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Strange Meltdown

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posted on Oct, 27 2008 @ 10:17 AM
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Over the past couple of months we have all seen the world markets sink into never before seen losses. Percentage wise it has been worse, but in dollar worth it's astounding.

I realize that these losses are mearly the imaginary profits from the last boom, but it seems that this world meltdown has hit every country in a way that does the most damage. Let me explain my opinions on the matter and I would love feedback to see if any of my points are valid.

Japan has had it's currency inflate as of lately. Why would this be of concern for a major exporter? Well it seems that the best way to cripple a country that is stronger than most economically through manufactured goods is a rising dollar or Yen in this case.

TOKYO, Oct. 27 (UPI) -- The Group of Seven nations said Monday the sharp appreciation of the Japanese yen against other major currencies can adversely affect financial stability.

Acting on the request of Japan, which has seen its export-driven economy hit by the rising yen, the G7 in an emergency statement warned, "We are concerned about the recent excessive volatility in the exchange rate of the yen and its possible adverse implications for economic and financial stability,'' Kyodo news service reported.

The yen has risen sharply against most major currencies, including the U.S. dollar and the euro, making Japan's exports cost more. This has caused the Tokyo Stock Exchange to nosedive in recent sessions.

Source

Is this just an oops..... bad luck guys..... who'd a thought your dollar would inflate that much? Or is they're currency being hyped up to do the most damage?

My next is example is for my home country Canada. Banks have been rated best in the world to handle this crisis, but it's currency has been nose-diving for quite some time after being valued higher than the US dollar a couple of months ago.

Canada's Currency Falls to a Four-Year Low as U.S. Dollar Rises

By Chris Fournier

Oct. 27 (Bloomberg) -- Canada's dollar fell to the lowest since September 2004 as its U.S. counterpart strengthened against most of the world's major currencies.

The Canadian currency is headed for its worst monthly fall since at least 1950, depreciating 17 percent since Sept. 30, as commodity prices and stocks have declined. Crude oil, which weakened to the lowest since May 2007, accounted for 10 percent of Canada's export revenue in 2007. The U.S. is Canada's largest trading partner.

``Markets are still trading in a risk-averse environment and that seems to bode well for the U.S. dollar,'' said Dustin Reid, director of foreign-exchange strategy at RBS Greenwich Capital Markets Inc. in Chicago. ``The Canadian dollar will probably continue to be offered against the U.S. dollar as long as equities trade softly and commodity prices continue to fall.''

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A lower dollar is great for manufacuring, but over the last year or so, manufacturing companies have left town and aren't as big as they used to be. With this new lower dollar all the prices of imports are already on the rise and IMO in a global economy where most countries have learned to live off of imports this will add to the problem globally. Increased cost of goods means reduced purchases, and so on.

A lot of countries are in the same situation as this but to me, it seems that every country you hear about is getting hit where it will have the worst impact on the global economy.....

Maybe I just spend too much time on this site and I look into things too much to see conspiracy, but this situation seems like a set up for definate failure.......... anyone else?




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