Comments for Pete's blog http://www.prnixon.org Musings about the world and the kitchen Thu, 09 Sep 2010 17:17:33 +0000 http://wordpress.org/?v=2.3.1 Comment on Run for the hills, the country is falling apart by Spectre http://www.prnixon.org/2008/02/17/run-for-the-hills-the-country-is-falling-apart/#comment-2322 Spectre Sun, 18 Jul 2010 05:49:26 +0000 http://www.prnixon.org/2008/02/17/run-for-the-hills-the-country-is-falling-apart/#comment-2322 Funny.. I was driving through southwest Houston today and didn't hear a single gunshot... stores are open, everyone has plenty of food, everyone I deal with is literate, and everything's working pretty well up here. No one is talking about redistributing our wealth over here, either-- and that "gun" angle you mentioned means they won't try. You sure your information on the sorry state of America is accurate? It doesn't seem that way on the ground over here... Funny.. I was driving through southwest Houston today and didn’t hear a single gunshot… stores are open, everyone has plenty of food, everyone I deal with is literate, and everything’s working pretty well up here. No one is talking about redistributing our wealth over here, either– and that “gun” angle you mentioned means they won’t try. You sure your information on the sorry state of America is accurate? It doesn’t seem that way on the ground over here…

]]> Comment on Deflation - antithesis of consumerism? by Student http://www.prnixon.org/2009/02/22/deflation-antithesis-of-consumerism/#comment-2277 Student Fri, 02 Jul 2010 20:13:29 +0000 http://www.prnixon.org/2009/02/22/deflation-antithesis-of-consumerism/#comment-2277 Well, about the last paragraph, theres much to debate about, but I take it as a fresh opinion But yes, deflation is difficult to argue for. The way you argue seems like it can be used as a tool for moderation, in the end, countries would want to experience higher growth than others. Instead of the extreme end of deflation, maybe a moderate, lower level of inflation would be more desirable. Anyway I dont think a government would risk their positions by deflating an economy Just wanted to leave a comment =D thanks for your posts, it helped alot Well, about the last paragraph, theres much to debate about, but I take it as a fresh opinion

But yes, deflation is difficult to argue for. The way you argue seems like it can be used as a tool for moderation, in the end, countries would want to experience higher growth than others.
Instead of the extreme end of deflation, maybe a moderate, lower level of inflation would be more desirable.
Anyway I dont think a government would risk their positions by deflating an economy

Just wanted to leave a comment =D thanks for your posts, it helped alot

]]> Comment on An idiot’s guide to interest rates and money supply by ashani http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-2260 ashani Thu, 17 Jun 2010 11:32:26 +0000 http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-2260 thanx.that really helped me.i was searching for such a description for long.:) thanx.that really helped me.i was searching for such a description for long.:)

]]> Comment on An idiot’s guide to interest rates and money supply by MASB http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-2257 MASB Wed, 16 Jun 2010 17:13:40 +0000 http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-2257 Hey you are really good...thanks for this. Hey you are really good…thanks for this.

]]> Comment on Run for the hills, the country is falling apart by coro http://www.prnixon.org/2008/02/17/run-for-the-hills-the-country-is-falling-apart/#comment-2209 coro Mon, 17 May 2010 04:32:49 +0000 http://www.prnixon.org/2008/02/17/run-for-the-hills-the-country-is-falling-apart/#comment-2209 I feel so sorry for the people of S.A. Unfortunately it appears that you have fallen for the liberal propaganda. The racist behavior of your government does not exist anywhere else. The power outages do not exist anywhere else. The attacks on farmers do not exist anywhere else. The elimination of any racial makeup in any industry or government does not exist anywhere else. We are not the murder and rape capital of the world. I wish you all luck. Please consider relocating to the United States. We would love to have more of your educated and skilled workers here. US citizens going to SA for the world cup please be careful. SA is not a peaceful, safe and feel good story as described by the foreign press. I feel so sorry for the people of S.A. Unfortunately it appears that you have fallen for the liberal propaganda. The racist behavior of your government does not exist anywhere else. The power outages do not exist anywhere else. The attacks on farmers do not exist anywhere else. The elimination of any racial makeup in any industry or government does not exist anywhere else. We are not the murder and rape capital of the world. I wish you all luck. Please consider relocating to the United States. We would love to have more of your educated and skilled workers here. US citizens going to SA for the world cup please be careful. SA is not a peaceful, safe and feel good story as described by the foreign press.

