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We know that NHL is a power in international relations (see special status to IIHF). What would happen if dollar went down in future? You know, if dollar would lose its current status in worldwide ecomony
We know that NHL is a power in international relations (see special status to IIHF). What would happen if dollar went down in future? You know, if dollar would lose its current status in worldwide ecomony
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I mean US dollar of course.
It shouldn't matter as far as the NHL itself is concerned at a basic level. The majority of the league earns revenue in the US$ (USD) and all players are paid in the USD-- including Canadian teams. The latter are more likely to be affected by swings of the Canadian dollar (CAD) versus the USD because they have buy American dollars to pay players.
On a global level, it's like anything else. If your currency is devalued, imported items become very expensive, so you buy less of them, while goods and services you wish to export become very cheap in foreign markets. Does that help enough to let you bounce back? Oil would also cost more total dollars, so the ripple effect to the rest of the economy could be significant.
One real effect could be that some European players choose not to come over, but you have to assume that their currency is far stronger so that they can make more money at home.
I don't know if you're asking what would happen if the USD is no longer a hard currency? That's an entirely different kettle of fish, with all sorts of ramifications for global commerce.
One real effect could be that some European players choose not to come over, but you have to assume that their currency is far stronger so that they can make more money at home.
you have KHL here ... euro leagues dont have a chance, you know €
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I don't know if you're asking what would happen if the USD is no longer a hard currency? That's an entirely different kettle of fish, with all sorts of ramifications for global commerce.
yes, that was my point. IMO KHL would be stronger - why? 1. BRICS, 2.Chinese russian relations, 3.Swiss club in KHL (there is a memorandum about it, but it is far future)
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On the 17th of December a declaration of intent was signed by the Kontinental Hockey League and the hockey club Helvetics of Switzerland.
In accordance with this agreement the hockey club officially confirms its interest in participating in the KHL Championship, starting from season 2014-15, and to make all the necessary investment in infrastructure in order to meet the standards demanded by the League, and to observe the rules set down in the regulations and other documents relevant to the governance of the League.
In return, in ratifying the declaration, the Kontinental Hockey League confirms its intention to accept Helvetics hockey club as a participant in the KHL Championship, starting from season 2014-15, on the condition that all the demands set down by the League for aspirant clubs are met.
The parties agreed to set April 30th, 2014, as the deadline for the club to provide the financial guarantees and documentation confirming it meets all the standards demanded by the League.
What would happen if dollar went down in future? You know, if dollar would lose its current status in worldwide ecomony
We would see the worst financial crisis since the Great Depression. Oh wait.
2006
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Does no one see that the tension between the dream and the reality is increasing and that this tension will snap, leading to suffering for millions?
Of course they see it! Investors can see what is happening. They wonder about it and shake their heads. It even scares them a little, sending chills down their spine. But they keep buying dollars as though possessed. The greater their doubts, the more greedily they order dollars. Indeed, that's exactly what is so crazy about these investors and their behavior: The client isn't just a client. He creates the security he's purchasing by the very act of purchasing it. If he were to stop buying dollars tomorrow, suspicion about the currency would spread and insecurity would grow. Then the dream would end. The dollar would start to falter and all the wealth held in dollars would lose its value. Of course, that's not something investors want to see happen
The only way to fight a weak dollar is to strengthen it. Many people no longer care whether the US currency still justifies the faith people seem to have in it. The new game, which amounts to playing with fire, works exactly the other way around: The dollar deserves the faith it gets because otherwise it loses that faith. Dollars are bought so they don't have to be sold. The dollar is strong because that's the only thing that can prevent it from growing weak. Reality is ignored because only by ignoring it can the dream come true. Or, to put it still more clearly: Behaving irrationally has become rational behavior.
But if things have become that obvious, why aren't investors recoiling in fear? Why do foreigners, US presidents of all stripes and even Federal Reserve presidents known for their seriousness allow themselves to get involved in such a risky game, when the risk is that of destroying everything? Why aren't those mechanisms of market regulation functioning that are supposed to represent the advantage of the capitalist system over planned economies?
The answer is terrifyingly simple: Everyone knows how dangerous the game is, but continuing to play it strikes them as less dangerous than quitting. After all, what's to be gained from overreacting? Investors allowed themselves to get caught in the dollar trap years ago, and there's no easy way out. If they start taking their dollar bills and government bonds to the market themselves, they would lose money -- either gradually or all at once. They would like to avoid both scenarios, at least for a time.
