Tramp and Klinton

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Re: Tramp and Klinton

Postby KGB » Fri Aug 12, 2016 2:00 pm

Igor wrote:Many countries have reserves in Dollars. What USD will do if these countries will start to lose trust in Dollar and will start to sell Treasuries, will it be possible that USA will not be able to pay for the debt? If so USA will be forced to 'print' a lot of additional Dollars to pay for debt, price of Dollar will go down and other countries will also sell it. This looks like financial catastrophe when no one will trust Dollar anymore. Have USA a defense of this variant?


If Country A decides to sell the treasuries then SOMEONE must be willing to buy them (the US does not have to buy back it's treasuries unless it wants to). So all that happens is that Country B buys them. So in reality some country ALWAYS holds US treasuries and the US does not have to print money to pay back the debt.

It's possible for the dollar to go down if Country A sells treasuries to Country B for less than it bought them for just as it's possible for the dollar to go up if Country A sells treasuries to Country B for more than it bought them for.

If all countries tried to sell at the same time (or China attempted to dump it's vast holdings) then the value could go really low. In that case Trump suggested that the US should then buy them at the really low value because you are buying them for WAY less than they cost (ie US sold them initially to China for $100 and bought them back for $1 then China loses $99, not the US). This is why when you hear claims that countries are going to dump treasuries it's nonsense because those countries would lose, not the US.

Igor wrote:In the same time our media tell that there is a variant that Trump will win among voters but can lose among electors. Is it a horror story or it has a real base?


This is 100% true. It happened in the 2000 Election when Bush won but Gore had more votes.

It happens because if you win a state you get 100% of the electoral votes. So imagine a country where there are only 3 states each having 10 votes (10 million population). In State 1 and State 2 you win with 51% of the votes but in State 3 you lose with only 40% of the votes. You still win the election (20-10) but you get fewer votes than the loser who had 4% + 49% + 60%.

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Re: Tramp and Klinton

Postby Igor » Fri Aug 12, 2016 8:22 pm

KGB wrote:If Country A decides to sell the treasuries then SOMEONE must be willing to buy them (the US does not have to buy back it's treasuries unless it wants to). So all that happens is that Country B buys them. So in reality some country ALWAYS holds US treasuries and the US does not have to print money to pay back the debt.

If countries which have Treasuries will start to lose trust to USA, then there will become a lot of Treasuries as offers for sale, but in this conditions there will be very little number of countries which would like to buy it. The situation when offer to sell is much more than asking to buy. This can lead to downgrading of price of Treasuries.

Other way for reaction of countries in case of losing the trust to USA is just selling Treasuries for current price (usual one, not low), but not buying new ones. This means that US Government will need to think where to get money to pay for these Treasuries in the moment of closing them, if there is no money from new sales. This may force US Government 'to print' new Dollars to pay for Treasuries with ended time, that can downgrade the price of Dollar.
Another task for US Government can be to get money for financing of current payments in conditions when payments are more than income and there is no monay from new Treasuries.
This is what, I think, is very interesting to look from both candidates, how they plan to balance income of budget with payments, and whether will they do this.
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Re: Tramp and Klinton

Postby KGB » Sat Aug 13, 2016 7:38 pm

Igor wrote:If countries which have Treasuries will start to lose trust to USA, then there will become a lot of Treasuries as offers for sale, but in this conditions there will be very little number of countries which would like to buy it. The situation when offer to sell is much more than asking to buy. This can lead to downgrading of price of Treasuries.

Other way for reaction of countries in case of losing the trust to USA is just selling Treasuries for current price (usual one, not low), but not buying new ones. This means that US Government will need to think where to get money to pay for these Treasuries in the moment of closing them, if there is no money from new sales. This may force US Government 'to print' new Dollars to pay for Treasuries with ended time, that can downgrade the price of Dollar.


There are only a few countries that buy treasuries (other than US itself). The countries that do are those that run an export surplus which is pretty much China, Germany and Saudi Arabia (which now is running a deficit due to low oil prices). No other country buys them in any quantity because how can (or why would) they when they themselves are in debt. Thus there is really a very limited market to sell them.

