Earlier quoted context omitted.
That's plain wrong. You don't buy treasury bonds unless you know the interest rate. Even after all the bail outs, all the crisis and despite rising government debt there is no safer investment. It's just usually not used as the sole investment, but rather the safest position in portfolio...
That's exactly my point. You can't even remotely earn enough interest on treasuries to offset the destruction in the dollar that is occurring as the Fed generates massive inflation (aka expands the money supply at a record pace). The M2 is expanding at 12%, and the M1 is expanding at 7.5%. You don't have to take my word for it. The destruction has already occurred, and is getting worse. A 5 minute effort on calculati…
“My bank account's got robbed by European Commission. Over 700k is lost.”
151–160 of 174 posts
Re: “My bank account's got robbed by European Commission. Over 700k is lost.”
#152Earlier quoted context omitted.
That's exactly my point. You can't even remotely earn enough interest on treasuries to offset the destruction in the dollar that is occurring as the Fed generates massive inflation (aka expands the money supply at a record pace). The M2 is expanding at 12%, and the M1 is expanding at 7.5%. You don't have to take my word for it. The destruction has already occurred, and is getting worse. A 5 minute effort on calculati…
The argument about inflation really depends on what you have to do with the money besides putting it into investments, and what other investment options out there. It is still consensus that the bond rate + inflation risk is understood much better than any other asset I can think of. I'm talking about the financial term 'risk' here, not the colloquial one that you are using. In financial terms, you can have a loss wi…
Does that make sense?
Re: “My bank account's got robbed by European Commission. Over 700k is lost.”
#153So, you deposit your money in a bank with very high interest rates - very high because they invest in risky Greek bonds. If everything goes well, you keep the interests. If the risky investment of the bank goes bust, we (EU citizens) should pay you the risk, even beyond the insured 100k. Is that correct?
>ZERO INTEREST! >I've already explained that it's CURRENT ACCOUNT (transactional account). >Not bank paid to me, but I was paying annual fee to the bank in order to maintain this account and debit card. >Current accounts are usually not affected even if bank goes bankrupt. Upon liquidation, current account holders are paid first, as money on this type of account cannot be gambled by bank. It's most liquid assets, lik…
Re: “My bank account's got robbed by European Commission. Over 700k is lost.”
#154Earlier quoted context omitted.
“Remember that Cyprus is a very small country, being half the size of Pittsburgh.” Cyprus is small, but it's not that small. Pittsburgh, PA: 305,704 people (Pittsburgh metro area is 2.36 million though) Cyprus: 786,873 people Pittsburgh, PA: 55.37 mi^2 Cyprus: 3572 mi^2 Courtesy of Wolfram|Alpha: http://www.wolframalpha.com/input/?i=size+pittsburgh%2C+pa+v... http://www.wolframalpha.com/input/?i=population+pittsburgh…
The way some Americans rate city populations is weird to my (Australian) sensibilities. We assume the metro area in the city population - because the city is referred to as a whole. If I go to visit a friend in the metro areas of Sydney, I'm still 'going to Sydney', not 'the Sydney metro area'.
Europe is the same as is most of the first world as far as bigger cities go (bigger meaning >=1 million inhabitants). There is "city population" and "metro area population" (outside the well-defined boundaries of the city). In the 3rd world this data granularity often isn't available.
In Australia, I guess it may be available but the distinction simply isn't made (which also helps making you feel bit more "important" when comparing Aussie city sizes to other big cities in the world, I guess). ;)
When I lived in Australia I wondered why Sydney felt so small, smaller even than my home town Hamburg, in Germany. Even though it was supposed to have 4.5 million inhabitants while Hamburg barely has 2 million. After understanding this it all made sense. Hamburg has 1.75 million city + 3.25 metro area = 5 million ... in 3rd world/Aussie city population math. :)
Check Wolftram Alpha; you'll find there is no metro population area data for most 3rd world/Australian cities, but it is there is for most big cities in the rest of the first world.
Re: “My bank account's got robbed by European Commission. Over 700k is lost.”
#155Earlier quoted context omitted.
The way some Americans rate city populations is weird to my (Australian) sensibilities. We assume the metro area in the city population - because the city is referred to as a whole. If I go to visit a friend in the metro areas of Sydney, I'm still 'going to Sydney', not 'the Sydney metro area'.
Actually, not some Americans, but some (or all) Australians. It all depends on the pov. :) Europe is the same as is most of the first world as far as bigger cities go (bigger meaning >=1 million inhabitants). There is "city population" and "metro area population" (outside the well-defined boundaries of the city). In the 3rd world this data granularity often isn't available. In Australia, I guess it may be available b…
At 1.75 million, Hamburg would be solidly the 5th largest city in the U.S. However at 5 million it would only be the 10th largest metro area.
Re: “My bank account's got robbed by European Commission. Over 700k is lost.”
#156Earlier quoted context omitted.
“Remember that Cyprus is a very small country, being half the size of Pittsburgh.” Cyprus is small, but it's not that small. Pittsburgh, PA: 305,704 people (Pittsburgh metro area is 2.36 million though) Cyprus: 786,873 people Pittsburgh, PA: 55.37 mi^2 Cyprus: 3572 mi^2 Courtesy of Wolfram|Alpha: http://www.wolframalpha.com/input/?i=size+pittsburgh%2C+pa+v... http://www.wolframalpha.com/input/?i=population+pittsburgh…
The way some Americans rate city populations is weird to my (Australian) sensibilities. We assume the metro area in the city population - because the city is referred to as a whole. If I go to visit a friend in the metro areas of Sydney, I'm still 'going to Sydney', not 'the Sydney metro area'.
