Ever wondered why govt across the globe are always in debt

[Guest dada_rocks]

Why they borrow money from those central banks who don't have any assets anymore ..the gold reserve is not increasing but the assets of those banks keep increasing Watch this videoLMM5ET36jWA

[THX_1138]

you know DR, glad as i am to have you back here, but please read a book or two before posting such garbage. The Private Banks at the time United States gained independence were an absolute sham. Many were run by friends who earned favors from presidents. in particular andrew jackson granted banks to many of his friends to solidify his control over the presidency. However, after the great depression, considerable changes have been brought about. The Securities Exchange Commission was setup, private and corporate banks were segregated and finally, the Federal Reserve was eventually set up to control the process of money introduced into the market to regulate economic output and inflation. There is something called the IS/LM curves (freshman economics) and it stands for Investment-Savings v. Loan Market. It displays the relationship between inflation, rates of interest, government spending, currency published and inflation. Take a look at it some time and understand how valuable the Federal Reserve is in the process of sustaining growth. And the Federal Reserve is effecient since it operates outside government influence. True the chair is appointed by the president, but he/she (though there has not be a woman chair hitherto), once appointed holds the post till they voluntarily renounce the post and are not 'serving at the pleasure of the president'. Moreover, private banks are essential for providing investment opportunities and innovative financial tools for the general population. If today, the number of home owners have increased, it is in great parts thanks to the numerous private banks that have provided mortgages to their customers. True, there was a sub prime debacle, and it was in great parts the result of several factors: ineligible home owners purchasing homes that they could not afford; mortgage loan officers who had no accountability; private banks that lend the mortgages; and investors who sought to exploit the high risk securities. In the end, the brunt was felt by the private banks, and in most cases, they were bailed out by either other private banks or investors: ex. citibank (bailed out by saudi investors), northern rock (bailed out in part by the british government, and the bank of london), bear sterns (bailed out by jp morgan) etc etc. If today, loans for aspiring enterpreneurs are available at low interest rates, its thanks in great parts to private banks that have been responsible for stimulating economic growth and increasing employment, thereby stimulating the revenue collected by the central governments. please, please, please for a moment stop receiving your news and viewpoint of the world from you tube and hackjob reporters (the above is at par with that horrible loose change bullshit). pick up a few books and study them. if you wish, i can recommend a few, especially in the field of economics.

[THX_1138]

and finally, most global economies run in debt because it is favorable to do so. if you increase your national treasury, it will result in a stronger currency which is not desirable if you are heavily invested in manufacturing. why do you think china spends billion of dollars a year on infrastructure and purchasing treasury bills? because if it hoards the money, the yuan will need to be strengthened or otherwise, inflation would occur, slowing down the economic growth. the greatest economist ever born: John Maynard Keynes said that even if a country is running a steady deficit, it is not a matter of concern as long as it is increasing investment in the national infrastructure and stimulating growth.

[Guest dada_rocks]

you know DR, glad as i am to have you back here, but please read a book or two before posting such garbage

cud not go beyond this garbage sentence

[THX_1138]

cud not go beyond this garbage sentence

well it would behoove you to do so. but if you are so rigidly stuck up, then i guess i am at fault for not resisting the temptation to respond to your rants when logic dictates that i turn a deaf ear to your geriatric; and occassionally vituperative; ejaculations.

[cybervickey]

