Germany Arrests 3 Terrorists Disguised as Syrian Refugees


refugees

Germany has arrested three young Syrian men who are members of the Islamic State. These men came into the country through the same network that smuggled militants into France to carry out the deadly attacks last November. This is the entire problem. Refugees should be limited to families with children. Allowing young men in who claim to be under-18 to qualify as children is insane. If anything, the age for children should be 10 or under.

Inflation – Deflation – Interest Rates


inflation-deflations

QUESTION:

Is there a correlation between the GDP rate and interest rate ?
Best regards,

BL

ANSWER: No. What central bankers fail to take into consideration is that the interest rate is the OPPORTUNITY COST of money as reflected into the future. This is why interest rates naturally decline during a recession because of the future expectation of what money will buy when it returns. If inflation is say 10%, then lenders demand at least that much back plus a profit. Interest rates reflect the inflation rate (opportunity cost of money) plus a profit.

Deflation is when the purchasing value of money rises and tangible assets fall in value. This is also reflected in the drop of interest rates. Often, rates have gone negative for brief periods when people are parking money while expecting it to buy more. They are willing to pay to park their money just to know it will buy more tomorrow.

SDR – China – Dollar


imf-sdr

COMMENT: You are wrong. The SDR will destroy the dollar as of October 1st when they include China. You will see. China will sell all its US Treasurys and buy SDRs.

REPLY: Your very statement is totally absurd. The SDR is calculated simply by a basket of currencies including the dollar, yen, pound, and euro (see IMF calculation). So please explain to me, when the SDR is just a basket of currencies that have all declined against the dollar, just how the SDR could destroy the dollar when it is its largest component?

china-m

Here is a chart of the SDR against the dollar. It too has declined like the components of the yen, euro, and pound. Now let’s look at the Chinese yuan. This too has declined against the dollar. So I fail to see how the SDR will destroy the dollar without a magical recovery in Japan, China, Britain, and Brussels. The dollar has been rising against the yuan since 2013. So why would you sell all treasury bonds when they have made a fortune on the currency and swap into something that depreciates?