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Reader Comments On “China Just Ended The Dollar Peg (…For The Most Part)
Speedspirit I am confused how China and the US can prop up the failing nations or should I say for how long. What is going to keep the morphing system from imploding from nations such as Greece, Spain, Italy Puerto Rico and Argentina from setting off the derivatives bomb?
The stronger nations of the world cannot watch these bankrupt nations go hungry or without staple needs, can they?
If things are going to get bad enough to see some corporate and bank failures then things are going to be worse for these mentioned nations. Does more debt in SDR valuation really help?
~~~
Reader Comments On “China Just Ended The Dollar Peg (…For The Most Part)
Speedspirit I am confused how China and the US can prop up the failing nations or should I say for how long. What is going to keep the morphing system from imploding from nations such as Greece, Spain, Italy Puerto Rico and Argentina from setting off the derivatives bomb?
The stronger nations of the world cannot watch these bankrupt nations go hungry or without staple needs, can they?
If things are going to get bad enough to see some corporate and bank failures then things are going to be worse for these mentioned nations. Does more debt in SDR valuation really help?
~~~
Speedspirit I can’t but think how the banks or hedge funds will be able to buy the assets of those nations very cheaply. And the corporation and banks that fail too. Just like in 2008 taking out the competition.
This all seems like “they” are just diving up the pie. When you have mentioned a more fair system it seems it is only for the club members that things get more fair.
The prolonging does make the collapse less painful but I worry about the ultimate price. I remember reading about a Tower Of Babel in the Bible and this system is another creation of attempting to override the true system of the Universe. Does anyone see the similarities?
JC Collins All systems corrupt. Some derivatives will fail, and some will not.
I’m explaining a process, not a moral tale of ineptitude.
Most people’s idea of fairness is “what’s in it for me” and “how can I get more while doing less”. Unfortunately these types of attitudes infect all demographics and socioeconomic levels.
In regards to your reference on symbolic and allegorical bible stories, well, they are written as accurate reflections of human deficiencies, and what can be done to correct those deficiencies.
Unfortunately most read something completely different in those stories, like how to blame someone or something else for an externalized human condition which they help create.
Sherry Li Hi JC, is the world market going to crash after Fed rate hike? if Canada’s property going to drop that much surely there would have to be a massive panic event like 2008?
JC Collins Fear not Sherry, the world market will not crash. There will be volatility though.
Canada’s real estate market dropped 50% in 1986 without a worldwide crisis like 2008. Canada is in for a few rough years though. We are about to feel what 2008 was like for everyone else. Especially our friends south of the border.
neal poole Hi JC, Australia with it’s dependence on natural resources and excessive household debt is i would say in a similar position as Canada. I have wandered for a while now wether this is sustainable or not.
In light of your recent comments on the near term future of the Canadian economy and housing market, what is your general outlook on the health of the Australian economy and housing market? Would you agree that Australia and Canada share the same prospects in the short to mid term?
Dane Hi Sherry. What I recall from that period, from a “south of the border” perspective :) was that people who were in adjustable rate mortgages suffered greatly when interest rates were raising.
Then property values dropped. In my individual case it dropped roughly 33% and regained the original value within three years.
QE kicked in and everyone wanted to purchase a house while property values and interest rates were low.
Then about three years later the property values began to rise again and new housing developments that sat dormant began to build again.
Today the houses are in demand and can’t be built fast enough while we watch for interest rates to begin their rise as well.
If we had a fixed rate mortgage and kept our accounts balanced then we would have been in a prime position to pick up a house or property for next to nothing and with super low interest rates. Or we could simply stay put and refinance into a lower interest rate mortgage.
If we stay put and refinance into a lower interest rate our monthly payment would be reduced. This savings could then be put toward diversifying our accounts, further savings or some sort of investment. Thats where we packed the snowball and set it off down the snowy mountain so it can grow in size.
We can claim that all these things are set up for “they” or “them” but that’s only a trick in our heads and the sad part is we play the trick on ourselves.
If we keep our accounts in order then we will always be ready to capitalise (as much as possible) when the time is right and then our accounts can grow as well.
As JC said “Canada is in for a few rough years”. But if it resembles what the US went through in ’08 then there surely is light at the end of the tunnel.
Speedspirit I personally have not meet that many common people who wish to get something for nothing. I have many clients who all are very successful. My employees all work hard and so do I. I believe the leaders of the people have not provided the right opportunities for people to multiply their talents.
This “what’s in it for me” is this not a trickle down effect?
As far as this human low level of consciousness I agree. As the process plays out it is a shame so many innocent bystanders will be collected up in the tsunami.
JC Collins Not a trickle down effect, it’s a human effect. A selfish extension of our survival instinct. Nobodies fault but our own as individuals.
This all seems like “they” are just diving up the pie. When you have mentioned a more fair system it seems it is only for the club members that things get more fair.
The prolonging does make the collapse less painful but I worry about the ultimate price. I remember reading about a Tower Of Babel in the Bible and this system is another creation of attempting to override the true system of the Universe. Does anyone see the similarities?
JC Collins All systems corrupt. Some derivatives will fail, and some will not.
I’m explaining a process, not a moral tale of ineptitude.
Most people’s idea of fairness is “what’s in it for me” and “how can I get more while doing less”. Unfortunately these types of attitudes infect all demographics and socioeconomic levels.
