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 : Currents of Currency -- Ignore unavailable to you. Want to Upgrade?


To: Ahda who wrote (440)1/1/2016 12:03:09 PM
From: Ahda  Read Replies (1) | Respond to of 594
 
The purpose of an increase in rates has several affects a more costly dollar reduces indiscriminate spending and perhaps the least known or concerned about result is the one it has on the IPO field. One can become a billionaire over night with the right issue but what to do with the billions becomes a problem . Climbing the mountain is exhilarating what to do after you hit the top is where the let down can occur

.If you have a credit driven economy of course there is concern when rates go up but if you continue on the base of credit driven the nasty problem of where is the asset to cover the balance can always occur as the debit on balance sheet is treated as asset. This takes into the world of currency which is a market all its own. Currency is labour unit price, economic future price, legal safety zone price, political stability price and numerous other things including a quart of milk.


Sovereign funds can use a fractional increase in an attempt to increase trade, That minute increase or decrease in value can create a substantial profit. Currency represent the asset which at some point is a physical use but the when you consider service the physical use cannot be seen as a physical element asset. The possibility of distortion of value in currency because of non countable inventory is enormous. This we must ever deal with as we also attempt to maintain value of currency. Our mathematical computations are way ahead of our rate of human evolution to deal with them. The fact we are not seers limits our actions in the stock market where future is infinite but in human limitation world so is change. .