Gazboy Posted November 25, 2008 Share Posted November 25, 2008 http://news.bbc.co.uk/2/hi/business/7748362.stm $1.5Tr in handouts/bailouts/injections so far. I can't see Detroit getting their requested funds now, but will they need them if the credit markets have been freed up (though the original $700bn was supposed to do this anyway). God knows how they will pay this back. Quote Link to comment Share on other sites More sharing options...
JustGav Posted November 25, 2008 Share Posted November 25, 2008 What I want to know and not being a financial genius... where is this so called $800bn coming from, or is it some random person with a spreadsheet just adding zeros... Quote Link to comment Share on other sites More sharing options...
Gaz6002 Posted November 25, 2008 Share Posted November 25, 2008 God knows how they will pay this back. Sell Iraq to the highest bidder? Quote Link to comment Share on other sites More sharing options...
grahamc Posted November 25, 2008 Share Posted November 25, 2008 surely its cheaper to just buy the banks now, considering the stock market crash Quote Link to comment Share on other sites More sharing options...
AndrewOW Posted November 25, 2008 Share Posted November 25, 2008 What I want to know and not being a financial genius... where is this so called $800bn coming from, or is it some random person with a spreadsheet just adding zeros... Taxpayers money, etc? Quote Link to comment Share on other sites More sharing options...
JustGav Posted November 25, 2008 Share Posted November 25, 2008 Taxpayers money, Federal Reserves etc? But if they had $800bn in the reserves then surely they wouldn't be in this much trouble.... Same as the taxpayers, you put $800bn onto tax payers who currently don't have jobs or money...well I think it is fairly obvious the result... Quote Link to comment Share on other sites More sharing options...
caseys Posted November 25, 2008 Share Posted November 25, 2008 Government bonds etc Remember the US$ is the world's reserve currency, so they can quite frankly print as much of it as they want to run up as much debt as they want. It could collapse sometime in the future, remember sterling was the world reserve currency until I think 1912. Quote Link to comment Share on other sites More sharing options...
AndrewOW Posted November 25, 2008 Share Posted November 25, 2008 Government bonds etc Remember the US$ is the world's reserve currency, so they can quite frankly print as much of it as they want to run up as much debt as they want. It could collapse sometime in the future, remember sterling was the world reserve currency until I think 1912. So very soon, it could be the RMB Quote Link to comment Share on other sites More sharing options...
Kim1978 Posted November 25, 2008 Share Posted November 25, 2008 They will get the money by either by printing more money (which will increase inflation in the long run) or issue treasury notes/bonds and sell them to China. My guess Obama will slowly raise taxes and lower thresholds. There is no other way since it is very difficult to cut spending. Either way, I am sure he will do a better work than the current moron. Quote Link to comment Share on other sites More sharing options...
Gazboy Posted November 25, 2008 Author Share Posted November 25, 2008 They will get the money by either by printing more money (which will increase inflation in the long run) or issue treasury notes/bonds and sell them to China. My guess Obama will slowly raise taxes and lower thresholds. There is no other way since it is very difficult to cut spending. Either way, I am sure he will do a better work than the current moron. I think they are issuing government bonds to Asian countries, for how much longer these countries will accept these bonds is up for question. Obama is going to have to tax the arse off Joe Sixpack & Hockey Mom to repay this. Quote Link to comment Share on other sites More sharing options...
Gaz Walker Posted November 25, 2008 Share Posted November 25, 2008 Good news for us buying USD then Quote Link to comment Share on other sites More sharing options...
RobSheffield Posted November 25, 2008 Share Posted November 25, 2008 Important question: Does that make parts from USA cheaper or more expensive? Quote Link to comment Share on other sites More sharing options...
Gaz Walker Posted November 25, 2008 Share Posted November 25, 2008 Important question: Does that make parts from USA cheaper or more expensive? Cheaper. The devalue the currency by loaning more money, generally. The USD becomes weaker against other currencies, so our Sterling gets stronger against theres. Gaz. Quote Link to comment Share on other sites More sharing options...
Gazboy Posted November 25, 2008 Author Share Posted November 25, 2008 Cheaper. The devalue the currency by loaning more money, generally. The USD becomes weaker against other currencies, so our Sterling gets stronger against theres. Gaz. But ours is also losing value very quickly. In July it was $2.02 to the pound, now it's little more than $1.53. Also the Yen is going up fast, Sony will be bumping their prices up by 30% in January. This alone imo will crush all but the few jdm importers in the UK who have a cast iron reputation. Quote Link to comment Share on other sites More sharing options...
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