Did you read the link:
Hardly what you implied since you linked the buying to inflation, not the SHARP DROP IN PRICES and then it is not just banks, but a limited set of emerging market central banks who are buying.
The Paul File
- Thread starter Tiassa
- Start date
Did you read the link:
Hardly what you implied since you linked the buying to inflation, not the SHARP DROP IN PRICES and then it is not just banks, but a limited set of emerging market central banks who are buying.
Most states have a "use" tax on any exchange of goods, which often includes getting a permit for a garage sale with a subsequent submitting of sales tax, and you pay tax on a used vehicle when you transfer the title.
eyeswideshut
Registered Senior Member
LOL, you are shooting blanks now...
Glad that I helped you with your answer by providing link to FT, or was it so that it was your conclusion about the situation before reading it from FT ?
"a sharp drop in prices led to the buying by emerging market central banks intent on diversifying their growing foreign exchange reserves"
Now explain me how buying gold diversifies foreign exchange reserves ?
You shouldnt take everything that is in the main media as a face value...
but I can understand, it takes media reading skills to cut through all the bullshit they offer as explanation.
Its quite understandable that the emerging markets are the buyers because western banks are deep in debt and cant afford to buy.
Now, do you really have an opinion of your own about it, I mean first you say that the big players and banks have been always buying gold to hedge against inflation, then you go on to say that there is no inflation, and still, they are buying but now its because of what FT said about it...
No my opinion about Gold hasn't changed one bit.
I pointed out that it has the value about equal to the US Money Supply, so of course central banks will have a lot of it, always have.
The recent buying by the central banks of emerging markets was simply due to the drop in prices of Gold, nothing to do with inflation, which remains low.
I pointed out that it has the value about equal to the US Money Supply, so of course central banks will have a lot of it, always have.
The recent buying by the central banks of emerging markets was simply due to the drop in prices of Gold, nothing to do with inflation, which remains low.
eyeswideshut
Registered Senior Member
And then you go on...
So, how is it ?
Exept when its cheap, they just buy it for...to store a value perhaps ?
In other words; hedge against inflation...
Indeed why would they, because its cheap ? LOL
So, they buy it because its cheap, can you now explain me how "buying gold diversifies foreign exchange reserves ?
Really?
Its pretty hard to figure out where you stand in this, you seem to dig out the answers that suites you best at any given moment.
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eyeswideshut
Registered Senior Member
Yeah, damn teaser sites ! Thanks for searching.
I think you have got it right, I mean that is what I would do in this market turmoil, not a day without scandal, crisis or some kind of bad news in economy now days...me thinks that maybe the dollar is killing itself, no need of help from China.
Been following your posts for years now, one major reason why I joined here !
Was there some point to any of that?
eyeswideshut
Registered Senior Member
Not for you, apparently...
Ivan Seeking
Registered Senior Member
So let's be clear, Ron Paul is either delusional or a liar. In either case, again we see how the right wing is driven by pure fantasy.
If this was just a minor point one might ignore it. But this gets right to the heart of the right-wing platform. It is the difference between having a valid point of view, and deception. What is true is that the economy boomed with a 91% top marginal tax rate!
Given that not one candidate objected, we have to assume that either they too wish to perpetuate a lie, or they are ignorant of the facts. Perhaps this explains their positions.
If this was just a minor point one might ignore it. But this gets right to the heart of the right-wing platform. It is the difference between having a valid point of view, and deception. What is true is that the economy boomed with a 91% top marginal tax rate!
Given that not one candidate objected, we have to assume that either they too wish to perpetuate a lie, or they are ignorant of the facts. Perhaps this explains their positions.
http://blogs.suntimes.com/sweet/2012/01/south_carolina_gop_cnn_debate_.htmlRon Paul said:
In the debate tonight, Ron Paul said that after WWII we lowered tax rates by 30% and the economy boomed. That would seem to be a complete fabrication. What tax rate is he talking about? Beyond that, the top marginal income tax rate was 94% when the war ended.
http://www.ritholtz.com/blog/2011/04/us-tax-rates-1916-2010/
Is Ron Paul simply lying here?
Now compare the debt to GDP ratio, to the tax rates as a function of the year [and President]
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In post 1179, I said that China was reducing the total value of its dollar holdings, (as I predicted they would years ago), so they can dump dollars or back new RMB bonds with gold for central banks, either action very likely to kill the dollar's status as THE international reseves currency, make oil buying with appreciating RMB the norm (instead of depreciating dollars) etc. Here is just released (By US Treasury data, but quoted by China Daily, which I read every day):
“… China made six monthly cuts of US debt in 2011, the department's data showed, trimming its holdings by $27.5 billion from the end of 2010. Yet despite the reductions, China remains the top buyer of US Treasury securities. …"
From: http://usa.chinadaily.com.cn/business/2012-01/20/content_14480524.htm
I also noted that despite running a trade surplus with US (which bring more dollars to China) China is spending even more dollars buying oil, minerals, lumber, food stock (farms), coal, etc. in long-term (up to 30 years) delivery contracts. In other posts I have suggested that China is building / planning 6 aircraft carrier battle groups, not to challenge the US, but make sure these contracts are honored years from now. See post 1179 and earlier post copied in part there for why China will benefit by killing the dollar in a few years (if it has not already drowned in a sea of dollar debt).
