By the way, it really sucks to be living in Europe making dollars and paying expenses in dollars when they're quickly becoming as worthless as German marks in 1923... Thank god for gold!
Come on helicopter Ben - keep those interest rates rising, otherwise, it's down down down for the dollar...
We really needed to start today with a chart of the almighty DOLLAR. We do not know what effect it will eventually have but we have our ideas.
Very simply, and as we have expected since its wicked breakdown 10 days ago, the DOLLAR is cratering...not just going lower...but cratering
We have been believers and have told you many times that our good buddy Greenspan sowed the seeds of this by keeping rates ridiculously too low for too long to protect our economy...when he should have just let things be.
Because of this, we are now dealing with a housing bubble, soaring commodities, soaring oil and a plunging dollar.
Ladies and gentleman, ultimately, this has the potential for a powderkeg. In the past week, the FED...now run by Big Ben Bernanke, almost said that the raising of rates on the short end could stall soon.
We would hate to see what would happen if Big Ben had to raise rates to defend the dollar.
May 02, 2006
Goodbye dollar. I'll sure miss ya.
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19 comments:
Everyone needs to go see United 93, that way everyone can be reminded who the Fu_k we’re dealing with here.
Oh and another point … I’m sick and tired of political correctness ruling the day in this country.
The hijackers were really CIA suicide agents hired by Bush. Then they shot the plane down to prevent it from crashing into the Capitol. It all makes perfect sense if you think about it.
Is this the mentally deranged thread. Get back on topic morons.
Overnight rates need to be moved into the 6-7 BP range.
I think you mean 600 to 700 range.
And don't worry, about the political correctness. That bubble is blowing faster than the housing one.
If the dollar index breaks 80..Goodbye...
GLD
SLV
USO
or open a bank account in Canada or Australia to protect your money
Franklin Templeton Hard Currency Fund.
It invests in hard currency..now they are in Euros, Yen, and Canadian dollar.
housing anyone........anyone?
Also Everbank
You can buy CDs in just about any currency...Yen, Canadian, Euro, NZ, Australia. You can lock in 3,6,12 months or whatever.
You will convert dollars to the denominated currency on the front end. Then you will get converted back as the CD matures. If the currency appreciates, you will pocket the difference. And vice versa.
They also have a gold-linked CD- which I don't know anything about.
Everbank is highly rated and FDIC insured.
>>>> or open a bank account in Canada or Australia to protect your money
How do you do this? Any links?
Can I convert my savings account to Canadian money and trade U.S. securities from that account?
Thank you.
I have a small collection of German bills from the hyperinflationary period of the 1920s. The early DM bills are quite pretty, printed in multiple colors and with beautiful Art Deco design details.
By the time you get to the "crack-up boom" in 1924, the bills are 50, 100, 500,000,000 DM, printed on cheap paper, and with ink on only one side for quick/cheap printing.
They are dated with not only the year, but the day of printing as well, because they were moving pretty fast at the time.
It's very spooky to line up the bills by amount and date, and understand how important sound economic fundamentals are to our lives. This stuff levelled a society and left monsters in its wake.
The Dollar is "cratering"?
Uh, look at what happened to the US dollar between 1983 and 1985.
That was cratering.
Funny enough, the economy came out OK.
The reality is that the domestic economy has to be managed for the domestic economy's health---only---and let the dollar go where it is.
The central problem now is not government policy but private---corporate---policy of extinguishing of high-value and high-value-added jobs in the US by transfer of physical and intellectual capital overseas.
Economics 101:
Higher wages usually correspond to industries with higher productivity.
Economists and politicians in China *like* it when wages increase and seek policies which do that.
In the US, it's the opposite. Listen to the terms being used. For GDP or corporate profits, "growth"---i.e. good.
For wages---"wage inflation"----bad.
Wage growth is NOT inflation!!!
Inflation is a monetary phenomenon of more money for the same wealth.
And yet policies and discourse make it seem identical, therefore promoting policies and actions to suppress it, both in private and public sector.
