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Topic: Global Financial Crisis scenarios (Read 15914 times)

legendary
Activity: 2142
Merit: 1012
January 17, 2021, 06:14:56 PM
I figure it depends on how distant within the future you see. They would nearly certainly recoup superior and speedier than the US, but a USD collapse would enormously harmed their economy. It would crush a part of US demand for their sends out, as a result of our near financial ties with Europe, the European monetary framework would too likely collapse, which would crush their request for Chinese trades as well. It's incomprehensible to anticipate how awful it might get, but I seem seeing a USD collapse driving to a worldwide discouragement.
There is nothing eternal and stable in the sublunary world. It depends on what to call under the crash of the dollar. There will be no catastrophic collapse, and some weakening of the dollar exchange rate is even useful for the American economy. A stock market crash is much more dangerous. The stock market is clearly overheated and it is completely unclear how to technically cope with such a bubble, because curtailing economic stimulus in the face of an ongoing pandemic is akin to suicide, which no one will allow.
sr. member
Activity: 840
Merit: 255
SportsIcon - Connect With Your Sports Heroes
January 17, 2021, 05:50:14 PM
I figure it depends on how distant within the future you see. They would nearly certainly recoup superior and speedier than the US, but a USD collapse would enormously harmed their economy. It would crush a part of US demand for their sends out, as a result of our near financial ties with Europe, the European monetary framework would too likely collapse, which would crush their request for Chinese trades as well. It's incomprehensible to anticipate how awful it might get, but I seem seeing a USD collapse driving to a worldwide discouragement.
sr. member
Activity: 1050
Merit: 286
January 17, 2021, 05:01:06 PM
What about a pandemic ? ;-)

I think the post pandemic will be far worse than the pandemic : riots, massive hyperinflation, war, something else huge that will change humans forever
Pandemic somehow affects the market, but the effect is not that bad because the quarantine makes every people want to earn by using their own device and their own money online. Many people are now relying on that way of earning since bitcoin is a good way of investment, many people want to know about cryptocurrency. Also, big companies are adopting the use of bitcoin since it is efficient and reliable to use especially since the virus is spreading so making a digital transaction is better.
legendary
Activity: 1918
Merit: 1018
January 17, 2021, 09:04:56 AM
What about a pandemic ? ;-)

I think the post pandemic will be far worse than the pandemic : riots, massive hyperinflation, war, something else huge that will change humans forever
member
Activity: 266
Merit: 10
July 21, 2018, 07:59:50 AM
The next financial crisis will probably start in China.

If China government bail out their own banking sector, they will need to dump US debt and cause interest to raise in US and value of USD to drop quite a lot compare to RMB.
Can you explain why this would happen?
He actually has this backwards. A country that is going through any kind of economic crisis will almost always want to have the value of their currency decline (especially countries that have a trade surplus) as this will make domestically produced goods cheaper and more competitive overseas. Also China could easily give/lend Chinese banks US dollars or US treasuries to bail them out as both are considered to be very safe assets

1/If you sell more products but you get less value, it is pointless

You used to sell 100products 1$=1euro so you were getting 100euros now you sell 120 products at 1$=0.8euro so you only get 120*0.8=96euros

2/You have to raise salaries

3/Compagnies will pay more taxes and more in nominal terms to get the raw material they need to make their products

4/You will have inflation

5/Politicians don't have to face their mistakes but the people enjoy a lower standard of living and the savers lost a lot of money those in debt

Fatty is correct.  In global economics you want to devalue your currency to stay competitive.

You cant just raise the price of a Samsung Galaxy S5 to $10,000 to make more money.  Business doesnt work that way

Exactly. Today's business can not operate in the old script style. Because every day every client or investor is very smart, human trends also change. Therefore, it is necessary to set up plans for attracting and boosting the market. Give your customers the "value" and "utility" of every product. New to reduce the load of the global crisis.
newbie
Activity: 52
Merit: 0
May 06, 2018, 01:07:04 PM
Hi,

I have a question, but please direct me to a post if already asked:

In case of another GFC, would BTC bitcoin price:

a) stays on the same level  Cool
b) skyrockets  Grin
c) tumble down  Cry

?

