Full Circle’s Mutterings on Money
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25-07-2016, 05:49 AM
RE: Full Circle’s Mutterings on Money
(25-07-2016 02:07 AM)Szuchow Wrote:  
(24-07-2016 08:36 AM)Full Circle Wrote:  Take a 6 question quiz on financial literacy and see how you do.

http://www.usfinancialcapability.org/quiz.php

4/6. Nothing spectacular, but not bad either I would say.

Was one of the two missed the bond question?

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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25-07-2016, 05:52 AM
RE: Full Circle’s Mutterings on Money
(25-07-2016 05:49 AM)Full Circle Wrote:  
(25-07-2016 02:07 AM)Szuchow Wrote:  4/6. Nothing spectacular, but not bad either I would say.

Was one of the two missed the bond question?

Yes. Other one was about mortgages.

The first revolt is against the supreme tyranny of theology, of the phantom of God. As long as we have a master in heaven, we will be slaves on earth.

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25-07-2016, 06:15 AM
RE: Full Circle’s Mutterings on Money
(25-07-2016 05:52 AM)Szuchow Wrote:  
(25-07-2016 05:49 AM)Full Circle Wrote:  Was one of the two missed the bond question?

Yes. Other one was about mortgages.

Here is a simple amortization calculator. You can plug in the total amount of the loan, interest rate and term and it will tell you how much you will pay in interest over the life of the loan.

http://www.amortization-calc.com

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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25-07-2016, 06:17 AM
RE: Full Circle’s Mutterings on Money
(25-07-2016 06:15 AM)Full Circle Wrote:  
(25-07-2016 05:52 AM)Szuchow Wrote:  Yes. Other one was about mortgages.

Here is a simple amortization calculator. You can plug in the total amount of the loan, interest rate and term and it will tell you how much you will pay in interest over the life of the loan.

http://www.amortization-calc.com

Thanks. I don't need it for now though.

The first revolt is against the supreme tyranny of theology, of the phantom of God. As long as we have a master in heaven, we will be slaves on earth.

Mikhail Bakunin.
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21-08-2016, 07:36 PM
RE: Full Circle’s Mutterings on Money
INFLATION:

Notice that the things we need are much more expensive while the things we want are the same or less. Ass-backwards.

I suspect this had much to do with Bernie Sanders’ strong showing.

[Image: prices2-1.png]

http://www.aei.org/publication/do-you-he...ming-home/

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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23-08-2016, 10:33 AM
RE: Full Circle’s Mutterings on Money
(25-07-2016 05:49 AM)Full Circle Wrote:  
(25-07-2016 02:07 AM)Szuchow Wrote:  4/6. Nothing spectacular, but not bad either I would say.

Was one of the two missed the bond question?

5/6 the only one I missed was the bond question.

I have a question for you FC .

What happens (to American economy ) when dollar stops being world's reserve currency?

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23-08-2016, 01:07 PM
RE: Full Circle’s Mutterings on Money
(23-08-2016 10:33 AM)Slowminded Wrote:  
(25-07-2016 05:49 AM)Full Circle Wrote:  Was one of the two missed the bond question?

5/6 the only one I missed was the bond question.

I have a question for you FC .

What happens (to American economy ) when dollar stops being world's reserve currency?

On the road, will give it some thought and reply when I get home. Thumbsup

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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23-08-2016, 09:32 PM
RE: Full Circle’s Mutterings on Money
(23-08-2016 10:33 AM)Slowminded Wrote:  
(25-07-2016 05:49 AM)Full Circle Wrote:  Was one of the two missed the bond question?

5/6 the only one I missed was the bond question.

I have a question for you FC .

What happens (to American economy ) when dollar stops being world's reserve currency?

Slow minded, I simply don’t see that happening anytime soon.

First we must look at why the USD is the reserve currency.

"The dollar became the highest currency in the world thanks to the 1944 Bretton Woods agreement.

Before then, most countries were on the gold standard. Their governments promised to redeem their currencies for their value in gold upon demand. The world's developed countries met at Bretton Woods, New Hampshire, to peg the rate of exchange for all foreign currencies to the U.S. dollar. At that time, the dollar was backed by its value in gold, and the U.S. held the largest gold reserves. This allowed other countries to back their currencies with dollars, rather than gold.

By the early 1970s, countries began demanding gold for the dollars they held to combat inflation. Rather than allow Fort Knox to be depleted of all gold reserves, President Nixon untied the dollar to gold. By that time, the dollar had already become the world's dominant reserve currency. For more, see stagflation.

