Lots of great economic news LOL!
#1
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Lots of great economic news LOL!
Oil price at 32 month high, weak dollar, gold at record high, silver highest since 1980.... Where is it going to end?
Oil price surges to 32 month high
Let's not forget to factor in UK retail spending contracting, UK manufacturing weak, UK government focused on anywhere but home... Happy Days
Oil price surges to 32 month high
Let's not forget to factor in UK retail spending contracting, UK manufacturing weak, UK government focused on anywhere but home... Happy Days
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How convenient for our skint government whom make a large percentage of their tax revenue from fuel taxation. I wonder if Gadaffi knew what they were planning
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Sold off 400 tonnes of the stuff at a 20 low price (even after getting advice not to), in today's terms he lost £5Billion on that deal.
Last edited by DCI Gene Hunt; 08 April 2011 at 12:35 PM. Reason: I estimated £2 Billion - whereas £5 Billion is more accurate
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Not only that but he announced he was going to sell it so guess what? He got an even lower price than he would have done if he'd kept his gob shut. Rumour mill was that it was a favour to Goldman Sachs (for what I can't remember and can't be ar5ed to search!) ...
Dave
#15
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Here's an article that touches on it - http://online.wsj.com/article/SB1000...782421930.html
The next question is what the U.S. is going to do next? A book I read a while ago, which was written in 2004, pointed out the figures: they have massive liabilities for social security and the like, which even back then weren't possible to pay.
In a paper from 2003, by a senior economist at the Federal Reserve Bank of Cleveland and the former deputy assistant secretary of economic policy at the U.S., they asked what the situation would be if the U.S. government today (in '03) could get its hands on all the revenue it expected to get in the future, but had to use it, today, to pay off all future commitments, including debt service. Would the discounted present value of its future revenues be enough to cover the discounted present value of all its future expenditures?
Their calculations showed a shortfall of $45 trillion. And that was in '03... whereas today these obligations have been extended much further, and they have the massive public debt too.
They also offered four alternative ways of making up the shortfall, starting immediately.
1) Raise income taxes (individual and corporate) by 69%.
2) Raise payroll taxes by 95%.
3) Cut Social Security and Medicare Benefits by 56%.
Or 4) Cut federal discretionary spending to zero.
Now, none of these things are going to happen (and remember the figures will be substantially higher now. So it does make you wonder what is going to happen here? Considering the way governments have gone about things in the past, inflating away the public debt for starters does seem likely. But it still doesn't get rid of these future obligations. Anyway, safe to say there will be more inflation.
Then, as if that wasn't bad enough, you have the fact that interest rates in the bond market for the U.S. and other developed countries are staying very low because the world is so used to the status quo, and is so unwilling to believe the reality of the situation. When you look at the above figures, the situation for America is crystal clear, but nothing happens because people refuse to believe such an amazing situation, partly because they've had the reserve currency for so long and U.S. bonds have historically been seen as a safe haven.
The bond market will only stay the way it is until the practical aspects start to kick in... they can only kid themselves so long. But once they start to feel the effects the faith will vanish.
Anyway... it's all so far away in the future it's probably not worth worrying about, it's a Friday FFS and I'm off out.
^^ That in itself is the attitude that's maintaining low rates in the bond market.
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According to the CEO of on the biggest banks on the planet, batten down the hatches.
The next four months are crucial to a major European economy going under. Bigger problems than Ireland/Portugal/Spain/Greece put together. It is now in a crucial phase. His strategy has been to build a war chest/deposit base of 500bn euros.
Get into cash and stuff it under the mattress.
The next four months are crucial to a major European economy going under. Bigger problems than Ireland/Portugal/Spain/Greece put together. It is now in a crucial phase. His strategy has been to build a war chest/deposit base of 500bn euros.
Get into cash and stuff it under the mattress.
#17
Their calculations showed a shortfall of $45 trillion. And that was in '03... whereas today these obligations have been extended much further, and they have the massive public debt too.