Thus, as noted in this tread, long ago, it does not matter much if RP wins or not - the US is doomed anyway. I.e. might as well see how much of the deficits he can actually cut. Find out if there is gold in Ft. Knox. Learn, the hard way, that the FED was useful, etc.
“… China made six monthly cuts of US debt in 2011, the department's data showed, trimming its holdings by $27.5 billion from the end of 2010. Yet despite the reductions, China remains the top buyer of US Treasury securities. …"
From: http://usa.chinadaily.com.cn/business/2012-01/20/content_14480524.htm
I also noted that despite running a trade surplus with US (which bring more dollars to China) China is spending even more dollars buying oil, minerals, lumber, food stock (farms), coal, etc. in long-term (up to 30 years) delivery contracts. In other posts I have suggested that China is building / planning 6 aircraft carrier battle groups, not to challenge the US, but make sure these contracts are honored years from now. See post 1179 and earlier post copied in part there for why China will benefit by killing the dollar in a few years (if it has not already drowned in a sea of dollar debt).
Thus, as noted in this tread, long ago, it does not matter much if RP wins or not - the US is doomed anyway. I.e. might as well see how much of the deficits he can actually cut. Find out if there is gold in Ft. Knox. Learn, the hard way, that the FED was useful, etc.
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Ivan Seeking
Registered Senior Member
It does matter - we need to reelect Obama.
I've been listening to doomsdayers my entire life, and so far, not one has ever been right. But I do know that expectations of failure breeds failure. If we are to pull out of this, we need winners and positive thinking - creative solutions - not negative attitdes and faux prophecies.
So the big news is that China reduced their dollar reserves by... less than 1%? That's not even a hiccup. You're talking about a single month's worth of trade surplus with the US.
And note that, over that same time period, total foreign ownership of US debt was actually increasing, on the strength of British and Japanese purchases.
There is no way to employ 6 carrier battle groups to "ensure" that international resources contracts are "honored" without challenging the US.
But as it is, China doesn't even have one carrier battle group.
Yes China is finding it hard to spend more dollars than its annual trade surplus with the US, but as I recall they did it back in 2008 also. Point is China, like most every one else of importance, is reducing the fraction of their reserves held in dollars as much as they can, even if their dollar holdings are growing, but currently there are not many other choices - China is not ready yet to try to displace the dollar's international role and gold would need to increase again by a factor like it has from the $35/oz days or more. I think part of reserves of some nations will or are switching to SDRs and as part of the deal China will drive to help the IMF is that part of the SDR mix will include RMBs.
Certainly true for years yet, but I expect oil to be priced in RMBs, US in depression, etc. well before China has two carrier battle groups and then also most, it not all, US carriers will be in port to lower oil import requirements and cut military spending.
I.e. all I was saying is that China has no hostile military intent towards the US as it builds a "blue water" navy. Why should it? It is winning WWIII, which is an economic war that started nearly a decade ago.
The US Dollar's share of forex reserves is currently increasing.
http://www.reuters.com/article/2012/01/20/uk-markets-forex-uptrend-idUSTRE80J1LH20120120
The International Monetary Fund's Currency Composition of Official Foreign Exchange Reserves data shows the dollar's share of known global currency reserves rose 1.9 percent in the third quarter over the second quarter to 61.7 percent, while the euro's holdings were down 0.9 percent to 25.7 percent from a year earlier.
The dollar comprised 62.1 percent of known reserves as late as the second quarter of 2010 before falling to 60.2 percent in the second quarter of 2011. Now it's again rising, indicating higher dollar demand that will lift the U.S. currency.
The dollar comprised 62.1 percent of known reserves as late as the second quarter of 2010 before falling to 60.2 percent in the second quarter of 2011. Now it's again rising, indicating higher dollar demand that will lift the U.S. currency.
That is less than clear to me, and many others.
The USA is the guarantor of Taiwanese independence - and main provider of military backing. The USA is also the primary counterweight against China's recent assertiveness in the South China Sea, causing various other countries in the region to bandwagon with the USA. And Obama has recently announced a "strategic pivot" towards Asia (read: China) that involves deploying new US troops near the South China Sea. Then there's American closeness to the Tibetan cause, strategic partnership with India, basic disapproval of the Chinese political system and disrespect of various human rights, etc. Consider the periodic statements from Chinese generals expressing bellicose positions, threatening war in defense of Iran and/or Pakistan, etc.
That analogy is asinine. Relations are nothing like a "war," let alone a World War. It is not a zero-sum game, nor do the main players relate to one another in a hostile way. This is just so much overwrought rhetoric to sex up your pet fantasy scenario.
