tag:blogger.com,1999:blog-2761684730989137546.post6834432221808699137..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: US Immigration Animationmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger37125tag:blogger.com,1999:blog-2761684730989137546.post-3630040846426718852016-12-19T23:31:19.245-05:002016-12-19T23:31:19.245-05:00Jose: Glad for the confirmation. Didn't Rousse...Jose: Glad for the confirmation. Didn't Rousseff cave in to the financial experts or the IMF a while ago? I think that is when the opposition saw weakness & attacked.<br /><br />I wonder if they overdid it with that amendment, though. I'm hoping they're their own worst enemy too.Calgacushttps://www.blogger.com/profile/06031818010224747000noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-29730626974565393302016-12-18T15:57:44.584-05:002016-12-18T15:57:44.584-05:00Yes, the Brazilian case is particularly striking f...Yes, the Brazilian case is particularly striking for its sheer absurdity.<br /><br />The country issues its own currency so has zero risk of default on its sovereign debt issued is Reais.<br /><br />And the government is a net creditor in dollars, because the $ 370 billions of reserves held by its central bank are larger than the $290 billion in dollar debt outstanding of all the public sector (government plus public sector companies).<br /><br />And yet the country's congress - in the middle of a brutal recession that has seen GDP falling by almost 4% annually for 2 years - has just passed a constitutional amendment freezing budget expenditures in real terms at today's level for the next 20 years!<br /><br />Very bad!<br /><br />Jose Guilhermehttps://www.blogger.com/profile/00313496015841693181noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-37695716249480774962016-12-18T14:48:20.145-05:002016-12-18T14:48:20.145-05:00Watch the growth of Chongqing in the following vid...Watch the growth of Chongqing in the following video:<br /><br />https://m.facebook.com/story.php?story_fbid=1174595849275593&id=1035840566484456<br /><br />#notzombiesSixhttps://www.blogger.com/profile/10756430577510633914noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-29323092038324924032016-12-18T13:50:01.421-05:002016-12-18T13:50:01.421-05:00Matt Franko:c'mon where did you get that one? ...Matt Franko:<i>c'mon where did you get that one? </i><br /><br /><a href="https://en.wikipedia.org/wiki/Steve_Biko" rel="nofollow">Steve Biko</a>. It amplifies the idea that everyone is their own worst enemy. Not always true, but very, very often.<br /><br /><i> Doesnt make sense... what are you claiming that all these zombies are instead suffering under some numismatic form of Stockholm Syndrome? </i><br /><br />I think you are saying China and other savers in US Dollars are zombies? And maybe that this is in some way bad for the USA? This is nonsense. The China-US "free trade" relationship is mutually beneficial. If the US decides to not practice functional finance, that is entirely its fault. Blaming these "zombies" is another case of a person blaming others because he can't face up to the fact that he is his own worst enemy.<br /><br />China, Japan, Germany - major relatively healthy societies that practice export-led economics are not zombies or really under anybody else's control. They can and do look out for themselves. <br /><br />The states I refer to are the opposite of China or Japan or Germany "zombies", but ones who become dangerously indebted in foreign currencies, like the dollar, or cover the debts of local firms (like Ireland), or undergo austerity for no reason at all, when they actually could easily pay their debts. For instance Brazil, Venezuela, Argentina above. This is worse than a zombie -this is trying to get healthy by eating your own flesh, or giving it to zombies.<br /><br />A very great problem, often the overwhelmingly important one, of countries like these, like so many in the "Third World" , like so many of the victims of the IMF is that they listen to the insane raving of the IMF and mainstream "economics". That's what I meant by their minds being oppressed. Greece was another example. They had a good offer - Tsipras chose economic suicide for Greece because he was so afear'd of Greece standing on its own two feet and was more comfortable with the narrative and role of victimhood.Calgacushttps://www.blogger.com/profile/06031818010224747000noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-53857167641808687512016-12-18T13:43:57.710-05:002016-12-18T13:43:57.710-05:00Americans are exceptional but this is not a compli...Americans are exceptional but this is not a compliment.Peter Panhttps://www.blogger.com/profile/09473311771939167712noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-52156516791372705352016-12-18T11:12:49.799-05:002016-12-18T11:12:49.799-05:00Walter A. Mcdougall, The Unlikely History of Ameri...Walter A. Mcdougall, The Unlikely History of American Exceptionalism<a href="http://www.the-american-interest.com/2013/02/12/the-unlikely-history-of-american-exceptionalism/" rel="nofollow">The Unlikely History of American Exceptionalism</a> at The American Interest.