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Conspiracy?
#1
There's one thing I don't get about Obama's stimulus plan;

If America is going to take out this near-one-trillion dollars, and is going to have to owe the expenses withdrawn, taking into account of course that all money (seems) eventually to trace back to America's economy, then how are they gonna pay it back?

And if they're out of money and are the leading country and need to borrow but all the other countries can't lend it because they themselves owe America, but Obama is still confident in this plan, then...

Just where is this 900 billion dollars coming from exactly?

=/
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#2
good question DJM.

If I am incorrect I hope others will let us both know...

These are the top 10 countries that are doing somewhat well and are/may be loaners to USA *and will continue to loan as it is in their best interest...

10. China.
China owns roughly 19% of US treasuries; if needed, it plans to use its sizable budget surplus to snap up even more. In addition, the United States gobbles up the majority of Chinese-made goods, meaning a decrease in consumer demand here will make for a chilly Chinese export market.

9. Brazil.
Latin American economies have boomed over the past few years. Brazil, unlike some of its neighbors, stabilized its domestic economy while positioning itself for increased foreign investment. The United States is currently Brazil’s biggest trading partner, but is looking to boost transactions with China and India, other major partners.

8. Romania.
Romania’s banks are barely exposed to international lenders. Therefore, any economic slowdown it feels will be a secondary result of global patterns. No shocks have occurred in the country itself.
Known by its own journalists the “tiger of the east,” Romania’s economy has been growing rapidly for the past few years. Though heavily embroiled in the EU’s economy, especially Italy’s, Romania is one of the world’s biggest military equipment exporters.

7. Thailand.
AIG’s gigantic Thailand subsidiary, AIA Thailand, has more than half of the Thai market cornered. It’s also sitting on 286.67 billion baht worth of reserves (about 8.3 billion US dollars), 383 billion baht ($11.1 billion) worth of assets, and capital funds worth roughly 1100% of the legally required minimum.

6. North Korea.
Although the country has recently enjoyed burgeoning trade ties with South Korea and China, both vulnerable to the US financial crisis, North Korea remains isolated enough to limp through the financial crisis relatively unscathed.

5. Iran.
Longstanding sanctions have kept Iran’s economy relatively insulated from foreign investment outside of a select few sectors. One of those sectors is oil—and China is one of its biggest trading partners. A fortuitous arrangement for all.

4. Malaysia.
This Southeast Asian country hosts a number of multinational manufacturing facilities. Though some of these companies are in the United States, experts say that bad times will promote more offshore production in bargain-rich Malaysia, not less

3. Morocco.
Moroccan officials claim not to be affected by the United States financial crisis because their banks don’t contain any subprime assets. But that notion only scratches the surface of why Morocco will survive the shakeup. Its resource and agricultural assets are the real keys to its invulnerability.
For one, this stable, slow-growth economy relies heavily on agricultural assets, such as almonds. It could feed its entire domestic population with the food it produces, beneficial in a world of rising food prices.
Half of its income comes from valuable phosphate mines—32% of the world’s reserves–a commodity whose prices have increased 700% during the past two years (triggering talk of “peak phosphorus”Wink.

2. Armenia.
This small Eurasian country hasn’t involved itself much in foreign affairs. Banking is no exception. Its relatively undeveloped financial market has so few interests in the outside world that the crisis didn’t make a blip.

1. The United Arab Emirates.
Driven by regional oil exports, the United Arab Emirates boasts one of the world’s fastest-growing economies. The UK’s Guardian calls it the home of the “Arabian Dream,” the world’s new version of the spent American dream. Dubai’s free trade zone, exalted commercial real estate market, and financial services make it an international powerhouse. This growth was fueled by oil revenues, but now has a momentum of its own.
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#3
There are still many organisations (investment funds and sovereign governments) that have money to invest. Due to concerns over bad debt they do not wish to invest in anything connected with it (the essence of the credit crunch, the money is still there its just that people are very unwilling to lend it out to the banks). The U.S. Government is seen as extremely unlikely to default and debts so buying US Government bonds is very attractive. In addition given that over long historical periods the US Dollar has always remained relatively strong, foreign investors consider it unlikely that the value of the US Government bonds will fall significantly in terms of their own currency, and may well rise.

As for how the US will pay the debt back. The US remains a major world economy and continues to produce goods and services that the rest of the world desires. In short the US can earn the money to pay the loans back, it always has in the past.

The alternative perspective is that the organisations that will be buying these bonds are shrewd and cautious investors, if they did not think Obama's policies added up then they won't buy the bonds.
Fred

Life is what happens while you are busy making other plans.
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#4
im lost????
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#5
zeon Wrote:im lost????

Don't worry its only economics. As George Bernard Shaw said, "if all the economists in all the world were lined up end-to-end it is doubtful they would reach a conclusion."
Fred

Life is what happens while you are busy making other plans.
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#6
fredv3b Wrote:As George Bernard Shaw said, "if all the economists in all the world were lined up end-to-end it is doubtful they would reach a conclusion."

Rofl Rofl Rofl


*are you sure it was GBS Remybussi
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