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"... The U.S. dollar's importance as a reserve currency has been declining for more than a decade. The highest percentage, 70.9 percent, was reached in 1999 as compared to the 2010 level of 61.4 percent. The value of the dollar, as measured by the Dollar Index (DXY), has declined over the same period. The DXY peaked at 121.02 in 2001 when the dollar still made up 70.7 percent of global reserves. The following year the reserve percentage dropped to 66.5 percent and the DXY dropped to 101.80. The decline in the dollar's reserve percentage over the last 11 years from 70.9 percent to 61.4 percent, was mirrored by a decline in the dollar's value as measured by the DXY from 121.02 to 75.63. The moves in the DXY are a multiple of the corresponding moves in the reserve percentage for several reasons; one is that while the reserve number is an absolute percentage, the index reflects the compounding effect of selling the dollar and also buying another currency. Other factors which may distort the relationship between the two measures are the inclusion of gold, SDR's and IMF reserve positions in the reserve totals.
There is a good chance that this trend will continue according to a recent survey of central bank reserve managers, sovereign wealth funds and multilateral institutions. ..." From: http://www.svb.com/blogs/rgroenveld/central-bank-reserve-diversification/
This is the first hit of Google search on “Percent of central bank reserves held in dollars.” Others tell the same facts. I remember that back in 2008 the dollar was 67% of central bank reserves. You have “cheery picked” a very unusual three month period when this decade long trend AWAY from holding dollars very slightly reversed.
The reason it did is the same reason the 10 year Treasury bond is paying the least ever: 1.8%.* Namely many including central banks are buying dollars to decrease their exposure to the Euro. The dollar is “the least dirty currency shirt” in the laundry pile now, but definitely not when China makes it possible to hold RMBs in reserves nor as the price of gold climbs, with China's increasing buying and probably not when the RMB is part of the SDR.
* It is insane** to give the Treasury $10,000 for their promise to give you back $180 more after ten years. Even the current rate of inflation will make that a loss in purchasing power, and long before the 10 years is up, inflation probably will be double digits as there is no limit on the FED's printing presses in sight.
** That rate of return is LESS than the average dividend yield on the stocks in the DOW index! AND in 10 years holding them is very likely to double your capital investment to $20,000!
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Huh.... I'm thinking you need to visit Michigan - all the doomsayers... well, it actually came true. :shrug:
RE: China and USA
China and the USA are, IMO, one huge economy and at this point .... and we NEED one another.
RE: Tax on stock trades.
I'm generally for reducing tax: (1) not all countries have capital gains tax and (2) the rules vary across the world and (3) large companies and individuals slip through legalese loopholes. So, lets scrap that tax too.
RE: Garage Sale Tax
This is absolutely retarded IMO. And as for paying tax on a private individual selling their car - more retarded. What happens all the time is the price is "negotiated" so that the seller doesn't pay much tax and the payer gets a better deal. That's really besides the point. Why the f*ck does the State have any right to ANY of the monetary transaction between two private individuals selling something? Why?
That aside, what if the seller is loosing money on their car? How do you calculate that lose?
Lastly, the State is extremely wasteful. IMO the money would be better spent by Citizens than by government agencies.
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Are you talking about Michigan or Detroit?
Because the median income is 41k in Michigan.
Well the rich will all be singing your praises.
Eliminating tax on stock gains will make the very wealthy much more wealthy.
Isn't that the definition of virtually all retail sales?
Which would mean you are against Sales tax as well.
Hmm, no Capital Gains and No sales tax.
Do you realize you have gutted the tax base of both State and Federal Government?
It wouldn't surprise me that the medium income is relatively high because there's a lot of retired workers from General Motors AND 25% of the population has up and left. Which is really interesting because I see people from Michigan all over the place: Japan, NZ, Europe, Australia... everywhere. I just met someone from Flint the other day in Australia and then someone from Dearborn doing and advanced degree and marrying someone from NZ (which seemed a tiny bit dodgy, but, whatever).
So, I don't think MI is so clear cut. (A) So many people left the state and (B) so many babyboomers retired out of General Motors, Ford and Chrysler with great retirements. I mean, my grandfather was on 85K back in the 1985. I wonder what the medium income is for your average 24 year old with and without a degree? I know a cousin who works at GM for 36K.
As for cutting tax. Yes, this is interesting. I mean, you seem to think OMG you're "gutting" State and Federal Agencies. OK, but I didn't say I'm not supportive of what some of those agencies do. It really is something that will need thought through. As it stands the current monetary system is not working. At least as I see it. 12.5 BILLION in bonuses as the country sinks into debt and despair.
But, people have a propensity for accepting a shittier lot in life. Look at how long NK has lasted. Even 3 MILLION people starved to death and they still put up with the bullshit. It's crazy. Look at Iran. They should be living like any other European country, instead their living under a repressive Theocrapsy. People are like that.
Lets see how things go this year and the next in the USA.
Ivan Seeking
Registered Senior Member
What does this have to do with the monetary system? Do you mean capitalism?