Posted on: 26th Nov 2013 7:25 PM    Quote and Reply

It was an old thread from early 2012 that somone had resurected - so don't feel too bad about hijacking it.

Posted on: 26th Nov 2013 7:21 PM    Quote and Reply

Quote: "Formerly posted by Ken_Buangster: please stick to the topic thank you "

Quite right, I have started a new thread for this particular topic. 

Posted on: 26th Nov 2013 7:10 PM    Quote and Reply

Quote: "Formerly posted by Ken_Buangster: please stick to the topic thank you "

Sorry sorry. Good arc to the main topic though. ;) 

Posted on: 26th Nov 2013 7:07 PM    Quote and Reply

Note that I said Germany with the Deusch Mark. The cheapening of currencies in Germany and China has naturally resulted in inflation, causing great harm to their economy and wealth of their people. Like Singapore China may never become wealthy with their silly currency manipulation. But soon maybe the tides will turn.

As for the bailouts. Let's put it this way. The US financial sector collapsing was in truth the correction of a bubble - i.e. the correction of an artificial economy conducive to banking and finance created by the US government. If the collapse had happened, perhaps 70 to 80% of the financial sector would have been wiped out. And so it should have been for the resultant size would be what the economy naturally needs. 

Now that same financial sector has been propped up and kept alive through the QE life support system. The economy, sans government intervention, needs even less financial services than it did back in 2008. The only inevitable end game is a massive shrink, far worse than in 2008, and something that even QE will not be able to stop. Spectacular times are a coming.

Posted on: 26th Nov 2013 6:46 PM    Quote and Reply

Funny how both Germany and China two of the worlds biggest exporters are hiding behind artificially low currencies. China because they totally fix the USD:RMB rate, the Germans through the Euro which is way under valued for the German Economy but way over valued for some others, Ze Germans are basking in a huge surplus whilst the PIGS are squealing with collapsing economies. Switzerland mainly deals in luxary goods and money so it is not a really a valid comparison with Ze Germans. But I do agree with you to a certain extent
Currencies do rise and fall with economic strength and a little bit of management of it through interest rates and other fiscal tools is perfectly reasonable,
What I find completely objectionable and wholly wrong is Bailing out banks with Taxpayers money or issuing long term bonds to do it (even worse pass the debt on to our kids) and ridiculously low long term interest rates, quantitative easing (aka printing money) to devalue and inflate your way out of debt - I cannot believe no one has gone to jail over the 2008 collapse or the 1997 asian financial crisis for that matter. These guys sat behind computers shifting money about and their politician chums  are a much bigger threat to our way of life than some bunch of psycho Jihadi's in the middle east in my opinion