Your Questions About Investing In Foreign Coins

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George asks…

Were the Portuguese able to control the Indian Ocean Basin? Why or why not?

Were the Portuguese able to control the Indian Ocean Basin? Why or why not?

Justin answers:

The Portuguese were the first to attempt control. They hoped to control trade routes by forcing merchants to call at fortified trading sites and pay duties. By the mid sixteenth century, they had erected fifty fortified posts between west Africa and east Asia. They traded in slaves in Africa and attempted to control the gold trade in Mozambique; and also attempted to channel the clove trade through their ports. They often used heavy artillery mounted on their ships to overpower smaller craft.

The Portuguese commander of forces in the Indian Ocean was Alfonso d’Alboquerque, who attempted to force all foreign ships to obtain safe conduct passes at Portuguese trading posts. Ships without passes had their cargoes confiscated, and violators of his policies were executed, or their hands were cut off. Still, he only controlled half the trade effectively. Arab merchants still transported pepper through the Red Sea to Cairo, and Indian merchants also operated successfully in the area. The Portuguese were never able to control Cairo or the Mediterranean routes.

Eventually, Portuguese hegemony of the Indian Ocean grew weak, and was replaced by trading companies operated by English and Dutch investors. Portuguese ships had often been manned by Spanish, English and Dutch sailors who soon became familiar with Asian waters. The English and Dutch attempted to channel trade through their trading posts, but did not attempt to control shipping on the seas as had the Portuguese. The Portuguese continued to operate in many of the Spice Islands, notably Goa and Malacca; the English concentrated on India while the Dutch operated in South Africa and present day Indonesia, primarily Java.

English and Dutch merchants used faster, cheaper and more powerful ships than had the Portuguese which gave them an advantage; plus they conducted trade as Joint Stock Companies, similar to a modern corporation which allowed investors to realize huge profits but risk only the actual sums invested in the enterprise. Among the more successful companies were the English East India Company and the United East India Company, operated by Dutch investors. It was known by its initials, VOC (Vereenigde Oost-Indische Compagnie.) The companies were supported by their governments and outfitted ships with goods and money to trade. They had no government oversight, and concentrated strictly on profit. They even had the right to wage war to protect their interests. Both companies were immensely successful. One expedition of five English ships, which sailed from London in 1601 with gold and silver coins valued at £ 30,000; returned in 1603 with spices valued at greater than £ 1,000,000.

Michael asks…

How can they say China owns most of America?

How have we either taken loans from or sold our American interests to China?

I have heard it sevral times lately and how can it be true? and what do they own? How much do we owe?

Justin answers:

Foreign interests, and governments, own USA Treasury Securities in the amounts listed on link.
The government debt is presently $59 trillion and, as you can see, foreign ownership of securities is fairly close to $3 trillion which is, of course, payable to the countries listed when these securities and bonds mature. There are other areas in which we are indebted to foreign countries so this isn’t a straight across the board figure. Our foreign policy is to take this ownership into consideration when determining imports, and associated tariffs, which is why so many products we buy are manufactured in the Far East. We help keep their economy afloat so that, at the time their US Treasury investments mature, these countries will reinvest the funds with us.
As far as OPEC is concerned, due to our limited capacity to produce the amount of oil we require, we are contributing billions to the economies of these countries and, in my opinion (economics isn’t a major subject of mine!), if the day ever came when we were self-sustaining, these countries might consider re-investing funds elsewhere, or in different “avenues” of our country. Not to get too far off track but, this is why the “religious affiliation” of those in our government is an important subject for voters to consider.. I know that, when I was living and working in New York City (mid to late ’60’s), a hefty portion of prime real estate was owned by individuals, or groups, in the Middle East – “think” Harrods of London, for example.
Donald Trump, who has a Masters Degree in Megalomania, appears to be not considering what the future might hold as long as he can be the recipient of foreign investment in his projects (see links 2 and 3). On the other side of the coin he was, a few months ago, in Scotland with a view to concluding a land development deal with the Scottish Government but has, twice, been turned down How does one explain not enough funds to cover projects in NYC but money enough to offer many millions to a foreign government? Note: I lived in Scotland for almost 10 years so they’re not “foreign” to me but I do think one has an obligation to financially fund home projects before expanding on one’s personal empire. This is only one example of the line of greed which, when you trace it far enough back, is what motivated US companies to be funding manufacturing in other countries rather than on home soil – creating a demand for a less expensive alternative which, in turn, eliminated so many US manufacturing jobs … And on it goes. While I don’t believe we should be, totally, Protectionist, my logic tells me we should be looking to the “home front” first since the outfall reaches into every nook and cranny of our economic situation. (I think I may have gotten a bit off the main subject – sorry…)

William asks…

How did Jackson’s Bank War show the strong uses to which the modern democratic political machine could be put?

