Is Amercia Broke?

[Loz]

New Nexus Wrote:

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> Loz Wrote:

> --------------------------------------------------

> > Britain? Empire building? In the middle of the 19th century? You don't say!

> >

> > But you'd have a harder time convincing me that

> > was still the case today.

>

> Where do you think Wachovia and Wells Fargo & Co (WFC) got the idea to launder $378.4 billion

> Mexican drugs money into U.S. to support the economy during the 2008 crisis.

> Apples do not fall far from the tree.

A vague conspiracy theory about two US companies and Mexico? Aaaand that has got what exactly to with British empire building?

[New Nexus]

Loz Wrote:

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> New Nexus Wrote:

> --------------------------------------------------

> -----

> > Loz Wrote:

> >

> --------------------------------------------------

>

> > > Britain? Empire building? In the middle of the

> 19th century? You don't say!

> > >

> > > But you'd have a harder time convincing me

> that

> > > was still the case today.

> >

> > Where do you think Wachovia and Wells Fargo & Co

> (WFC) got the idea to launder $378.4 billion

> > Mexican drugs money into U.S. to support the

> economy during the 2008 crisis.

> > Apples do not fall far from the tree.

>

> A vague conspiracy theory about two US companies

> and Mexico? Aaaand that has got what exactly to

> with British empire building?

Try reading Bloomberg, June 29, 2010 before you talk about ?conspiracy theory? British empire building has everything to do with American empire building. The same corrupt banking system are behind the rise of both, clearly you did not get the apple?s and tree metaphor.

I have no problem with capitalism. But people should try and understand that we are not living in a democratic capitalist country we live in a cleptocracy, it is not a trickle down system it is a trickle up system. There is no more price discovery in the worlds stock exchanges ? Goldman Sachs runs computer algorithms to do volume trading ? they place their servers next door to the New York stock exchange, just to get milliseconds on front trading. Hank Paulson 2008 went before congress and basically said give me 800 billion dollars or I will crash the economy ? banks blackmailing governments, and just like blackmailing they end up paying more and more QE1, QE2, QE3 talk about kicking the can down the road, when do we run out of road. The U.S. freeze interest rate at basically zero for two years ? how can they know what?s going to happen in three months let alone 2 years. And the really big elephant 700 trillion dollars derivatives market not yet addressed ? and I know people will say what can?t be paid won?t be paid, but history has shown us where that end up.

[silverfox]

"...talk about kicking the can down the road, when do we run out of road... And the really big elephant... what can?t be paid won?t be paid, but history has shown us ..."

I see what you mean ScrumpyJack

[Jeremy]

Firms rent server space on-site at the NYSE - GS is one of them.

What on earth does this have to do with your bizarre claims that the UK is a cleptocracy??

Why do you think the entire derivatives market is basically worthless? Do you actually know what a derivative is?

[New Nexus]

Jeremy Wrote:

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> Firms rent server space on-site at the NYSE - GS

> is one of them.

>

> What on earth does this have to do with your

> bizarre claims that the UK is a cleptocracy??

>

> Why do you think the entire derivatives market is

> basically worthless? Do you actually know what a

> derivative is?

I did not say ?at? the exchange, location- location- location.

Yes I do know what derivative is, thank you.

Do you know the bank that sold clients ?crap? then bet against said clients, or is that just moral hazard and creating a market.

Most people would call it fraud.

[Jeremy]

Nexus, you are one of those people who has a little bit of knowledge about something, but thinks they're a fully qualified pundit!

Algo-trading... data centres close to the NYSE... what is your point? Are we supposed to be shocked?

What is your specific concern about the derivatives market? Do you think the entire 700 trillion you quote (at a guess- total notional of the worldwide OTC market?) is going to go down the toilet? Why?

GS shorting the mortgage market (and therefore "betting against" clients) is common knowledge. Arguably fraudulent, yes. Again... what point are you trying to make?

[Huguenot]

The dispiriting thing is that every comment NN makes is about the US.

