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| The USD...
Posted: 7/22/2008 6:43:53 AM |
If there is a problem either militarily or a massive downturn in the economy here (which is about 80% certain as I type this) imagine what China is faced with. 250 MILLION or more people thrown out of work because we, the ones over the proverbial barrel, aren't buying anything they make anymore. Show me ANY country that can deal with a quarter of a billion or more pissed off, out of work and desperate workers.
China is floating the US’s debt so you can buy it’s goods. This is building up the Chinese economy. The bigger the economy grows the less it needs the US as a market. At some point in time when resources get tighter they will have to make a decision weather to supply their own market to keep their people happy or sell to a country that mortgaged its future on trinkets.
It would be one thing if the US debt was used for building up industry and there would be a payback in the future. History might be repeating itself. The natives (Indians, at least the ones that were not killed off) sold their country out from under them for a bunch of shiny objects. I do not live in the US and it worries me that one day China will say it is time to pay up. | |
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| The USD...
Posted: 7/22/2008 10:13:03 AM |
If there is a problem either militarily or a massive downturn in the economy here (which is about 80% certain as I type this) imagine what China is faced with. 250 MILLION or more people thrown out of work because we, the ones over the proverbial barrel, aren't buying anything they make anymore. Show me ANY country that can deal with a quarter of a billion or more pissed off, out of work and desperate workers.
If we're in deep KA KA , China is complete TOAST
and it's this kind of thinking too that has the USA muddling about in their very own KA KA pile,....they are always thing thing the comparatively speaking on the one on one,....
USA v China,.... USA v global oil,....or USA v just about anything you can think of,....
When did you did you all forget that there is a whole world out there that isn't the US of A???,....
my point being as far as being the current global leader you are all to complacent and forgetting about the European Union and the power they (do or can) wield collectively,....both financially and I'd dare say even militarily if the need were to arise,....
European Union ,.... population494.8 ,...,....sitting on 4,422,773 square kilometers of land,....
http://en.wikipedia.org/wiki/Demographics_of_the_European_Union
this may be divided into a number of large countries and even more small ones,....
China has all of these and even more to deal with,...you might notice that all the rest of the countries currently not the US of A nor a member of the EU are also potential buyers and sellers,...like us for example,....
At this point, we are sitting on a very big oil reserve for one thing which up until now we have been selling to the USA for bargain basement prices,...with China begging for some or all we would sell them,....a bidding war,...Hmmmm
Refresh my memory again but didn't china used to be a global power for a very VERY long time?,.....
Global supremacy is a very fleeting thing historically speaking,....
and how long has the US dollar been theeeee leading currency again?................want a hint?
http://en.wikipedia.org/wiki/USA_Dollar
US Dollar Index
Main article: US Dollar Index
The US Dollar Index (USDX) is the creation of the New York Board of Trade (NYBOT). It was established in 1973 for tracking the value of the USD against a basket of currencies, which, at that time, represented the largest trading partners of the United States. It began with 17 currencies from 17 nations, but the launch of the euro subsumed 12 of these into just one, so the USDX tracks only six currencies today.
 only 6 left for the dollar,.....compared to todays 28 countries using the euro
are there no American's who find that unnerving?
The USDX has not been updated to reflect new trading realities in the global economy, where the bulk of trade has shifted strongly towards new partners like China and Mexico and oil exporting countries while the United States homeland has itself de-industrialized.
Imagine that China and even Mexico,....
http://www.nationmaster.com/encyclopedia/History-of-the-United-States-dollar
In September 2004, it was estimated that if all the gold held by the U.S. government (261.7 million ounces = 8 140 Mg) were again required to back the circulating U.S. currency ($733,170,953,704), gold would need to be valued at $2,800/ounce (90 $/g).
That sounds bankrupt to me,.... IF,..... gold were the only thing backing the dollar today,....
I think if America began thinking of itself as one among many,...instead of theeee one and only,.....
I think you would gain a lot of the respect that has been lost,...or at the very least it would be a good start,.... | |
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| The USD...
Posted: 7/22/2008 10:41:31 AM | ""When did you did you all forget that there is a whole world out there that isn't the US of A???,....""
