U.S. dollar hits new multimonth low; Peter Schiff, "We are in deep deep trouble.", page 1
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Topic started on 23-5-2009 @ 03:41 PM by David9176
TORONTO - The American dollar kept falling Friday, notching fresh multi-month lows against the loonie, euro and pound over concerns that the massive U.S. deficit may drag down the country's credit rating. BMO Capital Markets deputy chief economist Doug Porter said the sudden intense focus on the U.S. credit rating - following a warning that Britain's rating is in doubt because of its government's heavy debt - has driven the greenback to its low for the year "As well, the dollar is also rapidly losing its safe-haven appeal, as global credit markets continue to gradually heal, and investors become ever more confident that the worst case scenario for the global economy has been averted," Porter wrote in a note to clients.

Major holders of U.S. debt, such as Middle Eastern sovereign funds and the Chinese government, have not been shy about calling the United States out for what it sees as policies that will trigger inflation, shrinking the value of their U.S. Treasury holdings. The Fed in March said it planned to buy up billions in long-term Treasurys and $1.25 trillion in mortgage-backed securities, flooding the money supply. Earlier this month, the Obama administration hiked its forecast for this year's federal deficit to $1.84 trillion. The deficit is approaching $1 trillion for the budget year that began Oct. 1.


ca.news.finance.yahoo.com...

Peter Schiff talking about this on CNBC...also a nice graph at the beginning of the video for you to see how the dollar has fallen the last few months. The others in the video are still in denial on what is happening...it's grown quite comical that these freaking idiots don't get it yet....



So are we on the grips of inflation? Has anyone noticed a rise in prices other than gasoline?

How soon are we going to feel the effects of this? It's too bad my hourly wage won't keep up with inflation....

Damn government...THANKS A MILLION!

[edit on 23-5-2009 by David9176]

[edit on 23-5-2009 by David9176]


reply posted on 23-5-2009 @ 04:38 PM by Republican08
reply to post by Amaterasu



I've said that before, the whole pre-nazi germany, and on here, and in real life (not a big difference between the two) and people look at me like i'm crazy, the typical america always has been and always be the greatest country in the friggin universe!

I see a few links, and honestly I wouldn't be the least bit surprised, upset yes.


reply posted on 24-5-2009 @ 07:54 AM by cpdaman
Listen i don't like the way the shills on MSM act or treat peter......... Ok but that doesn't mean that BECAUSE they are always wrong and rude .....that peter is right ........there is alot of room in between

the dollar is falling A BIT....it may fall a little further

tales of the dollar's death have been greatly exaggerated, especially by shiff...............yes the Economy is in big trouble....but the currency.....nah not yet............

People cheer abit to easily for anyone calling the MSM anchors moron's (though they are) .....they have to be deceptively hopefull i.e bullish

but the dollar index is weighted relative to OTHER CURRENCY's ....NOT in a vacume the EURO, YEN, POUND make up the biggest % of the dollar index and their economy's aren't DOIN' too hot either.....

this is not inflation (in a monetary sense) it is simply a weaker bout of price inflation that we experienced last summer when oil prices went sky high (this summer i say they get to 3$).....

should the banks start lending then we have the chance of inflation....the money multiplier effect (from fractional reserve lending) would grow the money supply fast....but they are cutting lending......

the bond markets are rising (which many love to claim is due to "inflation") but it is more like bond markets getting back to a "unsurpressed" level....b/c we can fund the amount of spending we need......b/c buyers have their own country's problems to deal with

Look everyone knows MSM anchors deceive.........but this guy shiff has bet his reputation the dollar will tank.....and he takes every opp. to claim he is right about this......^and because people know the MSM lies....they believe that he is somehow telling the truth b/c he doesn't agree^ i don't think it is that simple.........ok so that all with the dollar and shiff

now to "hyperinflation"

everyone and THEIR mom has been harping about a Big bad inflation.....I don't see it happening in 2009/10

we have 2 trillion in tangible paper (money)/debt backing up 50 trillion in Computer (money) credit/debt........how do you hyperinflate that total supply.............credit already had been extremely inflated (hyperinflated) and it flowed into asset bubbles (not consumer goods).....they collapsed last year

the fed has spent trillions trying to prop up the value of the computer (money) credits/debt that people lost confidence in ......

So either the definition of hyperinflation is wrong/over generalized/ or doesn't quite apply to the USA (or country's where electronic debt outweight paper debt by 25 to 1! (b/c it assumes the money supply (credit and paper) is rising at the same time people lose faith in the dollar).......when in fact the most likely thing i see is the Credit side of the money supply falling by a "rate of 10" while the literal money printing side rises by a rate of "1 or 2"................say other country's switch to euro's or gold or yuan........the dollar's confidence would go down....but the money supply would not be going up....(when ELECTRONIC credit outwieghs Tangible paper by 25 to 1!!!!....the only way to grow the money supply is thru continually expending LENDING./ ....) ...i don't think the traditional definition of hyperinflation apply's to the USA system or any system when the money supply consists of 25 $ of electronic credit/debt for every 1 $ of tangible green dollar /debt

obe1, st udio, rockpuck, anyone what am i missing



[edit on 24-5-2009 by cpdaman]


reply posted on 26-5-2009 @ 01:47 PM by StellarX
Originally posted by Zosynspiracy
Have you guys ever thought that massive US inflation might be ruinous for our country economically but would also keep China in check and destroy much of their wealth?


Hi Zosyn,

Sort of like shooting yourself in the leg to spite your 'boss' or something, right? I would argue that while the Chinese would not much like added inflationary pressure on the dollar it's not nearly as big a problem to them as they still have the manufacturing base and could at least in theory redirect some of consumer goods to their own markets by redirecting their trade dollars into stimulating their own consumers base which isn't so utterly flooded and over sold. Then again the Chinese government seem to be playing both sides against the middle ( their own citizens) so one wonders just how much wealth and economic independence they wish to grant their citizens in the short term just to 'efficiently' use their dollars.

I don't think the US government has our best interests in mind but they are a lot smarter than we think sometimes.


No they don't have your best interest in mind and if you will believe some commentators their open support of the financial elites ( the bailouts over the last few months) and long incestuous relationship with corporate power are openly destroying the consumer ( middle classes) of the world. As for being smart there are, sadly for us, plenty of highly intelligent criminals both in and out of government.

The economy is a very powerful tool and with countries heavily invested in the dollar their ability to manipulate it gives them a lot of control over other countries.


Yes. The current economic crisis has much to do with the imperial power ( economic trough military&intelligence muscle) who have managed to force much of the world into a economic system that requires the usage of dollars thus creating a need for dollars all over the world; you can print them without inflationary effects.

In essenece the entire world has been subsidizing the relative prosperity of the US consumer.

Besides what other option does China have? Sell off all their treasury bonds and do what?


Well they wont sell them but they wont have to as their goods are still highly competitive on the world market that can't stop buying just because a global recession is happening. Fact is whatever inflation does happen will probably be more than offset by continuing Chinese export sales.

There is no point for the Chinese to try to sell off their dollar assets now when they can and are in stead using those to buy up massive volumes of metals ( to fuel their next expansion cycle; in good part responsible for the rally on resource heavy stock exchanges) at the current cheap prices. It's always good to have money when others don't and the inflationary pressure on the dollar created by further expansion of the dollar money supply can easily be dealt with astute investment of their dollar reserves.

Stellar
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