Also those export countries MUST buy treasuries. They have no choice. If China exports 1 billion dollars of goods to the US what else can the US send back but treasuries. China could in theory demand gold (or something else) but if the US said no, then either China takes treasuries or they don't sell their goods to the US.

Lastly the US would LOVE for the dollar to fall. If either candidate could accomplish that they would be beloved. Why would the they want a lower dollar? Well it would mean US exports would rise, the deficit (debt) would fall and lots of people would get manufacturing jobs because it would be cheaper to make goods here instead of somewhere else (China/Germany etc).

Igor wrote:This is what, I think, is very interesting to look from both candidates, how they plan to balance income of budget with payments, and whether will they do this.


Clinton wants to raise taxes (Democrats always do). Trump wants to grow the economy by lowering business taxes. This is a big area in which they differ. Trump is right, Clinton is wrong as she''s turn the US into Greece.

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Re: Tramp and Klinton

Postby SCIkick » Sat Aug 20, 2016 6:08 am

I am a U.S. citizen, and government worker. I deal with all, excellent successful business owners, new business owners, workers trying to better themselves, and those who are unable to, and the absolute poor who have no hope.

Clinton, Obama, and her allies want people who cannot better themselves. It increases their votes. They want people to barely get by, and be thankful for it. It's disgusting.

I don't know what people think of Americans, honestly.

All I know is, if Clinton gets elected, my country will continue to become a faceless, nothing, just a model for some idea. . . . that failed.
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Re: Tramp and Klinton

Postby Igor » Tue Nov 01, 2016 3:09 pm

I've heard that NY Post told that Clinton already paid for buying of firewoke on celebration after her win. Interesting, what will she do with it if Trump will win?
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Re: Tramp and Klinton

Postby KGB » Thu Nov 03, 2016 5:21 am

Igor wrote: Interesting, what will she do with it if Trump will win?


Go to jail. Go directly to jail. Do not pass Go and do not collect millions of dollars from sponsors to the Clinton foundation. :lol:

If she wins she'll instead be impeached or tied up in legal hearings for her entire term so that she can do nothing for 4 years (and no progress is made on any problems plaguing the country).

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Re: Tramp and Klinton

Postby Igor » Sat Nov 05, 2016 9:57 pm

I have read that Clinton Foundation has confirmed the getting of 1 million dollars from Quatar when Clinton was Secretary of State, and that she didn't inform the department about this, though had to do this.
KGB did you say about this?
Interesting does her electorate know that they plan to choose as a leader for their country this old lady who is probably paid by fuel arabic country. Or this doesn't matter for her electorate?
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Re: Tramp and Klinton

Postby KGB » Sat Nov 05, 2016 11:13 pm

Igor wrote:I have read that Clinton Foundation has confirmed the getting of 1 million dollars from Quatar when Clinton was Secretary of State, and that she didn't inform the department about this, though had to do this.
KGB did you say about this?


That's one of the many illegal and shady things she and the Clinton foundation have done. Other things include her private email server that leaked classified information (if I was in the military and did that I would be going to jail for a long time as has happened to several military officers). The Clintons have been crooks since Bill was in the White House (when he left office they stole all the china and furniture from the White House and were made to give it back).

Igor wrote:Interesting does her electorate know that they plan to choose as a leader for their country this old lady who is probably paid by fuel arabic country. Or this doesn't matter for her electorate?


Some people will vote Democrat regardless of who is running (even if Satan himself was the candidate). The same holds true for Republicans. Only about 20% of the population is in the middle (they vote Democrat or Republican based on the leader/issues they stand for) and that's the 20% that Clinton and Trump are trying to convince to vote for them.

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Re: Tramp and Klinton

Postby Igor » Wed Nov 09, 2016 6:43 pm

Congrats Americans! You will have interesting 4 years. As all the world may have :)
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Re: Tramp and Klinton

Postby KGB » Thu Nov 10, 2016 4:51 am

Congratulations indeed! I couldn't be happier.

Its a total 'fuck you' to the Washington Political Elite from the former blue collar middle class democrats who have been shafted by the Democrat and Republican party.

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