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KAYNE
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Crazier said:
MY MAJOR IS FINANCE BUT I'M NOT QUITE SURE WHAT I'M GONNA DO YET.
KAYNE
K
KAYNE
Guest
ABALL
WELL, I WASNT WRONG (PER SA), I JUST OMMITTED THE PART ABOUT THE X-RATES. I WAS MENTIONING WHAT WAS PERTINANT TO THE QUESTION "WHY DOESNT AMERICAN STAY OUT OF EVERYONE'S BUSINESS?". AND TO BE HONEST WITH YOU, THE X-RATES PART OF THE CONFERENCE WASNT THAT PERTINANT TO THE QUESTION. HOWEVER, YOU ARE VERY CORRECT. IT HAS OTHER FACETS TO IT AND THE X-RATES WERE ONE.
THE BRETTON WOODS X-RATE WAS A PEGGED X-RATE SYSTEM THAT TIED GOLD DIRECTLY TO THE DOLLAR. OTHER CURRENCIES WERE DIRECTLY TIED TO THE DOLLAR WHICH INDIRECTLY TIED THEM TO GOLD. BUT THESE COUNTRIES COULD USE THE DOLLAR AS THEIR INTERNATIONAL RESERVE WITHOUT ACCUMULATING GOLD OR TIEING THEIR MONEY SUPPLY DIRECTLY TO GOLD RESERVES. PROBLEMS STARTING ARISING WHEN THE U.S. ECONOMY EXPANDED AT A HIGHER RATE THAN ITS TRADING PARTNERS. THE WAR IN VIETNAM AND THE "WAR ON POVERTY" AT HOME GENERATED HUGE FISCAL EXPENDITURES THAT STIMULATED THE ECONOMY. HOWEVER, THE. U.S. COULDNT KEEP UP THE THE FOREIGN COUNTRIES AND THEIR RESERVES. THE U.S. DIDNT HAVE ENOUGH GOLD TO BACK ALL THE DOLLARS THAT WERE IN CIRCULATION AND BEING HELD AS RESERVES. SO THE ONE FATAL FLAW IN THIS SYSTEM WAS THE DOLLAR!!! ITS CURRENCY WAS TREATED THE SAME AS GOLD SINCE IT WAS DIRECTLY TIED TO IT. THIS MEANT ALL THE U.S. HAD TO DO WAS INCREASE ITS MONEY SUPPLY AND GAIN PURCHASING POWER OVER OTHER COUNTRIES GOODS (WHICH GOES AGAINST PURCHASING POWER PARITY, OR LAW OF ONE PRICE).
ALL THIS MUMBO JUMBO MEANT THAT THE U.S. HAD TO DEVALUE ITS DOLLAR (I BELIEVE YOU PUT SOMETHING ABOUT THIS). UNDER A DIFFERENT X-RATE SYSTEM THIS WOULD HAVE BEEN APPROPRIATE. BUT NOT FOR THIS ONE. IN DEC. OF 1971, THE SMITHSONIAN AGREEMENT (THIS IS WHAT YOU WERE LOOKING FOR) CALLED FOR MAJOR INDUSTRIALIZED NATIONS TO DEVALUE THE GOLD CONTENT OF THE DOLLAR WHICH REVALUED THEIR CURRENCIES. REVALUED, IS OF COURSE THE SAME AS APPRECIATED, ONLY IN A FIXED X-RATE SYSTEM AS THE B.W.
AND ALL THE MUMBO JUMBO LET TO THE FLOATING X-RATE SYSTEM WHICH WAS ADOPTED AS A MEANS TO COPE WITH SPECULATION. THE SIMPLEST SOLUTION TO ALL THAT CRAP WAS TO LET THE CURRENCIES FLOAT.
SO YOU SEE, ACTUALLY, I WASNT WRONG, I JUST OMITTED THE PARTS ABOUT THE X-RATES. HOWEVER, THX FOR BRINGING IT UP CUZ I NEED TO KNOW ALL THIS ANYWAY. YOU JUST REFRESHED MY MEMORY. AND I DONT GET INTO INTELLECTUAL DEBATES ALL THAT OFTEN ON HERE (I DONT LIKE TO SEEM LIKE A KNOW IT ALL) BUT THIS WAS GOOD. THX BRO.
