Archive for the ‘Exchange rate’ category

Be aware – don’t panic

April 1, 2017

There are some forecasts out there that call for a careful foresight. Some of very wealthy investors have sold all their stock market investments. The value of gold and silver shall be kept under the magnifier glass now. The total volume of any currency in circulation is very high. The major Central Banks are coming close to their limits to buy “bad debt” like in the EU it is set to 30%, which might lead to rising interest rates, less investment, lower economic activity, and in the worst case to a downturn.

Even worse than that is a horror scenario that starts with the housing market that would collapse in China, then the stock market would collapse globally. Every stock market value, property value, other exchange values, derivatives etc. would lose their value, or at least the major portion of their value. Thereby e.g. retirement funds would loose the savings of people for their retirement globally. The US Central Bank would “print” dollars, and the USA would pay off all their foreign debt by transferring billions of bit money, and at that moment they would shut off the free moving currency called US Dollar. Every dollar on any bank account would become zeroed out. We would end up at barter time period exchanging goods and services without money. One would need water, solar or geothermal power to keep electricity flowing. No gasoline or gas supply nor internet would work, because there would be no one paying for those services. Would you have water wells, grow your own food and have something to give in exchange? You should have no debt to avoid immediate disaster of loosing your property. How to pay taxes in that situation or protect your family? I’m not saying this will happen, but it might happen. It might be wise to learn from Amish, how to live and survive with the help of your community and being independent from technology that depends on energy. Let’s keep this in mind and work towards a better outcome that gives hope for the future.



October 2, 2010

New cities and infrastructure is getting built in China. Fresh water, raw materials, and food will become an issue besides the energy. China is also demanding control on South China Sea. The US is claiming interest in that area as well. Furthermore the pressure is increasing in the US to pass a legislation to put duties on imports from China in order to compensate for China’s currency undervaluation. The House of Representatives will most likely pass this bill. The tension is going to go up. On top of this China and Russia have signed a contract on oil and gas deliveries from  Russia to China. China is demanding a lower price than what EU-nations are paying for energy. In my eyes the US and EU relationship should get more focus and value. The future will be pretty much a complicated one: EU must focus on energy and water which leads to think about more presence in the Arabic area and Nordic region. Even the tiny Denmark has claimed rights for oil and gas at North Pole region due to her majesty’s land of Greenland! All these developments will cost money and increase tension. At the end of the day the EU must start to build up an army, although this is now very unpopular and trend is the opposite one. If US is about to focus on more on Asia in military respect (the largest military base outside of the US is in construction now on the island of Guam – 3 hours flight away from Tokyo) and home market issues like the bill to change taxation on foreign income of US corporations and the demand of foreign companies to be registered in the US if they sell products or services in the US. The picture is not blurry but there are many open-ended questions now in the hands of Obama-administration.