Kommander wrote:I think that A) we may be getting a bit too deep into politics here and B) while theoretical "works on paper" stuff is interesting I am unsure how much to do with the current situation.
derf26 wrote:Kommander wrote:I think that A) we may be getting a bit too deep into politics here and B) while theoretical "works on paper" stuff is interesting I am unsure how much to do with the current situation.
The theoretical understanding of econ and politics I have has, I think, helped me understand and anticipate crisis situations much better than I could have before. In fact, it was exploring economics that got me into prepping in the first place (prepping for an economic collapse or just a fall in living standards is very high on my list). Plus, I'm not talking about elections or candidates; but I'm quite happy to tone it down anyway if you guys don't think it's helpful
1. First of all, let's call things by what they are. Redistribution of wealth is a fancy socialist term for theft, and I would argue that all forms of theft are immoral.
I also don't see how you're seriously contending that a market is less suited to properly valuing currencies, when that is precisely what it does every day.
I actually change my opinions quite frequently, as I discover new information.
I'm not sure I follow. You're saying that a coercive State can function properly, but that there is too much incentive for it not to. Doesn't that seem to you like cognitive dissonance?
dogbane wrote:Warren Buffet said that the odds of a renewed recession in the U.S. are low but that all bets could be off if the effects of Europe's financial crisis were to "spill over in a big way."
So what are the odds of a spillover?
Blacksmith wrote:The tools at Bloomberg believe that the already crappy economy in the US won't be able to get much worse.
http://www.bloomberg.com/news/2012-06-0 ... risis.html
Significant is that only 2% of US exports go there while the US is a huge market for some European Countries. To me that smells like potential trouble if the dollar rises a lot relative to European currency (whatever it is or will be).
What they are not looking at and may not know is the exposure US trading houses have to EU bond issues.
Blacksmith wrote:Curious events today. US and UK decided not to expand their money supply and China decided to cut interest rates at their banks. I don't see how it would be possible these events are unrelated and uncoordinated.
raptor wrote:Blacksmith wrote:Curious events today. US and UK decided not to expand their money supply and China decided to cut interest rates at their banks. I don't see how it would be possible these events are unrelated and uncoordinated.
There are no coincidences. Random chance and events yes but coincidences...sorry I do not believe in them.
CNN Money wrote:Spain's sovereign debt rating was slashed three steps Thursday by credit rating agency Fitch, which warned that the nation is at risk of being downgraded into junk bond status.
The nation's debt rating was cut from "A" all the way to "BBB," the lowest rating that is considered investment grade. And the new rating was given a negative outlook, meaning it at risk for further downgrades..... (More at link)
vyadmirer wrote:Call me the paranoid type, but remember I'm on a post apocalyptic website prepared for zombies.
“There is a rumor going around that nations cannot go bankrupt. This rumor is not true.”
Blacksmith wrote:“There is a rumor going around that nations cannot go bankrupt. This rumor is not true.”
If that is the EU perspective does that mean that a country can be placed in receivership? Because I don't think that will play well in Greece, Spain or Ireland. All countries with long histories of violent resistance from outsiders.
If they go bankrupt will the bond issues be dissolved and state assets seized and sold off? That would be likely to go even worse.
This long slow crash could heat up quite quickly.
phil_in_cs wrote:They had some of that before the previous vote, too. And yet an openly neo-Nazi party is getting 10% of the vote.
Blacksmith wrote:Oh, and they say they are NOT Neo-nazi despite having a Hitler salute and following nearly all of the same doctrine.
In sum, a sovereign default and exit from EMU by either Spain or Italy could be another “Lehman moment.”
Argentina loses a third of its dollar deposits
Fri Jun 8, 2012 4:46pm EDT
* Argentines reacting to foreign exchange restrictions
* About $100 mln in dollars withdrawn every day
* Rush toward greenback started in November
By Jorge Otaola
BUENOS AIRES, June 8 (Reuters) - Argentine banks have seen a third of their U.S. dollar deposits withdrawn since November as savers chase greenbacks in response to stiffening foreign exchange restrictions, local banking sources said on Friday.
Depositors withdrew a total of about $100 million per day over the last month in a safe-haven bid fueled by uncertainty over policies that might be adopted as pressure grows to keep U.S. currency in the country.
The chase for dollars is motivated by fear that the government may further toughen its clamp down on access to the U.S. currency as high inflation and lack of faith in government policy erode the local peso.
"Deposits keep going down," said one foreign exchange broker who asked not to be named. "There is a disparity among banks, but in total it's about $80 million to $120 million per day."
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