absolutely. just watch for conversion fees/etc. some banks hit you for 11%... which negates some of that rate depending on your time table. once i can stop spending and start saving i'll be doing the same, or just putting it in gold/platinum where it's likely to climb even faster and at least will hold more stable than most currencies.plebeian wrote:Thanks OrangeDragon...In your opinion and if that is the reason; converting my USD savings into KHR to take advantage of the difference in the savings rate is the smart thing to be doing?OrangeDragon wrote:it indicates that the gov't is pressuring banks to encourage national currency use (creating strength) against the foreign dollarization currency. all commonplace in developing countries as they move more and more to try and separate themselves economically from their previous stability source.plebeian wrote: What does the reduction in the USD term saving rate and the increase/same term saving rate for KHR indicate??
Dump dollars, buy riel?
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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
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I'm no economist, but being energy independent is certainly not going to hurt matters. If a dysfunctional basket case like California can run a surplus, I see no reason why the US can't do the same. Not blowing wads in Iraq & Afghanistan is going to be a big help too. The Riel may be a good short play, but not a long one.redcup wrote:Is that enough to offset the tens of trillions of dollars of debt the US has? Also, what's to stop other countries from also fracking to get more oil? The world could end up swimming in the stuff.wackyjacky wrote:Don't know about the deficit, but new exploration techniques are going to make the US the world's top oil producer in 5 years. There's already a glut of natural gas due to fracking. Industries are starting to move back to the US due to cheap energy. This should considerably alter the US balance of payments and strengthen the dollar IMO. LINK: http://www.nytimes.com/2012/11/13/busin ... .html?_r=0
I think that following Plebian's lead and investing in fixed term deposits is not a bad way to hedge against the dollar losing value.
However, I generally would prefer to move into a currency likely appreciate vs. the dollar..........not one that is tied to it.
Why not gold or other metals?
However, I generally would prefer to move into a currency likely appreciate vs. the dollar..........not one that is tied to it.
Why not gold or other metals?
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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.)
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
Khmeria wrote:investing in a currency that locals dont even have any faith in usually isn't a good idea
They're has to be thousands of ways to invest your money in a better way than stock piling Riel.
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Silly question, is there enough money out there to pay off the loans from microfinance and money lenders and the ADB and the World Bank and China and the EU and etc?
Damn, answered already.Khmeria wrote:investing in a currency that locals dont even have any faith in usually isn't a good idea
Dictated to a slave and sent by carrier pigeon.
Sure, just sell all the Range Rovers and Lexi!Uncle Monty wrote:Silly question, is there enough money out there to pay off the loans from microfinance and money lenders and the ADB and the World Bank and China and the EU and etc?
Yes, but I'm unsophisticated in investing and have always kept my money in bank accounts. I wish I knew a better way. These days I just really don't know what to do. I just know that I'm not comfortable holding USD when it's clear the USG is deliberately trying to destroy it.cambod wrote:
They're has to be thousands of ways to invest your money in a better way than stock piling Riel.
But how do you buy and keep them if you don't have a bank account that's denominated in that currency? Buy them at a PP money dealer and stuff them in your mattress?Khmeria wrote:even just in currencies there are lots of others
I have the same problem with people who say buy gold and silver. I have no safe place to keep them.
I'm here in Cambo and am trying to deal with what options I realistically have.
And going to another country and opening a bank account in one's preferred currency is not so easy anymore unless you're a resident there.
Yuan, the most undervalued currency at the moment. Unfortunately, difficult to get in large qty outside China.
I am no financial wizard, but happy to throw in my 2 cents in for posterity!redcup wrote:Is the riel a haven from dollar devaluation? With the Fed continually printing dollars and the huge US debt problems, I have no confidence in the future of the dollar and want to get out.
.......
I don't think the Riel is a haven from Dollar devaluation, this currency is pretty tight with the USD and like Thailand is closely aligned to it.
USD/KHR chart: http://www.xe.com/currencycharts/?from= ... R&view=10Y
USD/AUD chart: http://www.xe.com/currencycharts/?from= ... D&view=10Y
AUD/KHR chart: http://www.xe.com/currencycharts/?from= ... R&view=10Y
These show the KHR pretty close with USD for 10 years, from minimum 3620 to 4265, which for KHR I think is pretty good.
Whereas with USD and AUD, if you exclude the 2008 international speed bump, the AUD has gained solidly over the years. If someone could explain why the USD was strong in 2008 when it was the cause of the crisis, that would be great
The AUD has gained consistently with the KHR as much as it has to the USD.
This, to my thinking, means if the USD shits itself so follows the KHR - so it is not a haven. A currency like AUD would be a haven as it is not linked to USD fluctuations to gain value, when the USD falls the AUD rises.
When someone mentioned buy AUD, you said that it was "too late" due to it already appreciating, but your original statement is you want a haven from losing money, so why avoid a solid currency?
Anyway, goodluck
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