I wont be able to make all the cases against Niall in a post. Lekin he was wrong then and he is wrong now. Did you watch the video i shared? He says that if only Germany accepts the Monetary Federation, all will improve.. Wrong and wrong. There has been a huge economic imbalance on a global stage BECAUSE the central banks hid their debt and didnt allow price-discovery and market forces to let the economies adjust. You know these very countries China and Germany.. and all their surpluses.. They are gonna go bad. Wait.. I take that bad. All those surpluses have already gone bad. Tell me something. You buy a $10,000 car. You wreck it and then when you try to sell it, you are offered $1,000. So you decide to keep the car. Tell me, does keeping the car reduce your $9,000 loss? The loss occurred at the moment of the wreck. Loss just isnt registered on paper.. thats all.
Ab masla ye hai.. all that German Chinese surplus.. all that sits on their Banking sector's balance sheets. Out of every $1,000 of capital, banks lend around 12~15,000 of loans. Imagine if the surplus is recorded as "bad debt". It will simply wipe out the German and Chinese banks. And these arent German and Chinese banks.. these are major major Global financial players. If they go down, they take down the markets with them.. Why? BECAUSE THEY ARE THE MARKETS!
Ye log de-coupling ki baat karte hain.. I feel they are intellectually dishonest! Some are down right retards like Krugman.
If you truly want to understand economics, read history books, especially financial history. Also there's this amazing amazing comic book called "
How an Economy grows and why it crashes" Skip right to chapter 1. Just go thru the cartoon pictures and you'd be an economist in about hour & 15min!
Economics isnt a field. Its common sense. Plain ol fashioned simple common sense...
ok you do know I don't understand that much economics, When i heard all his talk it seemed like he was sort of making sense (with a bit of exaggeration of course) but now now it seems you make sense too, so basically I am confused with my limited knowledge of the subject.
See I don't know much about the dollar supremecy (I think u r right) but all the other things he says about china they seem correct and realistic,
my uni lecturers say something similar!
China prob have many problems but so does US and europe, and prob that is why the are so hostile towards china, don't you think?
Don't you think they have too much interest in us because of this particular issue?
That is what important for me!
