[quote="plebeian"]
I'm going to change a few thousand dollars tomorrow and will be doing it at Acleda as their exchange rate seems to be at the same rates as the money exchangers near Olympic, (sometimes better by 1 or 2 riel) and I feel happier counting and being in an Acleda branch when changing large sums.
...I'm exchanging it as it is maturing out of an Amret Micro finance term deposit USD account, and I want to take advantage of a KHR term deposit account...the USD account used to get 7.5% per annum and is now been changed down to 7% whereas the KHR is still at the same 10% it was since they have been offering it.
Although I am going to change micro finance bank and move it to AMK, where I can get 10.5% per annum or maybe I'll go with 11% for a 16 month.
What does the reduction in the USD term saving rate and the increase/same term saving rate for KHR indicate??
...As i say, I am not a financial wiz-kid, in fact my maths is pretty poor....but 4% more on the KHR for a term deposit is a lot in savings account terms, and as the USD/KHR is pretty steady at around about 1:4000 think it is worth it.[/quote]
Wow, so I can walk into an Amret location and get a 10% return with a KHR account?
Dang. Lookin' better than my .01% I'm getting with Wells Fargo in America, i'd say.
In your opinion, is there a catch? Besides the obvious lack of FDIC insurance, volatility of the Riel, relative instability of the political system, etc....
Do you recommend some micro finance savings?
Dump dollars, buy riel?
- OrangeDragon
- I prefer K440 to bangkokbois
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http://qz.com/73970/gold-bugs-in-full-r ... inflation/obelisks wrote:only those that drink the koolaide believe that......................OrangeDragon wrote:wise move... it's not doing so hot lately.wackyjacky wrote:I sold All my gold at $1770. I'm quite happy with that decision.
http://www.businessweek.com/news/2013-0 ... ommodities
tasty koolaid.
Those who begin coercive elimination of dissent soon find themselves exterminating dissenters. Compulsory unification of opinion achieves only the unanimity of the graveyard.
Robert H. Jackson, West Virginia State Board of Education v. Barnette
Robert H. Jackson, West Virginia State Board of Education v. Barnette
Orange Dragon you are Spot On !
OrangeDragon wrote:A surplus would be devastating to the US economy. Clinton's surplus is what got the economy in this mess in the first place.wackyjacky wrote: If a dysfunctional basket case like California can run a surplus, I see no reason why the US can't do the same.
A quote from Stephanie Kelton (economist) explaines it as such:On top of Clinton wanting to make everyone a home owner, he also put Fannie and Freddie in the position they ended up in by cutting back Treasury bonds, not needed if you're running a surplus. However they WERE needed as part of portfolios and retirement packages. Risk free and with really fat yields, they were critical to investments. Fannie and Freddie picked up the slack of all those people wanting to buy debt. Bad move, as we see now.Now, you might ask, "What's the matter with a negative private sector balance?". We had that during the Clinton boom, and we had low inflation, decent growth and very low unemployment. The Goldilocks economy, as it was known. The great moderation. Again, few economists saw what was happening with any degree of clarity. My colleagues at the Levy Institute were not fooled. Wynne Godley wrote brilliant stuff during this period. While the CBO was predicting surpluses "as far as the eye can see" (15+ years in their forecasts), Wynne said it would never happen. He knew it couldn't because the government could only run surpluses for 15+ years if the domestic private sector ran deficits for 15+ years. The CBO had it all wrong, and they had it wrong because they did not understand the implications of their forecast for the rest of the economy. The private sector cannot survive in negative territory. It cannot go on, year after year, spending more than its income. It is not like the US government. It cannot support rising indebtedness in perpetuity. It is not a currency issuer. Eventually, something will give. And when it does, the private sector will retrench, the economy will contract, and the government's budget will move back into deficit.
Greenspan made it worse by prolonging things after 9-11 with the free debt (those of in the US at the time were inundated with ads to buy houses at retardedly low rates, cars at 0% interest, etc. Cool for boosting private sector spending... not cool for those already up to the line in debt. Being dumb middle (or lower) class Americans and not economists or even accountants many took the bait and crossed that line into dark territory where the savings rate plummets and one missed week of work means your behind on a payment... which means late fee's you can't afford because your living at/beyond your means, which means more late payments... and eventually foreclosures and repossessions. Those drive down values of the items, making people upside down in loans that didn't even have interest, leading to a stagnation in the markets. Stagnation in markets doesn't last long... they either recover or collapse. So we got a housing bubble that popped. From there it was dominoes.
The war may have made it worse, but unlikely. It created a surge of employment via military recruiting and contracts, as well as offering education and training to those whom it would be otherwise inaccessible. Not to mention stimulation in production and retail of those god awful yellow ribbon magnets, flags, t-shirts, etc. Wars are historically fantastic for the US economy and I half wonder if that one wasn't another economic fix attempt by the Bush administration. (Contrary to popular belief... the man wasn't actually half as stupid as he made sure to appear to be.)
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