Mirror Mirror On The Wall, Who Is The Fairest Currency Of All ?

Discussion in 'Economics' started by libertad, Jan 25, 2009.

  1. With several countries on the borderline of leaving the EU....and the British Pound..being ¨pounded¨....

    Which currency is the fairest of them all ?

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    Deficits ? Oh that thing.....Why should it get in the way of a good ¨spending time¨....after all , the people with the gavel....are in the right place at the right time to earmark several $trillion for the ëconomically suffering¨....

    Since Geitner is stating that China is purposefully keeping their currency purposefully low, then running to the Chinese currency seems like ¨sure thinking¨eh ? Even though the social unrest that will unfold in 2009 will not be so tame....

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    Like a ¨fool in a bar¨waking up wondering where his money went....perhaps the fools assuming there will be $trillions to borrow ¨from somebody else¨is sure thinking ?

    Of course one knows what happens when one ass-u-me.s ?

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    And even if there was lots of money available....who wants it ?
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    Banks cannot force people to borrow funds against assets that are sure to decline....

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    So what is the new ¨Normal¨ ?

    $10,000 cars ?

    $100,000 houses ?

    $5000 educations ?
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    If $60 trillion is removed from a $120 trillion economy....

    Then prices asked have to fall 50% ?
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    Why would a government pursue a ¨sure to lose¨proposition ?

    Why would a government spend several $trillion when they do not have a plan for the outcome....

    Even if the money was printed or borrowed ?
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    One can have $10,000 cash

    One can have $100,000 cash

    If the money is not transfered...how can there be any inflation ?
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    If government gives $trillions to banks....how does this help consumers who do not borrow ?
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    The major point is this.....

    The consumer is not going to do anything without a positive attitude....

    This means job security, savings in the bank, positive media, visible everyday progress, currency stability.....the list gets longer....

    Thus the major point is that the government needs to change the tax code....

    A 10% consumption tax only would certainly reward the prospective consumers first....who will then decide how much of this they will want to put in their savings.....

    This would be far more productive...than hoping they will pay for money that the bank and not themselves have....to uphold the prices of times past....

    The FED is mistaken to think that recovery will happen sooner than the clumsy, costly, and uncertain delivery of funds to banks first....

    Money needs to go to individuals first....then to banks....
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    Then Ms US can look in the mirror....and know for certain that she is the ¨Fairest of Them All¨....
     
  2. Libertad;

    At this moment, the USD is the tallest midget in a room filled with midgets.

    But USD is beyond being pulled out by the consumer. The gears are spinning and they are well greased. Within the next 6 months or so, US will require 2T of fresh capital. (1.2T before a new stimulus package is decided). That is a very tall order given the state of affairs on any continent (sans Antarctica) you care to mention. Btw, have you noticed the economically incited riots in Greece (and beyond)? Furthermore you have Henry Kissinger whispering in the ear of the Big'O about new world order, which requires economic harmonization.

    For now, enjoy any USD strength. Have you looked at a chart of US treasuries lately? MANY of those "flight to safety" purchases of the last 2 months are nicely underwater, thank you very much.

    Gotta look at the bigger picture instead of expecting what was, is how the future will be. What was, was anomaly.

    Greece:
    http://news.bbc.co.uk/1/hi/world/europe/7849498.stm

    CBO:
    http://www.cbo.gov/doc.cfm?index=9958

    Kissinger:
    http://www.iht.com/articles/2009/01/12/opinion/edkissinger.php

    Treasurys:
    http://quotes.ino.com/chart/?s=CBOT_US.H09&v=d3


    Once unthinkable, now unstoppable
    obama-lama
     
  3. obama-lama....

    At this moment, the USD is the tallest midget in a room filled with midgets.

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    Succinct enough....

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    No tax structure change....then downhill äll the way¨....

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    Where is the bottom ?

    Why, at the bottom of course....

    Where that is....dk...

    What is going to replace the $60 trillion ?
     
  4. e#21

    e#21

    ë ?? what's your language?
     
  5. nobody will be leaving the Euro during this crisis. They don't want to become the next Icelandic currency. Now, there is a lot of strength in numbers. Others are more likely to JOIN the euro
     
  6. The alternative to a new international order is chaos.

    Henry Kissinger
     
  7. Without China buying US debt, who will buy it? It's called quantitative easing. Why do you think the fed has been hinting at buying treasuries for a few months now? The printing presses will be financing this horrendous stimulous package that will only provide stimulus to the US government and their programs.