Generally it's more the people in the US metro areas who make that distinction, the persons who visit and live in the outlying areas and suburbs do not.
Re: “My bank account's got robbed by European Commission. Over 700k is lost.”
#157Earlier quoted context omitted.
I'm not sure why, but natermer's past several posts are all dead. He wrote: > The people running the government, which uses the taxes to secure loans that they have no intention on paying back, in order to prop up a failing economy that is failing because of the rules and regulations that are setup to maximize the illigit profit for said people running government.. those are the real gangsters. > Most large state gov…
I'm not sure why, but natermer's past several posts are all dead. He was hellbanned in this thread: https://news.ycombinator.com/item?id=4276766
Re: “My bank account's got robbed by European Commission. Over 700k is lost.”
#158Earlier quoted context omitted.
That's exactly my point. You can't even remotely earn enough interest on treasuries to offset the destruction in the dollar that is occurring as the Fed generates massive inflation (aka expands the money supply at a record pace). The M2 is expanding at 12%, and the M1 is expanding at 7.5%. You don't have to take my word for it. The destruction has already occurred, and is getting worse. A 5 minute effort on calculati…
Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. It may be influenced by changes in the money supply, but is not defined by them. What evidence do you have to back up your assertion that "Fed generates massive inflation"?
It's critical in economics to separate supply & demand of goods causing increases or decreases in prices, from monetary changes. Free market forces are not the same as central bank forces.
There's about 200 years of modern economic evidence for how exactly inflation works and how central banks create it.
I'll ignore the fact that the Fed has openly admitted it has devalued the dollar by 97% since its founding. I'll also ignore the fact that Bernanke recently said it was the goal of the Fed to generate asset inflation via QE aka debasing the dollar (see real estate skyrocketing 10% again, or 22% in Phoenix (a disaster market recently), see stocks at all time highs again ala 2007).
I'll also ignore the fact that Greenspan openly admitted the Fed has the direct ability to increase or decrease inflation, and can cause bubbles or pop them. He of all people should know.
It's not an assertion, it's a fact supported by extreme amounts of data.
If you increase the monetary base and money supply by hundreds of percent over a relatively short period of time, you're going to see a substantial increase in the price of goods in the currency in question.
If you 'print' dollars to buy trillions in mortgages and remove them from the market, you're going to limit supply of housing and cause approximately $3 to $4 trillion worth of inflation in just one year (what's happening right now). Not to mention simultaneously holding down mortgage rates via the government dominated mortgage market, by holding short term and long term interest rates artificially low by buying the paper that influences that. Then when consumers sell their homes, or take home equity loans, and then spend in any manner or buy anything else or loan their money to banks - the inflation gets discharged directly into the economy. This is one simple example, there are countless.
If today you have one trillion dollars, and tomorrow the Fed prints another trillion dollars, it's obvious what happens.
So not only do I have vast empirical economic proof not only do I have historical evidence for how it all works, not only do I have obvious math theory that is as simple as addition and subtraction, but I have the Fed openly admitting the scale of the inflation it has caused.
How many proof articles would you like on the topic?
Re: “My bank account's got robbed by European Commission. Over 700k is lost.”
#159Earlier quoted context omitted.
That's plain wrong. You don't buy treasury bonds unless you know the interest rate. Even after all the bail outs, all the crisis and despite rising government debt there is no safer investment. It's just usually not used as the sole investment, but rather the safest position in portfolio...
That's exactly my point. You can't even remotely earn enough interest on treasuries to offset the destruction in the dollar that is occurring as the Fed generates massive inflation (aka expands the money supply at a record pace). The M2 is expanding at 12%, and the M1 is expanding at 7.5%. You don't have to take my word for it. The destruction has already occurred, and is getting worse. A 5 minute effort on calculati…
You were making some interesting points, but this kind of hyperbole makes it very difficult to take you seriously.
Re: “My bank account's got robbed by European Commission. Over 700k is lost.”
#160Earlier quoted context omitted.
even funnier thing is thinking that these haircuts are gonna do much… the template according to troika is to do more of the same :D granted the only future i see in bitcoins is in actual business transactions and not earnings interests,which with typical fiat are subject to the whims of ZIRP and central m̶a̶n̶i̶p̶u̶l̶a̶t̶i̶o̶n̶ planning :D (which [number of business transactions with bitcoins for goods or services] h…
You would lend out your bitcoins at interest, just like you do with any other currency. Unless you want to be a direct lender, you'd still use a bank. Maybe the EU's policies led to the propagation of all the bad assets, but Cypriot banks were offering a higher interest to attract deposits. You can't get that higher interest without investing in somewhat riskier assets. Even assuming the EU policy is terrible (I am n…
And only half of their banking system consisted of foreign deposits (not to mention most of those deposits were able to leave the country via loopholes). Where does that leave the individuals and small business native to cyprus? Is it such a horrid idea of storing your money in your own country?
And since the ECB is calling cyprus the template, where does this leave the next country that needs to be bailed out (which will happen again[1 bailout in 2010,1 bailout in 2011, 2 bailouts in 2012, 1 so far in 2013; this is starting to look like Fibonacci's work :P]) will banking in portugal, italy, ireland, greece, and spain be a very bad idea for people who live there, or are they all banking in their home country for tax avoidance,money laundering and for ZIRP to negative interest rates on their savings?