A bank pledges collateral and the Fed loans them the money. Credits their account. Later, the Fed sends back the collateral, takes the money back.
Posted on 11/02/2007 5:23:12 AM PDT by Thorin
The euro, worth 83 cents in the early George W. Bush years, is at $1.45.
The British pound is back up over $2, the highest level since the Carter era. The Canadian dollar, which used to be worth 65 cents, is worth more than the U.S. dollar for the first time in half a century.
Oil is over $90 a barrel. Gold, down to $260 an ounce not so long ago, has hit $800.
Have gold, silver, oil, the euro, the pound and the Canadian dollar all suddenly soared in value in just a few years?
Nope. The dollar has plummeted in value, more so in Bush's term than during any comparable period of U.S. history. Indeed, Bush is presiding over a worldwide abandonment of the American dollar.
Is it all Bush's fault? Nope.
The dollar is plunging because America has been living beyond her means, borrowing $2 billion a day from foreign nations to maintain her standard of living and to sustain the American Imperium.
(Excerpt) Read more at worldnetdaily.com ...
14.8% a year? LOL!
Yes.
Don’t they do that when the gov runs out of cash too?
No.
What's going to happen then?
Huh?
Tanx, BTW oil futures added roughly $2.30 today and wholesale gas added roughly $0.09/gal.....that’s gonna make Turkey Day driving to grandma’s average probably $3.20/gal nationwide by then....hmmmmm Holiday Winter Festival Anti-Christian Season spending will be what this year vs real income as compared to the past and CCard rates through the roof? Wally World top bosses are very nervous from an inside source I hear.
If your bank offered you a five-year certificate of deposit that paid an annual rate of 4% on a $10,000 investment, would you buy it? I wouldn't . . . it's only getting me a $400 annualized return.
But if they told me that I only had to deposit $6,500 to get that $400 return (and they'd give me credit for the $3,500 difference), I might think about it. I'm basically getting a 6.15% annualized rate of return on my money. And yet in both cases, my "coupon" is 4%.
This is basically how these foreign trades are being conducted today.
More if we bomb Iran.
....hmmmmm Holiday Winter Festival Anti-Christian Season spending will be what this year vs real income as compared to the past and CCard rates through the roof?
I'm not a retail analyst.
Wally World top bosses are very nervous from an inside source I hear.
I'll bet.
No.
But if they told me that I only had to deposit $6,500 to get that $400 return
That's a 6.15% return.
(and they'd give me credit for the $3,500 difference)
No such thing. You're over thinking the situation.
This is basically how these foreign trades are being conducted today.
Sorry, a 4% coupon is a 4% coupon. If foreign holders sell, because they think it's too low, the return will increase. It hasn't because they aren't selling, yet.
Thanks for the explanation, regardless.
Seems that way sometimes....gas prices and taxes.
A bank pledges collateral and the Fed loans them the money. Credits their account. Later, the Fed sends back the collateral, takes the money back.
You Got it!
Higher income people like Buffett or Gates will skewer the median net worth figures up. That chart is worthless. The rich are getting mega richer and the middle class is ho hum. Show me a chart that shows increases in average net worth of middle class flyover families.
Why do YOU think the U.S. dollar has declined against every other major currency in the last few years?
OMG! STFU!
Havoc, is that you? LOL!
That notion would be correct if we were an export led economy. But given that we are consumption based, the positive impact of exports cannot outweigh the negative impact of weakening domestic demand (USD not being the cause there but the horrible housing situation that can be linked back to the 1994 Fair Housing Act) given the latter’s weight in GDP.
The Fed acted way too late and cutting rates won’t help the housing market, which has been 1999-2000’s version of the stock market in terms of a source of discretionary spending.
Until that corrects, and I don’t think it will until 2009, we’re in for a rough ride.
It's not because... (and they'd give me credit for the $3,500 difference)
A European investor paying 6500 Euros for a $10,000 bond that has a 4% coupon still earns 4%. I hope that's a little clearer.
As far as currency fluctuations, if I knew that, I'd be worth $1 billion, at least.
LOL!
No, they won't. They'll skew the AVERAGE net worth up, but not the median (which is why the median is used instead of the average).
If you have 5 people in a group and every one of them has a net worth of $1 million, then the average net worth is $1 million and the median net worth is $1 million. If you have four people with a net worth of $1M apiece and one has a net worth of $1 billion, then the average net worth is over $200 million but the median is still $1 million.
The median value in any group is the "middle" number (i.e., the value with 50% of the population above it and 50% below it).
Mean and median net worth numbers are up. Real income and real per-capita consumption is up. Employment is up, manufacturing is up, the stock market is up, exports are up, interest rates are down, inflation is moderate and the US still leads the world in just about every area of technology. I'm sorry you're sucking hind tit in spite of all this good news and opportunity.
Debating you is worthless since you don't understand the information given to you nor do you ever offer any of your own to support your ridiculous assertions. Perhaps you should have stayed at LP instead of coming back here as a doomer retread.
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