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-52162378172460316152016-12-18T11:08:07.227-05:002016-12-18T11:08:07.227-05:00"Exceptionalism," Encyclopedia of the Ne...<a href="http://www.americanforeignrelations.com/E-N/Exceptionalism.html" rel="nofollow">"Exceptionalism," Encyclopedia of the New American Nation</a>Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-272696733944551712016-12-18T10:57:40.098-05:002016-12-18T10:57:40.098-05:00Meanwhile the guy who just won the Presidency was ...<i>Meanwhile the guy who just won the Presidency was running on a platform to defund the ROW of all accrued USD balances....</i><br /><br />With tariffs.<br /><br />Daft.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-75659823683111993522016-12-18T10:52:49.089-05:002016-12-18T10:52:49.089-05:00The US has nothing but technology to sell China be...The US has nothing but technology to sell China because the cost of production in the US so much higher on ordinary goods other than agricultural (which is why Iowa governor Branstad is the new ambassador). <br /><br />And the US refuses to sell technology to China because "national security." <br /><br />So the only way that China can spend in the US to acquire US assets, and then there is public outcry about China buying up the country and taking over the US, so the government kills the deal.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-20880534324204322922016-12-18T09:16:35.960-05:002016-12-18T09:16:35.960-05:00"American Exceptionalism!" comes from Da..."American Exceptionalism!" comes from Darwin... this meme rose right along side of Darwin from the mid 1800s...<br /><br />Its "Survival of the fittest!" and the US is obviously "the fittest!"...<br /><br />ROW is mindless USD zombies and the US PTB are mindless Darwin people who think they are "the fittest!" in some sort of global numismatic contest of nations...<br /><br />When you come across two morons arguing, jumping in on the one side is not the move....Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-48961312313523481222016-12-18T09:04:46.934-05:002016-12-18T09:04:46.934-05:00Matt
"So how could it be "dollar hegemon...Matt<br />"So how could it be "dollar hegemony!" when the preferred policy is to eliminate the ROWs accrued USD balances?"<br />operative word here is "preffered" not "practiced" <br /><br />But, true, Donald can finnish off US hegemony that has been on long decline, at least the political hegemony was on decline, there is economic and military hegemony use strenghtening at the present.Critical Tinkererhttps://www.blogger.com/profile/08540226813192385645noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-89015904100294753952016-12-18T09:00:20.159-05:002016-12-18T09:00:20.159-05:00Tom
" The choice was to let the companies def...Tom<br />" The choice was to let the companies default or else for the Central Bank of Russia to provide the foreign currency to the companies by drawing down it USD reserves."<br /><br />But they stopped drawing down their reserves after only $160B used and instead choose to break the fix. The have left around $300B reserves. <br />this was the surprise to me that they used up so much of reserves before sttoping. Other countries stop much earlier before using up 1/3 of reserves. Usual is 1/10 when they stop.<br /><br />Russia learned something very important there, but they still have to learn a lot about monetary policy before they catch up to sovereignety.Critical Tinkererhttps://www.blogger.com/profile/08540226813192385645noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-30575361150895219672016-12-18T08:55:18.911-05:002016-12-18T08:55:18.911-05:00Meanwhile the guy who just won the Presidency was ...Meanwhile the guy who just won the Presidency was running on a platform to defund the ROW of all accrued USD balances....<br /><br />So how could it be "dollar hegemony!" when the preferred policy is to eliminate the ROWs accrued USD balances?<br /><br />These people in power are Darwinists and see the ROW as accepting USDs as the US is "winning!" in some "survival of the fittest!" type global stochastic munnie contest...<br /><br />Its like the normal humans in zombie-lore would start to think: "well... its nice to be wanted at least!"Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-36541744397299932092016-12-18T08:54:45.851-05:002016-12-18T08:54:45.851-05:00Matt
