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[QUOTE=Joe Hernandez]You haven't been following what happend to INDEC?
Nobody will want a inflation index bond.
If they find some way to get them off the market the interest paid on the newly issued bonds will be lower[/QUOTE]Joe, come on, INDEC a reliable number? It is in their best interest to cook the books. No big deal, it will all work out like it is suppose to, in spite of us.
[url]www.seekingalpha.com/article/109270-country-default-risk-rises-across-the-board[/url]
[QUOTE=Damman]Joe, come on, INDEC a reliable number? It is in their best interest to cook the books. No big deal, it will all work out like it is suppose to, in spite of us.[/QUOTE]That's why I said nobody in his right mind will want inflation linked bonds.
I wonder as well if Canal 7 is going to buy the soccer-rights, seems to me it's an expensive way to settle the score with Clarin.
Joe:
Misunderstood your point.
Argentina is like that friend you love and is always in a financial bind. You loan them money and they do pay you. However, two days after you get paid, they are back on your doorstep asking for another loan and the cycle starts all over again. The loan is never paid off except for about eight days a year.
All I wish to know is, how do I position myself when the peso goes to hell in a hand basket?
[QUOTE=Damman]Joe:
Misunderstood your point.
Argentina is like that friend you love and is always in a financial bind. You loan them money and they do pay you. However, two days after you get paid, they are back on your doorstep asking for another loan and the cycle starts all over again. The loan is never paid off except for about eight days a year.
All I wish to know is, how do I position myself when the peso goes to hell in a hand basket?[/QUOTE]Buy dollars or Euros.
[QUOTE=Joe Hernandez]Buy dollars or Euros.[/QUOTE]Given the insane out of control public debt of western economies, I d rather buy solid assets than paper produced en masse based on nothing tangible. Buy rare or soon to be rare assets: art pieces, oil, metals. Real estate next year in the US and Great Britain from next year on could be worth a look, even tho high unemployment and toughened credit rules should sitll weight on those markets for a few years.
[QUOTE=Damman]Joe:
Misunderstood your point.
Argentina is like that friend you love and is always in a financial bind. You loan them money and they do pay you. However, two days after you get paid, they are back on your doorstep asking for another loan and the cycle starts all over again. The loan is never paid off except for about eight days a year.
All I wish to know is, how do I position myself when the peso goes to hell in a hand basket?[/QUOTE]What s the difference between Argentina s thirst for cash and USA s addiction to credit? It seems to me that the debt per household (300,000 USD total debt per household) in the USA is at least 10 times what an average argentine household ows.
[QUOTE=MataHari]What s the difference between Argentina s thirst for cash and USA s addiction to credit? It seems to me that the debt per household (300,000 USD total debt per household) in the USA is at least 10 times what an average argentine household ows.[/QUOTE]The difference is that the American people actually have the capacity to repay the debts that the US Government has incurred on their behalf.
Thanks,
Jackson
[QUOTE=Jackson]The difference is that the American people actually have the capacity to repay the debts that the US Government has incurred on their behalf.
Thanks,
Jackson[/QUOTE]Funniest thing I've heard all week. Probably the truest too.
The federal government is not directly responsible for the subprime crisis. It is indirectly by setting interest rates very low, which induced a real estate bubble, disconnected from real income growth. The money created on house values was then totally virtual. But it is of individual s responsability to not let themselves get trapped into the housing gold rush, speculating on ever increasing prices.
300,000 USD is almost a lifetime saving capacity. US citizens are kept under the pressure of debt all their life long, borrowing to pay for their studies to end up borrowing to pay for their medication. If work is not enough to refund the abyssal debt, the us american economy is condemned to initiate one bubble after another, hoping for capital gains. This will lead to violent assets value corrections and financial crises every 10 years, like in Argentina, since those assets will have to be disconnected from their real value to create money to refund the debt, and force to borrow more in crisis times.
When individuals spend more than they earn (negative personal saving rate), i dont see how they could possibly refund their debt, not mentioning federal debt, only with their work.
A vicious circle that endangers the global ecomic stability, and will give more and more power to countries with positive cash flow.
Quote: The federal government is not directly responsible for the subprime crisis. It is indirectly by setting interest rates very low, which induced a real estate bubble, disconnected from real income growth. The money created on house values was then totally virtual. But it is of individual s responsability to not let themselves get trapped into the housing gold rush, speculating on ever increasing prices.