Ha, ya I know. I live in the Socialist Republic of Canuckistan. We have more oil and gas than the Saudis. We have enough gas (mostly located over Otttawa) to heat the planet for the next thousand years. We haven't even begun to tap our methyl hydrate deposits and those ARE the largest on the planet. Coal too. More than we could ever use ourselves and most of it is good stuff - the coal that is easily cleaned and burns with about the same emissions as nat gas.
What we all have to realize is that there is a global dynamic that waits for no man, no nation. Sit back and think the world revolves around your a$$ and you're in for a rude awakening. DIS regard the Constitution and print money like it means nothing and pretty soon it *surprise* means NOTHING. Look at Argentina today. TOAST. ZIM has 2MILLION % inflation. Print all you want but there are morons in Washington who simply don't have the brains to understand that and they are KILLING the US economy and hence the world's economy.
We are, I think, in for some big messy times before somebody comes along and replaces it all with something better. My fear is it will be the same greedy **stards (bankers, pension fund managers etc) who got us into this mess will be offering to "save" the system and the brain dead pols will buy it and then we ALL might as well have a ball and chain around our necks!! | |
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| The USD...
Posted: 7/22/2008 11:15:02 AM | you might wanna re-read before you become indignant
since you are preaching to the choir responding to my post,....
so deary this,....
Sit back and think the world revolves around your a$$ and you're in for a rude awakening.
was entirely uncalled for,.... | |
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| The USD...
Posted: 7/22/2008 11:35:11 AM | ""was entirely uncalled for,....""
Possibly and you know how I HATE to offend anyone BUT (and you might have read the context in which it was written) I was refering to Persia, Athens, Rome, Napoleon, Hitler, The British Empire, The Portugese Empire, The Dutch Empire, the Spanish empire, the USSR and of course the economic "empire" the US has enjoyed since the end of WW2.
Going back thousands of years Empires have come and gone. Sometimes they got crushed by the new bully on the block. Sometimes they ran outta steam. Sometimes they were so currupt and evil and run by morons, idiots and thieves that the writing was on the wall. Either way(s) they ALL thought they'd last forever and nobody could usurp their, believed, God given right to push their agenda (usually that meant pillage rape and burn) on their adopted subjects.
Hate to break it to you but in a discussion on world economies I for one am not really here to discuss YOUR butt. I'm sure it's a lovely butt but getting off topic when it's an interesting thread really bugs MY butt, .... ... deary | |
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| The USD...
Posted: 7/22/2008 12:21:59 PM | msg28: """...Print all you want but there are morons in Washington who simply don't have the brains to understand that and they are KILLING the US economy and hence the world's economy..."""
^^^You're right on the mark there. The Am govt. stopped publishing money supply numbers two years ago, so it's just a best guess as to how much dough they've printed to fund their oil wars.
msg28: """...We are... in for some big messy times before somebody comes along and replaces it all with something better. My fear is it will be the same greedy **stards (bankers, pension fund managers etc) who got us into this mess will be offering to "save" the system and the brain dead pols will buy it and then we ALL might as well have a ball and chain around our necks!!"""
We have a bingo. Except i would switch brain dead polls for brain dead public. Seldom do I attach myself to any politician, but if folks were on the ball, which it doesn't really appear that they are, they'd scratch this guy's name on all their ballots and demand for the first time in years that their voices actually be heard. But unfortunately far too many people have never even heard of this guy...
Ron Paul : Don't tread on me
http://www.youtube.com/watch?v=FG_HuFtP8w8&feature=related
The train has definitely come off the tracks. People can continue to ignore it at their folly, but much like Ed Koch declared bankruptcy for the City of New York many years ago, this will be the inevitable for the nation. As it now comprisess 70% of the world's debt it's only a matter of time now. They've lived too high off the hog for too long.
When the Chinese and Japanese call in their markers as it were, and the US is forced to declare bankruptcy, the game nears it's end. Then they'll be abiding by the rules laid down by the world economy. China is going to crush the US like a bug without having to fire a single shot.