KAYNE
WELL, I WASNT WRONG (PER SA), I JUST OMMITTED THE PART ABOUT THE X-RATES. I WAS MENTIONING WHAT WAS PERTINANT TO THE QUESTION "WHY DOESNT AMERICAN STAY OUT OF EVERYONE'S BUSINESS?". AND TO BE HONEST WITH YOU, THE X-RATES PART OF THE CONFERENCE WASNT THAT PERTINANT TO THE QUESTION. HOWEVER, YOU ARE VERY CORRECT. IT HAS OTHER FACETS TO IT AND THE X-RATES WERE ONE.
THE BRETTON WOODS X-RATE WAS A PEGGED X-RATE SYSTEM THAT TIED GOLD DIRECTLY TO THE DOLLAR. OTHER CURRENCIES WERE DIRECTLY TIED TO THE DOLLAR WHICH INDIRECTLY TIED THEM TO GOLD. BUT THESE COUNTRIES COULD USE THE DOLLAR AS THEIR INTERNATIONAL RESERVE WITHOUT ACCUMULATING GOLD OR TIEING THEIR MONEY SUPPLY DIRECTLY TO GOLD RESERVES. PROBLEMS STARTING ARISING WHEN THE U.S. ECONOMY EXPANDED AT A HIGHER RATE THAN ITS TRADING PARTNERS. THE WAR IN VIETNAM AND THE "WAR ON POVERTY" AT HOME GENERATED HUGE FISCAL EXPENDITURES THAT STIMULATED THE ECONOMY. HOWEVER, THE. U.S. COULDNT KEEP UP THE THE FOREIGN COUNTRIES AND THEIR RESERVES. THE U.S. DIDNT HAVE ENOUGH GOLD TO BACK ALL THE DOLLARS THAT WERE IN CIRCULATION AND BEING HELD AS RESERVES. SO THE ONE FATAL FLAW IN THIS SYSTEM WAS THE DOLLAR!!! ITS CURRENCY WAS TREATED THE SAME AS GOLD SINCE IT WAS DIRECTLY TIED TO IT. THIS MEANT ALL THE U.S. HAD TO DO WAS INCREASE ITS MONEY SUPPLY AND GAIN PURCHASING POWER OVER OTHER COUNTRIES GOODS (WHICH GOES AGAINST PURCHASING POWER PARITY, OR LAW OF ONE PRICE).
ALL THIS MUMBO JUMBO MEANT THAT THE U.S. HAD TO DEVALUE ITS DOLLAR (I BELIEVE YOU PUT SOMETHING ABOUT THIS). UNDER A DIFFERENT X-RATE SYSTEM THIS WOULD HAVE BEEN APPROPRIATE. BUT NOT FOR THIS ONE. IN DEC. OF 1971, THE SMITHSONIAN AGREEMENT (THIS IS WHAT YOU WERE LOOKING FOR) CALLED FOR MAJOR INDUSTRIALIZED NATIONS TO DEVALUE THE GOLD CONTENT OF THE DOLLAR WHICH REVALUED THEIR CURRENCIES. REVALUED, IS OF COURSE THE SAME AS APPRECIATED, ONLY IN A FIXED X-RATE SYSTEM AS THE B.W.
AND ALL THE MUMBO JUMBO LET TO THE FLOATING X-RATE SYSTEM WHICH WAS ADOPTED AS A MEANS TO COPE WITH SPECULATION. THE SIMPLEST SOLUTION TO ALL THAT CRAP WAS TO LET THE CURRENCIES FLOAT.
SO YOU SEE, ACTUALLY, I WASNT WRONG, I JUST OMITTED THE PARTS ABOUT THE X-RATES. HOWEVER, THX FOR BRINGING IT UP CUZ I NEED TO KNOW ALL THIS ANYWAY. YOU JUST REFRESHED MY MEMORY. AND I DONT GET INTO INTELLECTUAL DEBATES ALL THAT OFTEN ON HERE (I DONT LIKE TO SEEM LIKE A KNOW IT ALL) BUT THIS WAS GOOD. THX BRO.
