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Bob
Celebrity Bewarse
Username: Bob

Post Number: 16911
Registered: 03-2005
Posted From: 76.121.250.150

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Posted on Sunday, September 28, 2008 - 1:39 am:Insert Quote Edit PostDelete PostView Post/Check IP

good thread chala matter undi
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Gochi
Bewarse Legend
Username: Gochi

Post Number: 53082
Registered: 07-2004
Posted From: 70.44.12.14

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Posted on Friday, June 20, 2008 - 12:16 pm:Insert Quote Edit PostDelete PostView Post/Check IP

To understand why, take a wildly fanciful trip with me to two isolated, side-by-side islands of equal size, Squanderville and Thriftville. Land is the only capital asset on these islands, and their communities are primitive, needing only food and producing only food. Working eight hours a day, in fact, each inhabitant can produce enough food to sustain himself or herself. And for a long time that's how things go along. On each island everybody works the prescribed eight hours a day, which means that each society is self-sufficient.

Eventually, though, the industrious citizens of Thriftville decide to do some serious saving and investing, and they start to work 16 hours a day. In this mode they continue to live off the food they produce in eight hours of work but begin exporting an equal amount to their one and only trading outlet, Squanderville.

The citizens of Squanderville are ecstatic about this turn of events, since they can now live their lives free from toil but eat as well as ever. Oh, yes, there's a quid pro quo--but to the Squanders, it seems harmless: All that the Thrifts want in exchange for their food is Squanderbonds (which are denominated, naturally, in Squanderbucks).

Over time Thriftville accumulates an enormous amount of these bonds, which at their core represent claim checks on the future output of Squanderville. A few pundits in Squanderville smell trouble coming. They foresee that for the Squanders both to eat and to pay off--or simply service--the debt they're piling up will eventually require them to work more than eight hours a day. But the residents of Squanderville are in no mood to listen to such doomsaying.

Meanwhile, the citizens of Thriftville begin to get nervous. Just how good, they ask, are the IOUs of a shiftless island? So the Thrifts change strategy: Though they continue to hold some bonds, they sell most of them to Squanderville residents for Squanderbucks and use the proceeds to buy Squanderville land. And eventually the Thrifts own all of Squanderville.

At that point, the Squanders are forced to deal with an ugly equation: They must now not only return to working eight hours a day in order to eat--they have nothing left to trade--but must also work additional hours to service their debt and pay Thriftville rent on the land so imprudently sold. In effect, Squanderville has been colonized by purchase rather than conquest.

It can be argued, of course, that the present value of the future production that Squanderville must forever ship to Thriftville only equates to the production Thriftville initially gave up and that therefore both have received a fair deal. But since one generation of Squanders gets the free ride and future generations pay in perpetuity for it, there are--in economist talk--some pretty dramatic "intergenerational inequities."

katthilaa seppaadu kadhaa....
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Shadow
Pilla Bewarse
Username: Shadow

Post Number: 590
Registered: 05-2008
Posted From: 199.67.138.84

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Posted on Friday, June 20, 2008 - 11:38 am:Insert Quote Edit PostDelete PostView Post/Check IP

check this old article by warren buffett


http://money.cnn.com/magazines/fortune/fortune_arc hive/2003/11/10/352872/index.htm
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Gudivada04
Kurra Bewarse
Username: Gudivada04

Post Number: 1730
Registered: 09-2004
Posted From: 68.147.171.182

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Posted on Tuesday, June 17, 2008 - 10:47 pm:Insert Quote Edit PostDelete PostView Post/Check IP

Gudi04/Beer, Alaska lo unna oil reserves ni use cheskodam start chesthey economy better avada? ///

Alaska lo yekkuva unnadi Natural gas, oil kaadu. akkada unna oil total US consumption ki oka 6 months kante raadani oka analysis. Natural gas reserves maathram baaga unnayi.
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Tingari_xx
Mudiripoyina Bewarse
Username: Tingari_xx

Post Number: 5493
Registered: 08-2006
Posted From: 205.157.110.11

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Posted on Tuesday, June 17, 2008 - 2:39 pm:Insert Quote Edit PostDelete PostView Post/Check IP

chippesh
oka sari discussion lo okadu seppadu, US oil reserves much BIGGER than expected, few years tarvata veedu market lo ki vadultaadu ani
For everything , there is a first time and next time
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Shadow
Pilla Bewarse
Username: Shadow

Post Number: 553
Registered: 05-2008
Posted From: 199.67.131.219

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Posted on Tuesday, June 17, 2008 - 2:09 pm:Insert Quote Edit PostDelete PostView Post/Check IP

Gudi04/Beer, Alaska lo unna oil reserves ni use cheskodam start chesthey economy better avada? Ekkado chadiva extraction ippudu start chesthey konni yrs padathady oil raadaniki ani..Ippudanna vellu aa resources use cheskundam ani decide aythey may be 3-4 yrs tharvatha Oil import reduce cheyochu kada. Enduku avi vadataniki sachipotharu?
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Shadow
Pilla Bewarse
Username: Shadow

