"Economics" Posts
Currency War Continues With South Korea This Round
By LawrenceThis time it is South Korea’s Bank of Korea who cuts its interest rate. As mentioned last time, once Japan started QE, it would reverse the effects of US and European QEs. Since the major economies all using the same dirty tactics, they can no longer "police" the smaller countries for doing that now like […]
Interesting Read On FOMC Announcement
By Lawrence
The official Federal Open Market Committee announcement on May 1, 2013 contains an interesting statement that every market participants should think about. The all powerful Fed says in its statement that, "The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor […]
Impacts Of Artificial Currency Devaluation And Quantitative Easing (Printing Money)
By Lawrence
There is a confusion of what currency devaluation does to a country and its economy. Many people, including the well-known economists, have unrealistic expectation on the impacts of currency devaluation. I will try to explain it in plain English here from the trader’s point of view. Hence the content is not suitable for kids who […]
Vsauce: How Much Money is There on Earth?
By Lawrence
Following is a great video explaining concepts about money without the usual "being tortured to death" feel by the economic text books. If you are not familiar with the terms like M1, M2, or what it really means by "fiat currency", this video will have something useful for you.
Bitcoin, Its Alternatives and Future of Money
By Lawrence
Huge buzz about the Bitcoin rally lately among internet sites and mainstream media. There are many interesting discussion of what it is and how it is going (or not going) to change the world. Here is my take. 3 Factors Making A Currency Functional First you need the currency to be accountable. Accountable means the […]
Blueprint To Fix The Financial Crisis
By Lawrence
It is actually very simple to fix the current financial crisis if the major economic powers in the world can agree to do all of the following things. Create a form of basic banking services that is non-profit and guaranteed by the governments What this requirement means is that normal people who are seeking a […]
The Robbery Spree Has Begun. First Target, Cyprus
By LawrenceWhat happened in Cyprus is exactly the type of events I warned about and why money has to be parked in hard assets that are not exposed. If you do not know what is happening with Cyprus, this is a good Q&A from Guardian, http://www.guardian.co.uk/world/2013/mar/17/cyprus-savings-levy-questions-and-answers Update of the event from CBC News, http://www.cbc.ca/news/world/story/2013/03/17/cyprus-bank-deposits.html
Economist or someone who has no idea what he is talking about
By LawrenceFrom Daily Currant, Paul Krugman Declares Personal Bankruptcy How he gets into such trouble is worth reading, well, for a laugh.
Difficulties In Learning To Trade Can Be Caused By The Language You Speak
By Lawrence
Ted Talk by Keith Chen, Could your language affect your ability to save money? Very interesting talk with strong statistics supporting the concept. Personally I have experience teaching / coaching traders where it was next to impossible to hammer the concept of risk control into some young guns. Maybe, the way how they perceive future […]
Don’t Even Wish For Better Employment Number If You Own Stocks
Today the Jobless claims number fall to lowest level in 5 years. People just started to cheers about it and keep talking that how high can the stock market goes. Wake up. Fed will reduce QE before employment number hits its target. It is like applying a brake – you have to do it before […]