Can't say,Quote:
Originally Posted by OhOh
but the US may now, not raise interest rates.
Ron Paul interview: China devaluations, US rates, and the current currency war:
Ron Paul: Fed may not hike because 'everything is vulnerable'
Printable View
Can't say,Quote:
Originally Posted by OhOh
but the US may now, not raise interest rates.
Ron Paul interview: China devaluations, US rates, and the current currency war:
Ron Paul: Fed may not hike because 'everything is vulnerable'
https://teakdoor.com/images/imported/2015/08/1059.jpg
The hitting the numbers doesn't seem to work anymore.
I was under the impression that the Fed had implied they would have to raise rates as the economy was expanding so fast. :)Quote:
Originally Posted by Black Heart
Have they been misleading the world with their bogus promises?
As for may not, or possibly, or next month statements, they appear to be covering their backs. Once again inferring they would hit the numbers only to have to backtrack and show their lack of forecasting skills or abundance of the ability to lead the sheeple by the nose, to destruction.
All from the worlds "exceptional" countries financial gurus.
What a bunch of bastards.
What, in theory would happen to the Chinese economy if the Chinese did raise there own rates? Would the export of Chinese capital, to find a better return, diminish? Would the now, not exported, capital be invested in productive Chinese industry? Would their exporters turn to the Chinese markets as their prime customers? Could the Chinese economy be sustained with this Chinese/BRICS/Silk Road focus?Quote:
Originally Posted by Black Heart
What would the Feds response be? Raising their own rates, wouldn't that crash the US dollar + bond markets. As your link implies, are they able to increase rates at all? The US dollar and Bonds would go up initially, but once the world saw the repayment in worthless US dollars, the game would be up, yes?
China is risking starting currency war beginning in Asia. Maybe. This does give the US Fed pause about raising rates and (perhaps) increasing the value of the dollar. Governments do adjust currencies to balance exports.
Everything the Fed has hinted at so far has to be reevaluated due to this China move.
China is an investment driven economy. The manufacturing segment has been driven by investment but manufacturing is only 1/3 of GDP. Investments have slowed dramatically.
China is in a liquidity crisis. It is trying to prop up its banks, its stock market, its real estate sector (think ghost cities etc.) and now its currency which fell faster than anticipated.
China has runaway debt. Many gossip that it's so rich the USA owes it money but that's bullshit. Maybe in the sense that China buys US treasuries so that it will have dollars to engage in international trade but China can't sell those or it's out of biz. China is headed for a debt that's 250% of GDP which will be 2.5X what the US or the UK have.
China's Debt Load To Hit 250% Of GDP In 5 Years, IMF Says
Submitted by Tyler Durden on 08/15/2015 20:15 -0400
Again, the Fed will have to reevaluate.
^ Thanks.
Still missing the numbers.
https://teakdoor.com/images/smilies1/You_Rock_Emoticon.gif
They backtracked on a rate hike 2 years ago. Caused "concern" to even discuss a rate raise. Shows that things ain't so rosy.Quote:
Originally Posted by OhOh
Now, b/c of the Chinese devaluation, they can avoid having to raise rates if (according to the "pundits.")
They certainly have led the sheeple.Quote:
As for may not, or possibly, or next month statements, they appear to be covering their backs. Once again inferring they would hit the numbers only to have to backtrack and show their lack of forecasting skills or abundance of the ability to lead the sheeple by the nose, to destruction.
I remember when Greenspan would make the typical abstract comments at the usual Fed hearings and the market would rally. Hooray.
It's pretty sad.
I remember reading Woodward's biography of Greenspan called "Maestro."
What a "Maestro."
And then the sentiment changed toward not only Greenspan by Bernanke. Same circus, different acrobats.
Yeah, Larry Summers is "so smart." Everyone talks about how smart he was. And Krugman won the Nobel Prize - for international economics - now he's a NY Times partisan hack that writes at 11th grade high school level for the masses.Quote:
All from the worlds "exceptional" countries financial gurus.
Insert the word "rich" between the words "of" and "bastards."Quote:
What a bunch of bastards.