The dollar has remained the world's currency anchor. As long as this anchor rests firmly on the ocean floor, stability is guaranteed for the national economies that invest in the dollar.
But if that anchor should tear itself loose and begin to drift freely in the ocean of global finance, the chaos that ensues would result in trouble for more than just exchange rates.
If the downward trend were to begin, the dollar crisis would spread from the world of currencies to the real world of factories, businesses and household accounts within days.
Major and minor private investments yield lower returns. People would start to save, the economy would falter and eventually shrink. The first mass layoffs would arrive soon afterwards. US citizens would have to once more drastically reduce their level of consumption, as unemployment and waves of bankruptcy would shake up the country. Millions of households would become unable to pay back their bank loans. Then real estate prices and share values would begin to drop, having been overpriced for years and used as mortgages for consumer credit. When the real estate bubble bursts, consumption inevitably dwindles even further. The hunger for imports would fade, causing problems for exporting countries as well. It would only be a matter of days before newspapers would once more feature a term that seemed to have disappeared decades ago: world economic crisis.
Last century, the United States already suffered from one deep economic crisis that gradually spread to the rest of the world. The Great Depression lasted 10 years and brought mass unemployment and starvation to the United States.
Today's investors face a difficult choice, one they're not to be envied for. They can see the relative weakness of the US economy and they're registering the tectonic shifts in the world economy. They know that a great statistical effort is being made to prolong the American dream.
Right now, everyone is watching everyone else closely. Everyone knows the dream of the stable economic superpower has ended, but everyone is keeping his eyes shut just a little longer.
So who will be the first to destroy the dollar illusion? Aren't all investors bound together by an invisible link, since every attack on the key currency would lead to a loss of value for them, perhaps even destroying a large part of their financial assets? Why should the central banks of Japan or Beijing throw their dollars onto the market? What could make US pension funds wilfully destroy their wealth, held in dollars? What sense would it make to send the United States into a deep crisis when that crisis could drag all the other states along?
The underlying motive is the same as the one that once prompted investors to buy dollars -- fear. This time it is fear that someone else may be faster, fear that the dollar's strength won't last, fear that every day spent waiting may be one day too long. It's fear that the herd instinct of global financial markets will set in and overtake those who can't keep up.
The dependence of foreign central banks on the dollar will defer its crash, but it won't prevent it. Today's snowdrift will become tomorrow's avalanche. The masses of snow are already accumulating at breathtaking speed. The avalanche could happen tomorrow, in a few months or years from now. Much of what people today think is immortal will be buried by the global currency crisis -- perhaps even the leadership role of the United States.
Incidentally, the commission that former US President Bill Clinton created to investigate the negative balance of trade concluded in clear terms that the government has to do whatever it can to put an end to the growing disparity between imports and exports. It demanded that the public give up its optimism and return to realism, that people start saving again and that the state reduce its imports in order to prevent too hard a crash landing.
None of that has been done. In fact, what is being done is the opposite of everything the experts recommended. Debt is growing, imports are increasing and an optimism now lacking every basis in reality has become official state policy. Lester Thurow, a member of Clinton's commission, draws the sober conclusion that no one will believe the US balance of trade could produce a crisis "until it happens."
Sound familar?
The NHL is already facing this threat, but they actually seem to be doing very well despite the times.
It shouldn't matter as far as the NHL itself is concerned at a basic level. The majority of the league earns revenue in the US$ (USD) and all players are paid in the USD-- including Canadian teams. The latter are more likely to be affected by swings of the Canadian dollar (CAD) versus the USD because they have buy American dollars to pay players.
On a global level, it's like anything else. If your currency is devalued, imported items become very expensive, so you buy less of them, while goods and services you wish to export become very cheap in foreign markets. Does that help enough to let you bounce back? Oil would also cost more total dollars, so the ripple effect to the rest of the economy could be significant.
One real effect could be that some European players choose not to come over, but you have to assume that their currency is far stronger so that they can make more money at home.
I don't know if you're asking what would happen if the USD is no longer a hard currency? That's an entirely different kettle of fish, with all sorts of ramifications for global commerce.
The USD is already a joke, but apart from KHL, the NHL salaries aren't matched, so it doesn't matter.
If the US dollar were to collapse we'd all be ****ed and no one would care about Hockey, the Euro is on the brink and without either of those hockey just won't matter, Russia will collapse without anyone to sell their oil to at the price they need, it's the only reason Russia is recovering, oil money, nothing good happens basically
