tag:blogger.com,1999:blog-830201814627063938.post3990509089415993067..comments2024-03-22T11:05:30.869+00:00Comments on Financial crisis? <br>It's a pyramid, stupid.: Kill your saviour: currencies' crisis is loomingUnknownnoreply@blogger.comBlogger51125tag:blogger.com,1999:blog-830201814627063938.post-82733618109214998572021-12-11T07:24:06.753+00:002021-12-11T07:24:06.753+00:00It is an excellent blog, I have ever seen. I found...It is an excellent blog, I have ever seen. I found all the material on this blog utmost unique and well written. And, I have decided to visit it again and again. <a href="https://rgray.io" rel="nofollow">crypto marketing agency</a><br />Muhammad Hassanhttps://www.blogger.com/profile/04282277249728542966noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-37480212647664444792021-06-19T21:35:09.123+01:002021-06-19T21:35:09.123+01:00A startup in Medellin or Cartagena can compete wit...A startup in Medellin or Cartagena can compete with a firm in Toronto and another firm in Indianapolis for a services contract. Removing the barriers of nationality from the transaction to focus solely on the services provided and costs involved are a major benefit. <a href="https://binorcoin.com/" rel="nofollow">https://binorcoin.com/</a><br />Lynna Connerhttps://www.blogger.com/profile/10148028990041792924noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-6003248512974149672020-11-17T17:12:27.542+00:002020-11-17T17:12:27.542+00:00In the world of www, there are countless blogs. Bu...In the world of www, there are countless blogs. But believe me, this blog has all the perfection that makes it unique in all. I will be back again and again. <a href="https://www.mintonblock.com" rel="nofollow">Best bitcoin 401k investment plan</a><br />Muhammad Hassanhttps://www.blogger.com/profile/04282277249728542966noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-19513360033948591572020-07-24T13:06:50.798+01:002020-07-24T13:06:50.798+01:00You can even go ahead and hire professionals who c...You can even go ahead and hire professionals who can do the job for you. But when coding, do remember one thing - blatant copying is not going to lead you anywhere. <a href="https://www.azara.ai/" rel="nofollow">accept bitcoin</a><br />Farhan.Jeehttps://www.blogger.com/profile/13900889601228097966noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-50331527918094441462019-10-12T15:26:53.238+01:002019-10-12T15:26:53.238+01:00Fabulous and thoroughly captivating, This blog is ...Fabulous and thoroughly captivating, This blog is a top of the line work.<br /><a href="https://zigz.io/" rel="nofollow">trading bot</a><br />king of seohttps://www.blogger.com/profile/15091554548640878807noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-70963592369332521212019-05-14T16:15:56.852+01:002019-05-14T16:15:56.852+01:00Really nice and interesting post. I was looking fo...Really nice and interesting post. I was looking for this kind of information and enjoyed reading this one. Keep posting. Thanks for sharing.<br /><a href="https://microbtwhatsminerd1.com/" rel="nofollow">visit the manufacturer here for purchasing</a><br />yoyoservicehttps://www.blogger.com/profile/07154431143944719770noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-81210497126872002019-05-13T19:10:24.669+01:002019-05-13T19:10:24.669+01:00Thanks for the blog filled with so many informatio...Thanks for the blog filled with so many information. Stopping by your blog helped me to get what I was looking for. Now my task has become as easy as ABC. <a href="https://microbtwhatsminerd1.com/" rel="nofollow">The best way for mining Bitcoin is The ASIC Hardware</a><br />Saqib Khatrihttps://www.blogger.com/profile/07730556578524554655noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-37464875567320033282019-03-09T08:28:25.619+00:002019-03-09T08:28:25.619+00:00We're a cryptocurrency alerting website that o...We're a cryptocurrency alerting website that offers price alerts, percent price alerts, wallet alerts and other alerts for bitcoin and other cryptocurrencies with many notification options (email, sms, slack, telegram, etc). <a href="https://cryptocurrencyalerting.com" rel="nofollow">alerting</a><br />Luck Cityhttps://www.blogger.com/profile/11407845258757115722noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-82412048749228751662018-09-09T18:22:30.261+01:002018-09-09T18:22:30.261+01:00Very good topic, similar texts are I do not ...Very good topic, similar texts are I do not know if they are as good as your work out.<br /><a href="http://xn--eck3a9bu7cul.news/" rel="nofollow">ビットコイン</a><br />Ladla Kinghttps://www.blogger.com/profile/02409861137160583173noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-59800941063928971672018-01-17T09:24:22.240+00:002018-01-17T09:24:22.240+00:00Flawless and amazing online journal!