Many high tech venture capitalists are *INSISTING* that any new company they fund already is *pre-outsourced* with their technical employees in India, China, Russia, etc. {often the VCs themselves are of heritage from those locations}
Why not call wages going up as "personal prosperity increase" and corporate profits going up as "exploitation factor increase"?
The inflation we are experiencing is not through printing paper, but through excesive debt creation.
And what happens when the housing bubble implodes?
We should get a raging deflation which means that cash is king.
2006-05-01 14:56:28
Warren Buffets thought on saving from 2005:
Buffett bets $21.4 bln against the US dollar
Sat Mar 5, 2005 04:02 PM ET
By Jonathan Stempel
NEW YORK, March 5 (Reuters) - Warren Buffett … last year increased his bet against the U.S. dollar 78 percent to $21.4 billion, resulting in a $1.84 billion gain.
In his annual letter to shareholders of his Berkshire Hathaway Inc. holding company, the 74-year-old said Berkshire held $21.4 billion of foreign currency contracts spread among 12 currencies. A year earlier, Berkshire had $12 billion of contracts over five currencies.
Buffett is concerned that U.S. policies are causing trade and budget deficits to spiral higher and might cause non-U.S. investors to pull money out of the country. This, he said, will put downward pressure on the dollar, which already trades near lifetime or multi-year lows against several major currencies.
Last year, the U.S. trade deficit rose 24 percent to a record $617.7 billion.
“The evidence grows that our trade policies will put unremitting pressure on the dollar for many years to come,” Buffett said. “As W.C. Fields once said when asked for a handout: ‘Sorry, son, all my money’s tied up in currency.’”
“Unlike other investors, who pile into foreign stocks, Buffett is sticking with U.S. assets and hedging the currencies itself,” said James Armstrong, president of Henry H. Armstrong Associates in Pittsburgh, which invests 18 percent of its $450 million of assets in Berkshire shares.
“Policymakers continue to hope for a ’soft landing,’ meanwhile counseling other countries to stimulate (read ‘inflate’) their economies and Americans to save more,” Buffett said. “These admonitions miss the mark.”
He said the United States suffers from “deep-rooted structural problems” that will cause deficits to balloon unless trade policies are overhauled, perhaps through a new tariff plan, or a falling dollar unsettles financial markets.
This is a large bet, but not an excessive one, said Keith Trauner, a portfolio manager at Fairholme Capital Management in Short Hills, New Jersey, which invests more than 20 percent of its $1.4 billion of assets in Berkshire.
“It certainly in no way can be characterized as betting the company,” he said. “I have no idea whether Buffett is right or wrong. But I wouldn’t want to be in the regular habit of taking the other side of one of his bets.”
Anon said earlier
"And what happens when the housing bubble implodes?
We should get a raging deflation which means that cash is king".
Thats called asset deflation, which is different from monetary deflation.
In a nutshell, if housing drops 90%, they wont withdraw 90% of the $bills in circulation.
Thats called asset deflation, which is different from monetary deflation.
In a nutshell, if housing drops 90%, they wont withdraw 90% of the $bills in circulation.
Monetary inflation does not exist separate from hard assets. It is not caused by the gubmint running printing presses for paper bills.
Inflationary bubbles occur when gubmint gives out cheap short-term credit. And when the private sector inflates credit usage in response to the fast-climbing assets.
If a house is being sold for $500,000 last month but is being sold for $250,000 this month, then a dollar has doubled in value. And a huge amount of air has been removed from the bubble.
UNITED 93?
WRONG! go to google and watch LOOSE CHANGE- that will kick you in the head.
WAKE UP!!!!!!
OK anonymous. If you think that you can get away with exposing our 911 conspiracy than you don't know who you are messing with. The Tri-lateral commision has been watching your every move. Let me tell you that Dr. Rice is pissed of and will be paying you a visit as soon as she returns from Libya.
I have been following a site now for almost 2 years and I have found it to be both reliable and profitable. They post daily and their stock trades have been beating
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RickJ
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