I am extraordinarily talented in stock trading and can mint millions. How I can market my talent efficiently?
Is it a good way to make money in the stock market by following NYSE's biggest gaining stocks each day?
Calls for substitutes threaten America's most successful export, the greenback. Is the Floating Dollar Sunk?
That’s what the textbooks said anyway. The reality has been more complicated.
It’s the flow of money that dominates the flow of goods, not the other way around. Governments, moreover, manipulate the quantity or the value of money to their ends, which is also outside the textbook model.
The rest of the world holds dollars as investments. Foreign central banks use dollars predominantly for their reserves. Dollar-based financial markets are the deepest and biggest in the world. In other words, the liabilities of the U.S. are the main assets of the rest of the world.
This has conferred on the U.S. something that King Midas couldn’t imagine. We can effectively print dollars and the rest of the world takes them. Imagine what you’d do with a money-printing press in your basement. You’d spend like crazy on stuff. Or you’d acquire real assets, such as houses.
Extend that notion globally. Since the rest of the world takes our paper money, we get to acquire their products or assets in exchange. As a result, America can spend more than it earns and save less than it invests. The difference is made up by foreigners accepting our dollars and lending them back to us.
The clearest example is China. Its massive trade surplus with the U.S. gives it boatloads of greenbacks. The textbook says that would make its currency, the yuan, rise, which would make Chinese exports dearer in world markets. That’s the last thing Beijing wants as it tries to keep the economy growing at 8% to provide jobs and maintain social stability.
So, China’s central bank accumulates billions and billions of dollars, which it invests in U.S. securities. Much of that money went into Fannie Mae and Freddie Mac securities, which in turn helped finance the U.S. housing boom. But the bulk of China’s dollars went into U.S. Treasury securities, which helps fund the budget deficit.
Americans should realize that the nation’s most successful export isn’t Coke or Boeing airliners or Microsoft software or even Hollywood films. It’s the dollar, which is accepted around the world as a store of value.
Under the current floating exchange-rate system, the U.S. wasn’t limited by the gold in Fort Knox as to how many dollars it could issue. It was limited only by the willingness of the rest of the world to accept greenbacks in payment for their goods and services.
But, for the first time since the early 1970s, America runs the risk of being constrained by international considerations. Nixon could get around them simply by abrogating the promise to maintain the dollar’s value in gold. Now, America’s main creditors could impose the discipline on the U.S. that gold couldn’t.
Poll: Agree or Disagree?
Source:
http://online.barrons.com/article/SB123793604883731531.html#mod=rss_barrons_markets
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I am 16 years old and have a huge interest in the stock market. I wanted to get involved within it and make some succesful trades. How would I go about it?
Thanks,
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I Purchased – 1000 shares of F (Ford) – Cost: .00 per share – (2009). My total investment was ,000 + .00 transaction fee.
Now – Dividends – varies over the last year and a half. 2009 took a beating the 1st 2 quarters – but the 3rd and 4th quarters showed a big profit. Here’s a some of those dividends paid – 0, 0, 0, 0 – which made my 3k investment seem like winning the lottery.
However – the biggest gain for me is the 07 investment – and the stocks today are worth over ,000 today (1000 shares). That is a ,000 gain.
Is there a Software Program that will following your Dividends & Stock Value – which will give your overall value to date? I have several stocks like the one above – and it would be nice to know the true profit value – since purchase of the stock.
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