Comments on: Is the buck back? http://blogs.reuters.com/great-debate/2008/10/31/is-the-buck-back/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Marek http://blogs.reuters.com/great-debate/2008/10/31/is-the-buck-back/#comment-348 Tue, 04 Nov 2008 10:22:38 +0000 http://blogs.reuters.com/great-debate/?p=198#comment-348 I agree with printing of FIAT will lead to inflation at the end, however curently the trend de-multiplication of deposits is accelerating

multiplication is a process when USD 1 deposited with the bank is multiplied by the banking system, and USD 9 new dollars are created out of thim air, with all forced repayments of margin loans etc. and brake on all new loans this multiplication process has halted and actuallyreversed into opposite process, while everybody is wandering where are these dollars disappearing, FED can not print trillions in such a short time

as demultipication of USD currency is progreesing the most, this creates enormous short term demand for USD currency at the moment

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By: brian mcnamee http://blogs.reuters.com/great-debate/2008/10/31/is-the-buck-back/#comment-339 Tue, 04 Nov 2008 04:47:32 +0000 http://blogs.reuters.com/great-debate/?p=198#comment-339 what a joke! comparing fiat money with another fiat currency. did you notice our money has gone up at the same time they have monetized 2 trillion in bank bailout/garauntees, the real value of money is what will it buy..ill bet grocery prices are going up no matter whos monopoly money you have.

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By: Leigh http://blogs.reuters.com/great-debate/2008/10/31/is-the-buck-back/#comment-334 Tue, 04 Nov 2008 02:57:23 +0000 http://blogs.reuters.com/great-debate/?p=198#comment-334 I don’t understand this constant desire for a weak currency. How low do you want it to go? Is 70 percent lower than it is now a reasonable target?

Boeing has certainly killed Airbus because of dollar weakness, but relative to the American domestic market for cars, the foreign demand for Chryslers and Cadillacs is negligible. I am an Airline Pilot and I can tell you that Boeing builds a better aeroplane, as to the desirability of Chryslers and Cadillacs, you can decide.

Relying on a deflating currency encourages domestic producers to be lazy instead of encouraging innovation. The US still has to source its raw materials from foreign suppliers and components for end products are sourced from abroad in huge quantities. Net net there is no great change in the bottom line. If you won’t innovate then you tell your employees that wages have to be cut to compete with the countries that have an even weaker currency, like China, India or maybe Bangladesh. The wages bill goes down but the employees have trouble meeting their mortgage payments. That straegy has worked out well hasn’t it?

If the US economy is in bad straits after five years of constant dollar depreciation, where is the evidence that it is a good thing?

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By: ehswan http://blogs.reuters.com/great-debate/2008/10/31/is-the-buck-back/#comment-328 Tue, 04 Nov 2008 00:38:09 +0000 http://blogs.reuters.com/great-debate/?p=198#comment-328 SMALL PICTURE STUFF. Big picture: This is not about the global “economy” (literal mosnomer), nor our various fiat currencies. This is about running up against the limits of the of the planet.

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By: Mamoon Kundi http://blogs.reuters.com/great-debate/2008/10/31/is-the-buck-back/#comment-312 Mon, 03 Nov 2008 19:24:25 +0000 http://blogs.reuters.com/great-debate/?p=198#comment-312 Kamran,
Heed to this article. Decide for yourself. Must read the comments. The USD may crash in coming months real hard. Just wanted to let you know. Dont tell me, I didn’t warn you so. Decide for yourself though.

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By: Marty http://blogs.reuters.com/great-debate/2008/10/31/is-the-buck-back/#comment-309 Mon, 03 Nov 2008 16:12:21 +0000 http://blogs.reuters.com/great-debate/?p=198#comment-309 Richard Russell, www.dowtheoryletters.com, was correct in his assessment that there has been an artificial short in the US dollar created by massive debts around the world. We are currently experiencing that short-covering rally. Next come the high interest rates as countries, states and cities compete for scarce dollars.

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By: Kent http://blogs.reuters.com/great-debate/2008/10/31/is-the-buck-back/#comment-306 Mon, 03 Nov 2008 10:45:56 +0000 http://blogs.reuters.com/great-debate/?p=198#comment-306 The current “strength” of the dollar is underpinned by hedge funds dumping their foreign stocks and then crossing the currency floor to convert the proceeds to dollars to PAY debts written in dollars and to settle redemptions.

When that need abates, soon, the dollar will fall like a ton of bricks, especially when Bernanke and his pal Hank Paulson are throwing them out of a helicopter with relish.

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By: David Chu http://blogs.reuters.com/great-debate/2008/10/31/is-the-buck-back/#comment-305 Mon, 03 Nov 2008 10:45:06 +0000 http://blogs.reuters.com/great-debate/?p=198#comment-305 The best analogy of why the USD is climbing is that of a bunch of drunken soldiers on a partying spurge. All the fiat currencies are likened to a group of drunken soldiers–as one falls down, the others just pick him up and so the merry rousing continues for a bit longer. The USD will fall dramatically after the U.S. elections are over.

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By: ezekiels watchman http://blogs.reuters.com/great-debate/2008/10/31/is-the-buck-back/#comment-304 Mon, 03 Nov 2008 09:54:51 +0000 http://blogs.reuters.com/great-debate/?p=198#comment-304 All money systems are going to fail because God(Yahweh) is taking them away. He has recognized that people have begun to put more faith in money than in Him, the one who created all things. The only countries that will survive are the ones that begin again to put their faith in Him and return money to its rightful place. Below God. I know this is tough but it is for our own good. When man bases his existence on a man made system it will fail everytime. Thank-you.

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By: Diana Furchtgott-Roth http://blogs.reuters.com/great-debate/2008/10/31/is-the-buck-back/#comment-295 Mon, 03 Nov 2008 03:49:04 +0000 http://blogs.reuters.com/great-debate/?p=198#comment-295 Raul is right that these are hard times for the USA. America is in a recession, and we don’t know how long that will last. However, an overly strong dollar will hinder the economic recovery,because exports will become uncompetitive and shrink, hurting employment, rather than helping the recovery. It’s bad enough that American consumers have stopped buying, we don’t want foreigners to stop buying our products also. Exports increased in the second and third quarters, helping to sustain GDP growth in the second quarter and preventing more of a downturn in the third. A rising dollar will not help America right now.

Diana Furchtgott-Roth

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