Ricona ICOFlawless and amazing online journal!<br /><a href="https://www.ricona.io" rel="nofollow">Ricona ICO</a><br />Starhttps://www.blogger.com/profile/02687188318678091112noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-89744627598255920162017-12-21T15:02:10.368+00:002017-12-21T15:02:10.368+00:00A big round of applause for the amazingly written ...A big round of applause for the amazingly written blog.<br /><a href="http://affgadgets.com/kucoin" rel="nofollow">Kucoin affgagets</a><br />Bk_Servicehttps://www.blogger.com/profile/17581566199240113308noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-11187187350032215912011-11-14T01:55:24.214+00:002011-11-14T01:55:24.214+00:00There are two ways out and the former will be chos...There are two ways out and the former will be chosen, I believe, and we will (almost) all be worse off because of it (generally). The world is not mentally or emotionally capable of dealing with the problem at this time. Something will have to happen.George E. Bourguignon, Jr. Attorney at Lawhttps://www.blogger.com/profile/09516267440204434608noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-40736104231908376612010-06-08T09:01:23.804+01:002010-06-08T09:01:23.804+01:00It’s all about fairness.
Someone said tax those w...It’s all about fairness.<br /><br />Someone said tax those who have caused the global recession (world banks) when they are in profit. Penalise the same banks if they are seen to be taking risks with public money and those who benefited from properties bubble stoked up by easy credit from financial institutions.<br /><br />Rather than impose stealth tax (hyper-inflation) against those that are poor and vulnerable.Unknownhttps://www.blogger.com/profile/09458257063218738068noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-29441220310537408082010-06-08T01:36:02.768+01:002010-06-08T01:36:02.768+01:00People will nag at government if there is any incr...People will nag at government if there is any increase in profits tax or income tax. However, no one notice about the stealth tax (hyper-inflation) caused by reckless acts of government to introduce endless quantitative easing (money printing out of the thin air).<br /><br />The more BOE to go down the QE measure the more international capital will repatriate from UK and the higher the stealth tax (hyper-inflation) as a result, and foreigners to dump UK gilts and pounds and all sterling denominated assets including properties.Unknownhttps://www.blogger.com/profile/09458257063218738068noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-91379866319461287422010-06-07T08:53:24.487+01:002010-06-07T08:53:24.487+01:00Who is the winner in G. Brown cohort?
Bankers, pr...Who is the winner in G. Brown cohort?<br /><br />Bankers, properties speculators, extravagantly paid civil servants, BTL properties owners and those who take advantage of housing bubble squander on things they don’t need on money they don’t possess.<br /><br />Who is the loser?<br /><br />Pensioners and savers who suffer technically negative interest rate. In fact everyone through hyper-inflation to eat out their monthly pay.Unknownhttps://www.blogger.com/profile/09458257063218738068noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-76529404801130640972010-06-06T15:11:49.845+01:002010-06-06T15:11:49.845+01:00Take a look at the funds performance in 2010, you ...Take a look at the funds performance in 2010, you should know where international monies are flowing into or out of…………<br /><br />Best Performance: <br /><br />(1) Technology & Telecoms<br /><br />(2) North American Smaller Companies<br /><br />(3) Global Emerging Markets<br /><br />(4) North America<br /><br />(5) Asia Pacific Excluding Japan<br /><br />Worst Performance:<br /><br />(1) Money Market<br /><br />(2) Absolute Return<br /><br />(3) UK Gilt<br /><br />(4) UK Index – Linked Gilts<br /><br />(5) Protected<br /><br />I wonder how UK Government can make up funding to source the Olympic Game event in 2012 without cutting essential budgets for social works (e.g. parenting, children, family, anti-social behaviors, homophobic hate crime, youth crime & drug and alcohol issue).Unknownhttps://www.blogger.com/profile/09458257063218738068noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-77610870759697798112010-06-06T13:12:01.780+01:002010-06-06T13:12:01.780+01:00Properties Price in UK is just a fake greenland in...Properties Price in UK is just a fake greenland in desert.<br /><br />The Japanese did possess properties boom in 1980’s. At that time all properties in the city of Tokyo worth more than entire California State in United States, thereafter Japan experienced/is still experiencing decades of house price depression.<br /><br />Some press said Russians are urging to buy London properties currently is just self-fulfilling masturbate. Foreigners are only interested in buying something that can produce value, and stand the test of time.Unknownhttps://www.blogger.com/profile/09458257063218738068noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-30093459029008153972010-06-04T14:53:13.238+01:002010-06-04T14:53:13.238+01:00Hi Ka Ming
