Janet Yellen says it's different this time (credit, money, financial)
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Just as with US dollars, the supply of Swiss francs consists of more than just currency and coin in circulation. Prior to January 15, 2015, the overall supply was capped, but those limits were lifted at that time.
I don't know a Swiss Frank, but Swiss francs are not widely enough used as reserves any more to qualify as a reserve currency. They remain important in finance for other reasons though.
exactly my point . loads of us have been the "big boys " for a long long time . but yet you will hear those on the sideline talk about how the markets are rigged for the big boys. no one is bigger than fidelity and vanguard .
Mathjak, I always enjoy your expertise on investing, personal finance, etc...
I'm curious what you think about the Debt:GDP ratio, as well as the fact that wages aren't really rising despite the fact that the economy/market is improving.
Practically speaking, how long can that last? At some point, things can only get so profitable if consumers don't have money to spend.
My thoughts/concerns are borne out by what I saw during the last recession. I was in college/recently graduated. I saw my parents, who were fortunate enough to keep their jobs, and in solid financial shape anyway, get their first actual tax refund in years; many many people got tax refunds they didn't expect with the idea that they would go and spend the money. But instead of buying washing machines, they paid of debt or saved it. This makes sense since its a natural reaction during a recession.
I see the current plan putting money in people pockets, and I see them spending it. But I also wonder if the juice to the economy is worth the squeeze for the deficit.
to tell you the truth : i don't know and don't care much about debt ratio's and other economic numbers .
i am not an economist nor am i smart enough to have enough info from all fronts to even have an opinion . i just play the cards i am dealt the best i can .
whatever the economy does , i am just interested in either profiting or protecting . that is my end of things . predicting the outcome of economic numbers is for the wanna be arm chair economists here who apparently have all the answers ..
Just as with US dollars, the supply of Swiss francs consists of more than just currency and coin in circulation. Prior to January 15, 2015, the overall supply was capped, but those limits were lifted at that time.
Sure. I don't know what the numbers are, but total USD value/numbers are way higher in the world.
Well, every economy in the world that has an actual heartbeat either has its own central bank or utilizes the services of one nearby. It's odd don't you think that all this "awesomeness" is universally not recognized in the world?
I said it would be awesome if the US$ was not the world reserve currency. It would decline in exchange value, the perpetual trade deficit would close, investment and production and wages would increase. The fiscal deficit would drop. Seems pretty awesome to me.
Sure. I don't know what the numbers are, but total USD value/numbers are way higher in the world.
US population is around 323 million and its GDP is around $18.6 trillion. For Switzerland, the numbers are 8 million and $0.7 trillion. One is a giant behemoth, and the other a tiny bunch of artisans.
I said it would be awesome if the US$ was not the world reserve currency. It would decline in exchange value, the perpetual trade deficit would close, investment and production and wages would increase. The fiscal deficit would drop. Seems pretty awesome to me.
Seems like a bunch of baloney to me. The only way for the dollar to lose its reserve status would be for our productive capacity to vanish somehow. Comet strike. Nuclear disaster. That sort of thing. As long as the US produces 22% or so of everything produced anywhere in the world, we will be A -- and most likely THE -- major economic player in the world.
US population is around 323 million and its GDP is around $18.6 trillion. For Switzerland, the numbers are 8 million and $0.7 trillion. One is a giant behemoth, and the other a tiny bunch of artisans.
They might make better cheese, but not enough Francs and Franc denominated debt paper and investments to satisfy the world's demands for such large amounts of very safe and easily exchanged money/investment/debt paper.
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