Justin answers:

The Second Bank of the United States was authorized for a twenty year period during James Madison’s tenure in 1816. As President, Jackson worked to rescind the bank’s federal charter. In Jackson’s veto message, the bank needed to be abolished because:

It concentrated the nation’s financial strength in a single institution.
It exposed the government to control by foreign interests.
It served mainly to make the rich richer.
It exercised too much control over members of Congress.
It favored northeastern states over southern and western states.
Following Jefferson, Jackson supported an “agricultural republic” and felt the Bank improved the fortunes of an “elite circle” of commercial and industrial entrepreneurs at the expense of farmers and laborers. After a titanic struggle, Jackson succeeded in destroying the Bank by vetoing its 1832 re-charter by Congress and by withdrawing U.S. Funds in 1833.

1833 Democratic cartoon shows Jackson destroying the devil’s Bank.The bank’s money-lending functions were taken over by the legions of local and state banks that sprang up. This fed an expansion of credit and speculation. At first, as Jackson withdrew money from the Bank to invest it in other banks, land sales, canal construction, cotton production, and manufacturing boomed.[33] However, due to the practice of banks issuing paper banknotes that were not backed by gold or silver reserves, there was soon rapid inflation and mounting state debts.Then, in 1836, Jackson issued the Specie Circular, which required buyers of government lands to pay in “specie” (gold or silver coins). The result was a great demand for specie, which many banks did not have enough of to exchange for their notes. These banks collapsed.[33] This was a direct cause of the Panic of 1837, which threw the national economy into a deep depression. It took years for the economy to recover from the damage.

The U.S. Senate censured Jackson on March 28, 1834, for his action in removing U.S. Funds from the Bank of the United States. When the Jacksonians had a majority in the Senate, the censure was expunged.

Mark asks…

Expats who decided to retire and live in the Philippines. What is your true reason behind it?

I can not understand why would someone decide to retire in a Foreign Country, leave their family/ies behind. In comparison, most of us Filipinos, where ever we may be, working abroad, would still choose to go back home and settle in the Philippines.

You may argue that there are those Pinoy’s who immigrated to the US, Canada, Australia or UK. But come to think of it, most of them would still choose to go back. We can not just deny the fact that the only reason was to give their family a decent living. But, the love for the country is still very evident.

But, you guys, how should I say.. chose to ran-away? maybe because of the exchange rate of Dollar – Peso. But, shouldn’t the money spent in our country is rightly your countrys’ for the taking.

I don’t know, I’m just a poor guy, you tell me.
So why are you here?

And, (please, with this question) I don’t mean to offend

But if you are a Hey Joe.
Give me money.

Justin answers:

Each expat has their own reason for retiring in the Philippines. One of the primary reasons is because many of us are married to Filipino’s and like most families in the world, there is a desire to live close to other family members. Most expats have very good intentions and is proven through their generosity. On the flip side of the coin unfortunately some of what James indicates in his response is true. I know because I have been talking with expats for some 30 years and have heard some of the same stories and am embarrassed by their actions. On a more positive note there are also other reasons as Hiverpri indicated. For me the common factor is the cost of living, warmer climate and the vast majority of the Filipino people speak English and because I am married to a Filipina

I am 50 years old and the Philippines has been my second home since the first time I lived and worked in the Philippines, August 1980 when I was active duty US Air Force. I have worked hard my whole adult life, was able to retire at a early age with an income that gives me the resources, opportunity and flexibility to divide my time and live in the USA and the Philippines on an equal bases. Just because I choose to live and invest in the Philippines, does not mean I have ran away from my own country. My wife and I just dislike the colder climates in Oregon, USA so during the late Fall and Winter months when its cold stateside, we live in our home in the Philippines. Trying to stay warm is not running away from my own country.

