Are you really making money?

deepsa52 · #**101** 15th May 2008, 06:40 AM

http://money.********/news/articles/...02091509990019

The above is a o L . com, remove spaces.

The Fed said it was also expanding the types of assets that investment banks can use as collateral to receive loans from the central bank. In March, the Fed used powers it obtained during the Great Depression to begin making loans to investment banks. Previously, the Fed only made direct lends to commercial banks.

Something to remember the next time one shops for vegetables. The world population is paying bonuses to these guys. This is a classic example of bankers exploiting 99% of the world population.

Updated Link, the above one does not seem to work:
http://money.cnn.com/2008/05/02/news...ion=2008050209

Whoever owns the printing press , and their friends win

deepsa52 · #**102** 18th May 2008, 09:10 AM

Happened to see this article that is couple of months old , but really interesting. High odds of happening sooner or later. It is also along the same lines as George Soros' CNBC interview. Does 10% of American population in food stamps ( In US, food stamps are govt ration for the poor ) say anything? And that number is growing!!

http://www.thehindubusinessline.com/...1950080900.htm

Bottom line, "pegging" the Rupee to a gradually collapsing economy the size of US in the hope of stimulating exports is like pointing a gun to own's head and hoping it won't go off.

As usual Warren Buffet is right, Derivatives ARE weapons of mass destruction..

raosrinivas · #**103** 18th May 2008, 10:46 AM

USD strengthening against Rupee and other currencies could be because of the "deal" . I do not believe US will ever default on it's debt. because the stake is too high. it means giving away the title of world economic power, which is worth more than the trillions of debt that it has taken. any country which is too big with natural resources will face only short term challenges, but generally will be fine in 2-3 years time.

deepsa52 · #**104** 18th May 2008, 06:02 PM

Defaults won't happen, Fed owns the press and they will keep printing and pass it on to others.
On the other side, US infrastructure is excellent and the economy is run by global forces except some key industries like defense.So foreigners will prop up the economy by acquiring US firms cheaply.
In any case, this is no ordinary recession, a combination national policies and exotic derivative instruments has created a crisis for which a cure does not exist now.

ARMHM · #**105** 18th May 2008, 06:34 PM

Once upon a time Britain ruled the world. Once upon a time westeners used to come to India for making fortunes. It will not be long before people will say "ONCE UPON A TIME UNITED STATES OF AMERICA WAS A DOMINANT COUNTRY". History keeps changing and repeating.

sudoku1 · #**106** 19th May 2008, 09:45 PM

Quote:

Originally Posted by ARMHM

aHistory keeps changing and repeating.

yeah.....but the rules of the games r same everywhere........only the players change......come & go

deepsa52 · #**107** 20th May 2008, 08:21 AM

Yes and new players have emerged, big time, and BTW it does look the Chinese are smarter in their monetary moves than our RBI counterparts , it does not bother them at all if stock market tanks 40%, Yuan keeps getting stronger.

One mistake about Land Rover and Jaguar in the article,apart from that a good read.
http://www.dailymail.co.uk/news/arti...-universe.html

Speaking of foreigners buying up hard assets, more to come the next few years.
http://www.businessweek.com/globalbi...415_875802.htm

In the end, foreigners propping up the US economy is better than letting it disintegrate like the USSR.

ARMHM · #**108** 20th May 2008, 09:41 PM

Quote:

Originally Posted by deepsa52

Yes and new players have emerged, big time, and

Hi deepsa52
Very interesting articles(links). Keep it up. Here is one I came across one.
http://www.bloomberg.com/apps/news?p...Y14&refer=home

raosrinivas · #**109** 21st May 2008, 09:03 AM

To learn how effective the new players will be in terms of the influence they can have, we can look back to 1970's when we had coca cola in india, for what ever reasons(political or otherwise) they had to pull out of india. even after the pull out there were multi-national companies having their offices and factories in india. do you know what they were producing ? producing 'toothpaste and soaps' . it does not mean they are producing toothpaste and soaps only but just that "something that can be setup overnight and get out overnight".

everything you get in walmart,kmart,toys-r-us or other retailers in us are made in china. but all the products still fall under the toothpaste and soaps category. boeing does not factories producing planes from china to cut costs, intel produces micro processors in arizona, of course taiwan produces mother boards and china produces the glue to stick the 2 together. all the high tech is still produced in US.

people who are writing off us , because someone is able to produce toothpaste an soaps and toilet paper are very ignorant.

same thing applies to indian software exports.

high tech is still at the top of the pyramid and pecking order. technology alone will determine the new world order even in future.

deepsa52 · #**110** 21st May 2008, 09:56 AM

That is true probably 10 years ago. China is the next power and they are sufficiently advanced -pretty much every country acknowledges this. By 2050 it is projected that Chinese economy will be twice the size of USA and India.

http://www.washingtonpost.com/wp-dyn...011801029.html

USSR and Germany during WW2 were the most advanced during their times, what happened, and for that matter UK to a lesser extent? There are many factors that can cause an economic collapse and some of these are beyond the scope of discussion in this thread.

US will never become a Bangladesh or Pakistan, nobody is saying that

, but truth is the standard of living and purchasing power is coming down sharply (the average American is deep in debt ) for majority of Americans and that is irreversible.