And a lot of the world doesn't read POF forums, so they don't know that there are some good Americans. Most around the world will breathe a big sigh of relief that they've finally got what's coming to them. If, as some suspect, martial law is imposed, the world will not take pity. They don't understand how bamboozled and dummied down the American public has become watching their tv's in order to formulate their opinions. The rest of the world will mistakenly think all Americans feel the same way about global empiricism. A real catch 22. It's not going to be pretty. After all those years of good benevolent work by America around the world, much like broken promises by politicians are quickly forgotten, so too will the good works that America has tried to do in parts of the world. The world has grown weary of America and all it's warmongering. Most of the rest of us around the world don't watch Fox tv. And most of us are waiting for the inevitable demise. And it is inevitable.
For those that are parents, each and every one of them should be ashamed of themselves for the mess they're leaving their children in. When i remember the little mexican kids hawking their ceramic ashtrays up and down the beaches of Acapulco, it's close to what i see America looking like in another twenty years. Unable to work because there are no jobs and even less educated than they already are, prisons will be the biggest business in the land.
In the meantime, time is of the essence to American politcians to sell the public on shifting theaters to Afghanistan in an attempt to control the contracted pipeline set to be built from Iran. Only by the US wrestling control of these oil reserves and the iraqi oilfields can the Americans hope to control their economic destiny by one, controlling oilfields and 2 subsequently ensuring themselves that Iraq and iran can't sell their oil in Euros. But as mr Hodges points out in his grandfather economic reports, all the oil in the world isn't going to save this country from it's demise.
They won't be leaving iraq none too soon. Have to keep a force in place to make sure they can keep their boots on iraqi necks so as not to lose the oilfields they've recently had signed over to them. Military conscription will be next to fund these new offensives...Of course it will all be in the guise of having to kill all them terrorists, so, being the patriotic bunch they are, they'll all fall for it. While the rest of the world sits back formulating their own opinions as to who the real terrorists are.
Lots of blood on the tracks still to be witnessed. Empires and dynasties seldom go down the sh1thole without a fight. The propoganda media machine, and i mean machine, has the American public already pretty much convinced it's time to go back to Afghanistan. They'll be up to their nuts in camel dung in no time starting their next wars in Pakistan and Afghanistan. But folks like Cheney and Woolsey and perle and a host of others will continue to make millions from the blood.
You can only stretch an already stretched rubber band so far. The rest will play itself out on the tv's across the nation interrupting regularly scheduled broadcasts of Oprah, American idol etc., and the rest of the supposedly informed folks will continue to natter away at each other like Khalil Gibran's pomegranate seeds while they try to convince each other that there is actually a difference between red and blue. Unfortunately it's got nothing to do with being red or blue. The color is green. When folks wake up and realize this, they have only then gotten themselves their awakening. Pushing that big rock back uphill and back over the hill will be a monumental task, one that i don't believe they will achieve because of apathy and a number of other things.
Eisenhower warned the people about it some 50 years ago. But he should have made his speech into a sitcom in order for it to maybe get thru. Think of it 50 years ago as a little snowball starting to run downhill on the slopes of Mt. Everest. That's the rock the Americans, if they ever wake up, will have to try and push back up over the hill today in 2008. I read somewhere in the "we definitely need to take back our country" thread, someone wrote """The only real road blocks we will face are the ones we will put in front of ourselves""". I really wouldn't be so sure about that. There will be lots of blood shed if they try to bust up this little tea party. These guys have a good thing going for themselves at the expense of some 300+ plus million folks. They're not going to be handing back the reins too quick, and certainly not without a fight.
Until Americans make a nationwide decision (assuming they are capable of decison making which I'm not so sure of anymore) to get off the oil, and stop living way beyond their means, this train is headed full bore non-stop for the ditch. They're not far from it now.
msg 30:"""Sometimes they were so currupt and evil and run by morons, idiots and thieves that the writing was on the wall. Either way(s) they ALL thought they'd last forever and nobody could usurp their, believed, God given right to push their agenda..."""
Amen to that.
Damned if they do and damned if they don't. Machiavelli would be proud indeed. They either lose control of the oil and go tits up since they only seem to be able to consume and consume more, or, they keep being the gluttons they are and force wars around the world to continue to satiate their demands for plastic sh1t and more oil. Meanwhile china sits back licking their chops lending more money to the Us to continue to justify their over consumptive ways.
