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Dollar's Retreat Raises Fear of Collapse

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posted on Sep, 14 2007 @ 09:11 PM
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Dollar's Retreat Raises Fear of Collapse


www.iht.com

A lower deficit means less capital needs to flow into the United States, and is consistent with a steady decline in the dollar. Since the middle of last year, the dollar, weighted for trade flows, has fallen steadily against a broad range of currencies, according to data collected by the Fed.

All this suggests that, in spite of headline-grabbing news about the latest low, the dollar could be adjusting gradually as the U.S. economy becomes driven less by lending on the back of rising home price.
(visit the link for the full news article)


Related News Links:
www.truthout.org

Related AboveTopSecret.com Discussion Threads:
Northern Rock shares plunge 31%, Paragon Group drops 17%
Billions in Put Options purchased betting that the market will crash (UPDATE: CALL MADE?)
Euro hits new all-time high against U.S. dollar
Wall Street hides impact of sub-prime mortgage meltdown

Mod Edit: Removed excessive copy/paste over the 500 character limit.

[edit on 14-9-2007 by UM_Gazz]




posted on Sep, 14 2007 @ 09:11 PM
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Never in the history of United States a deficit has run that high.

Please note that 80 percent of it was created under 3 republican presidents, Reagan, Bush Sr, Bush Jr.

The only ones to profit from a collapse are the bankers, so a natural question to ask is:

Who were those presidents working for?

Please pay special attention to the subprime turmoil with Northern Rock as it unfolds right now in Britain.

It has started to spill over into the broader economy.




www.iht.com
(visit the link for the full news article)

[edit on 14-9-2007 by khunmoon]



posted on Sep, 14 2007 @ 09:33 PM
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People should not be too pessimistic....

Dollar collapsed? Against what? Who are the so-called major currencies? Is it only bad?

- EURO: This currency is still VERY young, the Deutsche Mark (which the Euro mainly evoluted from) had hit an equivalent of EURO/USD 1.45 in the Mark's prime time before the Euro was introduced. So the decline of the USD against the EURO seems to be more cyclical than structural.

- YEN: Uhmmm, any collapse or decline? YEN should only appreciate against ANY currency with their "very healthy ZERO percent rate", since it is more the YEN problem than USD, what is wrong with USD?

- Chinese Yuan: This is more political, and from economic point of view? Don't forget with the cheaper RMB the American consumer kept their inflation at minimum. If you want to force an appreciation of the RMB, it will only hurt the American economy and consumers. Buy somewhere else? Even with 50% appreciation American importers will still import more Chinese goods, it will only mean American consumers has to pay 50% more for their consumer goods.

- Any other currencies of significant??? Please name some, pull up the 20-30 years chart and you most likely will notice the cyclical trend, and for some formerly/currently USD pegged currencies a stable trend, with a pike up or down.

- Commodities? World economy is running well, huge countries on the rise increasing demand for commodities, OF COURSE it will rise, USD is used as the benchmark, which means American consumers increase in Gasoline price is roughly double the increase of European consumers. That indeed hurt, but it is not a USD issue, people are still using USD to trade. You have to worry if people don't start to use USD to trade. (Iran should not be used as a benchmark)

---> No I don't see the USD collapsing at all, it's not the end of the world anyhow, at most USA will be pulled into a few years recession, and policy makers should face the real problems. So stop spending billions in unneccesary wars, make more stricter credit lending rules to protect consumers, shake up the authorities (just layoff all corrupted power hungry indidviduals aka Bush), revamp government's accounting and administration with CAPABLE people (you have PLENTY, the brightest minds are coming from American Business schools! So how hard it is to make a budget with profit?).

Maybe people should look at opportunities during the current downwards trend instead of mourn and worry too much about the country to reach End of the World....for example, expect to see your Export industries to do even better than ever!


[edit on 14/9/07 by IchiNiSan]



posted on Sep, 14 2007 @ 11:43 PM
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Originally posted by IchiNiSan
You have to worry if people don't start to use USD to trade. (Iran should not be used as a benchmark)


You might be right about Iran, but what about China? Not sure if they switched to EURO, llke they've said they inteded to. Holding US bonds makes them think twice maybe.

Your analysis is impressive, but I do think there are reasons for worry.

BTW, Greenspan's memoir is out in a few days, take a look at what he says.



