Comments on: Global rebalancing to weaken dollar, quietly Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 By: Dan Sat, 10 Oct 2009 04:37:51 +0000 Well said Casper Lab. I find the rise in Gold an ancient way of hedging the dollar rise. It is a fool’s game.

I concur, some of the earlier comments are uncalled for, offensive and unjustifiable.


We’re ever becoming more dependent on each other in trade. Manufacturing is integral as a country is developing. There are several economies of scope and scale during a country’s expansion of capacity growth through infrastructure and some of this can be captured through the manufacture of non-durable and semi-durable goods. As infrastructure demand begins to decline (as a rate of demand), countries then move onto higher skilled areas as the value of human skill, capital and technology have higher returns in these areas.

No doubt that there must be some level of manufacture within a country, however, to mandate a minimum level of manufacturing (a so called manufacturing output base) is moving backwards. Besides, how would this be made feasible? Subsidies, lower taxes, tax holidays? This is what distorts the market and transfers the tax burden on individuals.

By: Mufaso Tue, 06 Oct 2009 12:33:36 +0000 This sounds like a major step toward one-world government. The Amero will be here soon, whenever the defunct dollar is of no value to us as a local currency. Unless we get rid of all the Democrats and Republicans , who are destroying our country, there is little hope for the United States.

By: Anubis Tue, 29 Sep 2009 14:16:47 +0000 Ash, your reasoning is flawed. The U.S. has lost it’s manufacturing base. Alexander Hamilton crafted the the legislation subsequently passed by Congress to build an American industrial base. It consisted of incentive to manufacture and tariffs to block cheap foreign competition.
News flash…., it worked!

The Continental Dollar was worthless and had no effect whatsoever in building industry. It was later that Hamilton’s ideas were crafted into legislation.

Technology is ever changing but human nature does not. Building a society is not “technical”, it is by definition social. I believe we can find the answers to our “social” dilemmas by considering the actions of those societies that succeeded in the past.

By: Casper Lab Mon, 28 Sep 2009 11:36:11 +0000 Good points Xie and GGG. Unless we find ourselves in the Truman Show, terrible chauvinist comments above.

Why the need for a ‘reserve currency’ in any event ? Are we so insecure about our productivity that we have to fall back on gold, a false sense of security, all the time ?

The US can really only export technology at this stage. Maybe its friends need to compensate the US for its imported war bills, and settle their part of it.

By: Sammy Sun, 27 Sep 2009 17:44:28 +0000 If dollar falls, so does the USA. This is a criminal act by the international banking mafia to go around the world destroying sovereign countries and their economies. I can only hope the this global economic crisis develops into a world wide revolt that will see these criminals all decapitated.

By: chattenx Sun, 27 Sep 2009 17:34:30 +0000 I believe that China must devalue its currency which it haskept artificially low.America must become more of an exporter than a consumer. People must realize that they can’t be as wasteful as they have been over the years.
The dollar will then survive

By: Paul Sun, 27 Sep 2009 16:30:29 +0000 The dollar would have already crashed if it wasn’t for a few crucial factors. That is, USD is still world reserve currency, and lately it is involved in carry trades. America’s military dominance and political claut arund the globe bodes well for the greenback.
However, current budget and general economic vulnerability of this country coupled with growing influence of China & other growing economies puts immense pressure on the dollar. Let’s hope that Neal is right about dollar’s decline in an orderly manner. Otherwise, we’ll loose a lot of purchasing power and affluence.

By: brian scrocca Sun, 27 Sep 2009 16:28:44 +0000 Our fate has been sealed. Destruction awaits all civilizations with ever increasing debt’s. No country has ever paid it’s debt off in all of history. Politicians wanting to find escape goats like Maddoff, taxing the rich has never worked.The fat cats will never be prosecuted because it’s an embarrasment to the admin.that they were wrong. Gold is rising to record prices in all currencies. That’s a sign of bull market.G20 is a disgrace and nothing will be done except more printing of paper.Dollar hell begins this fall. GOT GOLD?

By: GGG Sun, 27 Sep 2009 16:18:58 +0000 The FX opinion of Kimberley is absolutly right.

Dollar-Euro rate will go to 1,60-1,70 in coming months.

Dollar will go to new lows against Euro and Yen, for years.

Commodities will go up, but, mainly gold. Gold will be seen in the future as a global seudo-currency. There is no way to stop that.

The high depreciation of Dollar will have many inplications in the world (emergentes economies as well as others).

Foreign Exchnge Market is based on the supply and demand, but only in the short term. In the long term all currencies adjust in terms of inflation differencials.
See www.aequi.fx

By: Sherlock Sun, 27 Sep 2009 15:45:19 +0000 This is where we are headed folks:

1. The dollar weakens and American exports rise.
2. American corporate profits rise as a result.
3. Corporate hiring rises, mostly overseas.
4. American unemployment remains high.
5. American stock market rises as a result of profits.
5. Imports will be much more expensive.
6. American middle class living standard in the USA drops.
7. Fed Deficit explodes supporting 82m baby boomer retirees.
8. Fed goes after its share of corporate profits.
9. International bankers refuse to buy federal debt.
10. Dollar crashes.
11. Fed forced to pay junk bond rates to sell debt.
11. Interest rates craters the American economy.
12. American citizens rebel at D.C. fiscal insanity.

Over many years the USA will reclaim major industries as the weak dollar protects us from import competition. We begin producing our own overpriced cheap goods as a result of such “protection” from foreign imports. As the 82M baby boomers die off of government support, the USA reaches a tipping point that repositions us positively in the world economy.

When will that tipping point occur? Not in my lifetime.