i would choose varinat A , because it is much more realistic, if there is world economic crysis,then not many investors will blindly invest their money into anywhere and more of that ,they will choose better options,like buying real estate,businesses and etc with very big discounts,but btc will not offer them this if price will go only to the top
member
Activity: 294
Merit: 16
May 06, 2018, 10:56:51 AM
The adoption of globalization in the financial sector creates integration into global economy. This provides an opportunity for the nations to reap fruits from free Trade, foreign capital and technology transfer. The access of vast capital and consumer market in the developed world can be powerful tools for economic growth. The Indian financial market scenario was critically analyzed under two sections. The first section aims to give bird’s eye view about the beginning of globalization and liberalization in Indian Financial market followed by Indian Financial Market road map 2020 which explains the opportunities and challenges of Indian Financial Market. A characteristic of the latest financial sub-prime mortgage in US crisis is the collapse of short term commercial paper market. In conclusion it can be emphasized that there needs to be well defined frame work which will withstand disruptions and lead the financial market towards growth and progression. Core elements like efficiency, stability, transparency, inclusion and sustainability will play a vital role in determining the growth. Standardizing and harmonizing the regulatory norms will help India position itself prominently on the global pedestal.
member
Activity: 140
Merit: 10
May 06, 2018, 10:38:48 AM
Reserve banks are still overextended, interest rates are still ridiculously low in some countries, and some economies still aren't doing all that well.  During the next crisis, governments and reserve banks may not have the wiggle room they did in 2008.
newbie
Activity: 728
Merit: 0
May 03, 2018, 04:05:19 AM
Nobody know it exactly. We just can suppose various scenarios. If you cannot take a risk that market is not the best place for your investment because there are not any guarantees.
You can increase you savings or lose them.
I am holding eth now and I hope it will be chase bitcoin and shorten the distance between them. 
sr. member
Activity: 364
Merit: 250
May 03, 2018, 03:04:07 AM
Obviously, at this point they continue discussing the modifications in design that can happen, or the upgrades that the camera can have or how powerful it will become.
hero member
Activity: 647
Merit: 501
GainerCoin.com 🔥 Masternode coin 🔥
November 04, 2014, 01:13:10 AM
That basically depends on the acceptance level of btc. If the public generally sees btc as a store of value, any economic crisis woukd push up the price
The problem is the general public has no idea about Bitcoin or has only vaguely heard about it. Unless they are trained in how to use it prior a real collapse, they will not be quick enough to move their assets into Bitcoin.
When cypress was having their banking crisis early last year, people were able to quickly move their money into bitcoin (I would argue as such because of the rate at which the price of bitcoin increased during the crisis).

I would also say that people could utilize services like coinbase and exchanges that can temporarily hold a person's bitcoin while they take the time to learn how to properly secure it. Although it would normally not be good to hold a large amount of bitcoin at an exchange, this may be an exception if the value of fiat is rapidly decreasing and/or they cannot safely hold their money in a fiat bank account
legendary
Activity: 1918
Merit: 1018
November 03, 2014, 01:23:58 PM
That basically depends on the acceptance level of btc. If the public generally sees btc as a store of value, any economic crisis woukd push up the price
The problem is the general public has no idea about Bitcoin or has only vaguely heard about it. Unless they are trained in how to use it prior a real collapse, they will not be quick enough to move their assets into Bitcoin.

You are right but those who are already involved or around people involved and those who know about Bitcoin and are thinking about getting involve will pour a lot of cash in Bitcoin and the protocole will get a lot of exposure as the money is poured in and people get more involved with it
hero member
Activity: 700
Merit: 501
November 03, 2014, 01:21:16 PM
That basically depends on the acceptance level of btc. If the public generally sees btc as a store of value, any economic crisis woukd push up the price
The problem is the general public has no idea about Bitcoin or has only vaguely heard about it. Unless they are trained in how to use it prior a real collapse, they will not be quick enough to move their assets into Bitcoin.
legendary
Activity: 1918
Merit: 1018
November 03, 2014, 10:38:20 AM
The next financial crisis will probably start in China.

If China government bail out their own banking sector, they will need to dump US debt and cause interest to raise in US and value of USD to drop quite a lot compare to RMB.
Can you explain why this would happen?
He actually has this backwards. A country that is going through any kind of economic crisis will almost always want to have the value of their currency decline (especially countries that have a trade surplus) as this will make domestically produced goods cheaper and more competitive overseas. Also China could easily give/lend Chinese banks US dollars or US treasuries to bail them out as both are considered to be very safe assets

1/If you sell more products but you get less value, it is pointless

You used to sell 100products 1$=1euro so you were getting 100euros now you sell 120 products at 1$=0.8euro so you only get 120*0.8=96euros

2/You have to raise salaries

3/Compagnies will pay more taxes and more in nominal terms to get the raw material they need to make their products

4/You will have inflation

5/Politicians don't have to face their mistakes but the people enjoy a lower standard of living and the savers lost a lot of money those in debt

Fatty is correct.  In global economics you want to devalue your currency to stay competitive.