They also offered four alternative ways of making up the shortfall, starting immediately.
1) Raise income taxes (individual and corporate) by 69%.
2) Raise payroll taxes by 95%.
3) Cut Social Security and Medicare Benefits by 56%.
Or 4) Cut federal discretionary spending to zero.
Now, none of these things are going to happen (and remember the figures will be substantially higher now. So it does make you wonder what is going to happen here? Considering the way governments have gone about things in the past, inflating away the public debt for starters does seem likely. But it still doesn't get rid of these future obligations. Anyway, safe to say there will be more inflation.
Then, as if that wasn't bad enough, you have the fact that interest rates in the bond market for the U.S. and other developed countries are staying very low because the world is so used to the status quo, and is so unwilling to believe the reality of the situation. When you look at the above figures, the situation for America is crystal clear, but nothing happens because people refuse to believe such an amazing situation, partly because they've had the reserve currency for so long and U.S. bonds have historically been seen as a safe haven.
The bond market will only stay the way it is until the practical aspects start to kick in... they can only kid themselves so long. But once they start to feel the effects the faith will vanish.
Anyway... it's all so far away in the future it's probably not worth worrying about, it's a Friday FFS and I'm off out.
^^ That in itself is the attitude that's maintaining low rates in the bond market.
They also offered four alternative ways of making up the shortfall, starting immediately.
1) Raise income taxes (individual and corporate) by 69%.
2) Raise payroll taxes by 95%.
3) Cut Social Security and Medicare Benefits by 56%.
Or 4) Cut federal discretionary spending to zero.
Now, none of these things are going to happen (and remember the figures will be substantially higher now. So it does make you wonder what is going to happen here? Considering the way governments have gone about things in the past, inflating away the public debt for starters does seem likely. But it still doesn't get rid of these future obligations. Anyway, safe to say there will be more inflation.
Then, as if that wasn't bad enough, you have the fact that interest rates in the bond market for the U.S. and other developed countries are staying very low because the world is so used to the status quo, and is so unwilling to believe the reality of the situation. When you look at the above figures, the situation for America is crystal clear, but nothing happens because people refuse to believe such an amazing situation, partly because they've had the reserve currency for so long and U.S. bonds have historically been seen as a safe haven.
The bond market will only stay the way it is until the practical aspects start to kick in... they can only kid themselves so long. But once they start to feel the effects the faith will vanish.
Anyway... it's all so far away in the future it's probably not worth worrying about, it's a Friday FFS and I'm off out.
^^ That in itself is the attitude that's maintaining low rates in the bond market.
It's funny really - so much about the present financial system is a hall of mirrors, it's doomed to fail again at some point in the future. We could have let it fail during the credit crisis but instead with did what seemed like the least painful think which IMHO will mean more pain down the line that what we would have had in 2008.
....and another fiat currency will be added to the list of histories failed fiat currencies.
#18
According to the CEO of on the biggest banks on the planet, batten down the hatches.
The next four months are crucial to a major European economy going under. Bigger problems than Ireland/Portugal/Spain/Greece put together. It is now in a crucial phase. His strategy has been to build a war chest/deposit base of 500bn euros.
Get into cash and stuff it under the mattress.
The next four months are crucial to a major European economy going under. Bigger problems than Ireland/Portugal/Spain/Greece put together. It is now in a crucial phase. His strategy has been to build a war chest/deposit base of 500bn euros.
Get into cash and stuff it under the mattress.
#19
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The US is insolvent - but who is going to call in their loans? China - if they did it would finish China for decades.
It is better to brush it under the carpet and pretend it will all go away!
It is better to brush it under the carpet and pretend it will all go away!
#20
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my father told me a something many many years ago
no company goes out of business for not making a profit, they go out of business for not having any cash
the US will not run out of cash (any time soon)
no company goes out of business for not making a profit, they go out of business for not having any cash
the US will not run out of cash (any time soon)
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