to underline your point: the world GDP...Hi Ka Ming<br /><br />to underline your point: the world GDP is 50 trillion US dollars a year. So $600 trillion is 12 times more. Good luck to those who believe that this crisis can be solved by a combination of "stimulus" and "austerity" packages.<br /><br />I think we are going for a spectacular...<br /><br />Best<br /><br />GregGreg Pytelhttps://www.blogger.com/profile/15749997788308388129noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-32447572031961180992010-06-04T14:48:10.660+01:002010-06-04T14:48:10.660+01:00Hi Scary Biscuit
What you said is proven by the 2...Hi Scary Biscuit<br /><br />What you said is proven by the 2008 crisis. The derivative time bomb of 600 trillion US dollars is many times the world’s money supply where major international banks hold that caused the financial crisis.Unknownhttps://www.blogger.com/profile/09458257063218738068noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-77468355896253545232010-06-04T13:04:15.386+01:002010-06-04T13:04:15.386+01:00Hi Scary Biscuit (again),
I think in your analysi...Hi Scary Biscuit (again),<br /><br />I think in your analysis you consider a generation of Money Multiplier as a result of one (two, three,…) off lending rather than a recursive unbounded process. (What you described is not really a Credit Creation process.) This is where you get confused. Basically you do not seem to appear to understand Credit Creation dynamics (i.e. it is a recursive process).<br /><br />I proved on my blog that an unbounded Money Multiplier (resulting from lending with Loan to Deposit ratio above 100%) results in 100% risk of collapse to zero (in a finite time) of what you called “assets” in the second paragraph.<br /><br />Summarising your explanation within my model: if LTD is above (or equal 100%), MM tends to infinity, assets value tends to zero and loan to asset value tends to infinity. That's why lending with LTD above 100% was a sufficient (not necessary or only) condition that guaranteed the current banking crisis.<br /><br />Best<br /><br />GregGreg Pytelhttps://www.blogger.com/profile/15749997788308388129noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-30585018986370932612010-06-04T12:47:22.371+01:002010-06-04T12:47:22.371+01:00Hi Scary Biscuit,
Thanks for reading my blog. If ...Hi Scary Biscuit,<br /><br />Thanks for reading my blog. If you think it merits it, please pass the link to it around (e-mails, Twitter, fora, etc).<br /><br />I do not think there is a theoretically good response regarding good Money Multiplier (MM), say it is 85%. We have to go by experience.<br /><br />Traditionally Loan to Deposit ratio (LTD) was 86.5% giving MM 7.41(41). I think that up to 10 (with Money Multiplier 90%) it is relatively safe, if there is a confidence. (This is around what HSBC and Standard Chartered has at the outset f the crisis. And they went through it well.)<br /><br />But please also note that LTD at proper offshore banks is 40% - 50% giving MM below 2. Safe is it not? (Have you heard about liquidity crisis at offshore banks. Mind you Iceland was not offshore; just mental who thought they were an offshore centre.)<br /><br />The higher the confidence in the system the higher LTD (and MM) that is sustainable. But it is a very delicate balance that cannot be tested. Once you test it (e.g. causing a bank run) by getting MM too high the confidence collapses and a sustainable MM is likely to be much, much lower (in extreme going down to 1, no re-lending, keeping all the deposit) than before such test. (The government deposit guarantees are a mechanism to try to maximise LTD. But as even a government cannot give infinite guarantees as this crisis shows then this must not be tested either.)<br /><br />My view on MM is based on LTD:<br /><br />- LTD below 80%, giving MM below 5 is sound<br /><br />- LTD between 80% and 90%, giving MM between 5 and 10, should be OK: it is a pragmatic decision between lending a bit excessively to grow faster and occasional liquidity cost of it: there is a balance there<br /><br />- LTD between 90% and 100%, giving MM from 10 to… infinity (at 100% MM grows to infinity at linear pace) is getting on the edge<br /><br />- LTD above 100%, giving MM growing to infinity at extremely fast exponential pace is a sheer madness. <br /><br />The only thing I can say with absolute certainty is that lending with LTD 100% or higher is a sheer madness (lending with LTD above 100% is an exponentially galloping madness). And this is what happened.