" is the political, economic, or milita...Matt<br /><br />" is the political, economic, or military predominance or control of one state over others."<br /><br />The connection is "or" it is not "and" as you presume. So it could be political, economic or military control. And it doesn't have to be absolute control.<br /><br />That US is enjoying only economic and somewhat political dominance over China is a show that hegemony is getting weaker and weaker. US is loosing hegemony at the present..<br /><br />but why does it have to be over China as you want to represent as only proof of US hegemony. US hegemony has a full control over many many countries of the world. I would guess around 50% of the countries US is controlling. Either militarilly (japan, EU wherever its bases are) politcally (EU, British Commonwealth, some in South America..) or economically (rest of the world trough debts in $US)<br /><br />But you want to look only at China?Critical Tinkererhttps://www.blogger.com/profile/08540226813192385645noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-5953301353420378582016-12-18T08:43:21.906-05:002016-12-18T08:43:21.906-05:00" But the most potent weapon in the hands of ..." But the most potent weapon in the hands of an oppressor is the mind of the oppressed."<br /><br />c'mon where did you get that one? Doesnt make sense... what are you claiming that all these zombies are instead suffering under some numismatic form of Stockholm Syndrome? Please...<br /><br />Lets go to Websters for 'hegemony': "Greek: ἡγεμονία hēgemonía, "leadership, rule") is the political, economic, or military predominance or control of one state over others."<br /><br />So you guys are saying that somehow the US govt is going over to China and saying "you better seek to accrue $Ts of USD balances!" and China is saying "oh... ok US dont hurt us we will reluctantly accept your USD balances for our products!!! oh dont hurt us! we will comply!"<br /><br />PLEASE!!!!!<br /><br />Urban Dictionary on 'zombie':<br /><br />"Scientific name Homo Coprophagus Somnambulus. <br /><br />A deceased human being who has partially returned to life due to undeterminable causes. The brain retains base facilities, namely gross motor function. In its near-mindless state, it grasps no remains of emotion, personality, or sensation of pain....<br /><br />Zombies operate on a fraction of the level at which our bodies normally function. Circulatory, respiratory, and digestive systems are unaffected by reanimation.<br /><br />Labored breathing, choking, and moaning are reflexive but no oxygen is carried through the blood. <b>(Ed: maybe that is why the smog doesnt effect them????? "Hey you could take some of that surplus and buy some catalytic converters for your autos? ... ahhhh no that's ok we're good thanks!" )</b><br /><br />The nervous system functions primarily within the brain and brain stem. Sensory reception is minimal at best and seemingly unecessary in the pursuit of prey <b>(Ed: subsittute USD for 'prey' here thx)</b>.<br /><br />The undead are incapable of fatigue and will persist at any cost."<br /><br />They are USD zombies...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-89851962417729096972016-12-17T17:40:00.360-05:002016-12-17T17:40:00.360-05:00Magpie:But it has to pay its debts in USD.
True e...Magpie:<i>But it has to pay its debts in USD.</i><br /><br />True enough, usually. But these countries could just decide to not incur US dollar debts, and/or simply pay existing ones off if they have the currency, like Brazil. The sky will not fall. <br /><br />Sure the oppressor(s) haven't been shirking their oppression job. Like the Geico commercial says (perhaps not in Australia) that's what they do. But the most potent weapon in the hands of an oppressor is the mind of the oppressed.Calgacushttps://www.blogger.com/profile/06031818010224747000noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-10335353207418062802016-12-17T17:18:53.124-05:002016-12-17T17:18:53.124-05:00(Third time I try to post this comment, sorry if m...(Third time I try to post this comment, sorry if meanwhile the previous attempts get posted):<br /><br />The references to Brazil in this thread contain some incorrections, IMO - and the Brazilian case is a useful starting point to dispel some myths about the way dollar reserves are acquired outside the U.S.<br /><br />Brazil has been running a floating exchange regime with free movement of capital since the Real plan was introduced in 1993/4.<br /><br />The country has had current account deficits since 2008 - however, the amount of dollars held by the central bank has more than doubled during the period to some $370 billion today.<br /><br />How was this possible? Well, in order to acquire dollars a country does not need to have a current account surplus. Local firms may borrow in dollars with a view to spending internally in the local currency (taking advantage of the lower interest rate in dollars). Then the central Bank can buy said dollars thus building up its foreign reserves. More foreign reserves can also be a boon for strengthening the exchange rate thus facilitating the repayment of the dollar loans taken by the local firms (these can also try to hedge the foreign exchange risk, of course).