In the Philippines it is common for many Filipino’s who have not traveled outside their own country to think everything is rosey and all Americans are rich in a first world country. They only understand what they think they know by watching American TV shows and that is NOT a true representation of life in the USA. Life is not easy as some may think. Its very difficult to get a good job with a good income and benefits and this is reflected in later years with a small pension check. A smart person would move to a lower cost of living area for improved lifestyle.

Why am I here? Because I want the best of both worlds (Philippines and USA).

Joseph asks…

Question about buying silver bullion coins?

Im new to buying silver but I just want someone to inform me about it.
1.If I buy a 1oz silver coin for $38 then when I resell it would I only receive the same amount of money that is shown on the commodities section of the news?
2. I have seen the Australian Kookaburra, Silver Maple, Silver Eagle. Which of these are the best to get?
3. Is silver a good investment or is it better to go with gold. Im going to be keeping it for about 2 years.

Thank you very much.

Justin answers:

Regardless of when you buy silver, you will always pay more than the ‘commodities section’ price for the coins you mentioned. When you go to sell them, you will get close to that price, whatever it is at the time. If you buy a one ounce Eagle today for $38, the best price you would get for it from a dealer where I live is a dollar over spot, or $35 right now. Most dealers pay below spot. The only way you’ll ever profit this way is if silver goes up in price by at least 15% from where you bought it.

I’m holding the silver I’ve bought over the last few years, because I see this holding pattern in price continuing for the near future, and even if it drops 30% from where it is now, I’m still ahead. I think, long term, it’s going higher – and I will take advantage of the bigger drops in price to buy more. I’ll only buy it now if I can buy it for a bargain price, which can be done, but it harder to do when silver is in the news and more people are out searching the estate sales.

That, in my opinion, is the best way to buy silver. But it requires knowledge, which comes from study, and work, the actual hunting for it. I buy 90% silver US coins from 1964 and earlier, and certain foreign silver coins. I also buy collectable silver items, medals and medallion sets like were very popular in the 1970s. You have to know exactly how much pure silver is contained in each different coin or medal. It’s the only way you can accurately calculate the spot price for that exact amount of silver, so you know how much you can pay for it. I’ve bought from estate sales where my competition didn’t know exactly what was in a lot and I did, and bought silver for 30% – 50% of spot.

If you have only a 2 year window to invest, and you will need that money at that time, precious metals are too risky. I’m using money I can afford to lose. Nobody wants to lose money, of course, but losing this money won’t damage me. The money I can’t afford to lose is invested in solid mutual funds, and they’ve done me well over the years. Investing is really a long-term proposition. A 2 year deal isn’t really an investment, it’s a speculative move. If you absolutely will need that money in two years, inflation is not going to so seriously erode its value in that time that you’ll lose more than you will if you take a chance and guess wrong. I would park the money in 2-year CDs for the best rate you can find, or if you’re willing to take a little risk, put it into a couple of good large-cap growth mutual funds. You can look for historical rates of return and expense ratios – you want to keep expenses low – at Morningstar.com.

Thomas asks…

Forex Trading give me some tips i do not want to look stupid?

What is all about, i hear a lot people talks about it.. . . wtf

Justin answers:

I will try to help you with this how to not look stupid when some talk about it.
So you want to learn how to invest in the stock market? Before invest in firm i would like to suggest you know few things.
Education is the key ingredient. Knowledge is power, so become an educated invest before making your first buy i am telling you this in case you may decide to makes some moves in this field.
Your next task is to figure out 4 things.
The amount of risk you are willing to take? With no risk, low or medium risk. You can not avoid this.
Are you with me now, do you understand ?
What kind of investor do you want to be?
Saver, Speculator or Specialist
How long to want to invest?
Day trader, Short term, Long term or Life long
What do you want to invest in?
Stocks, Bonds, Coins, Precious metals, Money Market, Real Estate, etc.
There are different styles of investing so learn them all and then pick the one that suits your risk tolerance and tastes.
You can also learns a lot from the site given at my resource box. This site has a lot reviews that help beginners and other people who want to start foreign currency exchanging or want to find information about it.
Hope that help you and now when you hear your friends talk about show some intelligence he he. Cheers.

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