After seeing the two plans available which do you prefer? Death? or Poison? Both plans cost about the same. One just takes longer than the other.
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NERO1
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Joined: 3/8/2008
Msg: 32 | |
| The USD...
Posted: 7/22/2008 12:30:56 PM | QUOTE: We have more oil and gas than the Saudis. We have enough gas (mostly located over Otttawa) to heat the planet for the next thousand years. We haven't even begun to tap our methyl hydrate deposits and those ARE the largest on the planet. Coal too. More than we could ever use ourselves and most of it is good stuff
^^ Careful about publicizing that. If someone in the Bush White House reads that , next thing you know they might start pushing to "regime change" you and bring you US-style freedom and democracy , releasing you from the yoke of the socialist peoples' republic of Canuckstan...  | |
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| The USD...
Posted: 7/22/2008 5:14:54 PM | ^^^^
Sorry the horse has left the barn. We already made a deal that we can not turn off the tap to the US even if we are short ourselves. To the people in charge borders do not mean anything. Once they trash one place they have the option to move to greener pastures. The rest of us have to pay for it and sit in the mess they made. | |
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Hi Mom
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Joined: 10/18/2007
Msg: 34 | |
| The USD...
Posted: 7/22/2008 6:48:06 PM | It's already been changing over the past years.
The entertainment industry I'm in now prices things by the region instead of a flat USD - with Europeans being gouged much more than they were before often. Almost any type of material available online is the same way these days. Only American & third world companies could make ends meet with the currency's devalution without changing. | |
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| The USD...
Posted: 7/22/2008 8:03:50 PM | | Imagine how upset you would be if your retirement savings of 40 years loses 1/3 of its value in just a couple years...What a bad time to be 65. | |
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| The USD...
Posted: 7/22/2008 11:36:00 PM |
Imagine how upset you would be if your retirement savings of 40 years loses 1/3 of its value in just a couple years...What a bad time to be 65.
isn't it a good thing then that Mickey D's will now also hire the elderly,.... | |
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| The USD...
Posted: 7/23/2008 12:23:54 AM | Wait until some of the really big pension funds announce that due to derivative trading (in an attempt to make BILLION DOLLAR commissions) that went south (still not referring to anybody's BUTT, OK?) everything is GONE. Sorry. 
In 1929 derivative trading made sure that it wasn't just the investment money that was lost it was several factors of that initial investment. If the stocks went up they made a mint. Similarly if they went down by a certain percent they lost 10 or 100 TIMES that. The Depression was a result of a burst bubble not an downturn in the stock market. It would have taken 6 months to recover if that were the case. Instead the companies and people and the market ended up owing way more than they'd invested.
In 1933 Congress grew a set of balls and made that type of derivative trading ILLEGAL for pension funds, insurance companies and banks because they KNEW that was what had caused the Depression.
In 1997 (or '99) the bankers went to Congress and persuaded them that those laws restricting derivative trading were archaic and markets around the world were making huge profits and if they didn't change the laws and be allowed to too then America would be left behind. Congress rescinded the 1933 laws restricting that kind of dangerously inflated and risky trading. It has taken 8 short years for the greedy and the morons to ruin the world's economies this way. Ask the avg American what is happening and they either don't have a clue - don't interrupt their reality TV show - or they blame it all on oil prices which BTW is just another example of hedge funds dominating and driving the markets for false and manipulated profits. The FED has allowed it. The FED has encouraged it. They will now sit back and watch as the world sinks in a sea of FALSE debt and of course they'll be there to "save" us on the other side with a new and improved financial plan.
What we really need is another Revolution but the flock continues to only helplessly circle and bleat
.... and bleat and bleat | |
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| The USD...
Posted: 7/23/2008 7:39:58 AM |
If there is a problem either militarily or a massive downturn in the economy here (which is about 80% certain as I type this) imagine what China is faced with. 250 MILLION or more people thrown out of work because we, the ones over the proverbial barrel, aren't buying anything they make anymore. Show me ANY country that can deal with a quarter of a billion or more pissed off, out of work and desperate workers.
