Deflationary Depression Delayed BUT Will Be That Much ...

First R1 of some stupid deficit fear mongering video

https://www.youtube.com/watch?v=uZLdqmA4nqw
First of all, I don't have any formal training in macroeconomics beside a course or two in college and what I've read online, but this video was actually shown in class by my prof(thankfully not an economics prof, but a finance prof nonetheless). There will be probably be some bad economics here of my own. I am sure you guys can do a far better R1 on this then I did, and I would appreciate if someone did, actually.
It is also interesting how this video is labelled "2014 Collapse" but has data from around the recession, when the government had an expansionary fiscal policy combined with a recession, leading to a larger budget deficit than usual.
At 0:37
Ever think about paying your mortgage with your credit card, that's exactly what uncle sam does(by issuing new bonds to pay interest on old bonds)
Wow, first of all, the interest rate on treasury bonds is far far lower than on any mortgage or credit cards. Secondly, a sovereign borrower is not like an individual. A sovereign government has a far, far larger credit "line", is perpetual, can increase their revenue substantially through tax raises, and their debt is actually demanded by hundreds of millions of individuals and institutions around the globe.
1:08
It's such a huge amount of money, uncle sam is running out of people to borrow money from
Standard & Poor's credit rating for the United States stands at AA+ with stable outlook. Moody's credit rating for the United States was last set at Aaa with stable outlook. Fitch's credit rating for the United States was last reported at AAA with stable outlook. . In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of the United States thus having a big impact on the country's borrowing costs. This page includes the government debt credit rating for the United States as reported by major credit rating agencies
http://www.statista.com/statistics/189302/trading-volume-of-us-treasury-securities-since-1990/
2:26
Remember the foreign governments that lent money to Uncle Sam, when they lent money to uncle sam, something interesting happened. It made the US look richer, and their countries look poorer
Does China investing the trillions of US forex they have on US bonds really make the US dollar appreciate?I understand capital inflows can increase demand for a currency, but did it really happen to extent that it provided a significant incentive for US companies to outsource operations, as he states later on?
When a country looks poor due to America, one dollar of our money, buys a lot of their money, so they can pay their workers only a few pennies a day. With such low labor costs, they can sell their products in America for lower prices than any American manufacturer can.
Obviously the difference in currency prices can affect the trade balance, but the inherent reason why Chinese goods and manufacturing is cheaper is because the the cost of labor and operations there is just a fraction of what it is in the US, in real terms.
2:50
The easiest way for American companies to compete, is to move their factories overseas, and pay their workers a few pennies a day too. This contributes to a recession
Ah yes, an increase in trade between China and the US and the wage depreciation among workers of America's massive industrial sector has been demonstrated to cause recessions
3:40
He[Uncle Sam] can't have the federal reserve make more money without making the inflation worse"
Obviously expansionary monetary policy tends to increase the rate of money supply growth in the economy and thus inflation, but the level of inflation wasn't above the threshold where it could be a problem. The recession actually had deflationary pressures rather inflationary,.
Since the 2008 financial crisis, the U.S. Federal Reserve has kept interest rates near zero and pursued a bond-buying program – now discontinued – known as quantitative easing. Some critics of the program alleged it would cause a spike in inflation in the U.S. dollar, but inflation peaked in 2007 and declined steadily over the next eight years. There are many, complex reasons why QE didn't lead to inflation or hyperinflation, though the simplest explanation is that the recession was a strong deflationary environment, and quantitative easing ameliorated its effect
3:57
Whether its in two months or two years, the day will come when uncle sam can no longer pay its bills
Its been more than two years since this video was posted on youtube(most likely just a retitled version of an older video), the US government still has by far the best credit rating in the world.
submitted by FlairCannon to badeconomics [link] [comments]

Macroeconomics- Everything You Need to Know - YouTube How Correlating Markets Impact Forex Trading -- ArrowPips Forex Signals What is Inflation? - YouTube forex megadroid - forex megadroid review - best automated forex robot ALGOBOX™  Strategy Training  Algorithmic Trading Lessons  Episode #1144 How Interest Rates Affect the Market - YouTube Ray Dalio breaks down his

Deflation is a macroeconomic condition where a country experiences lowering prices, the causes and effects of which are complex economic forces. Forex, also known as foreign exchange,FX or currency trading, is a decentralized global market where all the world’s currencies trade. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $5 trillion. 8 Basic Forex Market Concepts - Investopedia ... Investopedia Forex indepth walkthrough can all act as invaluable guides on your journey into currency trading. Now that you've got your feet wet in the Forex market, let's take a look at the role leverage plays in the fx market. Level 2 Markets - Research And Testing When trading anything, you never want to trade impulsively. You need to be able to justify your trades, and the best way to do ... This is a very powerful indicator that we have entered a deflationary era, and the Federal Reserve has been attempting to combat this by absolutely flooding the financial system with more money. This has created some absolutely massive financial bubbles, but it has not fixed what is fundamentally wrong with our economy. On a very basic level, the amount of economic activity that we are ... The forex 3-session system - Investopedia; The Best Trading Hours in the Forex Market ; Financial Peak Review Scam or Legit? 🥇 Site For TRUTH; Book Review : Peak Performance Forex Trading by Yeo Keong Hee; Peak Perfomance – CompassFX; Life time peak: Forex reserves at record high, just under $360 billion. submitted by NaMoForPM to indianews [META] Recent scam/spam trends.. Or, a peak ... I am a forex trader, in Nairobi, Kenya..i have been actively involved in forex since I found out about it in Feb 2016 when I somehow ended up in a wealth creation seminar (lol) in pride inn Westlands, the one close to Mpaka Rd. Luckily for me, it was not one of those AIM global meetings or I’d be on Facebook selling God knows what those guys sell. I did not take it seriously till August of ... Monday, 27 May 2019. Deflationary environment investopedia forex

[index] [4594] [20624] [26278] [23603] [14418] [2607] [3148] [15036] [1151] [27213]

Macroeconomics- Everything You Need to Know - YouTube

Check out the Ultimate Review Packet for FREE https://www.acdcecon.com/review-packet In this video I quickly cover all the concepts and graph that you will s... Seeking Alpha = Omega Ecc. 11:1-6 FUTURES FOREX EMINI CRYPTO NO TROLLS - ZERO TOLERANCE - IMMEDIATE BAN ===== 🚨 DON'T HAVE TIME TO TRADE? Want Vinny to trade for you? 🚨 Vinny's Forex S ACCESS Forex Megadroid ROBOT INSTANTLY ! http://octourl.xyz/1356a40e forex megadroid - forex megadroid robot test at driven2success. forex megadroid review, ... While Indiana Jones might have found it safely tucked away in the Temple of the Sun, to legendary investor Ray Dalio, the "Holy Grail" is a sweet spot betwee... Market correlation is when the price of two or more markets moves together. Markets can correlate in a positive way: if the price of one asset goes up, then the price of another asset also goes up ... Economists constantly refer to inflation and tend to suggest it is a Very Bad Thing. But why exactly, where does it come from and what could one do to tame i... Investors should observe the Federal Reserve’s funds rate, which is the cost banks pay to borrow from Federal Reserve banks. What's going on with Japan's int...

http://binary-optiontrade.terpnibit.tk