He's just going to US bulletin boards, copying and pasting.

It's like that rubbish about the dollar 'no longer being the reserve currency'. Does he know what a 'reserve currency' is?

A reserve currency is one that's usually held indefinitely in foreign currency reserves for trading between two nations that do not otherwise support the currency internally. It's market driven, not regulated - two nations can choose to trade however they wish.

Market pressures tend to limit the total number of reserve currencies, because if one of the two nations had to buy currency to make a trade they'd be disadvantaged.

Over 50% of foreign currency reserves aren't 'established' reserves anyway, of the rest only 60% is US dollar. the Euro and Sterling are both strong.

This means that the dollar only represents 30% of foreign currency reserves, so who gives a monkeys anyway?

Well - the US gives a monkeys: it has an advantage if it owns the currency because it never has to trade currency to trade a commodity - it gives it a slight margin on every transaction.

So the only country panicking about the US not being a 'reserve currency' is... the US!!! US teenagers make up silly stories about China and Russia not accepting anything else because they're trying to protect US interests.

For this reason only silly English boys copy and paste US websites.

SDR is nothing to do with reserve currencies. So the rest of it was just bollix.

[New Nexus]

Huguenot Wrote:

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> The dispiriting thing is that every comment NN

> makes is about the US.

>

> He's just going to US bulletin boards, copying and

> pasting.

>

>

Now your just being deliberately stupid the topic nay question is ?Is Amercia Broke??

[StraferJack]

whearas in all your other posts, NN you have been a model of local inclusivity

[New Nexus]

Huguenot Wrote:

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>

> It's like that rubbish about the dollar 'no longer

> being the reserve currency'. Does he know what a

> 'reserve currency' is?

Clearly you have not been reading the FT, Telegraph, Bloomberg, Huffington Post Etc. You may want to try a little catch-up Gore Vidal may be helpful to you. And if you really want to know how the U.S. work read Confessions of an Economic Hit Man - written by John Perkins

The U.S. has been decoupling from the world for years, physical manifestation of this would be the bilateral agreements between Russia and China, yes trading outside of the dollar.

[New Nexus]

StraferJack Wrote:

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> whearas in all your other posts, NN you have been

> a model of local inclusivity

Sorry, don?t know how to play ping-pong

[Huguenot]

Ha ha!

And you reckon you read any of those??!

Ha ha!

If you'd read any of them you wouldn't be continuing to screech on about playwrights or books about third world exploitation that have no relevance to your argument.

Listing publications and regurgitating invented quotes does not make an argument.

You've got to stop copying and pasting mate.

If you'd bother reading my post I said that the definition of the US dollar as 'the' reserve currency is nonsense. It's one of a portfolio. Countries have been trading outside of the dollar since berfore it was invented, and that it's minority trading currency anyway.

If you'd read any of those things you refer to you'd know that.

You don't know what you're talking about, you're just being silly.

[New Nexus]

Jeremy Wrote:

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> What is your specific concern about the

> derivatives market? Do you think the entire 700

> trillion you quote (at a guess- total notional of

> the worldwide OTC market?) is going to go down the

> toilet? Why?

>

When the 700 trillion derivatives are mark-to-market the world will see sacks of rubbish, just like CDO & CDS.

Then they take all that rubbish and dump it on to government unfunded liabilities books,

The governments then go, we need more cut-backs and higher taxes, because we have to much debt. Local services suffer, stupid kids go rioting.

Yes dumb-down version but basically what has already happened in banking

[Jeremy]

Why is a CDS rubbish?

[New Nexus]

Huguenot Wrote:

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> Ha ha!

>

> And you reckon you read any of those??!

>

> Ha ha!

>

> If you'd read any of them you wouldn't be

> continuing to screech on about playwrights or

> books about third world exploitation that have no

> relevance to your argument.

>

> Listing publications and regurgitating invented

> quotes does not make an argument.

>

> You've got to stop copying and pasting mate.

