Dollar all time low against Euro
Gold at 27 year high. Thanks fed chairman for lowering my buying power but making sure your banker buddies are happy. Transfer of wealth from the poor to the rich. Economically, terrible news.
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quote:Nice try to dodge the issue, but NONE of that is what your first post of the thread concerned, now is it.
All of this plays a strong role in why we find ourselves in this situation, which in spite of what you would like us all to believe and I don't know why, is bad.
And... I guess the thread is evolving.
quote:The fact remains that the move by the Fed. was the right one to make, regardless of whether it works out or not.
Your opinion.
I think the fed should move slower and allow the market to correct itself.
quote:Just how much have you studied Economics, and how long have you held a job in that field of endeavor?
Just started studying day before yesterday. Don't have a job in that field of endeavor. So I should not be allowed to have an opinion. I am quite sure that you are a bonafide economist and therfore I should bow to your superiority and shut up, right? Ok, Have it your way.0 -
Opinions don't mean squat where reality is concerned. You can believe that solid objects can pass through your body without harm, but don't stand in front of a semi on the Interstate System to demonstrate the point - reality can be painful.
The move by the Fed WAS an effort to allow the market to correct itself, as was the drop in the value of the dollar, that's how markets tend to work. When you study a bit more you will learn that.
Yes, I am an Economist by profession, but nobody told you to "shut up", just not to worry about the rate cut. It was the proper thing to do, and is an effort to correct what are clearly some existent problems.
It would be foolish to sit by and do nothing. We don't need to be like Nero and fiddle while Rome burns.0 -
quote:Originally posted by jpwolf
From Associated Press November 17, 2006
...the Chinese own over $1 trillion in American debt, most of which has been borrowed between 2001 and 2005.
I'd hate to know what that number is with 2 more years tacked on.
"Bush has borrowed more than all previous 42 Presidents. Combined.
According to the Treasury Department, from 1776-2000, the first 224 years of U.S. history, 42 U.S. presidents borrowed a combined $1.01 trillion from foreign governments and financial institutions, but in the past four years alone, the Bush administration borrowed $1.05 trillion."
Source:http://digg.com/business_finance/Bush_has_borrowed_more_than_all_previous_42_Presidents_Combined
You do know what those two statements are actually saying don't you? They are correct by the way.
The first refers to the amount of American debt held by China, but that includes Corporate bonds and other debt forms in addition to Treasury type government debt.
Here is a link that will show you that exact amount of government debt held by China, and you may find the figures to be a bit different than the image created by the total debt numbers.
http://www.ustreas.gov/tic/mfh.txt
The second statement refers to the amount that has been borrowed from foreign entities, not just China, and not the total amount of borrowing done by the current Administration from all sources.
Do not confuse the issue; I am not in the least in favor of the increase in the debt burden, but the source of the borrowing is of only a secondary concern.
The reality is that China and other countries invest in various debt instruments because they believe them to be good investments, and we get to use their money. The lowering of interest rates may make that less attractive, but that is the reason it was done in the first place.0 -
There is roughly $500 Billion in US Currency floating around in America.
If China decides to cash in their treasury holdings/investments.....how would you pay them dlrjj?
Bush recently asked for a $1 Trillion debt extension to keep our government working. That's all fine and dandy but if there ain't a country out there willing to loan $1 Trillion....our Government and economy will stop anyways. Correct?????0 -
And two weeks ago some peon in the Chinese govt merely uttered something about it might be time to cash in some of that debt. Did you see the result at the exchange? 0
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