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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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murchr wrote:hisah wrote:webish wrote:Perfect place to go for holiday right now. Four months ago I was there, things were 'dirty' cheap and I couldn't resist to 'overshop'. Tourism at the major Greek Islands also very affordable. I agree with this comment from that article; QUOTE: " I feel bad for the ordinary Greeks, but can someone explain why, in today's economy, deflation (falling prices) is a bad thing? Shouldn't that be a good thing?" Deflation is bad if your economy is 70% powered by consumerism. Deflation shrinks credit supply. This shrinks purchasing power (austerity by gubberment, consumer spending cuts, bankruptcy, jobs destroyed etc). The economy tanks since the blood (credit) is no longer sufficient to power it up. Since most economies these days have taken to consumerism esp in euroland and US, deflation is a nightmare for the central banks and treasury heads in gubberment. Thus the endless QE to stimulate and defeat by all means necessary that ugly deflation monster.
Well this QE thing has introduced other cancers which are going to worsen the deflation nightmare in future, but that is another topic.
Does this mean goods are sold at a loss? Surely the cost of production cannot be the same as that of 1960 That's how deflation works. Take a loss for a while and hope for the best (recovery). $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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hisah wrote:murchr wrote:hisah wrote:webish wrote:Perfect place to go for holiday right now. Four months ago I was there, things were 'dirty' cheap and I couldn't resist to 'overshop'. Tourism at the major Greek Islands also very affordable. I agree with this comment from that article; QUOTE: " I feel bad for the ordinary Greeks, but can someone explain why, in today's economy, deflation (falling prices) is a bad thing? Shouldn't that be a good thing?" Deflation is bad if your economy is 70% powered by consumerism. Deflation shrinks credit supply. This shrinks purchasing power (austerity by gubberment, consumer spending cuts, bankruptcy, jobs destroyed etc). The economy tanks since the blood (credit) is no longer sufficient to power it up. Since most economies these days have taken to consumerism esp in euroland and US, deflation is a nightmare for the central banks and treasury heads in gubberment. Thus the endless QE to stimulate and defeat by all means necessary that ugly deflation monster.
Well this QE thing has introduced other cancers which are going to worsen the deflation nightmare in future, but that is another topic.
Does this mean goods are sold at a loss? Surely the cost of production cannot be the same as that of 1960 That's how deflation works. Take a loss for a while and hope for the best (recovery). Wao! No one want to be like the greeks at this moment. Terrible. I'd rather close shop "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 9/4/2009 Posts: 700 Location: Nairobi
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Confessions of a Quantitative Easer Read more: http://www.zerohedge.com...nly-say-im-sorry-america“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Quote:I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.
Markets hate confessions...
Today's POMO is $6B. Volatility is about to make a come back in global markets...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Money is about to be made!! So Bruce Berkowitz has offered to buy FNMA & FMCC outright, in response to the government trying to shut them down. This is good news to a small investor coz it means the two ( or several) big giants will fight over these cash cows, while we just sit and watch the stocks grow! And on top of that Bill Ackman has revealed he owns 10% of the two stocks. Oh my gosh, this is about to get real interesting, if the activist fights the government with the zeal he usually has, and Berkowitz's reputation makes other fund managers buy the stocks, lemme stop thinking, coz these stocks are about to heat up! http://www.forbes.com/si...buyout/?partner=yahootix
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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France's Big brother speed trap - If only Kidero and the govt would take a cue http://www.businessweek....ons-in-speeding-tickets
Another interesting read about Abenomics http://www.businessweek....-widen-japans-income-gap"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Switzerland’s Proposal to Pay People for Being Alive.Quote: Every month, every Swiss person would receive a check from the government, no matter how rich or poor, how hardworking or lazy, how old or young. Poverty would disappear. Economists, needless to say, are sharply divided on what would reappear in its place — and whether such a basic-income scheme might have some appeal for other, less socialist countries too. Will we ever get there? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 11/13/2006 Posts: 551 Location: Nairobi
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China is growing increasingly militaristic and is setting off tensions in the East China Sea. The Yen is curiously resonating to the dispute. Read more: http://www.scribd.com/do...-East-China-Sea-Dispute
