U.S. dollar hits new multimonth low; Peter Schiff, "We are in deep deep trouble."

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]

Wow, this is the main thing I was really concerned about, above all the could be conspiracies, this will be the worst blow to America as is, I'm going to go look for the ratio's between currencies.

And again, it's a 2 against 1 scenario. The one guy is saying, hey guys if you want anything get out the other guy is saying, have 'faith' in the economy, it has to go well, it's destined for greatness, we have innovation here. Well we don't and other countries are quickly deciding we are no longer needed for a bases.

I really would like to here Celente's thoughts right now. I try to tell people you can't hope up money, if you look in your wallet and starting hoping for money, your wasting your time (unless your Rhonda Byrne ). What we need is action now, and a huge failure to get by it, we can't keep putting props under things made out of pure money, and keep watching it collapse slowly now.

It's inevitable, the defecit/debt is to friggin high, and well we've run out of money to keep building up the defecit (Crazy right).

In the end though, hopefully we get some good studies done on the smell of swines.

[edit on 23-5-2009 by Republican08]

Are we surprised that there is inflation? I have been saying all along that with the "bailouts" will come hyperinflation - when they release all those "bailout" dollars into the economy wholesale.

Most are sitting as numbers in financial institution, but a fair chunk is already trickled into the economy, and the inflation cycle begins.

Germany saw something quite similar - just before the Nazis took over. Could we be headed in the same direction? Indeed we could - and most likely so.

Oh NOW were in deep deep trouble. I thought we were deep deep trouble when i found out we have been in a war every year since WW2. I guess i have been worrying too much. But this isnt good news. Or is it? Does it mean something will finally be done?

Well what do you know bad ideas don’t actually work any better just because you have a good looking charismatic, well dressed and articulate spokesman for them.

Maybe that’s the change Obama was really promising an emphasis on photogenic government? Everyone looks good, reads their lines well, and as usual has no clue why the writers wrote what they did.

Don’t you just love Madison Avenue?

Of course we are in store for spiraling hyper inflation, anyone who could read a history book, and didn’t mind being called a racist, neoconservative malcontent, pessimist and a terrorist could have told you that.

The question is why did no one in our government tell us that?

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.

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? I don't think the US government has our best interests in mind but they are a lot smarter than we think sometimes. 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. Besides what other option does China have? Sell off all their treasury bonds and do what?

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? I don't think the US government has our best interests in mind but they are a lot smarter than we think sometimes. 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. Besides what other option does China have? Sell off all their treasury bonds and do what?

Well... Since the plan is to take over the world... "Smarter?" No, just more devious.

China is dealing with their problem of the dollar and have been heavily diverting yuan toward commodities in recent years.

Sure, they will take a hit but not as bad as we in the late, great USA will.

Keep your powder dry.

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]

It's interesting to hear what the pundits say. However, prior to the meltdown, the pundits weren't warning of a collapse. This is the scaremongering which will kill the dollar. They keep telling us to ditch our dollars, depressing the dollar even more. The problem here is that individual American's can't afford the risk of staying in the dollar, in case the dollar goes the way of the dodo.

To create a global currency, the globalists need to destroy the dollar as the global currency of choice. Into the vacuum, the IMF can instate the global currency at a ridiculous conversion rate against existing currencies, robbing the last of our individual wealth.

Don't let this happen, there is plenty of life in the dollar yet. Buy American, buy local, save local.

The dialogue in this video reminds me of the dialogue in a previous video clip where Peter was literally laughted at...

www.youtube.com...

www.youtube.com...

Somebody needs to get a clue!

as i know the OP knows-------who told us of this and foreshadowed this during the primaries------who was booed and called a nut or kook

ron paul,,, that's who!!!!!!!

who's laughing now?????? well,,, actually no one because we're all hurting but.........




still most people have no clue what this means or the possible ramifications that this could have




and i think this isn't just bush's fault or bvarney frank and H.U.D. and fannie and freddie

this is all these greedy poiliticians and all these lobbyists and big donors

it's sickening and a runaway train that won't be stopped

is there more than 4 or 5 politicians who really fight for us, the people, or even know the daily struggles of the average family who barely make ends meet or are trying to stay head above water?????


they should have to live on 50 grand a year


not,,, not knowing they own 8 houses,,,,,, i doubt he ,,,McQuyack has a clue what his average constituent is dealing with


but he ,,,,and most will be re-elected,,,,,,,,,,let's wake up


if anything i hope this crisis will get americans paying attention ,,,,,holding the hacks feet to the fire ,,,,, and getting involved or at least enlightened!!!

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