Jump to content
House Price Crash Forum
kjw

Bank Of England To Buy Apple Bonds

Recommended Posts

In the global financial crisis thread Scepticus has posted a piece that suggests that Apple is a major holder of T-bills & gilts as well as corporate bonds. The implication is that Apple has so much cash ($8bn was mentioned), that they are struggling to find ways to hold it and have in the region of $150bn in financial instruments of one sort or another. If collapsogeddon does come along, Apple could well end up 'holding the baby', irrespective of the impact on the core business of flogging high end devices*.

*Posted from my iPad & probably being flagged up in an Apple office somewhere. I assume my next iOS update will crash everything horribly.

http://www.housepricecrash.co.uk/forum/index.php?/topic/206092-we-are-facing-another-global-financial-crisis-of-epic-proportions/page-367

Share this post


Link to post
Share on other sites

They tried communism through the front door. They used Bolshevism to kick the door down and take over. That failed. Now they come with communism via the back door via the central banks.

Eventually one central bank will own everything(maybe the BIS) and the rest of us will all be equal in our communist paradise. ie we'll all be flat broke serfs.

Many of these neocon "capitalists" are in fact unreconstructed Trotskyists. Check their backgrounds.

A leopard never changes its spots , only its tactics.

Share this post


Link to post
Share on other sites

They tried communism through the front door. They used Bolshevism to kick the door down and take over. That failed. Now they come with communism via the back door via the central banks.

Eventually one central bank will own everything(maybe the BIS) and the rest of us will all be equal in our communist paradise. ie we'll all be flat broke serfs.

Many of these neocon "capitalists" are in fact unreconstructed Trotskyists. Check their backgrounds.

A leopard never changes its spots , only its tactics.

Agreed. The "leisure class" will determine this a bit too late. People will think we are capitalist until they suddenly lose all confidence in government as it moves us all to socialism to keep control and hide their decades of mis-management.

If people want to understand the social hierarchy a bit more they should read the book below, to understand why, you are a worker, your bosses are above you and another group seamingly do nothing but govern you. Money in of it self is simply a control system tha replaced guns and violence.

( Read https://www.amazon.co.uk/Theory-Leisure-Oxford-Worlds-Classics-ebook/dp/B005PUWS7S/ref=mt_kindle?_encoding=UTF8&me=)

Share this post


Link to post
Share on other sites

Whats wrong with the British companies then? Dyson? Sky? Virgin?

I hope you'd pick better companies than those to lend to! OK, Virgin's not all bad, but neither is it a single company ... but I'd apply the bargepole to sky or dyson.

Edited by porca misèria

Share this post


Link to post
Share on other sites

Erm, why should Apple issue bonds of any kind? I thought they had a vast cash pile! Are they borrowing money at negative interest rates?

Same reason a lot of the big corporates are borrowing money I would guess - to buy back shares, keeping the stock price high, triggering executive bonuses and increasing the value of the execs stock options.

It certainly wouldn't be to invest in actually making the company more productive and/or expand their business to take advantage of new opportunities.

This is just one huge disaster waiting to happen.

Share this post


Link to post
Share on other sites

They tried communism through the front door. They used Bolshevism to kick the door down and take over. That failed. Now they come with communism via the back door via the central banks.

Eventually one central bank will own everything(maybe the BIS) and the rest of us will all be equal in our communist paradise. ie we'll all be flat broke serfs.

Many of these neocon "capitalists" are in fact unreconstructed Trotskyists. Check their backgrounds.

A leopard never changes its spots , only its tactics.

Despite their outward dissimilarities the neoclassicals and the communists do in fact have something in common: a belief that economies evolve inevitably to a stable, fixed point attractor with no alternative choice of outcome! Communists believe that an ideal state of equilibrium is realisable via class warfare and the wholesale State ownership of the means of production, whereas neoclassicals believe that an ideal state of equilibrium can be obtained via a pure barter economy and the Invisible Hand.

By way of contrast, real unregulated markets, at least those sophisticated enough to be described by stochastic models, have been shown to be wildly unstable for intervals >10 minutes. Convincing reproducible, empirical evidence of an Invisible Hand at work (as opposed to the Visible Hand of an auctioneer or bookmaker) has never been presented.

Share this post


Link to post
Share on other sites
Erm, why should Apple issue bonds of any kind? I thought they had a vast cash pile! Are they borrowing money at negative interest rates?

I think it's because they can't repatriate that vast cash pile into the US without paying a large tax bill- so the solution is to issue bonds to raise money instead- it makes sense in a surreal kind of way if the interest rates on their bonds are lower than the cost of the taxes they might have to pay for using their own debt free resources.

Share this post


Link to post
Share on other sites

Apple are being arrogant unfortunately they don't have jobs anymore. A prime example of this is the latest iPhone without a headphone jack, even the fanboys are having trouble justifying this lunacy.

The Apple bubble is bursting, they are losing sales and market share.

The market for mobile devices is to peak. Without a major new battery technology things cannot progress much further and a lot of people are realizing they don't need the power of the current smartphones never mind the next generation.

So given the government and Bank of England failures in the past, them buying is a sure sign to sell Apple.

The next big thing was supposed to be VR, but because of the high entry cost and still cumbersome hardware this has stalled.

Edited by Ulfar

Share this post


Link to post
Share on other sites

I think it's because they can't repatriate that vast cash pile into the US without paying a large tax bill- so the solution is to issue bonds to raise money instead- it makes sense in a surreal kind of way if the interest rates on their bonds are lower than the cost of the taxes they might have to pay for using their own debt free resources.

Makes sense, and its a f'''''g disgrace. The Boe must be hoping that the ££ they get from the bonds will be invested in the UK, while the cash pile sits in a tax haven. Fat chance of that.

Share this post


Link to post
Share on other sites

Despite their outward dissimilarities the neoclassicals and the communists do in fact have something in common: a belief that economies evolve inevitably to a stable, fixed point attractor with no alternative choice of outcome! Communists believe that an ideal state of equilibrium is realisable via class warfare and the wholesale State ownership of the means of production, whereas neoclassicals believe that an ideal state of equilibrium can be obtained via a pure barter economy and the Invisible Hand.

By way of contrast, real unregulated markets, at least those sophisticated enough to be described by stochastic models, have been shown to be wildly unstable for intervals >10 minutes. Convincing reproducible, empirical evidence of an Invisible Hand at work (as opposed to the Visible Hand of an auctioneer or bookmaker) has never been presented.

Rather like coevolution of multiple species of organism, never actually end up at an end point, continuously coevolving, little chaotic sandpile avalanches along the way. Edited by Si1

Share this post


Link to post
Share on other sites

Rather like coevolution of multiple species of organism, never actually end up at an end point, continuously coevolving, little chaotic sandpile avalanches along the way.

+1

Equilibrium = death for all living things.

Share this post


Link to post
Share on other sites

+1

Equilibrium = death for all living things.

They have to have some chaos to their otherwise causal system responses otherwise they'd have no resilience. I don't think that's strictly covered by Darwinism but then again he never claimed to have had the last word.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   94 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.