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G Sharp 03-21-2003 10:11 PM

Rossiya, this is EXACTLY what I was referring to about the SIGNORAGE effect in my post. This drift of dollars from overseas mattresses back to US circulation will spike up inflation and definitely cause turbulence in US currency markets.

Quote:

Originally posted by rossiya2


I think with 10% banking reserve policy they in fact are destroying the currency.

I put $1000 in the bank. Then Joe can borrow $900 on a shiny new car and the dealer puts $900 in the bank. Then Jane can borrow $810 on a shiny new car and the dealer puts $810 in the bank. Then Mary can borrow $729 on a shiny new car and the dealer puts $729 in the bank....

So many thousands of dollars are created out of nothing. They are simply credits calculated in the Federal Reserve bank. The problem starts when I withdraw my money. Now the banks are forced to call loans to meet their reserve requirement and cars are repossessed, dealers are stocked with cars they can't sell and the whole engine stops.

We had such situation in Russia when for every rouble there were 2000 accounting roubles. In a week those roubles were called and the currency imploded.

Two weeks ago the Central Bank for the first time ever traded more euros than dollars. For an economy that was completely dollarized it is an ominous sign. Russia is the largest holder of U.S. cash outside the states. As these greenbacks drift out of mattresses and back into the U.S. the reserve will need to tighten credit or accept the resulting inflation.

For people who say it's fantasy please explain why the 25% $ devaluation is just a ripple.


UnseenWorld 03-21-2003 10:48 PM

Quote:

Originally posted by flashfreak
unseenworld: I have nothing against jews or any other race in this world. I capitalized those words so you know who's leading your country, in case you didn't know...
I'm lost. What is a "Jew" capitalized or uncapitalized to you? Is it someone who practices Judaism, is it someone some or all of whose ancestors practiced Judaism, or is it a racial epithet for you? Explain yourself. You have every appearance of being an antisemite from what you say. Are you or are you not?

UnseenWorld 03-21-2003 10:53 PM

Quote:

Originally posted by rossiya2


I think with 10% banking reserve policy they in fact are destroying the currency.

I put $1000 in the bank. Then Joe can borrow $900 on a shiny new car and the dealer puts $900 in the bank. Then Jane can borrow $810 on a shiny new car and the dealer puts $810 in the bank. Then Mary can borrow $729 on a shiny new car and the dealer puts $729 in the bank....

So many thousands of dollars are created out of nothing. They are simply credits calculated in the Federal Reserve bank. The problem starts when I withdraw my money. Now the banks are forced to call loans to meet their reserve requirement and cars are repossessed, dealers are stocked with cars they can't sell and the whole engine stops.

We had such situation in Russia when for every rouble there were 2000 accounting roubles. In a week those roubles were called and the currency imploded.

Two weeks ago the Central Bank for the first time ever traded more euros than dollars. For an economy that was completely dollarized it is an ominous sign. Russia is the largest holder of U.S. cash outside the states. As these greenbacks drift out of mattresses and back into the U.S. the reserve will need to tighten credit or accept the resulting inflation.

For people who say it's fantasy please explain why the 25% $ devaluation is just a ripple.

You actually must live in Russia, because here in the US nobody is going to repossess a car because someone else wanted to withdraw their money from the bank (and, yes, I realize it was just a shorthand example you were using). They repossess cars when people stop paying for them.

Now, guess what? When those dollars start coming back into circulation, they will be taken out of circulation as time goes by. I think our Federal Reserve System seems to know what it is doing.

As for gold, it is overrated. If the entire economy of the world went to hell, a hot dog would be a lot more valulable than a hunk of gold, because you can't eat gold. Gold has value in a luxury economy, not a subsistence economy.

whitey 03-22-2003 02:03 AM

This theory is funny...

Obviously someone came up with it who is totally unfamiliar with market economics.

Currencies are not valued because someone decides to denominate their products in another currency, jeez. Pretty funny stuff. Much like the stupid theories I remember reading in Das Capital once.

flashfreak 03-22-2003 02:27 AM

Quote:

Originally posted by UnseenWorld


I'm lost. What is a "Jew" capitalized or uncapitalized to you? Is it someone who practices Judaism, is it someone some or all of whose ancestors practiced Judaism, or is it a racial epithet for you? Explain yourself. You have every appearance of being an antisemite from what you say. Are you or are you not?