]]> Comment on An idiot’s guide to interest rates and money supply by Rasika http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-2179 Rasika Wed, 14 Apr 2010 11:18:17 +0000 http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-2179 This article really helped me in solving certain questions in my mind.You have described these concepts in such a simplified way.My conceptions are now much clear and i guess everything which looks impossible can also be mad simple.This requires a thorough contemplation of the fundamentals. Keep posting such articles! Thanks Tonn pete! This article really helped me in solving certain questions in my mind.You have described these concepts in such a simplified way.My conceptions are now much clear and i guess everything which looks impossible can also be mad simple.This requires a thorough contemplation of the fundamentals.

Keep posting such articles!
Thanks Tonn pete!

]]> Comment on An idiot’s guide to interest rates and money supply by Pete http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-1985 Pete Fri, 19 Feb 2010 17:46:22 +0000 http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-1985 If you lower interest rates, you make everyone with debt happier. Also lowering interest rates stimulates spending, giving the overall economy a little bit of a boost. So people's debt is cheaper and the economy looks better - everything to make the government look good. But lowering interest rates will make your currency weaker (see above for explanation), this would make imported goods more expensive and would make people unhappy with you. But if you sell your foreign exchange reserves at the same time, it will strengthen your currency (you are selling the foreign currency and buying your own currency) and counteract the effect of the lower interest rates. If you lower interest rates, you make everyone with debt happier. Also lowering interest rates stimulates spending, giving the overall economy a little bit of a boost.
So people’s debt is cheaper and the economy looks better - everything to make the government look good.
But lowering interest rates will make your currency weaker (see above for explanation), this would make imported goods more expensive and would make people unhappy with you. But if you sell your foreign exchange reserves at the same time, it will strengthen your currency (you are selling the foreign currency and buying your own currency) and counteract the effect of the lower interest rates.

]]> Comment on An idiot’s guide to interest rates and money supply by pkw http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-1984 pkw Fri, 19 Feb 2010 09:06:39 +0000 http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-1984 before the election time period, why central banks tend to lower interest rate to increase money supply and sell foreign exchange reserve at the same time? before the election time period, why central banks tend to lower interest rate to increase money supply and sell foreign exchange reserve at the same time?

]]> Comment on An idiot’s guide to interest rates and money supply by Pete http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-1845 Pete Mon, 30 Nov 2009 16:39:26 +0000 http://www.prnixon.org/2008/04/09/an-idiots-guide-to-interest-rates-and-money-supply/#comment-1845 The relationship between interest rates and exchange rates is a highly complex one. But the very simple explanation is that if you raise your interest rates, your currency strengthens. This is for two reasons, local demand for goods drops so imports will also drop; and second because overseas people are attracted to invest into your country by the higher returns. So higher interest rate = fewer imports, better current account + more investment, better capital account = stronger currency. And the opposite applies: lower interest rate = more imports, less investment = weaker currency. But that's the easy textbook answer. The reality is way more complicated, where relative interest rates, interest rate cycles, relative sizes of import and export markets, credit ratings and political risk all play a part. And all sorts of long term adjustments can happen. The relationship between interest rates and exchange rates is a highly complex one. But the very simple explanation is that if you raise your interest rates, your currency strengthens. This is for two reasons, local demand for goods drops so imports will also drop; and second because overseas people are attracted to invest into your country by the higher returns. So higher interest rate = fewer imports, better current account + more investment, better capital account = stronger currency. And the opposite applies: lower interest rate = more imports, less investment = weaker currency.

But that’s the easy textbook answer. The reality is way more complicated, where relative interest rates, interest rate cycles, relative sizes of import and export markets, credit ratings and political risk all play a part. And all sorts of long term adjustments can happen.

]]> Comment on About by jayraj http://www.prnixon.org/about/#comment-1844 jayraj Mon, 30 Nov 2009 07:12:18 +0000 http://www.prnixon.org/about/#comment-1844 you are genius , i would like to be in touch with u to enhance my knowledge. you are genius , i would like to be in touch with u to enhance my knowledge.

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