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How to support other nations economical value? And what makes this kind of action very dangerous?


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Kimmo Huosionmaa

When some other nation wants to support some states economy, that nation would do that without asking any permissions. The thing what is needed for the support buying of some nations economy is the cash, what can be used for giving support of some nations money. Support buying can be done by the national bank or the business banks. But the supporting for the money can give also big firms, what have enough money for buying the currency, and the only thing, what this buyer need to have is the bank account, there is enough money for the financial operations, what are actually buying the money.

When the money is bought, it would go to the foreign operators, who would keep it in their bank accounts. And if enough currency is transferred to the foreign land, would this operator work like some "Uncle Scrooge". That character is well known from the "Donald Duck" comics. That duck had very much money in the place called money tank, and the problem of that tank is that there was a remarkable part of the economic power of the Duck-city.

And if that duck would release that money to the streets, would that collapse the value of the currency. In real life, that thing can happen in anywhere. There are many people, who have stored lots of money to the bank accounts, what are in foreign land. If there is enough of that money what would be released, there would be too much currency in the markets. This causes the decreasing the value of the currency and even the biggest currencies are not safe from this kind of attack. Only thing what limits that kind of operations would be the economic support, what the operator would get for the action. And the money can collect in a long-term period, that the central bank of the targeted state would not notice that operation.

Of course, there will be needed much more money for collapsing the big currencies than in cases of small currencies. Those operators must collect money for years if they want to attack against currencies like euro or dollar. But the method would be the same, as in the case of the cartoon character Uncle Scrooge. The operator just collects very much money, and then releases it to the markets. This is one very big risk in the modern world of economics. There is a possibility, that some actors would collect the money from free markets, and then release that money in the worldwide markets, and if that operator would have enough financial support and time, they can cause collapse even for big and strong currencies.

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