Comments on: Dollar demise much exaggerated http://blogs.reuters.com/great-debate/2008/12/02/dollar-demise-much-exaggerated/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Anubis http://blogs.reuters.com/great-debate/2008/12/02/dollar-demise-much-exaggerated/#comment-2879 Mon, 08 Dec 2008 14:08:17 +0000 http://blogs.reuters.com/great-debate/?p=789#comment-2879 I think that the dollar’s perceived gains are dubious. The U.S. economy has been tanking for some time driving the dollar’s value down into the first half of 2008. With so much capital from other nations flowing across international borders, it is not be much of a leap to predict that foreign investment in the U.S. economy would be adversely affected. In short, the dollar didn’t get stronger. Other currencies have plummeted due to their nations recent poor economic performance. You know how it is, let’s make everyone else look bad so we look better.

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By: not long to go now http://blogs.reuters.com/great-debate/2008/12/02/dollar-demise-much-exaggerated/#comment-2762 Sun, 07 Dec 2008 01:20:46 +0000 http://blogs.reuters.com/great-debate/?p=789#comment-2762 When the treasury cant pay its debts, the value of the dollar will have to be scraped off the floor. People are only using the USA dollar because its Supposed to be safe, but not any more. The Euro or yuan will be the next “dollar”.

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By: Baron von Lufthoven http://blogs.reuters.com/great-debate/2008/12/02/dollar-demise-much-exaggerated/#comment-2703 Sat, 06 Dec 2008 04:22:19 +0000 http://blogs.reuters.com/great-debate/?p=789#comment-2703 The FED is not an arm of the US Government (USG). Therefore, the government has NO control over FED policy.
If you owed your bank $19 Trillion dollars, do you really think that you are in any position to dictate finance policy? Neither is the USG.

The more money printed without having tangible redemption value only serves to decrease the value of the respective currency. For example, the USD has lost 97% of it’s purchasing power since 1913. Prior to the Bear Stearns loan guarantee earlier this year, the US national debt (not trade deficit) was hovering around 9.5 trillion.
Add Fannie and Freddie, and their yet to be determined losses, the $850B Wall Street bail out package (which Paulson used to buy $65B worth of bank stock for $125B),
the FED’s acquisition of AIG with US dollars, and the FED’s rumoured intent to acquire depreciated US Treasury bonds so it can print more USD without depending on the US government to issue them.
Not only that, but since the FED as previously mentioned is not a USG entity, it is able to conduct financial transactions globally using the USD without such actions being santioned by the USG, meaning that the USG will not get to use that new money first, when it is most valuable.

The “credit crunch” has been in effect for some six months now, as we can all agree. Mass deleveraging in financial instruments based in USD are what is causing the rise in the USD value. Once the bulk of this deleveraging has occurred, or what the author calls ‘repatriation’, then the USD will resume it’s inflationary progress. Only thing is, it has missed out realizing value on the creation of some new $5 trillion USD through the monetization of toxic debts such as CDS.

If the USD is so strong and sought after as a safe haven, being the currency of the country which triggered this crisis (conflict of logic?) why is there such a shortage of gold and silver?
Which, by the way should be the bubble to burst on top of the USD deflation. There is at least a 20% descrepancy in relation to the COMEX gold value, and what gold is selling for on the grey market. Bear in mind that the COMEX delivery is in progress on unprecedented levels. ‘Investors’ are demanding the delivery of the physical gold instead of rolling their positions over for another term. In many circles, there is expected to be a default on a high percentge of COMEX deliveries.
As Churchill once said,
“This is not the beginning of the end, but perhaps it is the end of the beginning.”

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By: Eskay http://blogs.reuters.com/great-debate/2008/12/02/dollar-demise-much-exaggerated/#comment-2461 Thu, 04 Dec 2008 13:23:08 +0000 http://blogs.reuters.com/great-debate/?p=789#comment-2461 The demise of the dollar will start when it is no longer the world’s preferred currency. In today’s international trade, crude oil is the biggest component with around $2 Trillion in value. Once the world moves over to alternative energy sources and since that energy is likely to be mostly locally generated than imported from certain concentrated locations (like crude oil from middle east currently), there will be less demand for dollars. That will be the first sign of a dollar weakness or outright collapse. Till then, dollar will enjoy preference.

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By: Robert Young http://blogs.reuters.com/great-debate/2008/12/02/dollar-demise-much-exaggerated/#comment-2418 Thu, 04 Dec 2008 00:19:11 +0000 http://blogs.reuters.com/great-debate/?p=789#comment-2418 No surprise at all, we amercans give ourselves no credit. We have one of the safest countries in the world with a unity unheard of in most other places. We like to argue and scream at each other but when all is said and done we are the best at business and government. Be proud that the rest of the world sees it too.

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By: Cat http://blogs.reuters.com/great-debate/2008/12/02/dollar-demise-much-exaggerated/#comment-2385 Wed, 03 Dec 2008 19:32:02 +0000 http://blogs.reuters.com/great-debate/?p=789#comment-2385 Wait til they start printing that money ($200B) the Federal Reserve plans to put out there…

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By: Grant http://blogs.reuters.com/great-debate/2008/12/02/dollar-demise-much-exaggerated/#comment-2362 Wed, 03 Dec 2008 17:54:15 +0000 http://blogs.reuters.com/great-debate/?p=789#comment-2362 Hmmm. Isn´t this the next bubble? Something just doesn´t add up. I believe gold will be the real star of 2009, the dollar bubble will implode around about may – june 2009. Let´s just hope it´s not too messy.

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By: Harry Way http://blogs.reuters.com/great-debate/2008/12/02/dollar-demise-much-exaggerated/#comment-2326 Wed, 03 Dec 2008 12:19:37 +0000 http://blogs.reuters.com/great-debate/?p=789#comment-2326 A truly bizarre situation. Given that the lack of financial regulation in the mortgage markets + all the huge mega bonuses given to all these investment banks based on unsecured assets, it seems that the US has a proven poor track record, yet its currency grows. Very strange. Also given that the US needs to export more to generate more jobs, the rising dollar is only going to make the US economy worse as foreign countries decide not to buy as many more expensive US goods.

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By: Niko http://blogs.reuters.com/great-debate/2008/12/02/dollar-demise-much-exaggerated/#comment-2318 Wed, 03 Dec 2008 08:51:16 +0000 http://blogs.reuters.com/great-debate/?p=789#comment-2318 If what you say is the real picture I would say the Dollar is now becoming a high risk currency and sits on a tipping point which could go either way…up or down depending on foreigners’ risk appetite. I’m not a betting man and would therefore feel safer running to gold or even the Euro.

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By: brian mcnamee http://blogs.reuters.com/great-debate/2008/12/02/dollar-demise-much-exaggerated/#comment-2316 Wed, 03 Dec 2008 08:09:28 +0000 http://blogs.reuters.com/great-debate/?p=789#comment-2316 when you compare the value of currencies remember we are comparing fiat money with fiat money; other countries are running up their debt and creating money rapidly. We have said for a year the problem was lack of liquidity; the lunacy oftrying to borrow your way out of debt will be upon us soon. when you mix vinegar and baking soda anywhere in the world you get the same result. the same with printing money it will inflate your currency. this is like a tidal wave as deleveraging is giving the allusion of deflation forming a wave of inflation that will hit the world. Austrian free market economists have been right about cause and effect for qite a while; the first answer pointedto peter schiff, he seems a prophet now. Also look up Jim Rogers these men have vastly different views and have been correct in assesing the situation for years.

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