you know DR, glad as i am to have you back here, but please read a book or two before posting such garbage. The Private Banks at the time United States gained independence were an absolute sham. Many were run by friends who earned favors from presidents. in particular andrew jackson granted banks to many of his friends to solidify his control over the presidency. However, after the great depression, considerable changes have been brought about. The Securities Exchange Commission was setup, private and corporate banks were segregated and finally, the Federal Reserve was eventually set up to control the process of money introduced into the market to regulate economic output and inflation. There is something called the IS/LM curves (freshman economics) and it stands for Investment-Savings v. Loan Market. It displays the relationship between inflation, rates of interest, government spending, currency published and inflation. Take a look at it some time and understand how valuable the Federal Reserve is in the process of sustaining growth. And the Federal Reserve is effecient since it operates outside government influence. True the chair is appointed by the president, but he/she (though there has not be a woman chair hitherto), once appointed holds the post till they voluntarily renounce the post and are not 'serving at the pleasure of the president'. Moreover, private banks are essential for providing investment opportunities and innovative financial tools for the general population. If today, the number of home owners have increased, it is in great parts thanks to the numerous private banks that have provided mortgages to their customers. True, there was a sub prime debacle, and it was in great parts the result of several factors: ineligible home owners purchasing homes that they could not afford; mortgage loan officers who had no accountability; private banks that lend the mortgages; and investors who sought to exploit the high risk securities. In the end, the brunt was felt by the private banks, and in most cases, they were bailed out by either other private banks or investors: ex. citibank (bailed out by saudi investors), northern rock (bailed out in part by the british government, and the bank of london), bear sterns (bailed out by jp morgan) etc etc. If today, loans for aspiring enterpreneurs are available at low interest rates, its thanks in great parts to private banks that have been responsible for stimulating economic growth and increasing employment, thereby stimulating the revenue collected by the central governments. please, please, please for a moment stop receiving your news and viewpoint of the world from you tube and hackjob reporters (the above is at par with that horrible loose change bullshit). pick up a few books and study them. if you wish, i can recommend a few, especially in the field of economics.

damn so the vdo is bullshit,fuc.k i already sent the link to my teacher to gain som ebrownie points,he'll proably be going wtf !:nervous:

[ludhianvi]

damn so the vdo is bullshit' date='fuc.k i already sent the link to my teacher to gain som ebrownie points,he'll proably be going wtf !:nervous:[/quote'] :haha: I have watched the videos in an earlier discussion here, forgot the user though that posted the links to the videos.

[THX_1138]

damn so the vdo is bullshit' date='fuc.k i already sent the link to my teacher to gain som ebrownie points,he'll proably be going wtf !:nervous:[/quote'] no it is not bullshit, its is over 70 years outdated. i was upset with DR since he attempted to pass it off as a geniune contemporary concern, which it is not. Prior to the establishment of the Securities Exchange Commission, private banks in the united states were often blotched operations. The later part of the video is just reading out of a book. A Margin call is still in place anytime a forward/option is purchased. There is however, some concern with regards to contemporary trading: it was a deregulatory legislature passed by the Bush administration in late 2000, and has been attributed in great parts as the cause of contemporary oil price hikes: previously, when a party traded on the CBE or the NYE etc etc, an was invested in futures for commodities, it was limited in its exposure to risk by a requirement that any futures it purchased would have to require consumption when matured. i.e. if you bought a future stating that you want the perogative of purchasing oil at 150 a barrel some six months in the future, you could only purchase as many such contracts as the amount of the associated commodity you consumed. thus every tom dick and harry could not be nose deep in oil futures unless they consumed the commodity upon maturation. when this regulation was removed, investors began to hedge their portfolios with energy futures... soon energy trading became a full blown affair (and i am personally guilty of it to some extent), and it created a bubble price for these commodities; oil is not that scarce that it must be priced at close to 200 bucks a barrel, its just that traders have speculated on the price to such a magnitude that it has driven the price up. which is also why i oppose any bird brain suggestion by conservative talk show hosts and economist hacks who suggest that drilling for more oil will reduce the price. just reinstate the regulation and watch oil prices tumble.

[ludhianvi]

if you wish' date=' i can recommend a few, especially in the field of economics.[/quote'] Shoot away some books for a noob in economics like me. I havent read a book for leisure purposes in years:D

[THX_1138]

Shoot away some books for a noob in economics like me. I havent read a book for leisure purposes in years:D

Thomas Friedman - The World Is Flat (discusses deregulation and globalization, especially from the perspective of United States, China and India) Gregory Mankiw - Macroeconomics (a lucid textbook which makes for easy reading and explains the role of the federal reserve, the flow of money, interest rates and infaltion) John C Hull - Option, Futures and Other Derivatives (first book in stock price modeling using martingales and Iota's Calculus, foundation of financial mathematics) Ramanathan - Statistics and Econometrics (Ideal for introductory econometrics)