The dollars still going down...

Maybe as Dragonrider said, this is a reason behind the middle east war....

HERE

A further rapid decline in the dollar would require concerted action from governments and central banks, the managing director of the International Monetary Fund (news - web sites) (IMF) Horst Koehler said in a newspaper interview.

The dollar has lost around 30 percent of its value against the euro within the past year and Koehler told the business daily Handelsblatt such a development was no surprise given the United States' huge current account deficit.

"On a trade-weighted basis, the depreciation is around 16 percent. That's still within limits and should come as no surprise given the huge current account deficit of the US," Koehler said.
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www.washtimes.com...

Heres another one....

I'm not a government economist, so who am I to give advice to Alan Greenspan and his policy- making buddies on the Federal Open Market Committee.But if I could advise them, I'd encourage them to look down into the trenches and gauge the growing frustration and fear that seems to be permeating growing numbers of Americans. Talk to people who have been out of a job for a year or more, the ones who have slipped off the statistical radar screen into the sea of discouraged workers.Spend some time with senior citizens whose savings are quickly being depleted.Or chat with some former dot-com honcho turned cab driver about his fall from expense account heaven into zero-balance, 401(k) hell.


If one likens this economy to a pyramid, the foundation of which supports the entire structure, then it is time to begin focusing on the material that makes up that foundation.That material is not housing, it is not consumable goods, it is not factory orders, it is not productivity, nor is it any other government concocted statistic that can be easily manipulated by some politically driven bureaucrat.And it certainly is not interest rates.It's jobs — reasonably well paying, secure employment opportunities for the vast majority of Americans who want nothing less than to work toward the American dream.If that comes with a bit of inflation, so be it.If that means a rise in interest rates, so be that too.


[Edited on 29-5-2003 by Netchicken]

Indeed, there does appear to be something to the monetary reasoning for the mid east war.

I would interpret this as the next counterattack by the EU against the US in retaliation for what we did in Iraq. It would appear that through international banking manipulation the EU is doing the next best thing to stealing the bulk of the world monetary hard asset backing... they are doing thier best to sabotage the US dollar in an attempt to make a switch by OPEC even more attractive.

I would propose that this will only lengthen the stay of our military in the mid east as a direct military threat to OPEC in the event that they start getting any bright ideas about switching currencies.

What are some ways/things the government can do to help the dollar be as strong as it once was?

Well right now its being controlled by market games and manipulation by large financial institutions.

1. Stop borrowing so much damn money. reduce spending, reduce borrowing.

2. Stop exporting production, start making more crap here at home, start exporting more than we import.

The dollar is going to keep going down. Some believe that this Iraq war was started in order to fend off the coming dominance of the Euro and the European Communities growing economic strength. I can't help but feel, if that was their intention, that it had the exact opposite effect on the dollar. Time will tell.

I have said before in other threads that the war in Iraq was the opening shot of the 2nd great Cold War... this will essentially be an economic war fought between the US/UK and the EU.

This manipulation of the dollar is simply the EUs counterattack.

Manipulation? What do you mean?

The US Dollar is being artificially depressed in value in order to hurt the US economy. This is the right timing to attempt to hurt the economy severly around the time of election 2004, in an attempt to get Bush out of office. Considering that the most likely opponent is Kerry, who is also a known Skull and Bones member, I am wondering if Bush did something to fall out of favor with the Cabal....

Welcome to financial warfare.

I'm not entirely sure as to how Skull and Bones or for that matter, the Boy Scout movement can "artificially depress" the doll;ar from a purely American basis. We have seen enough of examples of governments formally and opened pledged to manipulating their currencies, all of whom have failed wretchedly: ask the South ASmericans or Britain in Thatcher's time.

Also, the question of the dollar's decline internationally will reveal little unless we look at which other currencies are rising, and which ones are not.
The "dollar peg" has also to be kept constantly in mind if we are looking at international issues.
There is little to suggest that secret powers in the USA could do this on their own.

There is little to suggest that secret powers in the USA could do this on their own. Posted by Estragon

Ah, but the problem with this is that the secret powers are not American, for the Cabal is international. Indeed, the largest share of the Cabal power structure is European. Hence, the European influence cutting the dollar value.

How would somebody "Artificially Depress" the dollar value?

through the selling of huge amounts of US$ on the international markets and buying of said Euros.

