Global financial crisis - what does it mean to you

[Marc.com]

Like I said before I think the US$ is based on bulls*hit and its a problem that most international trade is based on it. Maybe we all should go back on the gold standard. Look at the worth of the  US$ vs the gold price, halved in how many months?
cheers

The limitation of the gold standard was also that you had to have a few tons of the metal lying about in reserve and it wasn't a really portable in the way that for example US denominated treasury bills are.

Plus finally the gold standard does not fit our current system which is debt based rather than equity based. Hard to do credit default swaps moving gold about the world..... Soooo we are stuck with the current system of trading debt futures and default risk, which I think like all economies based on creating wealth through increased debt and dodging defualt bullets is doomed to failure as the commodities markets of the 90s were.

If i was running the planet I would allow for devaluation of the US, increase interest rates in the US to 4-5%, make clear renegotiation of the US sovereign debt position.... kick 4 countries out of the EU and allow their people a chance of default and restructure under the IMF auspice and the comparitive value of their own currency to the Euro. .... see job done.

[bazza]

Marc at last some sence there has been none since Rob Muldoon come home and run gods little shang ra la of the South pacific.

[Mike52]

If i was running the planet I would allow for devaluation of the US, increase interest rates in the US to 4-5%, make clear renegotiation of the US sovereign debt position.... kick 4 countries out of the EU and allow their people a chance of default and restructure under the IMF auspice and the comparitive value of their own currency to the Euro. .... see job done.

Got my vote

[Marc.com]

Marc at last some sence there has been none since Rob Muldoon come home and run gods little shang ra la of the South pacific.

Yes next year I am coming home to lead my people, not like it is that hard to get elected.... me, Hone, Minto, Sue and Ronnie the Ropehead will be very happy together. 

Actually those people might not be very happy as I would repeal all legislation passed since about 1978 as unnecessary to the smooth operation of the country.

[Mike52]

Yes next year I am coming home to lead my people,

You stopping off in AUS marc ? cause I might have a small job for you.

[Marc.com]

You stopping off in AUS marc ? cause I might have a small job for you.

Aussie is easy to sort because gold is just going to keep going skywards, how about a nice mining tax to empty Rio's record prfits a bit and return some money to the Australian people.

What you have got to do as a popularist is give and take a little ..... take some mining tax bucks and give a lower tax on beer and cheaper registration for cars over 5 litres, reduce a dollar a carton at every election and $50 off rego ....you will be elected in spades.

Problem with most pollies is they lose touch with reality, or in the case of NZs ones have never held jobs or had any touch with reality.

[EML]

Problem with most pollies is they lose touch with reality, or in the case of NZs ones have never held jobs or had any touch with reality.
 
 
Aussie pollies are the same-never run a business at least-which would put all in good stead for running a country.
The Yanks have no idea as if they go too far one way the other side reckons they'll become commies next-so instead they sit on the fence. Let's face it, with-out a war or two to drive their economy they're rooted. 
I would have thought that with the dollar the way it is we would be pouring enough back over there just in VMX purchases.

[Marc.com]

I would have thought that with the dollar the way it is we would be pouring enough back over there just in VMX purchases.

Judging by my credit card bills I am single handedly supporting Paypal and USPS so i am doing my part.

Working for big companies you can definitely understand how Governments get detached from the result... customers or voters are just an inconvenience that gets in the way of financial and legal compliance issues, internal reporting and being good corporate citizens. Which is why I have chosen to leave the program.

[motomaniac]

For a while now I've been watching the business I work for slowly go under .
It's not a dramatic thing just a slow slow death.

The US Federal Government took on the debts of the private sector which sunk it, the Australian Government is yet and probably unlikely to be forced into this position due to Australian Banks low risk exposure and relatively responsible governance. The performance of the Australian Banking Service Indusries probably had more to do with keeping Australia out fo the shit during the GFC than the resource industry.

But with GFC II just round the corner I think the Australian households are in for a rough ride.

Rudd already gave away a big chunk of our $ to the banks in 08,with no questions asked.They speculated it and made big $.

GFC2 ? GFC1 is still brewing.

[motomaniac]

If i was running the planet I would allow for devaluation of the US,thats already happening,deliberately increase interest rates in the US to 4-5%that will happen and cause unprecedented hardship,the cash rate is falsly held down,again deliberately, make clear renegotiation of the US sovereign debt positionthats the plan ,they will loose their sovereignty to the IMF like Greece and the rest.... kick 4 countries out of the EUthat wont happen if they can help it and allow their people a chance of default and restructure under the IMF too easy but why would the IMF  banksters give up their catch?auspice and the comparitive value of their own currency to the Euro.like with the old soviet block they know that once one go's they all will and its the end of the Union, also the devalued countries would have a huge advantage over the EU countries and that would have an effect in Europe like China now has globally .... see job done.the Euro wont last but for many countries that are alreday in the shit it won't help or matter , owned by the high priests of finance.Job done.








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[Marc.com]

make clear renegotiation of the US sovereign debt positionthats the plan ,they will loose their sovereignty to the IMF like Greece and the rest..

The US is the ultimate too big to fail economy, they don't need the IMF to renegotiate their debt for them, they can demand and likely recieve a chunk of debt forgiveness from Japan, China and the Middle East..... its only paper after all.

Back to Europe, the point of the PIGS leaving the EU is to quarantine the rest of the EU members from the fall out of the current debacle. Greece is only 2.1 % of the Euro Zone economy but to quote the Economist  "the towering inferno started as a fuse box fire" .... the point is to allow an orderly default of the PIGS without contaminating Italy and the rest of the Euro zone.

I don't see the Euro Zone going the same way as USSR, there are too many advantages for Germany, France and Scandanvians etc ... they just need to drop the poor relations off at the IMF bus terminal.

Interesting day yesterday on Wall St ..... GFC II ?

[VMX247]

Interesting day yesterday on Wall St .....

yes indeed with the closing today another 45 billion lost in the back pocket...dollars down,oils down-fuels to go down (fingers crossed)and as Nathan says "the sky hasnt fallen"
cheers A

[Marc.com]

yes indeed with the closing today another 45 billion lost in the back pocket...dollars down,oils down-fuels to go down (fingers crossed)and as Nathan says "the sky hasnt fallen"
cheers A

Sky never falls Alison but the markets always return to equilibrium....

I was in Canada last week and petrol was $1.10 a litre, it was like the good old days.... I almost wept with joy.

[matcho mick]

http://www.wtfnoway.com/

[motomaniac]

frightening , very frightening 

or this http://www.youtube.com/watch?v=n4-4bvuX7qA&feature=related