45% world's wealth destroyed - page 11
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Ignorance...
The problems for USA begun with Bush Sr. infiltrating Reagan Presidency with his and his gang New World Order insane ideas...after that it was pretty much all over...Reagan...a brilliant statesman was not much of an economist you see...Clinton had same agenda as Bush Sr.....and Bush Jr. was only a puppet...
Barack Obama and his team have failed the USA with $82 Trillion of debts on and off the books.
Dear MR. Forexinvest,
If there is one person to be blamed that our planet was heading to a total destruction it is Mr. Bush junior.
Lucky for the world that presidents in the USA can only be elected for 8 years.
4 more years and it would only be the cockroaches who would be living on this planet.
Mr. Bush has caused nearly a world war III and is responsable for the financial crisis in the US which had is effect on a global scale.
If Sadam housein needed to be hanged then I don't know what they should do with a person like Bush junior.
I hope for the safety of our planet that never ever a person like that can take in a position like president.
Obama has the worst task a president ever had to cope with. Cleaning up the biggest world wide crap-mountain ever created by one individual.
For all the money in the world I would not like to be in his shoes. If there is one guy who can bring this to a good end then he is the guy. I hope he can push his social plans trough parlement.......not in behalf of the americans but for the future of our planet.
$600 Trillion Derivatives The derivatives market is ten times the total GDP of the world, or $600 trillion, Mobius pointed out.
Few months back derivatives were worth $1,100 Trillion. Now derivatives are worth $600 Trillion. That is a loss in value of $500 Trillion.
Personally, I dont think that Bush decission for Irak invassion was triggered by an anouncement of currency exchange policy
Any country today is free to choose the curency for his international business. Clearly, there are two choices: Euro or dollar. Historically, The currency used has been changing according the economic power and the volume of commerce with the country that has the strongest currency.
I cant imagine what China will do if americans dont agree with them to buy their goods in other non-dollar currency, been America the biggest buyer in the world. Thats one of the facts that obly China (and other countries) to support dollar in this crisis. The other, is international reserves.
Many countries are claiming the need to stablish a non-dollar currency for his international business for a long time (specially those anti-American), but the economic weight of USA (mostly as a buyer of goods) make things very difficult for them.
yes basically everyone is screwing everyone, that is the global economic system we have. There is a lot of interdependence though so countries work together to rim each other on different transactions. Really quite an interesting approach to economics but that is where we are at.
Think
Personally, I dont think that Bush decission for Irak invassion was triggered by an anouncement of currency exchange policy
Any country today is free to choose the curency for his international business. Clearly, there are two choices: Euro or dollar. Historically, The currency used has been changing according the economic power and the volume of commerce with the country that has the strongest currency.
I cant imagine what China will do if americans dont agree with them to buy their goods in other non-dollar currency, been America the biggest buyer in the world. Thats one of the facts that obly China (and other countries) to support dollar in this crisis. The other, is international reserves.
Many countries are claiming the need to stablish a non-dollar currency for his international business for a long time (specially those anti-American), but the economic weight of USA (mostly as a buyer of goods) make things very difficult for them.Good point,fxnewbie...You forgot to add that the real weight of the USA stems both from its military power and the huge quantities they owe...you know the saying,If you owe me 10 thousand dollars,pity for you...if you owe me 10bln dollars...pity for me
.
The basic economic models of the past 20 years have been rotating between ..Japan lends money to the USA ,so they buy from them...China lends money to the USA so they buy from them..The Rest Of The World lends money to the USA so they buy from them....In parallel,multinational com panies(mainly USA,but with a good weighting from Europe and Japan) have been exporting jobs under the assumption that this will provide for more competitive goods and services(aka cheap) for the "first world" consumers..if you think about it,in some issues,the model has produced enormous increases in productivity...but,in the long term,for the model to continue working,it requires that the comsumption side of the equation displaces itself towards the geographical places where the jobs are being created,not to those that destroy them(aka,USA,Europe,Japan),specially now that even midsized companies can export jobs easily...so,We are going to see a change in paradigm,where both the production side and the comsumption side of the equation will be concentrated outside the geographical limits of USA/Europe/Japan..Either we increase productivity a lot,in order to compensate for our cost of life differential or we become servants of the new masters...and,what better way to increase "productivity" than devaluate a currency?
So,my point is that all these talks of alternative currencies are promoted/not confronted by the US Government,BECAUSE it is in their best interest to devalue the dollar on a de facto basis....In a few years,same will happen for Europe and Japan...so,long term,the bet for currency increases should be done on the countries with the best productivity ratio...
Now,from the macro to the micro...Just take the following as an example of the general trend,ok?...Put a bid at rentacoder..and you will see that,systematically,the ones with the best qualifications and best prices are,usually either Russians,Chinese or Indian...yes,there are very good japanese,american and european programmers,but their prices are way too high,in relative terms,so,in general,the programming business is going to be dominated by those more productive...part of that productivity is willingness to work longer for less,part is currency exchange risks,part is cost of life differential...whatever,the only way our politicians understand it is by focusing on a de facto currency devaluation that alleviates voter`s problems,and keep them in Congress or Senate...But,long term,this doesn`t work.