<br /><br />The main point here is that dollars can be acquired via lending - even outside the U.S. <br /><br />For instance, the very large Eurodollar market has London-based banks creating dollar deposits by lending to firms (including for export and import of goods and services) quite independently from the Fed and U.S. authorities in general. If, say, a Korean firm wants to import oil from Mexico it can pay in dollars after contracting a loan in the Eurodollar market (these dollars are not part of the U.S. money supply but they are otherwise indistinguishable from internal U.S. dollars).<br /><br />One problem when writing about the hegemony of the dollar is that many people are still stuck in the Bretton Woods fixed exchange regime, with capital controls and convertibility into gold. But since 1971/73 the importance and size of financial account transactions in the balance of payments has dwarfed the current account. Spot transactions in foreign currency (after excluding other similar transactions such as foreign exchange swaps) stand at about $US 2 trillion a day, meaning 6 times the level of world GDP and 25 times larger than the total amount of world trade in goods and services. Thus, to look at dollar foreign exchange reserves through the eyes of the current account of the BoP can only lead us to mistaken ideas about the foundations of dollar hegemony in a flexible exchange rate, post gold standard international monetary system where open financial accounts are the rule.Jose Guilhermehttps://www.blogger.com/profile/00313496015841693181noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-25728244997504334982016-12-17T16:59:27.323-05:002016-12-17T16:59:27.323-05:00The references to Brazil in this thread contain so...The references to Brazil in this thread contain some incorrections, IMO - and the Brazilian case is a useful starting point to dispel some myths about the way dollar reserves are acquired outside the U.S.<br /><br />Brazil has been running a floating exchange regime with free movement of capital since the Real plan was introduced in 1993/4.<br /><br />The country has had current account deficits since 2008 - however, the amount of dollars held by the central bank has more than doubled during the period to some $370 billion today.<br /><br />How was this possible? Well, in order to acquire dollars a country does not need to have a current account surplus. Local firms may borrow in dollars with a view to spending internally in the local currency (taking advantage of the lower interest rate in dollars). Then the central Bank can buy said dollars thus building up its foreign reserves. More foreign reserves can also be a boon for strengthening the exchange rate thus facilitating the repayment of the dollar loans taken by the local firms (these can also try to hedge the foreign exchange risk, of course).<br /><br />The main point here is that dollars can be acquired via lending - even outside the U.S. <br /><br />For instance, the very large Eurodollar market has London-based banks creating dollar deposits by lending to firms (including for export and import of goods and services) quite independently from the Fed and U.S. authorities in general. If, say, a Korean firm wants to import oil from Mexico it can pay in dollars after contracting a loan in the Eurodollar market (these dollars are not part of the U.S. money supply but they are otherwise indistinguishable from internal U.S. dollars).<br /><br />One problem when writing about the hegemony of the dollar is that many people are still stuck in the Bretton Woods fixed exchange regime, with capital controls and convertibility into gold. But since 1971/73 the importance and size of financial account transactions in the balance of payments has dwarfed the current account. Spot transactions in foreign currency (after excluding other similar transactions such as foreign exchange swaps) stand at about $US 2 trillion a day, meaning 6 times the level of world GDP and 25 times larger than the total amount of world trade in goods and services. Thus, to look at dollar foreign exchange reserves through the eyes of the current account of the BoP can only lead us to mistaken ideas about the foundations of dollar hegemony in a flexible exchange rate, post gold standard international monetary system where open financial accounts are the rule.Jose Guilhermehttps://www.blogger.com/profile/00313496015841693181noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-32279854594435174552016-12-17T16:51:03.550-05:002016-12-17T16:51:03.550-05:00Venezuela was never a U.K. Colony....