That's the thing though....North Americans, even during an economic downturn, are probably going to still buy Chinese goods simply because they ARE the cheapest on our markets right now. (Buy them before turning to more NA goods, I mean). We already outsource so much to China....now imagine if the Chinese upped their pay rates and what they are charging NA for their goods....if the US is already facing/in the midst of an economic slump, just imagine if even the Walmart/Chinese goods are no long even affordable here?? The economy wouldn't be slumping, it would be downward spiralling at an even more hellacious rate than it already is, methinks. And that is scary indeed. | |
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| WHAT USD...?
Posted: 7/24/2008 10:54:47 AM | Evidence of the US Banking System Teetering on the Brink of Collapse
Interest-Rates / Credit Crisis 2008 Jul 24, 2008 - 06:34 AM
By: Mike_Shedlock
Interest-Rates
Best Financial Markets Analysis Article1. Paulson appears on Face The Nation and says "Our banking system is a safe and a sound one." If the banking system was safe and sound, everyone would know it (or at least think it). There would be no need to say it.
2. Paulson says the list of troubled banks "is a very manageable situation". The reality is there are 90 banks on the list of problem banks. Indymac was not one of them until a month before it collapsed. How many other banks will magically appear on the list a month before they collapse?
3. In a Northern Rock moment, depositors at Indymac pull out their cash. Police had to be called in to ensure order.
4. Washington Mutual (WM), another troubled bank, refused to honor Indymac cashier's checks. The irony is it makes no sense for customers to pull insured deposits out of Indymac after it went into receivership. The second irony is the last place one would want to put those funds would be Washington Mutual. Eventually Washington Mutual decided it would take those checks but with an 8 week hold. Will Washington Mutual even be around 8 weeks from now?
5. Paulson asked for "Congressional authority to buy unlimited stakes in and lend to Fannie Mae (FNM) and Freddie Mac (FRE)" just days after he said "Financial Institutions Must Be Allowed To Fail". Obviously Paulson is reporting from the 5th dimension. In some alternate universe, his statements just might make sense.
6. Former Fed Governor William Poole says "Fannie Mae, Freddie Losses Makes Them Insolvent".
7. Paulson says Fannie Mae and Freddie Mac are "essential" because they represent the only "functioning" part of the home loan market. The firms own or guarantee about half of the $12 trillion in U.S. mortgages. Is it possible to have a sound banking system when the only "functioning" part of the mortgage market is insolvent?
8. Bernanke testified before Congress on monetary policy but did not comment on either money supply or interest rates. The word "money" did not appear at all in his testimony. The only time "interest rate" appeared in his testimony was in relation to consumer credit card rates. How can you have any reasonable economic policy when the Fed chairman is scared half to death to discuss interest rates and money supply?
9. The SEC issued a protective order to protect those most responsible for naked short selling. As long as the investment banks and brokers were making money engaging in naked shorting of stocks, there was no problem. However, when the bears began using the tactic against the big financials, it became time to selectively enforce the existing regulation.
10. The Fed takes emergency actions twice during options expirations week in regards to the discount window and rate cuts.
11. The SEC takes emergency action during options expirations week regarding short sales.
12. The Fed has implemented an alphabet soup of pawn shop lending facilities whereby the Fed accepts garbage as collateral in exchange for treasuries. Those new Fed lending facilities are called the Term Auction Facility (TAF), the Term Security Lending Facility (TSLF), and the Primary Dealer Credit Facility (PDCF).
13. Citigroup (C), Lehman (LEH), Morgan Stanley(MS), Goldman Sachs (GS) and Merrill Lynch (MER) all have a huge percentage of level 3 assets. Level 3 assets are commonly known as "marked to fantasy" assets. In other words, the value of those assets is significantly if not ridiculously overvalued in comparison to what those assets would fetch on the open market. It is debatable if any of the above firms survive in their present form. Some may not survive in any form.
14. Bernanke openly solicits private equity firms to invest in banks. Is this even close to a remotely normal action for Fed chairman to take?