In regards to your reference on symbolic and allegorical bible stories, well, they are written as accurate reflections of human deficiencies, and what can be done to correct those deficiencies.
Unfortunately most read something completely different in those stories, like how to blame someone or something else for an externalized human condition which they help create.
Sherry Li Hi JC, is the world market going to crash after Fed rate hike? if Canada’s property going to drop that much surely there would have to be a massive panic event like 2008?
JC Collins Fear not Sherry, the world market will not crash. There will be volatility though.
Canada’s real estate market dropped 50% in 1986 without a worldwide crisis like 2008. Canada is in for a few rough years though. We are about to feel what 2008 was like for everyone else. Especially our friends south of the border.
neal poole Hi JC, Australia with it’s dependence on natural resources and excessive household debt is i would say in a similar position as Canada. I have wandered for a while now wether this is sustainable or not.
In light of your recent comments on the near term future of the Canadian economy and housing market, what is your general outlook on the health of the Australian economy and housing market? Would you agree that Australia and Canada share the same prospects in the short to mid term?
Dane Hi Sherry. What I recall from that period, from a “south of the border” perspective :) was that people who were in adjustable rate mortgages suffered greatly when interest rates were raising.
Then property values dropped. In my individual case it dropped roughly 33% and regained the original value within three years.
QE kicked in and everyone wanted to purchase a house while property values and interest rates were low.
Then about three years later the property values began to rise again and new housing developments that sat dormant began to build again.
Today the houses are in demand and can’t be built fast enough while we watch for interest rates to begin their rise as well.
If we had a fixed rate mortgage and kept our accounts balanced then we would have been in a prime position to pick up a house or property for next to nothing and with super low interest rates. Or we could simply stay put and refinance into a lower interest rate mortgage.
If we stay put and refinance into a lower interest rate our monthly payment would be reduced. This savings could then be put toward diversifying our accounts, further savings or some sort of investment. Thats where we packed the snowball and set it off down the snowy mountain so it can grow in size.
We can claim that all these things are set up for “they” or “them” but that’s only a trick in our heads and the sad part is we play the trick on ourselves.
If we keep our accounts in order then we will always be ready to capitalise (as much as possible) when the time is right and then our accounts can grow as well.
As JC said “Canada is in for a few rough years”. But if it resembles what the US went through in ’08 then there surely is light at the end of the tunnel.
Speedspirit I personally have not meet that many common people who wish to get something for nothing. I have many clients who all are very successful. My employees all work hard and so do I. I believe the leaders of the people have not provided the right opportunities for people to multiply their talents.
This “what’s in it for me” is this not a trickle down effect?
As far as this human low level of consciousness I agree. As the process plays out it is a shame so many innocent bystanders will be collected up in the tsunami.
JC Collins Not a trickle down effect, it’s a human effect. A selfish extension of our survival instinct. Nobodies fault but our own as individuals.
Dane I’m in the process of validating this article but my vision is beginning to see in triplicate….HELP! LOL.
“Wednesday morning in Washington, Republican and Democratic Party members of the US Congress announced agreement on an omnibus spending bill that included a provision to legally enact reforms to the International Monetary Fund (IMF) agreed by the Obama Administration in 2010, according to a report by AFP.”
Here is the article.
“US Congress moves on IMF reforms” (1 hour ago from 1:04pm EST)
http://ift.tt/1RSyfVE
Here is the omnibus spending bill.
http://ift.tt/1T0Z7Bc
Heres another article on it.
“US Congress advances long-delayed IMF reforms” (2 hours ago from 1:04pm EST)
http://ift.tt/1O9vDmz
Dane The omnibus spending bill goes before congress for approval/disapproval on Friday. If the wording of the omnibus spending bill allows the 2010 reforms to be ratified then would it be ratified right away or will it come later? These are tricky words.
I’m getting the gist that the wording allows for it but that doesn’t mean its passed or even brought before the house. Ryan says when a new bill is submitted congress has to be given 3 days to review it.
http://ift.tt/1Zc2dGc
http://ift.tt/1Ym7Z5N
“Wednesday morning in Washington, Republican and Democratic Party members of the US Congress announced agreement on an omnibus spending bill that included a provision to legally enact reforms to the International Monetary Fund (IMF) agreed by the Obama Administration in 2010, according to a report by AFP.”
Here is the article.
“US Congress moves on IMF reforms” (1 hour ago from 1:04pm EST)
http://ift.tt/1RSyfVE
Here is the omnibus spending bill.
http://ift.tt/1T0Z7Bc
Heres another article on it.
“US Congress advances long-delayed IMF reforms” (2 hours ago from 1:04pm EST)
http://ift.tt/1O9vDmz
Dane The omnibus spending bill goes before congress for approval/disapproval on Friday. If the wording of the omnibus spending bill allows the 2010 reforms to be ratified then would it be ratified right away or will it come later? These are tricky words.
I’m getting the gist that the wording allows for it but that doesn’t mean its passed or even brought before the house. Ryan says when a new bill is submitted congress has to be given 3 days to review it.
http://ift.tt/1Zc2dGc
http://ift.tt/1Ym7Z5N
via Dinar Recaps - Our Blog http://ift.tt/1O9vCPw
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