If the US Dollar dropped then the Canadian dollar would hopefully be at PAR if it doesn't drop. Better value for those north of the border to shop in the US and help stimulate the economy a bit. Mainly Washington State and Oregon (No Tax).
Forget Canadians shopping across the border; a weakening currency might actually drive exports up and help bridge the trade deficit. This is of course assuming other countries allow their currencies to appreciate. |
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The reason they can't cut production is that their entire state is a giant socialist "paradise" with a thousand princes. If they turn off the flow their entire state will implode in ISIS like instability.
They don't have ample to spare for politics anymore and their production has peaked years ago now. Soon (5-20 years) the entire country as we know it will be in trouble/disappear.
Once their utility to the Western world ends, we will start hearing about the bad influence of hardline Saudi Wahhabism. The world hasn't been talking about this because it needs Saudi oil. The end of Saudi Arabia could be very swift. |
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If I were Tsipras I would pull a Goldman Sachs and take the last billions out of the Central Bank and lever them up to buy a couple of trillion dollars worth of Euro/$US currency swaps from Deutsche Bank and then very publicly tell the Troika to go fuck themselves.
They will never ever be able to issue bonds again. Greece would become a social pariah, not sure if that is what he is looking for.  |
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The people most likely to be happy with this are the Saudis. Their strategy of not cutting production seems to have worked. Prices fell to ensure that some supply has gone offline.
Now prices are on an upward trend again.
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so because in deflation money more worth, people don't spend it instead save it for the future i understand know because of that, economy will not run smoothly as not many people spend their money. so what is the best economic condition for a country? low level of inflation? Low and predictable inflation is good for the economy. That is why Bitcoin has an advantage. After the initial years, inflation (measured by increase in money supply) will be low and predictable. |
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Seeing that economic troubles in the US generally cause further problems in general. I think it would be really grim for Bitcoin as well. Bitcoin is still considered a speculative investment right now, meaning most people are investing with spare capital. When the economy tightens, people will first pull that money out of BTC to lessen the losses.
I agree. Bitcoin is seen as a valuable asset, and could go down with all other assets. If only the coming debt deflation crisis could wait a few more years, when bitcoin is regarded not as an asset, but as money... Even if Bitcoin is seen as money, when there is a recession, there will be a flight to safety. I doubt if Bitcoin will be seen as the safest currency around, even after a few years. |
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Imagine what happens if Greece defaults on government bonds. What will people around the world think of government bonds in general, when they understand that their pensions are basically government bonds? There could be a violent contraction of credit, thus general price deflation. On the other hand, they could just blame it on one bad government, their own might be okay. Impossible to know.
Given the financial state of Greece, I'd assume that the bond yields would have somewhat adjusted (increased) given the higher level of risk? I haven't been keeping a very close eye on Greece's situation lately. Since they don't have their own monetary policy, who is the main lender? ECB? The increase has been more than a slight adjustment. Greek bond yields have continuously increased since Sep-2014. I wonder how much higher they can go. Sep-14 : 5.9% Oct-14: 7.3% Nov-14: 8.1% Dec-14: 8.4% Jan-15: 9.5% Feb-15: 9.7% Mar-15: 10.5% http://www.ecb.europa.eu/stats/money/long/html/index.en.html |
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You should edit the OP, and give people an idea of your accuracy.
This would give more credibility to your predictions.
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it depends on how the average non tech people think about it. if they really think they can benefit from converting their fiat to bitcoin then they surely will. but at this point it's not that easy as the media most of the times is very negative about bitcoin.
In case of a recession, people will generally prioritize safety. They would prefer to hold fiat, rather than invest in equities or risky assets like Bitcoin. |
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Apart from the many differences pointed out, a homeowner has a limited earning life span during which he has to make enough money to repay the loan. On the other hand, you can assume that the US will be around for almost ever. |
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Bitcoin is a bubble. It's basically the year 2000 where companies become overvalued and such.
It should burst anytime. Most likely during the block halving next year.