"The Bush administration turned out to be very different from the reincarnation of the Ford administration that I had imagined. Now, the political operation was far more dominant,'' Greenspan, 81, wrote in "The Age of Turbulence: Adventures in a New World.'' The book, an advance copy of which was obtained by Bloomberg News, is scheduled for publication on Sept. 17. The Wall Street Journal published an account on its Web site yesterday after buying a copy at a New York-area bookstore.


Please visit the link provided for the complete story.


Bloomberg has two reports about his memoirs. above snippet is from this one.

In the other he predicts a quarter century of inflation.

To me it all looks like history repeating itself.




[edit on 14-9-2007 by khunmoon]



posted on Sep, 14 2007 @ 11:55 PM
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Check out this video made by a day trader...
beware of the bad language - he is REALLY upset
about the collapse of the dollar.

Great information and drama !

www.tickerforum.org...






posted on Sep, 15 2007 @ 04:42 AM
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Originally posted by Ivanova
Check out this video made by a day trader...
beware of the bad language - he is REALLY upset
about the collapse of the dollar.
Great information and drama !
www.tickerforum.org...

Heh, yeah it was quite hilarious, it was like listening to Alex Jones getting all stirred up. Good fun! But notice he has a new update and the dollar has since recovered to pretty much where it was. He was getting all worked up over nothing!



posted on Sep, 15 2007 @ 05:08 AM
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There is an interesting OP/ED on bloomberg about this.

A strong EURO is a good reason for China to dump the Dollar.

Rising Euro Is What China Needs to Dump Dollar: Andy Mukherjee





Sept. 14 (Bloomberg) -- Juxtapose China's latest trade statistics with a strengthening euro and you get a very real possibility of significantly quicker appreciation in the yuan against the U.S. dollar.

With more Chinese goods now landing in the European Union than going to the U.S., the authorities will probably put a greater premium on retaining export competitiveness in Europe.


Please visit the link provided for the complete story.


Bloomberg



posted on Sep, 15 2007 @ 11:47 AM
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Here's on next weeks Fed meeting:

Dollar Little Changed Against Euro Before U.S. Rate Meeting


The U.S. currency has lost 4.9 percent against the euro this year as investors bet slowing growth would push the Fed to trim borrowing costs from 5.25 percent while the European Central Bank may need to raise its 4 percent benchmark further to tame inflation. Lower rates dim the allure of dollar-denominated assets.

Please visit the link provided for the complete story.


An earlier versiom of this article had a paragraph about China now exports more to EU than to US, and that the Yuan had fallen against the Euro but risen against the Dollar.



posted on Sep, 15 2007 @ 03:04 PM
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The Canadian Dollar was trading a little above 97 cents today.

just last year the Canadian Dollar was worth 62 cents U.S.



posted on Sep, 15 2007 @ 03:33 PM
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the trade deficits, the credit expansion bubble...are truly 'factors'

but the ongoing $13 Billion per month poured into the Iraq fiasco
is the primary element in the undermining of confidence of the USD

(the $13 Billion$$, is only the 'acknowledged' amount, we can only guess at the actual/true Amount...which contributes to the inflationary & value depressing pressures on the USD)



posted on Sep, 15 2007 @ 03:43 PM
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The US dollar is only worth $1.02 to Canada.

This is not good. Canada is a resource nation, the US is our main buyer, it's in our best interest to keep the Canadian dollar below the US's, otherwise they can't afford to buy from us.

In Canadian stores, the US dollar is only worth 99 cents... continuing to fall.



posted on Sep, 15 2007 @ 04:08 PM
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reply to post by johnsky
 


Compared to the US dollar, the Cdn dollar is at about the same level it was in /77. With nations threatening to switch from US currency to the Eurodollar.
As well as, the US spending more than trillion at this point in the effort to remove Sadam, create an Iraq Democracy gov and remove the insurgency, I don't see anything other than a steadily rising Cdn dollar for some time to come.

Dallas



posted on Sep, 15 2007 @ 04:29 PM
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Thanks Dallas.

I just got back from the Beer store, it's down even further now. To stores in canada, the US dollar is now only worth 97 cents.



posted on Sep, 15 2007 @ 05:03 PM
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Originally posted by johnsky
Thanks Dallas.

I just got back from the Beer store, it's down even further now. To stores in canada, the US dollar is now only worth 97 cents.


Seriously?