You cant just raise the price of a Samsung Galaxy S5 to $10,000 to make more money.  Business doesnt work that way

Devaluating means you will endure the negative consequences I listed, you want to save, innovate, lower prices by being more efficient and you want a strong currency to buy up cheap what you need to consume and the raw material you need to produce

Q7
sr. member
Activity: 448
Merit: 250
November 03, 2014, 07:43:22 AM
That basically depends on the acceptance level of btc. If the public generally sees btc as a store of value, any economic crisis woukd push up the price
hero member
Activity: 784
Merit: 500
November 02, 2014, 09:21:55 PM
The next financial crisis will probably start in China.

If China government bail out their own banking sector, they will need to dump US debt and cause interest to raise in US and value of USD to drop quite a lot compare to RMB.
Can you explain why this would happen?
He actually has this backwards. A country that is going through any kind of economic crisis will almost always want to have the value of their currency decline (especially countries that have a trade surplus) as this will make domestically produced goods cheaper and more competitive overseas. Also China could easily give/lend Chinese banks US dollars or US treasuries to bail them out as both are considered to be very safe assets

1/If you sell more products but you get less value, it is pointless

You used to sell 100products 1$=1euro so you were getting 100euros now you sell 120 products at 1$=0.8euro so you only get 120*0.8=96euros

2/You have to raise salaries

3/Compagnies will pay more taxes and more in nominal terms to get the raw material they need to make their products

4/You will have inflation

5/Politicians don't have to face their mistakes but the people enjoy a lower standard of living and the savers lost a lot of money those in debt

Fatty is correct.  In global economics you want to devalue your currency to stay competitive.

You cant just raise the price of a Samsung Galaxy S5 to $10,000 to make more money.  Business doesnt work that way
legendary
Activity: 1918
Merit: 1018
November 02, 2014, 04:48:42 PM
The next financial crisis will probably start in China.

If China government bail out their own banking sector, they will need to dump US debt and cause interest to raise in US and value of USD to drop quite a lot compare to RMB.
Can you explain why this would happen?
He actually has this backwards. A country that is going through any kind of economic crisis will almost always want to have the value of their currency decline (especially countries that have a trade surplus) as this will make domestically produced goods cheaper and more competitive overseas. Also China could easily give/lend Chinese banks US dollars or US treasuries to bail them out as both are considered to be very safe assets

1/If you sell more products but you get less value, it is pointless

You used to sell 100products 1$=1euro so you were getting 100euros now you sell 120 products at 1$=0.8euro so you only get 120*0.8=96euros

2/You have to raise salaries

3/Compagnies will pay more taxes and more in nominal terms to get the raw material they need to make their products

4/You will have inflation

5/Politicians don't have to face their mistakes but the people enjoy a lower standard of living and the savers lost a lot of money those in debt
sr. member
Activity: 448
Merit: 250
November 02, 2014, 02:55:56 PM
The next financial crisis will probably start in China.

If China government bail out their own banking sector, they will need to dump US debt and cause interest to raise in US and value of USD to drop quite a lot compare to RMB.
Can you explain why this would happen?
He actually has this backwards. A country that is going through any kind of economic crisis will almost always want to have the value of their currency decline (especially countries that have a trade surplus) as this will make domestically produced goods cheaper and more competitive overseas. Also China could easily give/lend Chinese banks US dollars or US treasuries to bail them out as both are considered to be very safe assets
full member
Activity: 1834
Merit: 166
November 02, 2014, 12:24:04 PM
The next financial crisis will probably start in China.

If China government bail out their own banking sector, they will need to dump US debt and cause interest to raise in US and value of USD to drop quite a lot compare to RMB.
Can you explain why this would happen?
full member
Activity: 235
Merit: 102
November 02, 2014, 11:27:40 AM
The next financial crisis will probably start in China.

If China government bail out their own banking sector, they will need to dump US debt and cause interest to raise in US and value of USD to drop quite a lot compare to RMB.
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