I totally disagree. If it was a bubble it should have burst when it was on it's highest peak. Now there is no point for it to burst. Maybe it already burst last year.  It will take a long time before we see $1000+ bitcoin prices again. |
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But in countries like India, Banks are giving 7-10% annual interest rate depending upon the amount, bank and maturity tenure. So that's not very bad compare to what you are refereeing to.
You should look at the real interest rate, not the nominal one. This website will give you an idea http://data.worldbank.org/indicator/FR.INR.RINR |
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........
Its democracy, what did you expected. Every idiot who can put a stamp on a piece of paper can project his own insecurity and foolishness onto the other people, therefore every democracy will fail as a result. You know my guess is that every fucking democracy on earn will end up leftist/socialist, because the ever growing debt thats accumulated by bribing voters, will result in a perpetual tax increase to pay off the interest on the bonds. You underestimate the intelligence of people. In this globalized world, people can look at different countries and see how capitalist / socialist economies have fared. One of the reasons why communist regimes collapsed is that people realized life in capitalist countries was much better. The average person is a complete fucking retarded. He may very well be. The least we can do is allow him to take his own decisions. He may be digging his own grave, but at least it is his choice. |
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CSK FTW Chennia is much more superior and the odds show this too  im hoping for a CSK win CSK is the favorite of bookies @1.48 odds and stronger team than MI, i hope CSK is better chance of winning for today if see batting line of MI they are still performing much bad in every match. so something is better than nothing. i will be shocked if MI win today lol but you coulde hedge your bets or arbritage to minimize losses Lol..yeah..thats something I always do in case the team that I bet on is losing.! CSK has always performed well in the IPL... Lets just hope their run continues.! Ill be betting on CSK for tonight.! I might be risking a few btc on CSK too Mumbai have got a fighting total. The odds look to be pretty equal at the half way mark. |
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........
Its democracy, what did you expected. Every idiot who can put a stamp on a piece of paper can project his own insecurity and foolishness onto the other people, therefore every democracy will fail as a result. You know my guess is that every fucking democracy on earn will end up leftist/socialist, because the ever growing debt thats accumulated by bribing voters, will result in a perpetual tax increase to pay off the interest on the bonds. You underestimate the intelligence of people. In this globalized world, people can look at different countries and see how capitalist / socialist economies have fared. One of the reasons why communist regimes collapsed is that people realized life in capitalist countries was much better. |
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The growth rate in Asian countries is higher than the western developed countries, especially in China, India etc. Comparing with the low or negative interest rate in the western developed countries, these countries attract more and investments.
The problem is (1) These investments are riskier. You can't be sure that the government won't take over your investment (2) Foreign Exchange volatility - You can't be sure that a dollar invested today will be a dollar tomorrow. |
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if all citizens, start destroying it, i'm sure the printing can't match the destruction, resulting in less scam fiat in circulation
Most fiat is generated through a decision of the central bank / commercial banks through fractional reserve lending. Destroying fiat isn't going to help you. It is just going to transfer value from you to the system you hate. |
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Why do you think gold will get rarer with time? It doesn't age, its production is pretty consistent through years (actually, slowly increasing). If you say that there are more people on the planet and thus less gold per capita, then you should take into consideration actual demand for it (meaning that even if it does become rarer, there maybe still less demand for it nevertheless)...
A significant portion of the gold produced is bought by central banks and institutions which do not intend to resell them. This gold is effectively removed from the market. Once gold production decreases (it eventually will, when existing gold mines run out of gold), there will be an imbalance in demand-supply. There will be demand for gold from jewellers and from people who don't trust central banks (and bitcoins.  ) |
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If they help out Greece it will be very interesting, their GDP per person is lots less than Greece's, how often have poorer countries bailed out richer ones?
I would say it is comparable. On a PPP basis, Russia has a per capita GDP of $24.3K vs Greece's $25.1K in 2013. I guess 2014 figures would be a lot worse for Greece. http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29_per_capita |
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