15. Bear Stearns was taken over by JPMorgan (JPM) days after insuring investors it had plenty of capital. Fears are high that Lehman will suffer the same fate. Worse yet, the Fed had to guarantee the shotgun marriage between Bear Stearns and JP Morgan by providing as much as $30 billion in capital. JPMorgan is responsible for only the first 1/2 billion. Taxpayers are on the hook for all the rest. Was this a legal action for the Fed to take? Does the Fed care?
16. Citigroup needed a cash injection from Abu Dhabi and a second one elsewhere. Then after announcing it would not need more capital is raising still more. The latest news is Citigroup will sell $500 billion in assets. To who? At what price?
17. Merrill Lynch raised $6.6 billion in capital from Kuwait Mizuho, announced it did not need to raise more capital, then raised more capital a few week later.
18. Morgan Stanley sold a 9.9% equity stake to China International Corp. CEO John Mack compensated by not taking his bonus. How generous. Morgan Stanley fell from $72 to $37. Did CEO John Mack deserve a paycheck at all?
19. Bank of America (BAC) agreed to take over Countywide Financial (CFC) and twice announced Countrywide will add profits to B of A. Inquiring minds were asking "How the hell can Countrywide add to Bank of America earnings?" Here's how. Bank of America just announced it will not guarantee $38.1 billion in Countrywide debt. Questions over "Fraudulent Conveyance" are now surfacing.
20. Washington Mutual agreed to a death spiral cash infusion of $7 billion accepting an offer at $8.75 when the stock was over $13 at the time. Washington Mutual has since fallen in waterfall fashion from $40 and is now trading near $5.00 after a huge rally.
21. Shares of Ambac (ABK) fell from $90 to $2.50. Shares of MBIA (MBI) fell from $70 to $5. Sadly, the top three rating agencies kept their rating on the pair at AAA nearly all the way down. No one can believe anything the government sponsored rating agencies say.
22. In a panic set of moves, the Fed slashed interest rates from 5.25% to 2%. This was the fastest, steepest drop on record. Ironically, the Fed chairman spoke of inflation concerns the entire drop down. Bernanke clearly cannot tell the truth. He does not have to. Actions speak louder than words.
23. FDIC Chairman Sheila Bair said the FDIC is looking for ways to shore up its depleted deposit fund, including charging higher premiums on riskier brokered deposits.
24. There is roughly $6.84 Trillion in bank deposits. $2.60 Trillion of that is uninsured. There is only $53 billion in FDIC insurance to cover $6.84 Trillion in bank deposits. Indymac will eat up roughly $8 billion of that.
25. Of the $6.84 Trillion in bank deposits, the total cash on hand at banks is a mere $273.7 Billion. Where is the rest of the loot? The answer is in off balance sheet SIVs, imploding commercial real estate deals, Alt-A liar loans, Fannie Mae and Freddie Mac bonds, toggle bonds where debt is amazingly paid back with more debt, and all sorts of other silly (and arguably fraudulent) financial wizardry schemes that have bank and brokerage firms leveraged at 30-1 or more. Those loans cannot be paid back.
What cannot be paid back will be defaulted on. If you did not know it before, you do now. The entire US banking system is insolvent.
By Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com | |
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| The USD...
Posted: 7/24/2008 11:36:39 AM | Back in the 1990s, I lived in Israel. While I was there, I found everyone wanted to trade in Dollars, particularly Russians. The main reason was most currencies just weren't stable. The Dollar had 2 big advantages, that it was accepted as currency everywhere, and that it was a very stable currency. So it was safe to put your money into dollars, because it was stable enough that you wouldn't lose your money in it, and if you wanted to buy something with your Dollars, it was accepted everywhere, so everyone would take your Dollars.
However, that was all down to America.
Dollars were globally acceptable because everyone dealt with America.
Dollars were considered the most stable currency because America was the most powerful country in the world, and so the least likely to suffer an economic depression, or a revolution.
But the power of the Dollar comes from the power of America.
The weaker that America becomes, the weaker the value of investing in the Dollar as a reserve currency, and the less people will want to invest in it. | |
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| The USD...
Posted: 8/11/2008 10:27:38 PM | Well who would have guessed?
