Family Guy partner, official, running, account, balance

BC_MBA_student

So let's say I am Peter Griffin and I just found out that I am the ruler of Petoria. My federal reserve bank holds a few foreign bonds and since we are running a huge trade deficit with our largest trading partner I decide to sell them to fill the 'gap'

Now I ask my son Stewie to calculate the 3 components of the balance of payment formula. How should he account for the sale of foreign bonds? Are they part of my capital account or official reserve?

I told him official reserve but I think I need some 'expert' advice...



Edited 1 time(s). Last edit at Tuesday, June 7, 2011 at 10:07AM by ZeroBonus.

random_walker47

KSTHANE Wrote:
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> I was talking to a guy here at work about what the
> US can do to fix its current account deficit and
> he said that selling foreign bonds would be a
> capital account action...but I have no idea if
> he's correct.


That's true if individuals start selling them but what about the Fed. Is it still treated the same way?

wxs1986

I agree w/ Paddy

jarobi04

JamboRambo Wrote:
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> I agree w/ Paddy


i assumed by foreign bonds it meant bonds the fed bank was holding of other countries like how China own US treasuries....

so isn't that official reserves?

iteracom

"Stewie should account for the sale of foreign bonds as part of the Official Reserves." is what Paddy said...

Analyze_This

deleted



Edited 2 time(s). Last edit at Tuesday, June 7, 2011 at 03:41PM by gangsta.

ayodayo

JamboRambo Wrote:
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> "Stewie should account for the sale of foreign
> bonds as part of the Official Reserves." is what
> Paddy said...


oh whoops

damn that stewie's dad, paddy and rambo all got +1

flyinggirl

Early on in this century, official reserves assets were primarily gold. Now primarily financial assets denominated in a foreign currency that is widely accepted in international transactions: Pounds assets, U.S. dollar assets (key currency worldwide), Reserve positions in IMF and SDRs (created by IMF).

ningning1984

Thanks tips

kkn006

But yes, official reserves indeed. +1