First thing you'd better do is some homework. The Federal Reserve, and ALL Central Banks, are PRIVATE BANKS! NOT "Federal" but "PRIVATE Banking Cartels." This is what they DID NOT teach you in Economics!
Bet you think "money" is "money" also heh? What we call "money" is actually "debt" not "money." The "debt" that's created and attached compound interest can NEVER BE REPAID! THE INTEREST HAS NEVER BEEN "CREATED."
The Titanic has hit the iceberg and is about to totally go under and to the bottom. If you want to even start to understand the worldwide disaster that looms.
[url]http://video.google.com/videosearch?q=%22Money+As+Debt%22&emb=0#[/url]
Excellent 47 minute animated explanation.
Thanks for your intervention and your link, Town. This video report is very pedagogic and explains in simple words the logic behind the creation of money. But some statements are simply false.
Money is not created out of nothing, since the money lent is backed with the value of a solid asset. If the borrower fails to pay back the money lent + interests, the banker gets the money back by acquiring the underlying asset: house for individuals, firm ownership for companies. Interest rates are the money creation, and they are paid with actual work. Or capital gains.
The problem lies in the need to maintain perpetual growth to avoid a collapse of the system. When work is not enough to maintain the requiered level of growth, debt is used for speculating purposes on the value of the underlying solid assets to keep the necessary growth. This creates real estate and stock market bubbles. The system is then in danger since it s based on artificial values.
And to answer your point, a federal bank, private or public, has no choice but to follow a governments needs and will. Jackson, the president, not the Monger in Chief, got rid of the Federal Bank because they were playing against his interests and distrusted their capacity to create unlimited money without government control. The "independant" status is just, like the monetary system, an illusion, a fairy tale to fit with a democratic other fairy tale. Debt keeps the individual under pressure all his life long, with the illusion of a freedom of choice.
The fact is that the level of debt, even with interest rates for free, passed a level of never return. Even if all us citizens kept the current "crisis rate" of saving at 5% , which would affect the growth rate of consumption permanently, they would be unable to refund that debt with a whole life of work. The only way to lower the debt is create more asset value bubbles and more crisis subsequently. This is why the money lent to american banks mainly by chinese banks was used to speculate on stock exchange: the need to initiate another bubble "as if nothing happened" to save the retiring system based on capital gains. Another evidence of the submission of banks to governments will/need/interests.
One last point, debt is not the only global money creation system. The best evidence is that some states are net debtors and others are net creditors. The federal government doesnt borrow its own money, but the money created elsewhere (global financial system) Those that have the means to lend money to those who don t actually SAVE money, those that spend less than they earn to those that can t save, intoxicated by the cultural and fabricated urge to consume.
[QUOTE=MataHari]What s the difference between Argentina s thirst for cash and USA s addiction to credit? It seems to me that the debt per household (300,000 USD total debt per household) in the USA is at least 10 times what an average argentine household ows.[/QUOTE]MataHari:
Do not know about the idea of "300,000 USD total debt per household." Think it must be remembered that at least 85% of US households are plugging away and making ends meet. Would imagine the numbers in Argentina are about the same: making ends meet.
Access credit / accessing cash are one and the same, no? It is not important, cutting hairs. The point with me is Argentina's permanent predicament, always having to go beg for credit / cash on the world market. It has been a very long time, 50 years maybe, since Argentina has been solvent. Know the idea of begging is offensive, but it is what it is.
In my mind, Argentina should be a very prosperous country. The people are highly educated and the people I know, work and play hard. Find myself at a loss for an explanation, why is Argentina always in a pickle financially? It has been allowed to go on for so long, generation after generation, it is a way of life. Everyone can blame the Government for their problems, but find that to be cop out. Many governments have come and gone in the last fifty years and it is always the same old story: beg for a loan. If you look around the world and count the countries that have pulled themselves out of the depths of despair and turned the corner in past fifty years, it is amazing. However, even with a running start, natural resources and the sophistication of Argentina, it does not make the cut. Guess I have more questions than answers.
Anyone hear about some proposal in Congress about rent controls? The Boss told me the F..... is crazy. The best I came up with is (Google Translator):
Under the initiative, the price payable for the locations, without distinction, should not "depend on the market," but the result of a calculation that would determine the value arising from the tax valuation of each unit and divide by 150 This sort of whimsical shape formula, substantially disadvantageous to landlords.
[url]http://www.lanacion.com.ar/nota.asp?nota_id=1161676[/url]