Rich_bloor

The US Goverment is getting a loan that amounts into the trillions because of the ressission! where does all that money come from ???

Have the just plucked it out of the air and added the zero's to their bank account. Who do they pay it back to?
If some bank has had to make more money to give them, does that devalue the money me and you have because theres more money about ???

If anyone can explain it, please do so. :~:

xr-stu

im a thicko and dont understand how it all works.

when the royal mint or whatever prints another billion quid. where does this money go? to the goverments budget pot, when then gets thrown at public services budgets and wages? and from there is filtered into the econemy through contracts for say road signs, medical equipment, and government vehicles, paying private companys for stuff?

RWD_cossie_wil

iTrader: (9)

Money has no intrinsic value, after ww2, the german currency was so useless people papered the Walls of their houses with it! There is an old story about when a german woman took a wheelbarrow full of cash to buy a loaf of bread, that as she was inside getting the bread thiefs took the wheelbarrow And left the cash on the pavement.

That is why "money in the bank" is useless really, you are better off keeping it in tangible assetts like property, as it has real value.

xr-stu

or a little pot of gold buried at the end of your garden/rainbow?

utternutter

indeed gold is the way forward, especially as that fucking dipshit gordon brown sold all our reserves for loads less than it was worth. bent the lot of em

Dan_RS500

Well without going down the long and winding road that goes with this whole recession thing, basically it's like you paying some one with cups of coffee but you are the only person in the country alowed to make them.

Rich_bloor

so really, you want a company that provides a service that the goverment or councils use, cos there money will never dry up.

craig2016

Correct money is completely worthless now, so if you all want to bag yours up and send it to me I will gladly dispose of it for you!

s1cab

iTrader: (1)

Chris Honeywell

It is borrowed from a "central bank" i think? (funded by other countries)
I always thought that countries mostly the oil rich ones lend out their spare cash remember quite a few countries have too much money..

GribbiN

interesting thread

james kiely

iTrader: (5)

basically china is bankrolling america,and we are heading for a few tough years as we the taxpayer will have to pay it all back.and when the stimulus money is spent expect all the talk of economic recovery to come to a halt very quickly and next time there will be no money to try kickstart the economy.this is just my personal view of course

cheers james

Rich_bloor

So its better to have a million in a company instead of a million in the bank ???

Its safer in the bank cos the company can go bust ???

Is that right?

Rich_bloor

What if china had no money? if no countrys had spare cash? would they just add zero's to the bank accounts to keep everything running?

turbotoaster

my advice to understand the concept of money is to watch this.

It glosses over a few bits but gives a simple way to explain how money works, well worth a watch for everyone

http://video.google.co.uk/videosearc...aq=4&oq=debt+#

james kiely

iTrader: (5)

i aint no expert rich but its in chinas interest for america to be solvent as they need america for their exports and they are in that deep now they may cant really walk away .the problem could surface when there is that much money in circulation should the economy start to grow ,inflation could go through the roof

cheers james

Rich_bloor

So china are giving money to amearica, so amearica can buy things off china ???

Alan_D

It would depend on the company, but money will always be safer in a bank.

james kiely

iTrader: (5)

basically i suppose so rich,just so it can kickstart their economy as 70% of the worlds largest economy is people spending/buying power.
for example california state is the tenth largest ecconomy in the world[dont quote me on that lol]

cheers james

Icurus

'california state is the tenth largest ecconomy in the world' and just about bankrupt!

Mk1-stu

unless your bank bellyflops like the icelandic one did and then you're well and truely fucked.

They don't need to print more money, they just need to stop wasting it in the fuckin first place.

pee vee

British money is worth whatever the rest of the world think its worth..

whatever THEY value it at, dictates what our currancy is worth. . surely.

jammerrs

basicaly its a 0 on the end, theres no trillion dollars anywhere i dont beleive.

gold and properties is the way forward i beleive

and as PEE VEE says an moneys only worth what others will pay for it. its what i dont get with exchange rates, £1 should be worth £1 regardless of its currany where i am concererned

james kiely

iTrader: (5)

california state is issuing ious at the minute to some state employees and suppliers ,what would anyone expect with the terminator in charge of fookin things .


cheers james

james kiely

iTrader: (5)

its like everything peevee if you have to much of anything it will effect its value ,same applies to sterling etc

cheers james

matts1

Hard to say where is best to stick cash, the bank is a stable bet unless it goes bump but then the government cover up to 35k - is that per person or per bank?

Best to split anything over 35k over a few banks.

Gold, property or similar is only really safe on the long haul. Look at all the people that bought houses a coup,e of years ago and now are in negative equity. But those who bought 6 - 7 years ago have lots of equity in their property.