I'm lost.. you have every appearence of being a retard . I was refering to this: "The USD is printed in a single place: Federal Reserve USA, represented by a PRIVATE JEWISH BANKS CONSORTIUM!!!!. "
As you can see some words are capitalized...
The jews have all my symphathy, I have clients jews, I had teachers jews and I strongly believe they're one of the smartest race on earth.
Don't try to prove that I'm antisemite just because you don't like my opinion...

goBigtime 03-22-2003 02:33 AM

[edit] Euros can't buy me love.

goBigtime 03-22-2003 02:43 AM

Quote:

Originally posted by Sly_RJ
So... now the war is about the Euro and currency? What happened to oil?
This theory suggests both, but with the greater importance being on preserving the value of the us dollar. Which is very important I guess.

the real magoo 03-22-2003 02:50 AM

http://metimes.com/

ServerGenius 03-22-2003 03:07 AM

Quote:

Originally posted by flashfreak
First of all I must say for all the suckers that might post useless comments: I am not an american hater, this my objective opinion and it's about politics, not about american people. So don't bother to post 3 words comments or post shitty replies without a solid argumentation

The USD is the refference currency on the global market since '50s. The USD is printed in a single place: Federal Reserve USA, represented by a PRIVATE JEWISH BANKS CONSORTIUM!!!!.
So if France, Germany or any other country wants to buy $50 millions they have to "work" for them , if USA wants $50 millions they have to print them (ain't it easier? ). That's what USA has done in the past 50 years, printing USD without backing them in gold whenever they wanted.

That's why the commercial balance has a HUGE deficit nowadays, about 2.5 thousand billions USD and there are anticipations it will raise to 3.5 thousands of billions in the next 3 years - that means 50% of GDP.
As long as the USD is the worlds's global currency all is OK, they can always print USD and pay their debts.

IRAQ's problem: they're the first OPEC country which started to sell oil in EURO (since 6 november 2000, when 1 USD was 0.8 EURO so imagine the lost, it was an act of courage. Meanwhile the EURO passed the USD and it compensated this.

At least 2 countires from OPEC (Iran and Syria) want to sell oil on EURO and lastly that's all OPEC countries intention. Plus Venesuela which has 7% of global oil passed in a EURO-USD combination.
Russia's Central Bank ans China's have done exactly the same thing, so here's the explanation for the global USD surplus and EURO demand -> the USD depreciation

That's a BIG hit for the american economy,because Alan Greenspan (Federal Reserve's boss) estimated a $13 trillions loss (thousands of billions) only on the first phase: if EURO will become world's fav currency - the USD will fall dramatically, all countries will change USD to EURO so they can buy oil from OPEC, big investors will move to Europe and the "living on debt" tehnique will fall.

Nowadays the USD is artificially maintained by political arrangements beetween USA, China, South Corea, Taiwan and Japonia. These countries are producing almost everything USA os cunsumming. USA lend them USd so they can produce, then they sell the goods on the american market and they pay their debts back to USA.

Bankers and economists warned that if Asia doesn't support the USD through such unfundamentated economical tehniques it will fall dramatically. And Asia begins to pass on EURO too, because they need oil and OPEC will sell oil in EURO soon.

So Bush made an "Axis Of Evil" - all countries which sell USD on EURO or those who convert their national reserves on EURO. They'll attack these countires (Irak, Iran, Syria, Venesuela etc) and they'll have fake governments there which will sell oil for USd, as it was before.

This is the reason why Great Britain didn't agreed the EURO because if they did they were on the opposite side now. Britanics will be sly as always: is USA does a good job they'll stay with the liras, if EU the war they'll go for EURO ( they postponed this too much time, despite the moment losings (http://www.nytimes.com/financialtime...510816173.html).

So this war will decide if USA will still be the world's superpower.
This is also why USA sent so many troops: Irak is only the beginning, the first battle.
Regardless who's the winner the war will be way, way longer...

Could this be true?.....Damn right it is! This whole war is about
money and in a certain degree a war between the Dollar and the
Euro. Excellent post and just SPOT ON!!!


DynaMite :thumbsup

ServerGenius 03-22-2003 03:14 AM

Thatīs why so many EU countries are against this war. Only
Spain agrees with it. Note that Spain is the biggest money drain
of the EU.....their even worse than some of the "New" countries.
Spain just smells US money for supporting Bush.