Regards
S
Good point,fxnewbie...You forgot to add that the real weight of the USA stems both from its military power and the huge quantities they owe...you know the saying,If you owe me 10 thousand dollars,pity for you...if you owe me 10bln dollars...pity for me
The basic economic models of the past 20 years have been rotating between ..Japan lends money to the USA ,so they buy from them...China lends money to the USA so they buy from them..The Rest Of The World lends money to the USA so they buy from them....In parallel,multinational com panies(mainly USA,but with a good weighting from Europe and Japan) have been exporting jobs under the assumption that this will provide for more competitive goods and services(aka cheap) for the "first world" consumers..if you think about it,in some issues,the model has produced enormous increases in productivity...but,in the long term,for the model to continue working,it requires that the comsumption side of the equation displaces itself towards the geographical places where the jobs are being created,not to those that destroy them(aka,USA,Europe,Japan),specially now that even midsized companies can export jobs easily...so,We are going to see a change in paradigm,where both the production side and the comsumption side of the equation will be concentrated outside the geographical limits of USA/Europe/Japan..Either we increase productivity a lot,in order to compensate for our cost of life differential or we become servants of the new masters...and,what better way to increase "productivity" than devaluate a currency?
So,my point is that all these talks of alternative currencies are promoted/not confronted by the US Government,BECAUSE it is in their best interest to devalue the dollar on a de facto basis....In a few years,same will happen for Europe and Japan...so,long term,the bet for currency increases should be done on the countries with the best productivity ratio...
Now,from the macro to the micro...Just take the following as an example of the general trend,ok?...Put a bid at rentacoder..and you will see that,systematically,the ones with the best qualifications and best prices are,usually either Russians,Chinese or Indian...yes,there are very good japanese,american and european programmers,but their prices are way too high,in relative terms,so,in general,the programming business is going to be dominated by those more productive...part of that productivity is willingness to work longer for less,part is currency exchange risks,part is cost of life differential...whatever,the only way our politicians understand it is by focusing on a de facto currency devaluation that alleviates voter`s problems,and keep them in Congress or Senate...But,long term,this doesn`t work.
Regards
SI still remember when I was a kid and japanese motorcycles begin to be imported to my country (Honda, Yamaha, Kawasaki). We see them as a crap compared to american motrocycles, but price were good and they were good looking. And we were kiddos with no money, so we buy japanese.
Now: Honda, Yamaha and Kawasaki are monsters and Harley Davidson is a "little" company. Of course, it was not only coz motorcycles. Just is as example.
The fact is that industrialized countries are losing competition against developing countries in many products. They dont really matter at the begining coz they see those products as "marginal" in their overall economy and they see as a good thing that developing counties earn money coz their buy power increase, so commerce with them increases also.
But a grain of wheat is just a grain, until it fill a big barn.
So, industrialized world have focus in big business and high tech products as counter-measures. But with the money earned, developing countries are now challenging them in those areas also. Meanwhile, industrialized countries are loosing lot of jobs, coz usually big business and high tech doesent produce many jobs. And when your people are jobless, the internal buy power decreases and so, internal production decreases and troubles begin, making the country less competitive everytime.
Many times countries in this situation apply to devaluation to efectively cut the income of their workers and goods produced in the country, in order to produce cheaper products for export, and so, increasing production and the creation of jobs (those measures are good if you have large inside-outside markets to sell in better vantages than your competitors).
But....devaluation measures carry other problems for people. Their savings turn nothing, their properties turn cheaper and value-less, etc... devaluation have to be apply as a surgeon applying a scalpel to the brain. Any mistake can be fatal.
What I see in the future is government intervention in economy more often everytime. Hope I am wrong.
Devaluation
I still remember when I was a kid and japanese motorcycles begin to be imported to my country (Honda, Yamaha, Kawasaki). We see them as a crap compared to american motrocycles, but price were good and they were good looking. And we were kiddos with no money, so we buy japanese.
Now: Honda, Yamaha and Kawasaki are monsters and Harley Davidson is a "little" company. Of course, it was not only coz motorcycles. Just is as example.
The fact is that industrialized countries are losing competition against developing countries in many products. They dont really matter at the begining coz they see those products as "marginal" in their overall economy and they see as a good thing that developing counties earn money coz their buy power increase, so commerce with them increases also.
But a grain of wheat is just a grain, until it fill a big barn.
So, industrialized world have focus in big business and high tech products as counter-measures. But with the money earned, developing countries are now challenging them in those areas also. Meanwhile, industrialized countries are loosing lot of jobs, coz usually big business and high tech doesent produce many jobs. And when your people are jobless, the internal buy power decreases and so, internal production decreases and troubles begin, making the country less competitive everytime.
Many times countries in this situation apply to devaluation to efectively cut the income of their workers and goods produced in the country, in order to produce cheaper products for export, and so, increasing production and the creation of jobs (those measures are good if you have large inside-outside markets to sell in better vantages than your competitors).
But....devaluation measures carry other problems for people. Their savings turn nothing, their properties turn cheaper and value-less, etc... devaluation have to be apply as a surgeon applying a scalpel to the brain. Any mistake can be fatal.
What I see in the future is government intervention in economy more often everytime. Hope I am wrong.fxnewbie,
No they won`t,they never had a saying in economy for the long term,government will touch your balls for a couple years at worst,then they will be gone.
I don`t know about yamahas,but I know that all the call centers and market research data processing I am managing in my real world businesses are done in India much better and much cheaper than anywhere else..so,if these guys do it better,they deserve the job..and,I know,that in regards to trading,those guys(Indian,Russian,Chinese) usually can code my ideas faster,cheaper and better than anyone else,so,I hire them..because they deserve it.
Devaluation doesn`t turn savings into nothing,only if the country is not producing enough goods and providing enough services,as long as America produces good cars,devaluation helps Ford against Toyota,both in USA and in the export markets...But,if the country is not competitive,then,that is the cause why they had to devaluate,to achieve temporary and fictitious competitiveness..if this doesn`t correct the problem,then,yes,assetts are going to be devaluated too,internally,trough deflation,but the cause is not devaluation,the cause is that devaluation didn`t work
.
You are not the only country suffering this scenario,some countries adapt,some stick to the political agenda...Bet who are going to be the ones that solve their problems first?
Regards
S