Same will be said for gold, prices will rise and fall, just depends when you bought it and when you sell it as to if you make money.

Regards other countries bailing a country out, it is better for them, as if they loan the money to stablise a country, that country and continue to trade/buy so that lender gets their cash back but also keeps their own economy going selling goods to that country.

james kiely

iTrader: (5)

there is talk should we go into a double dip recession gold could go to 1500 to 2000 as people will pull out of the equity market again and as interest rates are so low its not worth putting money in the bank as there is no return on it,
but its a gamble

cheers james

TWoods

From my limited knowledge there is two types of money one is commodities as in gold, coal, oil which its the value is negotiated through trade to cut a long and complex story short (supply and demand). This value of commodities is most secure money in the world as nothing can replace it and if it can it has more value than what its replacing for example oil is now more valuable than coal. The second type of value is based on credit or ‘IOU’ model whereby the lender is promised money back with interest which all cash is valued on generates its own value through basically IOU money back plus interest. This is a fundamentally flawed concept started in the US circa 1900’s from basically insider trading. The flaw is this model or concept the debt is never repaid in full or on time and very suspectable to outside circumstances but its very quick to make extreme wealth incredibly quickly without trading anything physical such as commodities.

After WW2 the worlds leaders met to setup in Maine, USA and agreed terms of international trade and redefine the value of the US Dollar which also setup international monerty fund and many other financial groups which defined each countries currency. Roll forward 60 years were still running the flawed concept of IOU from USA business model from early 1900’s and finally caught up with us as expected (100yr cycle) alas the credit crunch whereby these debts haven’t been paid quickly enough to sustain the credit or IOU concept therefore value of cash reserved to lessen the affect of worthlessness. When banks or countries print more cash its to offset the shortage of worthlessness against commodities which still has value so we do not have as someone said a situation of wheel barrows of cash to buy a loaf of bread. When countries sell stock piles of commodities to generate more cash wealth within its own system is a good thing because wealth is created without taking more credit or lessen the value of its commodities by printing more cash to offset its worth generates increased true value within.

Basically to answer the original question those who are most affected by this boom and bust credit crunch situation are those people, businesses and countries which are most reliant on credits or debts to function especially those lack of physical commodities to offset value of cash in thier grand scheme of things.

evans2822

This country will forever be in the shit as companies that have upped and fucked off abroad wont be back as its too expensive to produce here becouse of labour rates/taxes and becouse of the wanker in charge....Anyway rant over and back to the thread...Money well sterling anyway has taken a huge hit as the country that uses it (us) owes a shitload of money (virtually bankrupt) to other countries...This has dented our borrowing power as no one wants to lend to us (much like our domestic banks) As we cant borrow fuckall Mr King head of banking has agreed to print virtual money (which the banks arent passing down to people like us through lending at decent rates etc etc)which de-values sterling even more so basically the more there is of somthing the less its worth(mk1 escorts cost more than they did 10 years ago cos there aint many good uns left lol)....To us our money is worth somthing in spain they dont think its worth as much as they want a fiver for a pint of local piss etc etc...

james kiely

iTrader: (5)

agreed but the value of commodities at the minute isnt based on fudamentals except where the chinese stockpile everything and opec cut supply to keep the price at 70 dollars plus a barrel and only costs 2 dollars a barrel to produce[just my uneducated opinion lol]

cheers james

timrud

America actually loans all of it's money in circulation from the Fedral Reserve. Check it out, it's bent as hell, grade A corruption!

My memory on this isn't too hot but basically the Fedral Reserve Act 1914 (might have the year wrong), was passed after a bad recession and in dodgy circumstances. This ment all the money was lent from them then has interest put on top. To pay the interest the Government then loans more from the FR to pay what it already owes. Since then they also abolished the gold standard so your money isn't even worth a dollor of gold anymore.

Ad4m RST

Not sure if Zeitgeist has been mentioned, but watch it people, easy to see how we're fucked sideways financially afterwards.

jamieRST

yep paper money is worthless,its basically an i owe you,look on the note,it says i promise to pay the bearer the sum of.think if you had 150,000 pounds in the bank and we switched to the euro overnight or the pound crashed,your 150,000 bits of paper would be worth sweet FA.banks are not safe as weve all seen.the only safe way is commodities like gold,silver,lead,copper as other countries are buying it all up,and this is a resource that WILL run out one day,so it will always be tradeable as a currency (like in the old days) and is 100 per cent gayranteed to rise,...one day because they arent sustainable products.buy it here and there when you can and bank it in a safe,bolted to the floor under your bed for a rainy day,at least thats what im going to do