True.... It...<i>Venezuela was never a U.K. Colony....</i><br /><br />True.... It was a Spanish Colony.... <b><i>But it has to pay its debts in USD</i></b>.<br /><br /><i>Argentina ,</i><br /><br />True.... It was a Spanish Colony.... <b><i>But it has to pay its debts in USD</i></b>.<br /><br /><i> Brazil never,</i><br /><br />True.... It was a Portuguese Colony.... <b><i>But it has to pay its debts in USD</i></b>.<br /><br />:-)<br /><br />-------<br /><br />But I did like this bit:<br /><br /><i>Will probably make .... the alt-right people's hair stand straight up <b>despite the copious hair gel...</b></i><br /><br />To say nothing of their designer glasses.... :-)Magpiehttps://www.blogger.com/profile/07528637318288802178noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-77819978307515329472016-12-17T16:42:48.869-05:002016-12-17T16:42:48.869-05:00A recent example is Russia. "Country" me...A recent example is Russia. "Country" means consolidated public and private sectors. Russian companies, some state and some private, were indebted in foreign currency, mostly USD. When the oil price dropped and sanctions were imposed, those firms could not roll over their debt denominated in a foreign currency at foreign banks. The choice was to let the companies default or else for the Central Bank of Russia to provide the foreign currency to the companies by drawing down it USD reserves.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-52934824180620653882016-12-17T15:17:12.002-05:002016-12-17T15:17:12.002-05:00Matt
I do not think that dollar hegemony is bad, a...Matt<br />I do not think that dollar hegemony is bad, at this time. But there is dollar hegemony. Same as Pound, Euro, Yen, all dollars, Franc enjoy unlimited supply from the world since every country will accept them in exchange for goods.<br />All those currencies are enjoying hegemony which can be used at any time their borrower can be blackamiled and destroyed by declining to rollover old debts.Critical Tinkererhttps://www.blogger.com/profile/08540226813192385645noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-7899528186892929722016-12-17T15:15:58.573-05:002016-12-17T15:15:58.573-05:00China wants USD balances so they can buy ham facto...China wants USD balances so they can buy ham factories. Every sane person knows this. Right Matt?Sixhttps://www.blogger.com/profile/10756430577510633914noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-14999488179174511582016-12-17T15:12:29.709-05:002016-12-17T15:12:29.709-05:00"Trade settles using reserves"
Incorrect..."Trade settles using reserves"<br />Incorrect.<br />Int. trade settles by individual importing company borrows from exporting country bank, most of the time.<br />State debt settles using reserves and new debts.<br /><br />There is state debt and there is individual company's foreign debt, to foreign banks.<br />I found out that most of bigger corporations never reduce their debts just as states don't. Domestic or foreign debt.<br /><br />If there is a fixed fx, then state does borrowing on behalf of individual importing corps from foreign banks in order to pay for imports.<br />Importing for colonies is paid by borrowing, never by earned dollars from exports. Mostly because those are separate corporations. One is importing and another is exporting. One sells dollars to CB that fixes fx and another buys it from CB. <br /><br />But since most of those colonies are importing more then exporting they have to borrow dollars to import and pay for old debts and servicing those debts.Critical Tinkererhttps://www.blogger.com/profile/08540226813192385645noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-56330667829065344242016-12-17T14:56:21.596-05:002016-12-17T14:56:21.596-05:00The references to Brazil in this thread contain so...The references to Brazil in this thread contain some incorrections - and the Brazilian case is a useful starting point to dispel some myths about the way dollar reserves are acquired outside the U.S.<br /><br />Brazil has been running a floating exchange regime with free movement of capital since the Real plan was introduced in 1993/4.<br /><br />The country has had current account deficits since 2008 - however, the amount of dollars held by the central bank has more than doubled during the period to some $370 billion today.<br /><br />How was this possible? Well, in order to acquire dollars a country does not need to have a current account surplus. Local firms may borrow in dollars with a view to spending internally in the local currency (taking advantage of the lower interest rate in dollars). Then the central Bank can buy said dollars thus building up its foreign reserves. More foreign reserves can also be a boon for strengthening the exchange rate thus facilitating the repayment of the dollar loans taken by the local firms (these can also try to hedge the foreign exchange risk, of course).<br /><br />The main point here is that dollars can be acquired via lending - even outside the U.S. <br /><br />For instance, the very large Eurodollar market has London-based banks creating dollar deposits by lending to firms (including for export and import of goods and services) quite independently from the Fed and U.S. authorities in general. If, say, a Korean firm wants to import oil from Mexico it can pay in dollars after contracting a loan in the Eurodollar market (these dollars are not part of the U.S. money supply but they are otherwise indistinguishable from internal U.S. dollars).<br /><br />One problem when writing about the hegemony of the dollar is that many people are still stuck in the Bretton Woods fixed exchange regime, with capital controls and convertibility into gold. But since 1971/73 the importance and size of financial account transactions in the balance of payments has dwarfed the current account. Spot transactions in foreign currency (after excluding other similar transactions such as foreign exchange swaps) stand at about $US 2 trillion a day, meaning 6 times the level of world GDP and 25 times larger than the total amount of world trade in goods and services. Thus, to look at dollar foreign exchange reserves through the eyes of the current account of the BoP can only lead us to mistaken ideas about the foundations of dollar hegemony in a flexible exchange rate, post gold standard international monetary system where open financial accounts are the rule.<br />Jose Guilhermehttps://www.blogger.com/profile/00313496015841693181noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-87555554413215433692016-12-17T14:53:31.191-05:002016-12-17T14:53:31.191-05:00"dollar hegemony!" = #fakenews"dollar hegemony!" = #fakenews<br /><br />Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.com