SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 378.35+2.7%Nov 10 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TobagoJack who wrote (13167)12/31/2006 4:06:42 AM
From: elmatador  Read Replies (1) of 217656
 
What if it is not WHERE the money comes from or HOW it was created but rather WHAT you employ it, that gives an indication of who will end standing and who'll collapse?

Let me give you an example: Oil Boom 73, created the biggest move of capital from developed to OPEC and from there to developing countries borrowing com gusto.

Result?

Paul Volcker increased interest rates to double digits and for one decade developing countries exproted capital to developed ones.

OPEC had got hooked on big pharaonic white elephant projects, needed to keep exporting oil at any price to keep the economies, now addicted to easy money, going.

Who benefitted? The rich oil importing countries. They understood much better how the money flows work.

Cut to today:

Brazil take out of thin air money and repay debt.

SEA countries pile up reserves in USD to ward off attacks such as 1997.

Both prepared to fighting the old wars. I don't know how the guys who know much better how money flows work, are preparing this time to fleece the incautious.

The right decision to do with out of thin air money, is to use it as capital to modernize infrastructure, open internal bottlenecks, and increase productivity of the economies.

Any economy that is not using out of thin air easy money to do that, will not come out on top.

But we know how governments work...
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News