana wrote:
chetak wrote:


We shall see the de-globalization and creating national markets as an end result.
I expect many such measures will be enacted.
But if US de-globalizes then don't expect $ dominance.



As long as energy is traded in dollars, then $ dominance will not decline as fast.

chetak
BRF Oldie
Posts: 21839
Joined: 16 May 2008 12:00

Re: Understanding the US - Again

Postby chetak » 26 Mar 2020 22:10

Mort Walker wrote:
ramana wrote:
We shall see the de-globalization and creating national markets as an end result.
I expect many such measures will be enacted.
But if US de-globalizes then don't expect $ dominance.



As long as energy is traded in dollars, then $ dominance will not decline as fast.


both the europeans, the french in particular as well as the hans are trying to break this monopoly

chetak
BRF Oldie
Posts: 21839
Joined: 16 May 2008 12:00

Re: Understanding the US - Again

Postby chetak » 27 Mar 2020 23:25

This is how trump did it with Chinese

looks like Trump managed to successfully counter & destroy Chinese Propaganda on #Chinesevirus



Morgan Ortagus@statedeptspox

We welcome Ambassador Cui's comments calling the Chinese Foreign Ministry's statement a “crazy thing” that blamed the U.S. Army for the #coronavirus outbreak in Wuhan. Saving lives is more important than saving face.

7:14 PM · Mar 24, 2020·

Manish_Sharma
BRF Oldie
Posts: 4358
Joined: 07 Sep 2009 16:17

Re: Understanding the US - Again

Postby Manish_Sharma » 30 Mar 2020 01:57

TWITTER:

Trump wrote:
I am a great friend and admirer of the Queen & the United Kingdom. It was reported that Harry and Meghan, who left the Kingdom, would reside permanently in Canada. Now they have left Canada for the U.S. however, the U.S. will not pay for their security protection. They must pay!
https://twitter.com/realDonaldTrump/sta ... 52386?s=19

shaun
BRFite
Posts: 1072
Joined: 11 Aug 2016 06:14

Re: Understanding the US - Again

Postby shaun » 01 Apr 2020 00:25

more coming ....for china

Donald Trump signs bill on Tibet into law despite China protest
The White House said that Trump signed into law the 'Reciprocal Access to Tibet Act of 2018' which promotes access for diplomats, officials, journalists and others from the United States to China's Tibetan areas.



https://economictimes.indiatimes.com/ne ... aign=cppst

Adrija
BRFite
Posts: 297
Joined: 13 Mar 2007 19:42

Re: Understanding the US - Again

Postby Adrija » 01 Apr 2020 11:05

As long as energy is traded in dollars, then $ dominance will not decline as fast.


Sorry, don't think it has anything to do with energy.......... $$ dominance will remain as long as US remains the largest consuming market on this planet. They make it a point to pay sellers only in $, and that is what circulates in all asset markets thereafter. So as long as US consumes, and folks globally want to sell there, $ will remain king

IMVVVHO of course

Mort Walker
BRF Oldie
Posts: 8122
Joined: 31 May 2004 11:31
Location: The rings around Uranus.

Re: Understanding the US - Again

Postby Mort Walker » 01 Apr 2020 11:35

Adrija wrote:
As long as energy is traded in dollars, then $ dominance will not decline as fast.


Sorry, don't think it has anything to do with energy.......... $$ dominance will remain as long as US remains the largest consuming market on this planet. They make it a point to pay sellers only in $, and that is what circulates in all asset markets thereafter. So as long as US consumes, and folks globally want to sell there, $ will remain king

IMVVVHO of course


Oil and gas is almost entirely traded in US dollars. World consumes about 100 million barrels per day of oil and over 10 billion m^3 of NG per day. Now figure out that oil, until recently, was around $40-$50/barrel and NG is about $2-2.5 MMBtu. There are lots energy related USD circulating around the world.

US import consumption of goods is less than $2.6T annually.