Despite the billions that are lost in the financials and all the gloom and doom predictions, the USD has bounced right back up. Since the low of mid July (about 71), the Dollar Index has risen back up to 76+ today. How much more can it go? Only time will tell, but it's clear that not everyone is abandoning the USD. | |
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| The USD...
Posted: 8/12/2008 11:47:52 AM |
Since the low of mid July (about 71), the Dollar Index has risen back up to 76+ today. How much more can it go? Only time will tell, but it's clear that not everyone is abandoning the USD.
I'm not sure what you are comparing the USD to but as of today the 12th of Aug 2008 the scale below is comparing the US$ to the Can$,....
http://www.xe.com/ucc/convert.cgi
Live rates at 2008.08.12 18  14 UTC 1.00 CAD 0.941580 USD Canada Dollars United States Dollars 1 CAD = 0.941580 USD 1 USD = 1.06204 CAD Live rates at 2008.08.12 18  14 UTC 1.00 USD 0.670037 EUR United States Dollars Euro 1 USD = 0.670037 EUR 1 EUR = 1.49246 USD
so the USD is recovering somewhat,...I'll give you that but it isn't doing what you claim by a long shot,......YET,.... | |
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| The USD...
Posted: 8/13/2008 12:41:19 AM |
I'm not sure what you are comparing the USD to but as of today the 12th of Aug 2008 the scale below is comparing the US$ to the Can$,....
My reference is the US Dollar Index, the same index that you mentioned in Msg 27 above. The Dollar Index is a better way to track the value of the USD. For more info, here are two more links:
http://www.akmos.com/main/forex/usdx.html
http://www.investmenttools.com/futures/forex/welcome_the_us_dollar__page__dollar_point___figure_chart__dollar_futures_.htm
so the USD is recovering somewhat,...I'll give you that but it isn't doing what you claim by a long shot,......YET,....
In Msg 41, I said, "...How much more can it go? Only time will tell, but it's clear that not everyone is abandoning the USD. "
I stand correct. Not everyone is abandoning the USD. In fact, people (and lots of them) are running back to the USD in drove, bidding the Dollar higher against all currencies and all commodities, including gold. How else can the Dollar Index move up so violently?
The funny thing is that I actually agree with a lot of you guys. Yes, the US is living through a mountain of economic woes now and yes, the value of the USD internationally has been on a steady decline since 2002 (when the Index peaked at 120). And my guess is, the Dollar will probably continue to slide - recent uptake notwithstanding - as central banks around the world continue to gradually diversify away from the USD. It will be a slow and laborious process, and it will takes years. In the meantime, will the subprime mess and the burgeoning deficits kill the US and bring the rest of the world down with it? It's definitely possible. But since 1973 when the Dollar Index first came to be, the US had gone through two oil crises (which led to two major recessions) and two major wars (Vietnam and the First Gulf War). At the time, things looked bleak and many had predicted the end of the American empire. But adjustments were made and people adapted. In the end, the US not only survived, she even prospered. May be, just may be, this time it will again.
And so, where we differ is our prediction for the future. Only time will tell who's right and who's not. I sure like mine better though. | |
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| The USD...
Posted: 2/2/2009 10:38:06 PM | Well isn't it interesting? Since last summer, the USD Index has risen from mid-70s to today's 85+. In other words, in the last 6 months, the USD has strengthen significantly against a basket of other currencies, most particularly the Euro. So in spite of the hundreds of billions being injected into the financial system and a tidal wave of bankruptcies and job cuts, against the backdrop of a very nasty recession no less, the wealth of the world continues to recognize the USD as the preeminent World Currency.
Interesting indeed. | |
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| The USD...
Posted: 6/15/2009 10:54:43 PM |
...the wealth of the world continues to recognize the USD as the preeminent World Currency.
Perhaps for now...but for how long?
http://www.commondreams.org/view/2009/06/15-0
(Interesting comments BTW)
Here's a rather lengthy article on the SCO. If you haven't heard of them, it's time you did.
http://www.globalresearch.ca/index.php?context=va&aid=13707
Economic warfare is rising... | |
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