where does the money go?
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i was just wondering, this recession where do all the money go?
lets say aig loses money, so they have to pay the bank. so does the bank earn the money?
example if i have a 2$note, i spend it on a bread, the bakery owns the 2$ note. so he earning the money?
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Originally posted by popmynutsy:
i was just wondering, this recession where do all the money go?
lets say aig loses money, so they have to pay the bank. so does the bank earn the money?
example if i have a 2$note, i spend it on a bread, the bakery owns the 2$ note. so he earning the money?
huh .. i dont quite get ur question ..
ression mean big companies digging a hole bigger than their pockets .. then affecting other comapnies, also causing the economy to fuck up big time ... --- was that right? --- i'm just guessing thats how things went ..
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some say china. they weathering the economic downturn very well.
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Originally posted by bhkw:
huh .. i dont quite get ur question ..
ression mean big companies digging a hole bigger than their pockets .. then affecting other comapnies, also causing the economy to fuck up big time ... --- was that right? --- i'm just guessing thats how things went ..
i dont know how to explain. because all the money have to go somewhere. where do those money go? -
ASk the respective ruling party in the countries. Lots of money goes to saving the banks.
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Not a full answer. But let's say you have country B (USA) owing country A (China) 1 trillion. country B is screwed because they can't repay. country A is screwed because 1 trillion of their money is a bad debt. So all sides are screwed, where's the money?
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Originally posted by webben:
Not a full answer. But let's say you have country B (USA) owing country A (China) 1 trillion. country B is screwed because they can't repay. country A is screwed because 1 trillion of their money is a bad debt. So all sides are screwed, where's the money?
eg. CPF.
You 'borrow' from your future obligations to loan to the corporations to pay for the mistakes of today, in the hope that these loans can be made back in one way or another should the economy stabilizes and you start getting your returns from your loans to the organizations.
The danger comes when you overleverage on tomorrow's obligations, such that when the time comes when retirees start withdrawing their CPF funds (obligation), the nation has overleveraged and the obligations cannot be met.
Now do you know why the official retirement age has been upped time and again?
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Originally posted by webben:
Not a full answer. But let's say you have country B (USA) owing country A (China) 1 trillion. country B is screwed because they can't repay. country A is screwed because 1 trillion of their money is a bad debt. So all sides are screwed, where's the money?
It depends what currency country B is owing to country A too, if you owe in country A's currency, then there will be problems, because you can't control the monetary policies in China. The more US dollar you convert to RMB, the more the RMB is going to appreciate, because the money supply in China is more or less fixed (ie assuming that China has a free floating exchange rate regime, but.....).
But the debt due to China is denominated in US dollars, the US Treasury can print as much as they like (heard on some documentary that they can churn out billions of US dollars a day), sooner or later the world is going to realise that US dollars are nothing more than banana leaves.
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well, money is like everywhere, you make a loss, they earn.
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Originally posted by deepak.c:
It depends what currency country B is owing to country A too, if you owe in country A's currency, then there will be problems, because you can't control the monetary policies in China. The more US dollar you convert to RMB, the more the RMB is going to appreciate, because the money supply in China is more or less fixed (ie assuming that China has a free floating exchange rate regime, but.....).
But the debt due to China is denominated in US dollars, the US Treasury can print as much as they like (heard on some documentary that they can churn out billions of US dollars a day), sooner or later the world is going to realise that US dollars are nothing more than banana leaves.
you are making it more complicated by bringing in exchange rates.
But since you bring it up, one of the possible consequences of this 'saving' of stupid banks is inflation.
Since govts will start printing more money to pay off their debts, more of their currencies start mounting in the market, resulting in inflation.
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i asked the exact question last month... reply was insightful.
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Originally posted by youyayu:
no wonder he or she smiling so happily. -
where does the money go??
it depends on which gambling centre the AIG or x comopany bet on!
if it loses...then the gambling house and horse which it placed bets on takes all the $$..
if it winsor u win in gambling,,,,,,,that would be impossible.
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Originally posted by MINIGUN2000:
where does the money go??
it depends on which gambling centre the AIG or x comopany bet on!
if it loses...then the gambling house and horse which it placed bets on takes all the $$..
if it winsor u win in gambling,,,,,,,that would be impossible.
Hello, for you, Kindly use Upper case Letters, how many time I have to remind you.Later recess,SEE MEE!!
Teacher Miss Angel
MOE
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Originally posted by youyayu:
WOw!!! yandao Uncle!! -
to angel7030:
if i see you....wont your boyfriend get angry?
and whats goin to happen if he sees me see you?
and when i see u see me what will your boyfriend see?
you see ...all this because you want to see me see u
lets kill your boyfriend so we can see each other more durin recess.....
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Originally posted by youyayu:
u forgot his lao peh also! -
Originally posted by popmynutsy:
i was just wondering, this recession where do all the money go?
lets say aig loses money, so they have to pay the bank. so does the bank earn the money?
example if i have a 2$note, i spend it on a bread, the bakery owns the 2$ note. so he earning the money?
This is what i'm still trying to understand.
I think those monies are all accured amount. Not the physical money.
Am i right? Hmm....
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Originally posted by Hawk Eye:
This is what i'm still trying to understand.
I think those monies are all accured amount. Not the physical money.
Am i right? Hmm....
Read what M0, M1, M2, M3 are. M stands for money. 0,1,2,3 stands for the different ways to account for the money available.
Money supply - Wikipedia, the free encyclopedia
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Originally posted by AndrewPKYap:
Read what M0, M1, M2, M3 are. M stands for money. 0,1,2,3 stands for the different ways to account for the money available.
Money supply - Wikipedia, the free encyclopedia
Thanks Andrew.
In economics, money supply, or money stock, is the total amount of money available in an economy at a particular point in time.[1] There are several ways to define "money", but standard measures usually include currency in circulation and demand deposits.[2][3]
Money supply data are recorded and published, usually by the government or the central bank of the country. Public- and private-sector analysts have long monitored changes in money supply because of its possible effects on the price level, inflation and the business cycle.[4]
That relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct empirical relation between long-term price inflation and money-supply growth. These underlie the current reliance on monetary policy as a means of controlling inflation.[5][6] This causal chain is however contentious, with heterodox economists arguing that the money supply is endogenous and that the sources of inflation must be found in the distributional structure of the economy.