Dollar-ditching of Time

The inability of the Fed to raise rates along with the rest of the world is more bad news for the flagging dollar, and investors everywhere should pay attention. It now makes more sense to get out of the greenback and park money in higher-yielding currencies, since foreign-currency deposits will earn more in interest and could make additional foreign-exchange gains.

www.time.com...

I can't agree more, BUT makes me worried that the media is caught onto it.

reply to post by kenji4861


Its not that they have caught on.. its that its so obvious they couldn't afford to pretend nothing was happening..

The Dollar has been in continuouse decline since the .com burst.. imo, historians will look back on the .com burst as the begining of a series of severe recessions/ depressions that will eventually this century mark the end of American dominance.

reply to post by kenji4861


Not caught on to it. More like promoting it.

Besides, this was the plan all along.

The writing is on the wall. Here in the UK, in the last 6 months, there have been an increase in the amount of commercials on the television advertising to buy unwanted gold. I mean they are everywhere on every channel at all times of the day. Someone somewhere is using the financial situation to relieve people of gold they don't think they want or need. Very crafty.

I think the US is worried that if they lose the dollar as the global trading currency, the US will be little more than an afterthought in the international arena. What else to they have to offer the world besides invisible money and war? Their illusion is coming to an end, and pretty soon they wil be in no position to play the bully any longer. They'll be the laughing stock.

Originally posted by quackers
The writing is on the wall. Here in the UK, in the last 6 months, there have been an increase in the amount of commercials on the television advertising to buy unwanted gold. I mean they are everywhere on every channel at all times of the day. Someone somewhere is using the financial situation to relieve people of gold they don't think they want or need. Very crafty.

I think the US is worried that if they lose the dollar as the global trading currency, the US will be little more than an afterthought in the international arena. What else to they have to offer the world besides invisible money and war? Their illusion is coming to an end, and pretty soon they wil be in no position to play the bully any longer. They'll be the laughing stock.

Do you believe the UK will fare any better? Honest question. It's easy to point fingers at the US, but what exactly does the UK have to "offer the world" these days? True, they aren't as overtly aggressive as the "Yanks," but it seems to me the UK is a paper empire, built on hyper-financialization and sagging real estate...just like its old colony on the other side of the pond.

reply to post by silent thunder



No, the UK will go down the plughole just the same, mostly due to our "special relationship" with the US. Partners in crime and all that. I just wonder how bad it will get before we (the UK) realize that dealing with the US is no longer in our best interests as a nation (if it ever was). We'll either cut our loses and run or be utterly ruined. Things do not appear to be as bad in the UK as they appear to be in the US however. We've got the economic slow down and higher unemployment, but our problems do not appear to be as critical as the US yet.

When all is said and done, we get what we deserve.

What I wish we could all tell is when this doom is going to hit. You know like is the dollar going to fail any time soon? How long do we think this process will take? I for one wish ats had a doom scale like the American terrorist threat scale. That would be nice, so I know the appropriate level of doom for the day and I can plan accordingly.

But really can a drop of .54% be that bad?
DXY

75.57

Change
-0.41 -0.54%

Would it have anything to do with gold? At the rate people seem to be buying it up, it cannot be that long. I was hearing the other day that Germany was requesting that the US return it's 3000 tons of gold reserves, and that they were just the beginning. Does the US even have their gold? Have they squandered away gold that did not even belong to them? Will Germany need to pull a DeGaulle only to find out the US has spent their gold on the Afghan war? Who knows, but it will be interesting to see.

reply to post by quackers


We have reserves! You want to know how I know. The government tells me so. Obama MMMMM'mmmmm MMMMM'mmmm yep I can feel it coming in the air tonight. (Blatant Phil Collins reface)

en.wikipedia.org...

Originally posted by Rockpuck
reply to post by kenji4861

 

The Dollar has been in continuouse decline since the .com burst.. imo, historians will look back on the .com burst as the begining of a series of severe recessions/ depressions that will eventually this century mark the end of American dominance.

the rise of LTCM & then it's bust set the stage for the dot com boom-bust,,
then the various derivatives that could be created and foisted on a (just as) greedy public....

Long Term Capital Management was born in the 'End of Big Government' climate, & the regulating structures that allowed the US economy to avoid another Great Depression began to be cast aside as antiquated & stale policies.... after all the modern economists preached there would never be recessions ever again ! were you all around then? 1994-1998 -

Originally posted by ashnomadonte
But really can a drop of .54% be that bad?
DXY

75.57

Change
-0.41 -0.54%

But it's dropped from 89.62 just since March. That's 15 percent in around 9 months or an annual rate of 20%. A currency dropping at an annual rate of 20% is DRT. Dead Right There.

reply to post by ashnomadonte


But who's gold is it? Is it Americas gold, or does that gold belong to everyone else? If very little of it is Americas and everyone asks for their gold back, or even demands it back, what then? What ever value was proping up the remnants of the economy will be gone. If the US decided it doesn't want to start giving other countries their gold reserves back, then that is a very serious issue, indeed a cause for war no?

reply to post by mythatsabigprobe


First off love the avatar! And secondly thank you for putting the doom in to prospective for me.

next question if I may be so bold, is should I convert my usd in to EUR or GBP which market is more stable I mean if I want to get the best exchange rate should I wait or convert now?

reply to post by quackers


You pose a good question, the short answer is I don't know and as for countries asking for their gold back well what will we do when they want it back NOW, like yesterday?

Originally posted by eldard

The inability of the Fed to raise rates along with the rest of the world is more bad news for the flagging dollar, and investors everywhere should pay attention.

All the FED has to do is allow the 100s of billion$ that the banks have on hand to be circulated in the open markets.

right now all these banks have the FED supplied monies sequestered within the Bank-Fed. closed-circuit... where the banks borrow from the Fed at .25% then buy Treasuries at 3-4% and have a guaranteed income flow from the ~interest spread~ arrangement, so as o build up the various banks balance sheets.

in an Overnight instant, the FED could tell the banks to release all those 100s of billion$ into the public markets, which would renew the credit rate/interest rate expansions ...

The FED has their hand on the economic spigot, and right now the money Tap is only dripping enough to keep strategic entities from bankruptcy...
at the FEDs whim, the money will flow again and we will return to the old predatory madness that's out-in-the-open instead of the covert manipulations of culling the small & local/regional banks from the power structure.

[edit on 14-10-2009 by St Udio]

Originally posted by ashnomadonte
reply to post by quackers

 

You pose a good question, the short answer is I don't know and as for countries asking for their gold back well what will we do when they want it back NOW, like yesterday?

How about Uncle Sam puffing out his chest, with a handful of nukes clearly seen behind his back....saying in a stern voice,

I just can't do that right now...go sit back down in your seat

Originally posted by ashnomadonte
reply to post by mythatsabigprobe

 

First off love the avatar! And secondly thank you for putting the doom in to prospective for me.

next question if I may be so bold, is should I convert my usd in to EUR or GBP which market is more stable I mean if I want to get the best exchange rate should I wait or convert now?

The time to do that was ideally in March. I would be wary about bailing on the dollar now because very soon the Federal Reserve may be forced to intervene and you could easily see the dollar recover a good percentage of the loss. Unless you have a very large amount of cash on hand, I don't think you'd gain anything by converting it now.