KAYNE
K
KAYNE
Guest
ABALL
I'M A FINANCE MAJOR. ONE OF THE COURSES I HAVE TO TAKE IS INTERNATIONAL FINANCE 447. HOWEVER, THAT CLASS IS VERY HARD TO GET INTO AND I NEEDED IT THIS SEMESTER SO I HAD TO TAKE ECON 421, WHICH IS INTERNATIONAL ECON, TO SUBSTITUTE FOR MY FINANCE 447 CLASS I COULDNT GET INTO. I HAVE ALWAYS DONE WELL IN MY 2 AND 3 LEVEL ECONS SO I FIGURED WHY THE HELL NOT!!! I HONESTLY DIDNT THINK I WAS GOING TO BE INTERESTED IN THIS CLASS BUT TO MY SUPRISE, I AM. THOUGH I COULD BE LEARNING A LOT MORE IF MY TEACHER WERE MORE DEMANDING. HE IS VERY SMART AND HAS BEEN PUBLISHED QUITE A FEW TIMES BUT HE ISNT A VERY DEMANDING TEACHER. THAT COULD BE GOOD OR BAD, DEPENDS ON WHAT POINT OF VIEW YOU LOOK AT IT FROM....LOL. NOW WHEN I WATCH CNN, I AM MUCH MORE AWARE OF WHAT THE HELL IS GOING ON. IT IS QUITE INTERESTING ACTUALLY.
I DONT LIKE TO SEEM LIKE A "KNOW IT ALL" (AS SEBASS CALLED ME) SO I USUALLY DONT PARTAKE IN CONVERSATIONS LIKE THIS BUT WHAT THE HELL. I HAVE BEEN STUDYING LIKE A MOFO LATELY SO I MIGHT AS WELL USE THE INFO!!! LOL
WHAT DO YOU PLAN ON DOING WITH YOUR DEGREE?
KAYNE
I'M A FINANCE MAJOR. ONE OF THE COURSES I HAVE TO TAKE IS INTERNATIONAL FINANCE 447. HOWEVER, THAT CLASS IS VERY HARD TO GET INTO AND I NEEDED IT THIS SEMESTER SO I HAD TO TAKE ECON 421, WHICH IS INTERNATIONAL ECON, TO SUBSTITUTE FOR MY FINANCE 447 CLASS I COULDNT GET INTO. I HAVE ALWAYS DONE WELL IN MY 2 AND 3 LEVEL ECONS SO I FIGURED WHY THE HELL NOT!!! I HONESTLY DIDNT THINK I WAS GOING TO BE INTERESTED IN THIS CLASS BUT TO MY SUPRISE, I AM. THOUGH I COULD BE LEARNING A LOT MORE IF MY TEACHER WERE MORE DEMANDING. HE IS VERY SMART AND HAS BEEN PUBLISHED QUITE A FEW TIMES BUT HE ISNT A VERY DEMANDING TEACHER. THAT COULD BE GOOD OR BAD, DEPENDS ON WHAT POINT OF VIEW YOU LOOK AT IT FROM....LOL. NOW WHEN I WATCH CNN, I AM MUCH MORE AWARE OF WHAT THE HELL IS GOING ON. IT IS QUITE INTERESTING ACTUALLY.
I DONT LIKE TO SEEM LIKE A "KNOW IT ALL" (AS SEBASS CALLED ME) SO I USUALLY DONT PARTAKE IN CONVERSATIONS LIKE THIS BUT WHAT THE HELL. I HAVE BEEN STUDYING LIKE A MOFO LATELY SO I MIGHT AS WELL USE THE INFO!!! LOL
WHAT DO YOU PLAN ON DOING WITH YOUR DEGREE?
KAYNE
KAYNE said:
Yeah Econ is a pretty good base to have I think -- it is pretty dry sometimes but for the most part I think its all good. I just landed a job with Industry Canada and will work there for 6 months and then Im off to Australia for grad school in econ wooho! what about you?
A
K
KAYNE
Guest
I HAVE TWO SEMESTERS LEFT SO SOMETIME IN THE FALL SEMESTER I AM GOING TO HAVE TO FIGURE OUT WHAT I AM GOING TO DO. I AM LOOKING INTO GETTING AN ECON MINOR TO GO ALONG WITH ME FINANCE MAJOR. NOT SURE YET THOUGH CUZ I REALLY WANT TO GET THE HELL OUT OF SCHOOL. I KLOWNED AROUND FOR QUITE SOMETIME. NOW THAT I FINALLY HAVE MY HEAD ON STRAIGHT, ITS TIME TO GET OUT. KNOW WHAT I MEAN!!!
KAYNE
KAYNE
K
KAYNE
Guest
Sebass67 said:I have to admit your scope of information on this thread is impressive. Heck, i get a little emotional at times. I am sure you do to. Gets the best of me.
I'll try to calm my ass down a bit.
Even though you don't know how much this will pain me.
LOL....OK SINCE YOU ARE WILLING TO COMPRIMISE, I'LL DELETE THE POST ABOUT YOUR TWO CENTS BEING INFLATED.
KAYNE