I was unaware the Canadian dollar was going THAT strong.



posted on Sep, 15 2007 @ 05:15 PM
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When it comes to the way the Canadian economy works, a strong dollar really doesnt suit the word "strong".

If our currency is worth alot, our economy suffers... we don't want our currency to surpass the US currency... we are a supplier, not a buyer.

It's not really the Canadian dollar thats doing well, it's the US dollar thats performing poorly.

If it were the CDN that was climbing, then I wouldn't be worried about our economy... but the USD collapsing means we just lost a HUGE client.

[edit on 15-9-2007 by johnsky]



posted on Sep, 15 2007 @ 05:24 PM
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Originally posted by infinite

Originally posted by johnsky
Thanks Dallas.

I just got back from the Beer store, it's down even further now. To stores in canada, the US dollar is now only worth 97 cents.


Seriously?

I was unaware the Canadian dollar was going THAT strong.




The Canadian dollar is not strong per se. It is strong relative to the USD because on the world markets the greenback is getting slaughtered.

We also have a lower deficit per capita, and a ton of resources to offer, but we are still bound to the American economy. Your down turn will probably be felt here in another 8 months or so, and we will probably slow down, since the US is our largest trading partner.

Once the American consumer stops buying our goods, we are pretty much screwed.

We have had a series of inflation fighting measures courtesy of the Bank of Canada, and they have been doing a rather decent job in keeping "core" inflation from balloning out of control. By systematically raising rates here, the Bank has more or less engineered a stable long term rate scenario.

On the short side, all bets are off. I am looking for a spike in the next year, and it will hurt a lot of people. We don't have the subprime hassles the Americans do, but alot of mortgages are maturing in the next couple of years. Watch for bargains.

Cheers!



posted on Sep, 21 2007 @ 11:14 AM
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[dbble post.. again. damn.
dear mods, its without me doing anything, but uploads relly slow now]

[edit on 21-9-2007 by khunmoon]



posted on Sep, 21 2007 @ 11:17 AM
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Dollar Falls to New Low Against the Euro


Investors dumped dollars yesterday, sending the euro to a record high and putting the American currency at par with the Canadian dollar for the first time in more than 30 years.
[---]

One euro now buys $1.4065, the first time in the common European currency’s nine-year history that it has crossed the $1.40 mark. And one dollar now buys $1.0008 Canadian dollars, the first time that the two currencies have traded that closely since late 1976.

The American currency fell nearly 1 percent against a basket of six major world currencies yesterday, and is down 8.4 percent in the last 12 months. The American stock market fell modestly yesterday after posting two days of gains.

Many traders and economists predict that the dollar will weaken further because the American economy is expected to underperform its biggest trading partners for some time. “The market is pricing in a shift in Fed policy downward, and the rest of the world is not matching,” said Carl B. Weinberg, chief global economist at High Frequency Economics. “That can only mean a cheaper dollar.”



Please visit the link provided for the complete story.


Congrats to Euros and Kanucks! If there's anything to congratulate.

This means higher oil prizes, with more speculations, more desperation.



posted on Sep, 21 2007 @ 11:18 AM
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i hate watching CNN but I also caught this morning that they are issuing new 5$ bills next week, it said more colorful and a change

not sure what it meant or if any pic floating online

wonder what will happen next with everything else going to #



posted on Sep, 21 2007 @ 11:57 AM
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The decline of the dollar and the decline of our nation, once a strong industrial base is all connected.

As we become a nation of spenders and dependants of foreign goods because we no longer can maintain our own production and compete with our foreign counterparts we are dipping more and more in a hole.

The elites that had made possible for this downfall of our nation, the profiteers, now control our wealth.

Our prosperity is nothing but an illusion prop by credit card debt and manufactured interest rates.

The biggest mistake that our nation allowed corporate America to do was to take away our once moneymaker in the industry business and let them take it to the third world countries we now depend on.

Our Bankers are communist China and Japan and Japan cannot afford us anymore. Now China holds our fate and our dollar.

This is what we have allow our governments to do all in the name of capitalism but their type of capitalism is making us American citizens of this nation slaves.

Capitalism once was control by the people and individuals of our nation and made our nation the richest in the world and the population had a good living and benefited from it.

Now capitalism is control by the elites that had taken over our system of government and our nation.

They don’t care about you me or regular joe they are after themselves and screw the people.


[edit on 21-9-2007 by marg6043]



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