[Edited on 30-5-2003 by cassini]

As soon as the dollar appears to be weakening it is siezed on by currency speculators as a trend.Dollars are sold on the expectation that it will continue to weaken and the Euro continues to strengthen.

I can't understand the theory that the EU are somehow manipulating the Euro/Dollar exchange rate.
First of all the EU is not made up soley of the USA's "Enemies".The financial policies of the Euro-zone are driven by a need to keep a number of diverse sub-economies ticking over.Forming a policy that can work in ,say,Greece and Eire confines the European Central Bank.What I am trying to say is the Euro Bank has a lot less wiggle room than most might imagine.
A year ago the UK sold over half of it's Gold reserves and bought Euros.
The Euro has been finding it's level since it's introduction.It was seriously undervalued at first.

The reason,to my mind,that the Dollar is weakening is because despite a fairly weak European economy the US economy is far weaker.
Some of the reason for this may be the natural economic cycles that all countries experience(Remember the US economy has experienced a number of years of record growth and a downturn was due).The other reasons are the Economic policies of this present Administration which have ignored the growing signs of the downturn.Huge Budget increases are being paid for by borrowing this will lead to interest repayments but the budget increases look set to increase over the years and so more and more will have to be borrowed and as this happens a greater percentage of US income is swallowed by interest repayments.
Trade deficits again decrease the money in the pot.
Tax cuts again decrease the money in the pot.

I am not an economist(Perhaps Cassini who works in the City could comment on what I've written)but I think it is fairly obvious why the Dollar is weakening.

One way to counter this is to create captive markets.Iraq is now a captive market.The investment made by prosecuting the war should,in part,be recouped by American corporations which should filter the money back into the US economy.This is called "Trickle down economics".The danger comes if less money comes back than they thought.

As I said I have no qualifications on this subject and so this is only my opinion.

I think JB said it pretty well but I think of it like this:

America Corp. has once again (second/third year) published poor economic results. Core industries have been under performing and its clear from recent events (Enron etc) that its internal audits do not work, undermining investor confidence. The CEO (G bush) is seen by many as undermining the stability of the corp, as his policies are somewhat bullish, in an unstable market place. A new CEO may go some way to restoring investors confidence in its stock (which is rather quaintly called the dollar). Its current account defecit is so big most people blink and have to check the dictionary to see if the number really exists. This kind of overdraft should be enough to send most companies under but amazingly it keeps getting bigger (back to the CEO on that one I think)

However, america corp has a new market place rival. Euro Inc. Euro Inc is a newly formed company made of up some of the worlds finest blue chip companies (France Germany etc). So whilst the economic data may be no better for Euro Inc, its clear that for investors the more stable bet is the newly formed organisation. A small current accout defecit, stability in the job market and the excitement of sizable competitor able to compete with america corp. Since the dollar has been used as an international standard for so long it has never really had a proper competitor, now it does.

Before there was really no where for the money to go (anyone wanna put money in Yen??????) now there is. Face it guys your company is under performing the CEO sucks and for some reason you owe a BIG fat wedge of money.

This has nothing to do with Cabals or the old European, (although I`m betting some of them are dancing with glee about America at the mo.) you are simply doing a wonderful job of screwing it up yourselves.

Personally I`d be electing a new CEO.....

(probably a democrat, those guys seem better with money than the repubs, may be the repubs keep giving lots of it to their own companies and cronies and the demos really are sweet nice guys and gals, sorry private rant)

I`d think that 9/11 was the last straw, it had the intended effect of destabilising the US economy. What better way for a bunch of terrorists to attack the one world super power and how else could they really expect get a result

I`ll put my money where my mouth is...if theres a change at the top I reckon the $ will regain up to 20% of its value (if not more) another term with Bush and that great big hole called the defecit will grow another 10/20%.

50$ says I`m right. whose game????

By that time, $50 will be equal to, what? 5-10 Euros?

There's a sense in which dollar-euro parity is about right and in which the euro is clearly "over-valued"; but at the heart of this is the international statuse of the dollar as a store of value. We have seen a ruch to gold (and absurd miscalulation by US and UK as far as selling gold was concerned) and little blips like great demand for the Swiss franc; but gold is finite and if the euro supplants the dollar as a store of value than there will be grave consequences for the US economy.

And as a totally separate -though clearly related, issue, one can never ignore the unusual relationship between the Fed and money supply: at present, the US simply has a different set of rules (if there are rules) from the rest of the free market economy.