You tell me mate.Quote:
Originally Posted by OhOh
How would I know.
Or, are you being facetious or rhetorical?
:frog:
Tried to green you but I was out of ammo.Quote:
Originally Posted by JBaker
Informative post. And, 250% of GDP is quite a lot.
Apparently the BRICS countries now occupy 5 places in the top ten of GDP PPP, including 1st China (Worlds No1 Economy), 3rd India, 5th Russia and 7th Brazil. USA is in 2nd place, the EU brings up the rear with 4 places and Japn is at 4th place.
"Fresh recount data from The World Bank (July 1, 2015). It has shown that Russia overtook Germany last year, and despite sanctions, falling oil prices and the Ukrainian conflict, Russia's economy keeps growing by 4% and it has been ranked fifth in the world in terms of GDP PPP."
https://teakdoor.com/images/imported/2015/08/1071.jpg
https://teakdoor.com/images/imported/2015/08/1072.jpg
^^^ Don't get too excited about economy size. China has 1.3 billion mouths to feed with its economy while the US has about 1/4 of that or less. Remember, China is communist and is, er, uh, supposed to support its people or so communists promise.
According to the World Bank the income per capita in China is just under $US7,000 while in the US it's $54,000.
China is the West's beotch as I've mentioned before. It provides cheap labor to manufacture things invented in the West using techniques and equipment invented in the West, supervised by the West and only at the pleasure of the West.
I say "at the pleasure" because more than one person including Donald Trump would like to place stiff tariffs on imports from China while right now there are none into the US. A 30% tariff would shut China down and send those jobs back to the USA.
The USA hasn't forgotten how to manufacture and shipping raw materials to China and then shipping product back is expensive. Labor in China is no longer cheap.
The US now has robotics and other techniques to reduce labor, making Chinese labor redundant. The US now has the ability to manufacture clothing without human intervention. At one time China manufactured much of the clothing for the US but the US first has to ship them the cotton.
China is hanging on an edge in a severe liquidity crisis and out of control debt while not really owning much of anything in the world. For those who have liked to say "China is so rich the USA owes it money" I can only say stop listening to pretty blonde TV announcers who don't know that they are talking about. China must hold US treasuries to engage in international trade because few will accept or pay for things with its money. End of.
^^ I neglected to say it in so many words. China's economy - GDP - is just 1/4 that of the US per capita. Obviously the per capita income is less than 1/7th that of the US. Apples to Apples China's economy would be 4+x as big as the US if it were first world and had the technology and other structures.
China picks from the bones of the West. It gets the table droppings. Right now it's trying to rescue its economy but it doesn't have the resources. It's rapidly shooting toward a debt that will be 2.5x what the US and the UK have (YES, the UK's debt is as big as the US as a percentage of GDP!! Both the US and the UK are more like 100% of GDP - manageable.) but China doesn't have the economic engine to support it. If people want to discuss a country that's irredeemably deep in debt they should talk about China. They should also talk about Japan which also has a debt that's 250% of GDP. Asia is in trouble.
This is a serious and deep crisis for China. The Emperor has no clothes.
Some improvements in the US economy, but many parts of it are stagnate. This article notes the Japan contraction and Europe's lackluster growth.
U.S. Lacks Ammo for Next Economic Crisis
Policy makers worry fiscal and monetary tools to battle a recession are in short supply
U.S. Lacks Ammo for Next Economic Crisis - WSJ
^^ I can't read that. I don't have a subscription and I'm not about to pay for one in this age of ad-driven sites. The WSJ is good but not that good.
You may be correct, but which Emperor is the question!Quote:
Originally Posted by JBaker
The "markets" are speaking!