>

> If you'd bother reading my post I said that the

> definition of the US dollar as 'the' reserve

> currency is nonsense. It's one of a portfolio.

> Countries have been trading outside of the dollar

> since berfore it was invented, and that it's

> minority trading currency anyway.

>

> If you'd read any of those things you refer to

> you'd know that.

>

> You don't know what you're talking about, you're

> just being silly.

You keep referring to copy and pasting again and again it?s like you have some kind of fixation. There are other sentences you could try.

You are describing a banking and financial sector as you would like it to run, and not as it is being run.

2008 is over, it?s consequences are not.

Yes I do read all aforementioned publications,

So your intellectual snobbery is a waste of time with me.

[New Nexus]

Jeremy Wrote:

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> Why is a CDS rubbish?

What?s wrong with me insuring my neighbors house then go burn down that house and claim on the insurance.

Short or naked short the vehicle can be used the same

[Huguenot]

New Nexus, that's like saying you should ban knives because they can be used to stab people, or we should ban hammers because they can be used to hit people.

We'd have no food and no houses...

You misunderstand financial products, take extreme positions, incorrectly claim them to be commonplace, and then use that as justification to trash the entire system.

Nearly every single finanical concept you've attacked you've done so on a false premise.

I'm not defending financial malpractice, I'm just refusing to take your evident misunderstandings and accellerate them to apocalyptic proportions.

[Jeremy]

A ban on "naked" CDS sales has been discussed, but it's unlikely to go through... hard to implement, and there are legitimate reasons to buy a CDS even if you don't hold corresponding bonds.

I'm more interested as to why all hell will break loose when they are marked to market (even though they routinely are already).

[New Nexus]

Huguenot Wrote:

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> New Nexus, that's like saying you should ban

> knives because they can be used to stab people, or

> we should ban hammers because they can be used to

> hit people.

>

> We'd have no food and no houses...

>

> You misunderstand financial products, take extreme

> positions, incorrectly claim them to be

> commonplace, and then use that as justification to

> trash the entire system.

>

> Nearly every single finanical concept you've

> attacked you've done so on a false premise.

>

> I'm not defending financial malpractice, I'm just

> refusing to take your evident misunderstandings

> and accellerate them to apocalyptic proportions.

If you know a knife or hammer is going to be abused then yes you ban it, or are you advocating selling such items to riots - no you are not, common sense prevails.

We all know what these products are going to be used for ? JP Morgan, Goldman Sacks, Chase and all the rest, do not recruit from MIT because of numerical excellence but because of numerical complexity they can deploy.

Glass-Steagall Act has gone, rock on Charles Ponzi

[Huguenot]

"If you know a knife or hammer is going to be abused then yes you ban it"

Well there you go - it's there in a nutshell. Drastic solutions to an extraordinarily disproportionate fear.

[New Nexus]

Huguenot Wrote:

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> "If you know a knife or hammer is going to be

> abused then yes you ban it"

>

> Well there you go - it's there in a nutshell.

> Drastic solutions to an extraordinarily

> disproportionate fear.

Sorry but how is it a ?Drastic solutions? not to sell knives and hammers to riots and thugs?

[New Nexus]

Jeremy Wrote:

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>

> I'm more interested as to why all hell will break

> loose when they are marked to market (even though

> they routinely are already).

Rating agencies and compliance officers have still not got a handle on the complexity of derivatives, just like they did not have a clue about mortgage backed securities, and who ended up paying for that little mishap, yes all of us, and are still paying.

Derivatives are theoretical entireties, they have no worth in themselves, they are machination of a MIT think-tank.

[Huguenot]

I think characterising financial practitioners as thugs is going a little far don't you?

[New Nexus]

Huguenot Wrote:

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> I think characterising financial practitioners as

> thugs is going a little far don't you?

Some of these ?financial practitioners? are still walking the streets after rioting, vandalizing and looting the worlds economy. I have a much more colorful name for them.

[Loz]

Oh, so participating in financial transactions with people now gets classed as "rioting, vandalizing and looting"?

Hyperbole.