Adrija
BRFite
Posts: 297
Joined: 13 Mar 2007 19:42

Re: Understanding the US - Again

Postby Adrija » 01 Apr 2020 12:34

MWji, not sure exactly how your response addresses mine....... agree that there has been a conscious agreement between the House of Saud and Us to denominate the Saudi oil trade in USD, which may of course be a contributing factor for global USD dominance. But I would submit that this is a supporting and not the main reason

Mort Walker
BRF Oldie
Posts: 8122
Joined: 31 May 2004 11:31
Location: The rings around Uranus.

Re: Understanding the US - Again

Postby Mort Walker » 01 Apr 2020 18:19

Adrija wrote:MWji, not sure exactly how your response addresses mine....... agree that there has been a conscious agreement between the House of Saud and Us to denominate the Saudi oil trade in USD, which may of course be a contributing factor for global USD dominance. But I would submit that this is a supporting and not the main reason


You can work out the numbers. Oil and gas traded per year is over $3.5T, and that number maybe low. US import consumption of goods is less than $2.6T. Of course both numbers will go down due to COVID-19 this year. However, if the US reduces consumption of imported goods, this will not impact oil and gas sold around the world. Keep in mind China, Iran and Russia talk a big game about trading energy in other currencies, but then turn around and say please convert to USD.

Manish_Sharma
BRF Oldie
Posts: 4358
Joined: 07 Sep 2009 16:17

Re: Understanding the US - Again

Postby Manish_Sharma » 02 Apr 2020 02:18

TWITTER

@realdonaldtrump wrote:

Upon information and belief, Iran or its proxies are planning a sneak attack on U.S. troops and/or assets in Iraq. If this happens, Iran will pay a very heavy price, indeed!
https://twitter.com/realDonaldTrump/sta ... 97792?s=19

ricky_v
BRFite
Posts: 583
Joined: 11 Aug 2016 06:14

Re: Understanding the US - Again

Postby ricky_v » 03 Apr 2020 13:26

Image

Lisa
BRFite
Posts: 1091
Joined: 04 May 2008 11:25

Re: Understanding the US - Again

Postby Lisa » 03 Apr 2020 15:22

chetak wrote:
“Chinese corporations operating in America must not be eligible for the upcoming trillion-dollar bailout, now or ever."

Rep.@mattgaetz has proposed a bill that would prevent funds from flowing into #China.


There will be a trial/inquiry into this whole matter and at the end of it China will be held responsible and fined, ie their US treasury reserved could be seized, I think!

ricky_v
BRFite
Posts: 583
Joined: 11 Aug 2016 06:14

Re: Understanding the US - Again

Postby ricky_v » 04 Apr 2020 12:43

Land of the sick, home of the pirates
https://www.rt.com/news/484935-us-takes-masks-germany/
But behind the scenes, American officials were acquiring these masks by more underhand means.

A delivery of 200,000 masks left a 3M factory in China this week and arrived in Bangkok, Thailand, from where they were supposed to be sent to the German capital. The masks never got to Berlin, and police in the city told Der Tagesspiegel that the shipment was instead bound for the US. Berlin's Senator for the Interior Andreas Geisel confirmed on Friday that the masks had been “confiscated.”

“We consider this an act of modern piracy. This is not how you deal with transatlantic partners,” Geisel said.

Philip
BRF Oldie
Posts: 20512
Joined: 01 Jan 1970 05:30
Location: India

Re: Understanding the US - Again

Postby Philip » 05 Apr 2020 07:21

Lisa,spot on! I feel the same....that when the reckoning comes,Chinese funds and perhaps even shares in US cos. will be seized as " reparation" for unleashing WW3.

vijayk
BRF Oldie
Posts: 4344
Joined: 22 Jun 1999 11:31

Re: Understanding the US - Again

Postby vijayk » 06 Apr 2020 16:56

T sounded very confident in the press conf. Does ha have a surprise under his sleeve?

Zynda
BRFite
Posts: 1777
Joined: 07 Jan 2006 00:37
Location: J4

Re: Understanding the US - Again

Postby Zynda » 06 Apr 2020 21:19

US stock are back at rallying today...seems like T's confidence (his exact words were "we see a light at the end of the tunnel") along with slow down in death rate in NY has emboldened investors.


Return to “Strategic Issues & International Relations Forum”

Who is online

Users browsing this forum: saip and 60 guests