Nasdaq down lowest in 6 months:
https://teakdoor.com/images/imported/2015/08/1246.jpg
UK down to Feb 2013 level:
https://teakdoor.com/images/imported/2015/08/1247.jpg
Dow down to Oct 2014 level:
https://teakdoor.com/images/imported/2015/08/1248.jpg
Yuan up v US$:
https://teakdoor.com/images/imported/2015/08/1249.jpg
Gold heading higher in US$ and Thai Baht:
https://teakdoor.com/images/imported/2015/08/1250.jpg
https://teakdoor.com/images/smilies1/You_Rock_Emoticon.gif
No problems though, the bad data is released the market falls, the FED speaks and the markets lift, the FED respeaks (narrative change) and the market tumbles. God bless clarity from the FED.
https://teakdoor.com/images/imported/2015/08/1251.jpg
Key word here is PPP.Quote:
Originally Posted by OhOh
It means, ignoring that PPP, the money and power are still there in real dollar values, and not in Russia.
You can't buy consumer goods or guns for your dictatorships with PPP.
Ah, the "real US$" now there's an oxymoron!
How's that? Please do explain. Weak euro... oops
Fed printing imaginary digital US$s, expanding debt, reducing "real" GDP, increasingly underemployed citizens, increasingly indebted citizens ................. Is their anything of substance which gives the green paper any "real strength?
It does have, of course, the ever present strong arm, the US military. Which comes in handy to demolish 3rd world countries and annihilate it's people when they dare to excuse themselves from it's tentacles.
Exceptionalism and strength in fear that's all. The US$ legacy which many looked up to and emulated has turned into a very bitter pill which will never forgotten.
As for the rest of the currencies some have been the top dog in history, some have never. Time and tide awaits nobody.
The real strenght is in real market value. You can't fight that.Quote:
Originally Posted by OhOh
That is just silly. Now US Military is backing up USD? You heard that in boot camp Moscow?Quote:
Originally Posted by OhOh
Where does one find "a real market" to trade these "real US$"? In North America, Europe, Asia, which do you consider real if any?Quote:
Originally Posted by Exit Strategy
Is that where you get kicked up the arse until you submit. I've been to scout camp, space camp, guides camp even camp camp, but I've never been to a boot camp, is it one for shoe fetishers?Quote:
Originally Posted by Exit Strategy
This may interest you.
https://www.youtube.com/channel/UCtV...LuEjJfAclMbbFA
https://teakdoor.com/images/smilies1/You_Rock_Emoticon.gif
August 28th 2015 Atlanta fed GDPNOW indicates a return to sub 1% annual US GDP growth. Missed the "consensus" numbers again. The Obama "hope" still not working. Change for the worse was not what the electorate wanted.
Less US inflation = Still in a depression!
https://teakdoor.com/images/smilies1/You_Rock_Emoticon.gif
I'd like to see the demographical breakdown.
By AIMEE PICCHI MONEYWATCH September 1, 2015
The surging ranks of America's ultrapoor
733 Comments
By one dismal measure, America is joining the likes of Third World countries.
The number of U.S. residents who are struggling to survive on just $2 a day has more than doubled since 1996, placing 1.5 million households and 3 million children in this desperate economic situation. That's according to "$2.00 a Day: Living on Almost Nothing in America," a book from publisher Houghton Mifflin Harcourt that will be released on Sept. 1.
The measure of poverty isn't arbitrary -- it's the threshold the World Bank uses to measure global poverty in the developed world. While it may be the norm to see families in developing countries such as Bangladesh and Ethiopia struggle to survive on such meager income, the growing ranks of America's ultrapoor may be shocking, given that the U.S. is considered one of the most developed capitalist countries in the world.
"Most of us would say we would have trouble understanding how families in the county as rich as ours could live on so little," said author Kathryn Edin, who spoke on a conference call to discuss the book, which she wrote with Luke Shaefer. Edin is the Bloomberg Distinguished Professor of Sociology at Johns Hopkins University. "These families, contrary to what many would expect, are workers, and their slide into poverty is a failure of the labor market and our safety net, as well as their own personal circumstances."
To be sure, the labor market has been rocky for many Americans, not just the poorest. But changes in how employers deal with their low-wage workers have hit many of these poor Americans especially hard, such as the rise of on-call scheduling, which leaves some parents scrambling for hours and dealing with unpredictable pay.
http://www.cbsnews.com/news/the-surg...cas-ultrapoor/