Banking crisis??

[VFK57]

I think that US inflation problem is far from over. During past 2 decades we printed huge amounts and there was no inflation because the world trade was done mostly in US$. During past few years world trade in US$ fell from 79% to 59% and continue to slide "thanks" to China, Russia, Arab oil producers and even Brazil and India joined that drive (to trade outside the US$). The US$ not needed in those quantities returning back and has no goods or services produced here to cover it, what make more $$$ chasing less goods. Feds raising of the rate put those few failed already banks in major problem and farther fight of inflation by rates may trigger a much larger crises vs we faced in 2008. IMO only cuts in the budget is the proper way to fight inflation but as we see, it may put USA in a default.

 

[jazz4cash]

I don’t understand how budget cuts lead to default. I also don’t think printing money causes a bank crisis. Jamie Dimon is out now with a letter blaming the Fed for overregulation and under enforcement (that’s a joke, haven’t actually read it yet) I dunno, we seem to have so many unprecedented situations and we just don’t know if the unintended consequences are worse than whatever problem we’ve gotten ourselves into.

 

[VFK57]

I don’t understand how budget cuts lead to default. I also don’t think printing money causes a bank crisis. Jamie Dimon is out now with a letter blaming the Fed for overregulation and under enforcement (that’s a joke, haven’t actually read it yet) I dunno, we seem to have so many unprecedented situations and we just don’t know if the unintended consequences are worse than whatever problem we’ve gotten ourselves into.

The Bank crisis comes from low interest investments a failed Bank had from the past and now while rates went up, many people/ companies withdraw their funds for the higher return (+5%). I explained in my post how too much money, chase fewer goods. Where do you think money from international trade in US$ come to? When no longer needed to buy oil, it would return to USA purchases of needed goods, what our economy produced but in lower quantities vs demand? We directed many $trillions for international trade, far more vs what we cover with products/services we made. Our Budget deficit is growing too - that is where inflation is picking up (freshly printed money have nothing to support them but needed for the Government to cover their demands including astronomical Debt higher interest). In the past oil trade was only in US$. Now China led Asian economy reduces their need for US$ as well as BRICS and our "friends" in Arab world are all trade in Yuan and China prepares a new international currency to bypass US$ for trade what will be a great blow to the dollar. It is our fault since we use dollar as weapon, to punish disobedient countries what led to this.

 

[pb4uski]

Only problem was that your post didn't make any sense... other than that, it was a great post.

 

[VFK57]

Only problem was that your post didn't make any sense... other than that, it was a great post.

What exactly does not make a sense? Our massive money printing or Chinese led block refuse to keep trading in US$ what caused big reduction in dollar demand for the world trade?

 

[SeattleRocks]

FDIC limits

I believe it’s actually $500K FDIC coverage if your account has joint owners. The $250K is for single owners.

I see a lot of chatter about $250K when in reality it’s $500K for couples.