US Treasury Bonds

[hokkienpeng]

Your argument is one dimensional. Is USA an export-dependent country ? Their economy is 70% dependent on the domestic and service sector.

That's why I said not likely. In any case the US exports enough to fuel an export-led boom that partly mitigated the effects of the crisis during the early stages. Who's to say that a second export-led boom would not spark a domestic economic expansion that would about a recovery?

As is the case with most wise men (which I'm not but try to be), I stand on shoulders of the proverbial giants instead of ignoring hard-won knowledge of the past. So what if you form your own opinion if it's going to be a shallow and stupid one?

 

[Relako]

That's why I said not likely. In any case the US exports enough to fuel an export-led boom that partly mitigated the effects of the crisis during the early stages. Who's to say that a second export-led boom would not spark a domestic economic expansion that would about a recovery?

As is the case with most wise men (which I'm not but try to be), I stand on shoulders of the proverbial giants instead of ignoring hard-won knowledge of the past. So what if you form your own opinion if it's going to be a shallow and stupid one?

The thing that mitigated the effects of the crisis was the US govt buying over all the poisoned debts (TARP), giving back some confidence to the US financial and banking sector.

When has USA ever had an export-led boom, ever ? What is the figure of the US trade deficit ?

Standing on shoulders of giants ? Trying to be wise ? Firstly, go get your numbers correct before calling others stupid, idiot or shallow.

A typical Hokkien peng trying to act smart. Kana sai.

 

[johnny333]

QE2 is making equities more attractive than US Treasuries as interest rates are almost zero. I think the intention is to stimulate the US economy by forcing businesses & banks to invest rather than to hoard money in treasuries.

 

[hokkienpeng]

Paul Krugman is an idiot. Peter Schiff has more juice than that fake economist Paul Krugman.

It takes a certain level of intellectual acumen to appreciate Krugman (not a lot since he writes with amazing clarity and accessibility). If you are deficient in that regard, you could compensate for it with an open mind. But if you lack both, then I guess he is an idiot to you.

For example, everyone knows that "debt is bad". You know it from your personal experience and from what your parents and teachers and pastors tell you since time immemorial. So when somebody tries to tell you that a country is different from a person or a company and that "debt can be good", it runs counter to a basic principle that you've been taught since childhood and that you've validated personally, your instant reaction is to dismiss that person as an idiot.

On the other hand if somebody else (say Schiff) proposes a theory that appeals to your existing prejudice, you tend to buy it even if it's flawed.

 

[hotbot]

QE2 is about asset prices, not the economy

http://blogs.ft.com/gavyndavies/2010/11/03/qe2-is-about-asset-prices-not-the-economy/

 

[hokkienpeng]

The thing that mitigated the effects of the crisis was the US govt buying over all the poisoned debts (TARP), giving back some confidence to the US financial and banking sector.

When has USA ever had an export-led boom, ever ? What is the figure of the US trade deficit ?

Standing on shoulders of giants ? Trying to be wise ? Firstly, go get your numbers correct before calling others stupid, idiot or shallow.

A typical Hokkien peng trying to act smart. Kana sai.

Well, maybe it never really happened and I had imagined it, except that a google search on "us export boom 2008" yields about two hundred thousand results. Knock yourself out:

http://www.nytimes.com/2008/08/18/business/economy/18export.html
http://uk.reuters.com/article/idUKN1028154820080110
http://online.wsj.com/article/SB10001424052748704754604575095331459500018.html

As you've so astutely observed, I'm just a Hokkien Peng goofing off here while on break from guard duty. It's stupid of you to think that I could provide you with numbers of any sort.

But if you insist, I'll give it a shot. Here are some numbers from 2008:

http://www.bea.gov/newsreleases/international/trade/2008/pdf/trad0908.pdf

 

[johnny333]

QE2 is about asset prices, not the economy

http://blogs.ft.com/gavyndavies/2010/11/03/qe2-is-about-asset-prices-not-the-economy/

Asset prices like property?
Many americans are still struggling to pay their mortgages.


