[FoxV]

Here's a summary of the money supply growth of various countries (which I've seen this from various sources)

$this->bbcode_second_pass_quote('', '
')Russia (M3): ---------- +49%
India (M3): ------------ +20.3%
China (M2): ----------- +17.2%
New Zealand (M3): -- +18%
Australia (M3): ------- +13%
Great Britain (M4): -- +13%
South Korea (M3): -- +11.3%
USA (M3): ------------- +12% (Est.)
Canada (M3): -------- +10%
Eurozone: ------------ +10%
Japan (M3): ----------- + 6%

*Data from John Embry, Sprott Asset Management, Toronto, Canada.

[Dukat_Reloaded]

First Question, Because the USA is printing too much money, that causes the value of the US dollar to weaken in value against foreign currencies, other countries do not want their currencies to rise against the dollar as that will hurt their exports and for many countries that is their MO. So as the US dollar inflates, they also inflate so as to keep the currencies stable against the US dollar and business as usual can continue. You can't print gold or silver, thats why they have risen strongly against most paper currencies.

#2, Japan is battling against deflation, in 1989 their asset/equity market popped and it's been a rough ride down. Japanese got 99 year mortgages for little apartments, large mortgages can not be paid off with high interest rates so rates are below 1% to prevent defaults which would in turn cause more deflation. Also the Japanese government have a huge debt and they benifit from low repayments. The yen carry trade works by Japanese banks lending to foreigners, the foreigners benefit from cheap money to use for investments and the Japanese banks benefit from the spreads as the Japanese central bank loans the money to the local banks at .5% interest and those banks in turn loan it out at perhaps 1-2%. It all looks good until it comes crashing down with the yen carry trade unwinding unless the Japanese government is really good at debasing their currency (quite likely).

[TorrKing]

My guess (quite similar to Dukat_Reloaded's first suggestion) is that all of the fiat currencies are plotting. If all currencies fall, their value will in relation to eachother (which is how the value is determined) not fall as dramatically. This way they'll disguise the weakening dollar or other crucial currencies.

A real measurement of true value of the dollar and other fiat currencies, the gold price is manipulated to maintain the illusion.

A problem with my "theory" is however that I can't explain why inflation isn't going amok.

[Pops]

$this->bbcode_second_pass_quote('Torjus', 'A') problem with my "theory" is however that I can't explain why inflation isn't going amok.

[FoxV]

and then Bang! this comes across the wires

$this->bbcode_second_pass_quote('', 'T')he gold market largely ignored the news that China raised interest rates and said that the yuan would be allowed to trade more freely on Friday.

link

[Tyler_JC]

$this->bbcode_second_pass_quote('Torjus', '
')A problem with my "theory" is however that I can't explain why inflation isn't going amok.

[Zentric]

$this->bbcode_second_pass_quote('Torjus', 'A') problem with my "theory" is however that I can't explain why inflation isn't going amok.

[CrudeAwakening]

$this->bbcode_second_pass_quote('Tyler_JC', '
')Money enters the system via the banking system. Banks loan money to major financial institutions like Citigroup and Merrill Lynch who then put the money into the stock market, bond market, commodities market, and so on.

[Twilight]

As a British guy who got basically got handed £10k to repay around 2135, I'd like to point out that we are printing money because it's the only way to keep our economy afloat. Without massive inflows of big sexy cash from an arbitrary future, we wouldn't have consumer spending, we wouldn't have cashflow, and we would be fucked. We are in an economic Catch-22, forced to destroy our future or else forfeit our present. It's the secret of why we receive so much praise for beating Eurozone growth: we printed more money for our immediate needs than they did. It'll bite us on the ass, but not on (whoever)'s watch.

We do have inflation, by the way. The official figure is 3.5%, but not including most of the stuff that makes up inflation. My food bills have seen double digit growth the last two years. I guess I'm not the only guy with free money.

[Mircea]

$this->bbcode_second_pass_quote('Torjus', 'A') problem with my "theory" is however that I can't explain why inflation isn't going amok.

[TorrKing]

$this->bbcode_second_pass_quote('Mircea', '
')The postor who suggested that the money isn't entering through worker's paychecks might be onto something. Prices generally increase when suppliers and retailers know you can spend more and I don't see real wages rising.

Although it was hyper-inflation, you could take a closer look at post-WWI Germany, where an average newspaper cost about 0.30 Marks and 2 years later it cost 70,000,000 Marks, to see if anything jumps out at you with respect to the money supply and how it entered into the system.

[Gerben]

$this->bbcode_second_pass_quote('Torjus', 'I') can't explain why inflation isn't going amok.

[MrBill]

$this->bbcode_second_pass_quote('Pops', '')$this->bbcode_second_pass_quote('Torjus', 'A') problem with my "theory" is however that I can't explain why inflation isn't going amok.

[FoxV]

$this->bbcode_second_pass_quote('MrBill', 'O')ne, central banks are printing to keep their own currencies from appreicating in real terms and negatively impacting exports and growth.

[MrBill]

$this->bbcode_second_pass_quote('ferrelgiraffe', 'M')r. Bill, thank you for that concise compilation, It brought up several important questions I have never seen answered before. namely.
Could you briefly state what advantage the government wouldwin in making the amero? one hemisphere money system?

Also how is the Euro hurting specific countries if they are very liberal with welfare and how does it hurt those countries who are in deficit trade (Like US?)

I would think each country printing their own money and setting their own interest rates would form a rock solid impenetrable barrier against world shock.

but what do I know.

(Maybe they don't wnat an impenetrable barrier against world economic shock.)

[MrBill]

$this->bbcode_second_pass_quote('FoxV', '')$this->bbcode_second_pass_quote('MrBill', 'O')ne, central banks are printing to keep their own currencies from appreicating in real terms and negatively impacting exports and growth.

[mmasters]

$this->bbcode_second_pass_quote('MrBill', 'E')xcess money supply created by central banks, and governments that run budget deficits.

[FoxV]

So what I'm getting from this is that a derivative in itself is not neccessarily a dangerous item other than its inherint risk. So other than some players (Goldman and Sachs et al) losing a lot of book value, the end result doesn't mean much for you or I

Atlhough I can see this as not being completely true, because when a side bet is usually placed, the money is held off to the side till the completion of the bet. if that money however is invested in the stock market till the completion of the bet, then all hell will break lose if 1,000,000,000,000,000 must be withdrawn from the markets to settle up (I'm exaggerating, but even if I'm off by a factor of 1000, thats still an unbelievable amount of money)

$this->bbcode_second_pass_quote('MrBill', 'W')hat is scary is the use of leverage. Leverage, plus derivative risk means you can magnify the eventual gain as well as the potential loss by 10X or 100X.

[MrBill]

$this->bbcode_second_pass_quote('mmasters', '')$this->bbcode_second_pass_quote('MrBill', 'E')xcess money supply created by central banks, and governments that run budget deficits.