DislikedIf China and other emerging markets were to buy US treasuries with their existing USD reserves, that would not devalue the USD at all.Ignored
"I know one thing, that I know nothing." Sokrates
EurAnalysis Kindergarten 24 replies
DislikedIf China and other emerging markets were to buy US treasuries with their existing USD reserves, that would not devalue the USD at all.Ignored
DislikedMate, this is pretty clear imo? They are switching assets, selling one, buying second, value of the sold one (FX reserves) lowers. That is the base of international trade. Stop thinking stock exchange now, I know if you use leverage and so, money aint flowing into M2 monetary base. But this is hard cash.Ignored
DislikedThere is no such thing as cold hard cash anymore... not since the creation of the fractional reserve system.Ignored
DislikedMate there are several types of monetary bases, according to IMF rules. They are sorted by lets say, liquidity. M1 is most common base, where are coins, bank notes and bank accounts, M2 is less liquid, say @ week, and so on, up to cash fixed in state pension funds. So, by saying hard cash, I mean liquid cash. And liquidity is what we are talking about here. They got real cash and buy real assets. edit: To expand here, expansion of M1 and M2 monetary base is what causes inflation.Ignored
DislikedYes I understand all that, but liquidity is only used for commerce and not for government surplus holdings. In fact, liquidity is not an asset but rather a liability. Perhaps we're on two different tracks hereIgnored
DislikedNah, just a bit . Liquidity is the most valuable asset in the world like now. Its liquidity, what market lacks as bubbles like mortgage or sovereign debt keep on poping and values disappear. Banks need cash. Exporters have cash. In "no safe haven" enviroment, where you have one asset guaranteed by CBs, you are going to give banks liquidity which they so desperately seek in exchange for that asset. Resulting in expansion of M2 monetary base of USD, therefore inflation.Ignored
DislikedEven though Gold is selling off it pays to remember what it is: An ultimate asset Just like food it will never go to 0 Buying in a pyramid formation at major HSR points will reward you with wealth Gold has been a store of value for 5000 years. Nothing except food comes close to that.Ignored
Dislikedis there anybody planning to buy Gold? I heard some HedgeFunds are still active selling Gold for this entire Month.Ignored
DislikedGold is on Yearly low, what are the targets for BUY? sry bro but you look very desperate for buyingIgnored