Post Number: 548
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Posted From: 199.67.131.216

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Posted on Tuesday, June 17, 2008 - 10:14 am:Insert Quote Edit PostDelete PostView Post/Check IP

family might be one of the factor but not the only factor. tellollu karchu pettada daniki alavatu padipotharu..manam emo repati gurinchy alochindy savings chestham
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Gudivada04
Kurra Bewarse
Username: Gudivada04

Post Number: 1729
Registered: 09-2004
Posted From: 68.147.171.182

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Posted on Tuesday, June 17, 2008 - 8:45 am:Insert Quote Edit PostDelete PostView Post/Check IP

shadow, karnudi chavuki padaharu karanalu antaru choodu. alage, US problems ki okate reason ani point out cheyataniki ledu. it's combination of various factors. the next couple years going to be very critical for US, let's see how the policy makers do! Coming to the presentation, he is pretty good. I read this thesis else where many times, gold bugs are arguing the same for a very long time.
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Shadow
Pilla Bewarse
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Post Number: 545
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Posted From: 68.198.151.34

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Posted on Tuesday, June 17, 2008 - 6:58 am:Insert Quote Edit PostDelete PostView Post/Check IP

thanks beeresh
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Prasanth
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Username: Prasanth

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Posted From: 203.200.218.112

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Posted on Tuesday, June 17, 2008 - 6:35 am:Insert Quote Edit PostDelete PostView Post/Check IP

endho naaku financial matters em artham kaav...
~@~
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Gochi
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Username: Gochi

Post Number: 53047
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Posted From: 70.44.12.14

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Posted on Tuesday, June 17, 2008 - 6:21 am:Insert Quote Edit PostDelete PostView Post/Check IP

presentation baagundi....kaani family system valla economy intha effect untundhi ante konchem nammabuddi kaatalledhu


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Beer
Yavvanam Kaatesina Bewarse
Username: Beer

Post Number: 4561
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Posted From: 71.10.236.121

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Posted on Tuesday, June 17, 2008 - 6:13 am:Insert Quote Edit PostDelete PostView Post/Check IP

Presentation is good. Thats what exactly happening to US economy. He has good point on the family..
Evaro Okaru epudo kapudu nadavara munduga ato ito eto vipu
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Beer
Yavvanam Kaatesina Bewarse
Username: Beer

Post Number: 4560
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Posted From: 71.10.236.121

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Posted on Tuesday, June 17, 2008 - 6:12 am:Insert Quote Edit PostDelete PostView Post/Check IP

Chippai.. Commodities like oil, gold etc. priced in dollars. So when dollar goes down in value, more dollars need to buy the same commodity and vice versa. If the interest rates are low, no one wants to buy and invest the us dollars since the yield (interest) is low. If they put the same money in counties like India they are atleast getting 8% interest.
Evaro Okaru epudo kapudu nadavara munduga ato ito eto vipu
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Shadow
Pilla Bewarse
Username: Shadow

Post Number: 537
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Posted From: 68.198.151.34

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Posted on Tuesday, June 17, 2008 - 5:44 am:Insert Quote Edit PostDelete PostView Post/Check IP

Gudi04 mama, What are your thoughts on the presentation?
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Shadow
Pilla Bewarse
Username: Shadow

Post Number: 536
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Posted on Tuesday, June 17, 2008 - 5:43 am:Insert Quote Edit PostDelete PostView Post/Check IP

>>But due to the commodity induced inflation, they have to raise the interest rates which would in effect impact USD to the upside.

I didn't understand this part. Can you pls explain why do they need to raise the intrst rate?
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Gudivada04
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Username: Gudivada04

Post Number: 1726
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Posted on Monday, June 16, 2008 - 10:21 pm:Insert Quote Edit PostDelete PostView Post/Check IP

Shadow, we discussed this issue some time ago in this section. USA used to finance whole world with their savings until 1980s. Then the easy credit i.e., consumer credit changed everything. US today has net negative savings. It is financed by the rest of the world (mostly middle east, Japan, China & India) today at a staggering rate (more than $2 billion per day). You can only do this for a while. As a result most of the third world is now slowly moving away from USD or diversifying with Gold, Euro etc.. That's one of the reasons for USD's depreciation. Still it is a very complex issue and we are not smart enough to know all the nuances. FED is between rock and hard place right now. For the nation they want weak dollar to make their exports cheaper and economy running. But due to the commodity induced inflation, they have to raise the interest rates which would in effect impact USD to the upside. As I said it is a very complex issue to discuss in one post.
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Shadow
Pilla Bewarse
Username: Shadow

Post Number: 520
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Posted on Monday, June 16, 2008 - 12:56 pm:Insert Quote Edit PostDelete PostView Post/Check IP

http://video.google.com/videoplay?docid=4343898391 323537541&hl=en

leaving his accent aside, i think he has a point.

Calling gurus Gudi04 and Beeresh to comment