Sentences with phrase «massive dollar reserve»
Then countries like china which have massive dollar reserve are at risk of losing their reserve value.
https://politics.stackexchange.com/ Not exact matches
Due to the massive debt being amassed by government spending, the role of the dollar as the global reserve currency is threatened.
In Addition: A parallel determinant is China's effort to lessen its holdings of U.S. dollar reserves, by signing infrastructure agreements (denominated in yuan) with countries participating in its massive, long - term New Silk Road project.
He raised taxes at a time when the average family was near or in starvation mode, he confiscated all of the nation's privately - owned gold and then promptly devalued the dollar by 40 % (reducing the buying power of any saved dollars by almost half overnight), he raised bank reserve requirements numerous times (taking yet more cash out of the real economy so it could be hoarded in vaults), he actively supported a trade war with tariffs that created massive global imbalances (some would argue ushering in the rise to power of fascist regimes that would have had no chance in times of prosperity), and perhaps most damning, rather than plowing most of those raised tax dollars back into the stalled economy, he instead bought gold on the global markets for the government and sequestered it, keeping it from backing new dollars (monetary expansion, which most understand is required to turn a recession around) and instead further crushing the economy — and not just the US economy.
Sometime in the future, I'll find and post a copy of the memo where Hank Greenberg discovered the massive under - reserving at ALICO Japan, giving his response to the problem... but given the billion dollar hole, it was amazing that AIG did not miss earnings that quarter, because it was much larger than their quarterly earnings.
At a 10 - year Treasury yield of 1.7 %, interest on reserves of 0.25 %, and a monetary base now at about 18 cents per dollar of nominal GDP (see Run, Don't Walk), further purchases of long - term Treasury securities by the Fed would produce net losses for the Fed in any scenario where yields rise more than about 20 basis points a year, or the Fed ever has to unwind any portion of its already massive positions.