Forex reserves slip below $40b for first time in two years

[VikingRaider]

Apnar prediction shotto hoilo bhai. Amader UK BAL fanboi economist bhaiera koi?

@UKBengali amader sobaike bhater bodole chetona khabar poramorsho dibe dui din pore ! l

 

[nahtanbob]

A lot of our people are pinning blames of economic woes exclusively on the government. A lot of these problems are being caused by the Russia-Ukraine war which increased the oil prices, food prices and other necessary mineral prices that are required for industries. Almost all countries of the world are suffering and it is the doing of the US and EU with their senseless sanctions on Russia.

Senseless sanctions would not be imposed if Russia had not started senseless war

 

[VikingRaider]

Senseless sanctions would not be imposed if Russia had not started senseless war

Nathuram ji , Nothing was senseless from Russia!

 

[BananaRepublicUK]

Whatever @UKBengali writes, he has little knowledge about the National Economic Development Process of a poor country like Bangladesh. So, he keeps on blabbering stupid things as if by saying so he can tilt up the economy.

The pet Hasinanomics is wrong. No country has ever developed by borrowing others' money and wasting it on projects from where the top people steal a part of it.

No country has EVER developed this way. All countries developed by their own manpower, technologies, and know-how. A bridge here, a rail line there with borrowed money, and done by foreign contractors is no recipe for development.

I again say the most important thing is to industrialize.

You do talk through your backside when you say,

“No country has developed through borrowing”

That’s the case with virtually every single country other than the ones who developed through looting.

USA bailed out Europe with a one trillion dollar loan in 1945. Which Europe only paid off in the 1980s.

US also bankrolled South Korea and Japan.

@UKBengali I guess that’s the difference between first world education and third world education 🤣

Nathuram ji , Nothing was senseless from Russia!

Nathuram keeps walking into the door like a battered wife 🤣🤣🤣

 

[Bilal9]

@UKBengali amader sobaike bhater bodole chetona khabar poramorsho dibe dui din pore ! l

Morich ar shorishar tel, aloo bharta dia khailey mondo hobey na !

 

[epebble]

Until Fed and US reverses current monetary policy

Which policy it is? Current Fed interest rest is less than 4%. Inflation is still high even with that rate. Historically, 3% to 5% is considered stable, There is not much chance of interest rate going lower unless there is a deep recession.

 

[VikingRaider]

Morich ar shorishar tel, aloo bharta dia khailey mondo hobey na !

Osob paiben koi za dam jiniser. Chetona Khali khaiben vaijan. 🤣

 

[mb444]

Which policy it is? Current Fed interest rest is less than 4%. Inflation is still high even with that rate. Historically, 3% to 5% is considered stable, There is not much chance of interest rate going lower unless there is a deep recession.

Inflation Report Leaves Fed on Track for 0.5-Point Rate Rise in December

Central bank officials have signaled a desire to moderate the pace of interest rate increases, even though rates could rise higher next year

www.google.com

Everyone is playing catchup. If fed is able to control inflation via interest rates, then it will be able to release USD into the global market without raising domestic inflation.

Until then everyone is buggered.

The dissonance between inflation and interest rates only works for USA. As the global reserve currency we all share US pain but US alone gains from every trade amongst everyone else.

Bottom line BD is just a spectator standing on the sideline of a fight between US monetary policy and US inflation and time to time is getting too close and getting punched in the face!!!! Lets hope the fight ends soon.


Historically the rate is not high, thats true. But historically mortgages and general indebtedness of average American has never been this high either. Impact of small increases are quite large for the economy and 0.75% increase has not happened in the last almost 30 years.

 

[epebble]

The dissonance between inflation and interest rates only works for USA.

Not really, higher interest rates act as a drag on spending in all market economies leading to lower pressure on demand induced inflation. An example would be private sector petroleum consumption. With increasing petrol prices, there will be fewer miles driven, fewer vehicle purchases, fewer holiday trips etc., Generally, all discretionary spending goes down when money is tight.

 

[mb444]

Not really, higher interest rates act as a drag on spending in all market economies leading to lower pressure on demand induced inflation. An example would be private sector petroleum consumption. With increasing petrol prices, there will be fewer miles driven, fewer vehicle purchases, fewer holiday trips etc., Generally, all discretionary spending goes down when money is tight.

Off course, that is why Fed is increasing interest rate to control US internal inflation.

But as USD is the global reserve currency this policy is having unintended consequences for other countries particularly poorer ones.