Many debate the usefullness about QE2 but they are desperate & its another sink they are throwing at the problem

 

[hotbot]

come to think of it, Quoting sam:

"While the small ticket items may cost more, the amount saved from cheaper housing and cars, lower taxes and a minimum wage of $12.75 per hour more than makes up for difference.

I have saved more than $2 million in housing and about $350,000 in transport related costs over the last decade. It more than makes up for $2 delta every time I buy a plate of fried rice (which isn't very often as it's a simple dish that can be done at home)."

what he said makes very logical sense!

http://www.sammyboy.com/showthread.php?t=79273&page=2

in singapore, some people will feel good because they see their assets / wealth improving. But if people realise their REAL wealth may or may not be improving. $1m used to buy you a nice condo in a good district. Now you can only buy a HUDC in a decent district. And the above only applies to people with assets in the right places. Those without will not even know what they are missing.

Asset prices like property?
Many americans are still struggling to pay their mortgages.


Many debate the usefullness about QE2 but they are desperate & its another sink they are throwing at the problem

 

[zeebjii]

I guess with so much misinformation floating around, this sort of idiotic post is unavoidable.

The US is hoping that China would dump US treasury bonds. In fact the White House is taking active measures to ensure that it happens.

The whole problem right now is that China keeps buying up US treasury securities to keep the value of RMB low relative to other currencies so that Chinese goods can be kept cheap. This is great for Chinese exports but factories in every other country are going to be forced out of business since they can't compete with Chinese prices. Note that this isn't because Chinese factories are more efficient but because China is in effect subsidizing its exports by keeping the RMB low (mainly through buying up US debt) — a selfish act that also violated numerous WTO regulations.

In fact, one of the retaliation measures proposed is to forbid China from participating in US debt auctions so that China can't buy anymore US debt (like treasury bonds).

If China dump all its US treasury bonds, it will be a very good thing for the US. Since then US exports will be cheap and perhaps (though not likely) US could export its way to a recovery.

Don't take my word for it, read it yourself from a Nobel laureate:

http://krugman.blogs.nytimes.com/2010/09/10/chinese-bond-purchases/

Blindly parroting krugman's vewpoints makes you a genius then? What a cunt! I dont think you even understand hat you're wriing about.

Can you please kindly tell us how ameica is going 'export its way' out of trouble? Tel us your _OWN_ views.

 

[johnny333]

And the above only applies to people with assets in the right places. Those without will not even know what they are missing.

I'm sure the "lesser mortals" of Spore are feeling the inflationary pressures that's going on. Some haven't had a pay hike in years & more probably had a pay cut.

I'm cash poor, choosing to keep my assets in shares. Of course not all the share prices have gone up but mine have reached record levels.

What's happening in the US is going to impact Sporeans.
We've reached a "water shed", vote for PAP & be guaranteed of future tax hikes or vote for the opposition & maybe things will change. The last leave may be falling but he's left a legacy of his spawns & cronies.

 

[Thick Face Black Heart]

Typical Sinkie 'quote from textbooks and quote other people' mentality. What a f##ling loser !

Agree with you on economist opinions versus forming your own judgment. Some people take economist words for gold. You can see them everyday at the pawn shop trying to get back what they lost.

 

[Thick Face Black Heart]

QE2 is making equities more attractive than US Treasuries as interest rates are almost zero. I think the intention is to stimulate the US economy by forcing businesses & banks to invest rather than to hoard money in treasuries.

Do you know what is a liquidity trap?

http://www.investorsinsight.com/blo...e/2010/11/05/thoughts-on-liquidity-traps.aspx

 

[johnny333]

Do you know what is a liquidity trap?

http://www.investorsinsight.com/blo...e/2010/11/05/thoughts-on-liquidity-traps.aspx

What to do
I know that I'm loosing out on the debasing of the US$ & their silly monetary policies. Just trying to maintain what I have until the crisis is over :(

All the countries are trying to depreciate their currencies to remain competitive I remember the saying that when the US catches a cold, everyone worldwide will be affected.

Whether I keep my assets in the bank, in shares, in gold, in cash, ... ithey're all losing their value. At least the value of the shares I'm holding is going up. So despite the debasement of the US$, the value is about the same.

