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Buy low Sell high (pg. 6)
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| Nrg2Nfinit |
if you are talking about currency pegging, that isn't happening anymore.
The yuan used to be pegged to the USD but since the summer of 2010 the yuan has been gaining strength.
they kept their currency low to promote exports. IF you export more than you import and deal with foreign currency, you run into issues trying to convert your currency back as you have a surprlus of foreign currency and a lack of your own currency.
The result is that the chinese central bank essentially prints money to keep its currency low, and therefore continue to promote its high export to import ration (ie develope)
heres a video that explains it better than i can
http://www.youtube.com/watch?v=S-9iY1OgbDE |
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| Lagrangian |
| quote: | Originally posted by billymadision
Is there any point in the Yuan? When did China become the center of the monetary universe? |
when you allowed black men to run the country
when you decided you were too good to work the fields and you allowed foreigners to do all the hard work
when you began spreading tyranny in the name of democracy.
by running great deficits without appropiate spending cuts
simple math? |
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| Lagrangian |
| quote: | Originally posted by Nrg2Nfinit
if you are talking about currency pegging, that isn't happening anymore.
The yuan used to be pegged to the USD but since the summer of 2010 the yuan has been gaining strength.
they kept their currency low to promote exports. IF you export more than you import and deal with foreign currency, you run into issues trying to convert your currency back as you have a surprlus of foreign currency and a lack of your own currency.
The result is that the chinese central bank essentially prints money to keep its currency low, and therefore continue to promote its high export to import ration (ie develope)
heres a video that explains it better than i can
http://www.youtube.com/watch?v=S-9iY1OgbDE |
correct, on a more serious note...
http://www.bloomberg.com/news/2013-...ing-nation.html |
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| Dykes_on_Jay |
| The yuan is monopoly money, but i get a lot of it. |
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| Lagrangian |
Last year I predicted that the U.K economy would crash; It's scarier than I thought, but Carney's appointment at BoE is sure to bring youthful edge in decision making at the Old Lady of Threadneedle Street. I thought highly of King, but change is right.
The U.K will most likely enter a recession (triple dip)--I see absolutely no way out of this with inflation at these levels and purchasing power falling immensely, not to mention that dreaded bond rating downgrade looming.
| quote: | | Most obviously, the U.K.’s “recovery” remains an achingly gradual affair. The fourth quarter’s 0.1% contraction in GDP was the fifth quarterly slip recorded since the economy supposedly clawed back to post-crisis growth in late 2009–later than its peers. For the moment, analysts think the U.K. will avoid a lethal triple dip, but it will probably be the usual knife-edge escape rather than a convincing upward bound. Then there’s that triple-A credit rating. For so long, this was the U.K.’s comfort blanket, one it kept while all about it were losing theirs. However, proper deficit reduction has proven a longer, harder road than the one anticipated–which was long and hard enough. Investors are now pretty sure the U.K.’s rating is toast; it’s just a question of when it pops up. What about monetary policy? Well, judged by its inflation mandate alone, it’s been a dismal failure, with consumer prices rising ahead of the Bank of England’s 2% target every month since the end of 2009. The Bank has just modestly upped its inflation forecast, so improvement remains elusive to put it mildly. |
http://blogs.wsj.com/source/2013/02...rely-homegrown/
I've studied the charts extensively & it seems the £ will fall to 1.33 against the $. We're at 1.55 levels...It's huge! |
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| Spacey Orange |
| as a strategy to become wealthy, isn't buying stocks without taking a controlling interest (or having significant influence on the management) ineffective, mostly serving as a hedge against inflation? i'm curious was to the Lagrangian and Nrg2Nfinit have to say. |
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| Lagrangian |
Read : http://www.bankers-anonymous.com/bl...untaught/#_ftn2
Yesterday Warren Buffett's Betkshire Hathaway bought Heinz, the stock rallied almost 20%. I bet most of this money was financed, and with rates this low, I don't see why not.
It's all about the relative value of current cash-flow pegged with interest rates. |
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| Spacey Orange |
| Thanks, but im familiar with the topic you linked. Correct me if im wrong, but are implying that a good strategy is to borrow at a low interest rate and pay off the loan with the target company, which you control? But how many people can do that? |
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| Lagrangian |
Paid gradually and dependent on a benchmark rate of mutual agreement, we trade cash-flows.
http://www.investopedia.com/terms/s/swaption.asp
In essence, people like Tim Cook and Mark Zuckerberg are the most vulnerable if their company goes under turmoil (along with COO's and the board of directors); those who create the vehicle for such investments, the crew at J.P Morgan & Goldman Sachs always profit; they can straddle/strangle their options whichever way your stock goes...look into Herbalife.
In essence, being mgmt is not always optimal unless you're well protected against headwinds (again, options) on the stock market. |
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