The next closest reserve currency is the euro. Only 25% of central bank foreign currency reserves were in euros as of the first quarter 2012. This is down from the second quarter 2011, when 26.7% were in euros. The chance of the euro becoming a world currency grows slimmer as the eurozone crisis continues. In fact, the difficulties of having a world currency shared by different countries is highlighted by the eurozone struggles. (Source: IMF, COFER Tables)”
https://www.thebalance.com/world-currency-3305931

Until there is a world power that is more stable and with more military might the USD will remain the reserve currency. People like to know their money is “safe”, as long as the USA has the “big stick” and has a stable government I don’t see anyone selling their dollars to buy Renminbi. There are options if a person wishes to store their value in a different currency, the Yen and the Euro are a close 2nd and 3rd, the pound a distant 4th. The pound lost much of its shine when in 1992 Soros “broke the pound” by shorting it and helped devalue the currency.
https://priceonomics.com/the-trade-of-th...ros-broke/ No one has ever been able to do that to the greenback.

"Why is the U.S. dollar the currency of choice?
Stability is one of the major factors that explains why a number of countries have adopted the U.S. dollar as official currency. The U.S. dollar has never been devalued, and its notes have never been invalidated. For countries all too familiar with bank failures, devaluation and inflation, the stability of the U.S. dollar brings with it a certain amount of peace of mind. Business is easier to conduct when a stable currency is used.”
http://www.investopedia.com/articles/07/...z4IDUai5Do

So there’s my non-answer.

“I am quite sure now that often, very often, in matters concerning religion and politics a man’s reasoning powers are not above the monkey’s.”~Mark Twain
“Ocean: A body of water occupying about two-thirds of a world made for man - who has no gills.”~ Ambrose Bierce
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24-08-2016, 07:10 AM
RE: Full Circle’s Mutterings on Money
(23-08-2016 09:32 PM)Full Circle Wrote:  The U.S. dollar has never been devalued...

This is not totally correct. The US dollar value was halved—almost overnight—against gold in the early 1930s. $40-ish versus $20-ish an ounce.

I'm a creationist... I believe that man created God.
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24-08-2016, 10:09 AM
RE: Full Circle’s Mutterings on Money
(23-08-2016 09:32 PM)Full Circle Wrote:  
(23-08-2016 10:33 AM)Slowminded Wrote:  5/6 the only one I missed was the bond question.

I have a question for you FC .

What happens (to American economy ) when dollar stops being world's reserve currency?

Slow minded, I simply don’t see that happening anytime soon.

First we must look at why the USD is the reserve currency.

"The dollar became the highest currency in the world thanks to the 1944 Bretton Woods agreement.

Before then, most countries were on the gold standard. Their governments promised to redeem their currencies for their value in gold upon demand. The world's developed countries met at Bretton Woods, New Hampshire, to peg the rate of exchange for all foreign currencies to the U.S. dollar. At that time, the dollar was backed by its value in gold, and the U.S. held the largest gold reserves. This allowed other countries to back their currencies with dollars, rather than gold.

By the early 1970s, countries began demanding gold for the dollars they held to combat inflation. Rather than allow Fort Knox to be depleted of all gold reserves, President Nixon untied the dollar to gold. By that time, the dollar had already become the world's dominant reserve currency. For more, see stagflation.

The next closest reserve currency is the euro. Only 25% of central bank foreign currency reserves were in euros as of the first quarter 2012. This is down from the second quarter 2011, when 26.7% were in euros. The chance of the euro becoming a world currency grows slimmer as the eurozone crisis continues. In fact, the difficulties of having a world currency shared by different countries is highlighted by the eurozone struggles. (Source: IMF, COFER Tables)”
https://www.thebalance.com/world-currency-3305931

Until there is a world power that is more stable and with more military might the USD will remain the reserve currency. People like to know their money is “safe”, as long as the USA has the “big stick” and has a stable government I don’t see anyone selling their dollars to buy Renminbi. There are options if a person wishes to store their value in a different currency, the Yen and the Euro are a close 2nd and 3rd, the pound a distant 4th. The pound lost much of its shine when in 1992 Soros “broke the pound” by shorting it and helped devalue the currency.
https://priceonomics.com/the-trade-of-th...ros-broke/ No one has ever been able to do that to the greenback.

"Why is the U.S. dollar the currency of choice?
Stability is one of the major factors that explains why a number of countries have adopted the U.S. dollar as official currency. The U.S. dollar has never been devalued, and its notes have never been invalidated. For countries all too familiar with bank failures, devaluation and inflation, the stability of the U.S. dollar brings with it a certain amount of peace of mind. Business is easier to conduct when a stable currency is used.”
http://www.investopedia.com/articles/07/...z4IDUai5Do

So there’s my non-answer.

Thanks for the replay FC.

Just one more thing ( and please excuse my ignorance , I'm not an economist ) since dollar is not backed by gold , and as I understand US just prints more money to service it's debt and for other purposes , doesn't that devalues it? It kinda makes sense that other countries don't like this one bit and that they will look for other options because of that?

If some powerful countries like Russia and China start trading in currencies other then dollar and Arab countries start accepting payments for oil in currencies other then dollar would this become a problem for the US?

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