Sly mentioned this was about money now instead of oil.
Well itīs both. If oil is about to be paid in Euroīs instead of
dollars....go figure what that will do the US economy.

DynaMite :2 cents:

sacX 03-22-2003 04:14 AM

Quote:

Obviously someone came up with it who is totally unfamiliar with market economics.
Actually from my quick read it is bang on with market economics. The Federal Reserve has basically been printing money to fund this war and to supposedly stimulate the economy. There have been massive injections of liquidity to try and jump start the economy (btw this isn't a conspiracy this is common knowledge).

Interest rates are soo low to encourage borrowing. The immediate impact of this is that the USD has been in a downward spiral for the last year or so.

Although people in the US might not realise it the USD's your are holding today are worth ~20% less than they were this time last year.

Now this whole thing about this war being about the Euro sounds far fetched, but on a basic level it does make sense. If people will buy and sell oil in euro's as opposed to USD then the market falls out of the USD. What determines the price of the USD is supply and demand. If other things being equal and oil is traded in euros as opposed to USD then demand for USD is greately reduced, therefore the price of the dollar drops.

ServerGenius 03-22-2003 05:15 AM

Exactly All the interest rate drops were to encourage to start
spending/investing which brings in money and can be used to
pay off the "borrowed" dollars. that were not backed by gold.

On top of that if the US has to buy Oil with Euros
instead of their own dollar it gets worse.

Of course the EU is not interested to change the situation. For
them the oil price in euros is a lot better. So there are not too
many countries interested in changing that.

Add that to all the nonsense the US is using to go to war and
acting to be the liberators of the Iraqi people and you have
pretty much summed up what this war is all about.

DynaMite :2 cents:

dinkz 03-22-2003 05:51 AM

Quote:

Originally posted by flashfreak
The jews have all my symphathy, I have clients jews, I had teachers jews and I strongly believe they're one of the smartest race on earth.
Excuse me, but I though there was only one human race on earth today, the Homo Sapiens Sapiens. Please correct me if I'm wrong.:winkwink:

flashfreak 03-22-2003 06:58 AM

Quote:

Originally posted by dinkz


Excuse me, but I though there was only one human race on earth today, the Homo Sapiens Sapiens. Please correct me if I'm wrong.:winkwink:

you're wrong.

?race? is seen to represent a population that is biologically distinct according to some defined parameter. It is also used interchangeably with the term ?subspecies? by most researchers when race is defined by biological parameters

UnseenWorld 03-23-2003 12:47 AM

Quote:

Originally posted by flashfreak

I'm lost.. you have every appearence of being a retard . I was refering to this: "The USD is printed in a single place: Federal Reserve USA, represented by a PRIVATE JEWISH BANKS CONSORTIUM!!!!. "
As you can see some words are capitalized...
The jews have all my symphathy, I have clients jews, I had teachers jews and I strongly believe they're one of the smartest race on earth.
Don't try to prove that I'm antisemite just because you don't like my opinion...

You're not wiggling out THAT easily. Why bring it up, why quote it, unless you want us to think about Jews? And yet what do you (or that quote) mean by "Jew"? Please clarify. Is it the practicing Jew, the ethnic Jew, or is it just a slur one uses against business people one doesn't like?

JeremySF 03-23-2003 01:15 AM

Quote:

Originally posted by flashfreak


The USD is the refference currency on the global market since '50s. The USD is printed in a single place: Federal Reserve USA, represented by a PRIVATE JEWISH BANKS CONSORTIUM!!!!.

Great way to establish credibilty. Start off with the typical anti-Semitic rant about Jewish conspiracies.

Tell me, would you, how we got all this control. Do know how many Jews there are in the world? There are about 14 million. Yeah, that's it. 6 million were killed in WWII, about 1/3 of all Jews in the world were killed.

And in every generation Jews have been persetuted, and generally whatever government they lived under repossessed their homes and money.

So how the fuck do we supposedly control all this shit? Why are you so anti-Jewish?

You obviously have a lot of grave psychological issues you need to work out. Perhaps we can start a fund for you to work out your feelings of inadequacy.

Don't worry, medication can do wonders for you.

Bon voyage!

Lane 03-23-2003 01:15 AM

it all comes down to US vs. EU

this will be a lot clearer in the near future


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