It's all about minimising the losses. Only the PAP can protect themselves by iindexing their pay to some hypothethical bunch of top earners.

 

[hokkienpeng]

Tel us your _OWN_ views.

Sure. My view is that Krugman is right and that you're an idiot.

 

[Boliao]

USA will panic if China dumps her US Treasury bond holdings. The last thing USA wants now is for their long term interest rates to go up. Given the number of foreclosures, if the mortgage rates go up, more people will lose their homes.

Your argument is one dimensional. Is USA an export-dependent country ? Their economy is 70% dependent on the domestic and service sector.

If you have to depend on reading other economist's arguments and not form your own opinions, you are an idiot in the first place.

Typical Sinkie 'quote from textbooks and quote other people' mentality. What a f##ling loser !

The USA IS trying to deflate its currency and move investors away from bonds. It's not about export but import. The more you import, the less goods are manufactured locally and less jobs for US citizens. When US dollar falls, it also becomes increasingly more expensive to locate jobs overseas.

It's not hard to tell who's view is one dimensional.

Why do you think the G-20 panics and the rest of the world is trying to devalue their currency against US instead of balancing trade deficits?

You're the dumb ass who knows knowing. Typical Sinkie mentality in thinking you know everything.

 

[zeebjii]

Sure. My view is that Krugman is right and that you're an idiot.

LOL this pathetic one-liner shows your us clearly what you're worth without having the luxury of parroting others.

You must have cracked your brain for this one!

 

[Charlie258]

I'm sure the "lesser mortals" of Spore are feeling the inflationary pressures that's going on. Some haven't had a pay hike in years & more probably had a pay cut.

I'm cash poor, choosing to keep my assets in shares. Of course not all the share prices have gone up but mine have reached record levels.

What's happening in the US is going to impact Sporeans.
We've reached a "water shed", vote for PAP & be guaranteed of future tax hikes or vote for the opposition & maybe things will change. The last leave may be falling but he's left a legacy of his spawns & cronies.

I am not so sure "cash poor" is the best way to go. If a "Bear Stearns/Lehman Bros.," "Event" happens again, you will need a lot of cash to salvage the situation. 1 or 2 smart people took advantage of the last big crash, they were able to do so because of their big hoard of Cash.

 

[Seee3]

Something on economic and accounting that I hope someone can teach me.

US companies say, Apple or Nike make products overseas and then export from there. Will such gains be reflected in US GNP? Will it be reflected in their US export figure? Thanks

 

[johnny333]

I am not so sure "cash poor" is the best way to go. If a "Bear Stearns/Lehman Bros.," "Event" happens again, you will need a lot of cash to salvage the situation. 1 or 2 smart people took advantage of the last big crash, they were able to do so because of their big hoard of Cash.

I'm sure some people made a killing in this market but many also lost alot. Only have to look at our own brilliant Ho Chings

I'm just a simple worker bee, a part-time investor and only making plans to make do with one or two million. Anything more will be a bonus especially in this environment.

 

[Devil Within]

It takes a certain level of intellectual acumen to appreciate Krugman (not a lot since he writes with amazing clarity and accessibility). If you are deficient in that regard, you could compensate for it with an open mind. But if you lack both, then I guess he is an idiot to you.

For example, everyone knows that "debt is bad". You know it from your personal experience and from what your parents and teachers and pastors tell you since time immemorial. So when somebody tries to tell you that a country is different from a person or a company and that "debt can be good", it runs counter to a basic principle that you've been taught since childhood and that you've validated personally, your instant reaction is to dismiss that person as an idiot.

On the other hand if somebody else (say Schiff) proposes a theory that appeals to your existing prejudice, you tend to buy it even if it's flawed.

Krugman didn't even see the sub-prime thing coming until it was too late and Peter Schiff was warning about the melt-down 2 years ahead of the crash and everything Schiff said so far was coming into fruition while Krugman and his gang still clueless. Well, like the saying goes, "Birds of the same feathers flock together", I guess it's the same for idiots.