<br /><br />Best<br /><br />GregGreg Pytelhttps://www.blogger.com/profile/15749997788308388129noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-69278405391583391002010-06-04T12:23:55.296+01:002010-06-04T12:23:55.296+01:00Greg, I am interested as to what you think the co...Greg, I am interested as to what you think the correct value of money multiplier should be? <br /><br />I think you are wrong to focus on this metric as it is a derrivative measure, not the core problem. What matters is that banks lend money based either on real assets to companies that have a realistic chance of repaying through the creation of wealth. For example, if somebody saves £1 in a bank and the allowed money multiplier is, say, 5 then that bank could lend out, say, £1 to each to 3 companies to invest in their businesses, leaving £1 in reserve. As long as these are good companies then the invented extra £3 soon becomes a real £3 and non inflationary growth is achieved. When the invented money, notes issued by the bank, are not guaranteed by the government, the loan to asset ratio determines the risk of investing in that bank. Too small a money multiplier and the bank is overly dependent on a small number of investments and at risk of a run; too many and the bank is at risk of a run from matters outside their control. However, in both cases what really matters is the loan to asset ratio and the quality of the bank's lending staff, not the money multiplier. In the old days lending was done by a bank manager looking the borrowing in the eye and, quite often, knowing him and his family personally or by reputation. These days it's done by spreadsheets in Canary Whaft.<br /><br />However, as I said above, what really matters is the loan to asset ratio and at the root of the financial crisis is doubt about this asset ratio primarily due to creative accounting (i.e. fraud). The modern bank doesn't lend to wealth creating companies (hence the wails from real business); it lends to other banks. In turn, these other banks lend to further other banks or even back to the original bank. In theory, these loans are all secured against property but in practice the underlying asset has been chopped up and double counted so many times that nobody really knows who it belongs to in the event of a default. All we know for certain is that the underlying real assets are only a fraction of the total loans. For example, RBS has $4 trillion of liabilitied, matched in theory by about $4 trillion in assets. Whilst the liabilities are real (and now belonging to the taxpayer) the asset values are far less certain. This is the pyramid that Greg talks about. It should not, however, be confused with the money multiplier, which is a perfectly legitimate and indeed essential part of a growing economy.Scary Biscuitshttps://www.blogger.com/profile/03039289019338752778noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-15305477151726133772010-06-04T11:05:57.160+01:002010-06-04T11:05:57.160+01:00If UK does not pursue radical change in its econom...If UK does not pursue radical change in its economic structure, it will ultimately lose its triple A rating and follow the path of Greece.Unknownhttps://www.blogger.com/profile/09458257063218738068noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-14456213617136018152010-06-04T10:43:37.677+01:002010-06-04T10:43:37.677+01:00UK is not United States nor Eurozone!
While the e...UK is not United States nor Eurozone!<br /><br />While the exact margin of spare capacity in the economy must be open to debate, at this early stage of the recovery it is more likely than not that this will bear down on inflation for some time. That is what has happened overseas, with inflation in the year to April standing at 2.2pc in the US and just 1.5pc in the eurozone. <br /><br />In 2007, the UK had the world's third largest current account deficit, despite significant oil revenues, according to the IMF. This was mainly the result of a large deficit in the trade in manufactured goods. During May 2008, the IMF advised the UK government to broaden the scope of fiscal policy to promote external balance.<br /><br />It has been suggested that the UK initially lagged behind its European neighbours because the UK entered the 2008 recession later. However, German GDP fell 4.7% year on year compared to the UK's 5.1%, and Germany has now posted a second quarterly gain in GDP. Commentators suggest that the UK suffered a slightly longer recession than other large European countries, as a result of government policy dating back to the policies of the Thatcher government of 1979, in which UK governments have moved away from supporting manufacturing and focused on the financial sector.Unknownhttps://www.blogger.com/profile/09458257063218738068noreply@blogger.comtag:blogger.com,1999:blog-830201814627063938.post-13099102432715522382010-06-04T09:57:53.629+01:002010-06-04T09:57:53.629+01:00My solution to hyperinflation? a sack of seeds, th...My solution to hyperinflation? a sack of seeds, the ability to purify water from local sources, and a small garden or plot to grow food on.<br /><br />The real question is: When you inflate and destroy your debt and currency, how does any political or elite structure remain in place when millions of people have been robbed overnight? Another oversight i guess, Why doesn't anyone consider the human reaction to these shenanigans? People will go ballistic!Kalkihttps://www.blogger.com/profile/10556589379141734253noreply@blogger.com