Posted on 08/24/2015 7:43:54 AM PDT by Biggirl
The global market crash continued on Monday, starting with China and then continuing around the world.
(Excerpt) Read more at breitbart.com ...
PPT is on the job. DOW will be up at the close. Your tax dollars at work.
Down 700 today. My prediction!
What is “PPT” ? Thank-you for your response.
Plunge Protection Team. A euphemism used to describe a suspected (not proven) covert group whose sole function is to keep stock prices shored up.
For example, if the US "owes" China $100, China can't spend dollars. They have to convert into Yuan. So, do we pay them physical dollars or "dollars" on an accounting sheet, for which they then convert into Yuan . . . then spend?
Or do we convert first and pay them in Yuan? I guess I'm asking what is the unit of account on which our "debt" rests? If the conversion comes first, the devaluation last week just shaved 25% or more off our debt to China.
Not good. Usually my broker texts me early every morning but he hasn’t. Same with my buds.
As the dollar is the world reserve currency, then is it logical that is the unit of exchange? Oil is valued in dollars worldwide, IIRC.
I don’t know but i’d like to see an answer to your question.
Ok, please then explain what that means. If the dollar is the unit of exchange, do we owe the Chinese more, or less, in real terms after the Yuan devaluation?
The biggest problem with today’s economic news is that there is no one to step forward and offer leadership. Obama could step forward, and his presence would only bring in the vacuum that surrounds him like a halo.
Less, if the Yuan is devalued relative to the dollar, looks to me like.
I’ve never been overseas to travel (other than Thailand in 1972), but I’ve always been told that the best time to go is when the dollar is strong relative to the Pound or Euro. Like now. I suppose the same would apply to China if one were going to travel there.
Ok, that’s what I thought. So, if they devalued the Yuan by 25%, essentially that takes 25% right off the top of our debt to China, right? I mean, I know it’s not that simple, but that was a massive “Paper” boost to the US economy.
Right. I went to Germany in the early 1990s and the exchange rate was terrible. Very expensive.
Plunge Protection Team. People seem to think there is a ground either in gov or at the Fed that intervine in the market when things start to go south. They call them the PPT.
Good question and hopefully someone who knows will answer.
China can spend dollars, there is no need to convert them. Just about every country accepts US dollars in exchanges for goods produced in that country. Saudi Arabia for example only accepts US dollars for its’ oil.
contracts define the unit of currency to be used. In nearly all cases U.S. companies set it as the U.S. Dollar and define the exchange rate with adjustments triggered if the currencies shift beyond certain percentages - it can’t hurt either party depending on which way the fluctuation goes. The transfer in the currency is made to the bank if the other party in those units and then the bank and other party deal with the conversion based on the daily rate of exchange for any conversions. Most of the time the rate is better then you or I would see as a consumer. Think of it as using a credit card overseas - transaction happens in the local currency, but your bank converts it (with a transaction fee on the bill) and bills you in your currency.
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