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Do they use Yen or Yuan? The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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@Jerry by Yen,he meant Japan which feels threatened by China's increasing military might. The East China sea separates the 2 nations as well as the Koreans. @SufficientlyP
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Rank: Member Joined: 11/13/2006 Posts: 551 Location: Nairobi
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@Sufficiently, thank you. @Jerry, in an upcoming report, I will explore the correlation between some of the Yen's turning points and dates provided in the article: http://www.scribd.com/doc/187522914/MCMXLI
The world is a well structured system. Sufficiently Philanga....thropic wrote:@Jerry by Yen,he meant Japan which feels threatened by China's increasing military might. The East China sea separates the 2 nations as well as the Koreans.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Got it! Thanks both. The opposite of courage is not cowardice, it's conformity.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Thai protests are quite fascinating if you follow the historical pattern - http://www.bbc.co.uk/news/world-asia-25173348
The civil fabric is quite advanced here and would give any gubberment a hard time. Most gubberments are dinosaurs... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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hisah wrote:Thai protests are quite fascinating if you follow the historical pattern - http://www.bbc.co.uk/news/world-asia-25173348
The civil fabric is quite advanced here and would give any gubberment a hard time. Most gubberments are dinosaurs... While on the other side of the world, the Ukrainian president is staring at yet more protests too: http://www.bbc.co.uk/news/world-europe-25171534
http://www.bbc.co.uk/news/world-europe-25164990
http://www.cbc.ca/news/w...h-with-police-1.2446485
Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Kenyan banks to reveal details of US customers - http://www.businessdaily...6/-/itsmcb/-/index.html
@kk - read that article. Speculators are chasing global stocks that have surpassed global shaky fundies while gubberments are high on chasing foreign taxation of their citizens. The music is about to stop... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 8/29/2008 Posts: 571
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The music(on US citizens)stopped Long time ago.But the inertia may just
Just be about to get into Kenya.Remittances from Kenyans in US might be affected.
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Rank: Member Joined: 7/23/2009 Posts: 526
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Ali Baba wrote:The music(on US citizens)stopped Long time ago.But the inertia may just
Just be about to get into Kenya.Remittances from Kenyans in US might be affected.  I had not looked at from this perspective. Accept no one's definition of your life; define your life.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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As the (economic) world turns...Chinese Yuan Surpasses Euro, Becomes Second Most Used Currency In Trade Finance http://tinyurl.com/l4ho4c2
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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[quote=Cde Monomotapa]As the (economic) world turns...Chinese Yuan Surpasses Euro, Becomes Second Most Used Currency In Trade Finance http://tinyurl.com/l4ho4c2[/quote] The yuan growth as per SWIFT statistics is a parabolic! From 1.69% share of trade finance in Jan 2012 to 8.66% in Oct 2013.
Top 5 nations using the yuan are China, HongKong, Singapore, Germany and Australia. Yes, ze Germans that are ze pillar of ze euro...!. Is this why they're asking for their gold reserves from the USD vault masters...
It'll be interesting to watch how the BRICs bank will pan out vs WB/IMF...
This crossroad must be resolved soon...
#Greatest wealth transfer episode. Can't miss it, won't miss it 
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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hisah wrote:[quote=Cde Monomotapa]As the (economic) world turns...Chinese Yuan Surpasses Euro, Becomes Second Most Used Currency In Trade Finance http://tinyurl.com/l4ho4c2[/quote] The yuan growth as per SWIFT statistics is a parabolic! From 1.69% share of trade finance in Jan 2012 to 8.66% in Oct 2013.
Top 5 nations using the yuan are China, HongKong, Singapore, Germany and Australia. Yes, ze Germans that are ze pillar of ze euro...!. Is this why they're asking for their gold reserves from the USD vault masters...
It'll be interesting to watch how the BRICs bank will pan out vs WB/IMF...
This crossroad must be resolved soon...
#Greatest wealth transfer episode. Can't miss it, won't miss it
After the stint with Casinonomics - Zim Edition, I can testify it's nothing nice (R.I.P ZWD - 2009). Rule books are thrown out the window aka unconventional policies. Indeed, we have to deal with these changes since they are of a global scale. To be on the right side of history re-alignment has to start now. I tell you. World War III is always around the corner, but as long as the Big Boys keep it business then all will be fine*. Meanwhile, Africa must continue to model itself to bank these global economic reforms Like global finance & investment in infrastructure as a store of value too is a sure way to beat the Casinos.
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