Is US Dollar Collapsing?

[don]

i doubt very much that china would dump the whole 1.33 trillion but they can cause all kinds of jitters just by selling a hundred billion or so if they let everybody know it's them making the sale. have to wonder if american lawmakers are so stupid they still think they can threaten china.
american doesn't need any more nervousness about the dollar so the chinese aren't dealing from weakness either.

 

[Anonymous]

Just like Jimmy Carter had 60 US citizens held hostage by Iran--GW has the entire US population, our economy, our sovereignty, and the US Constitution being held hostage by China.....

-------------------------------------------------------

Breaking News from MoneyNews.com

China Counter-Threatens U.S. With
'Nuclear Option' of Dollar Sales

Pressure has been mounting in the U.S. Senate for legislation calling for trade sanctions against China in retaliation for alleged currency manipulation. But now the Senate is facing counter-threats from China that could potentially trigger a crash of the U.S. dollar.

The British newspaper, The Telegraph, stated that officials at leading Communist Party bodies have told reporters in recent interviews that Beijing may use its $1.33 trillion of foreign reserves as a political weapon to fight pressure from Congress for China to force a revaluation of the yuan.


The news source further stated that, "Described as China's 'nuclear option' in the state media, such action could trigger a dollar crash at a time when the U.S. currency is already breaking down through history support levels."

It continued to state that, "It would also cause a spike in U.S. bond yields, hammering the U.S. housing market and perhaps tipping the economy into recession."

The finance chief at the Development Research Centre was quoted by The Telegraph as having said, "China doesn't want any undesirable phenomenon in the global financial order."

In an interview with the China Daily, the news source said He Fan stated that, "China has accumulated a large sum of U.S. dollars. Such a big sum, of which a considerable portion is in U.S. Treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency. Russia, Switzerland and several other countries have reduced their dollar holdings. China is unlikely to follow suit as long as the yuan's exchange rate is stable against the dollar. The Chinese central bank will be forced to sell dollars once the yuan appreciated dramatically, which might lead to a mass depreciation of the dollar."

Democratic presidential candidate Sen. Hillary Clinton has been outspoken in her support for legislation to prevent America being, what she's described, "held hostage to economic decisions being made in Beijing, Shanghai, or Tokyo."

But U.S. Treasury Secretary Henry Paulson is not in favor of restrictive legislation. He's said any U.S. trade sanctions against China would undermine American authority and "could trigger a global cycle of protectionist legislation."

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Yep-- thanks to GW and his merry band of neocon elitists and their freerun on unregulated Globalism, this may be the Thanksgiving Dinner of our Grandkids ...

 

[Anonymous]

Dollar Tumbles Lower Against Euro
Thursday , September 20, 2007

FRANKFURT —

The dollar took another fall on currency markets Thursday, reaching one-to-one parity against the Canadian dollar for the first time in 30 years and plumbing a new low against the 13-nation European currency.
The dramatic half-point cut in U.S. interest rates announced this week, while aimed at shoring up U.S. credit markets, also had the effect of further weakening the dollar versus other currencies by reducing the cash yield on dollars. A lower dollar can make travel more costly for U.S. residents and can also pose the risk of making imported goods more expensive over time.

The euro breached the $1.40 barrier against the dollar on Thursday. That level had long been seen as a key benchmark in terms of solidifying the euro's position on currency markets and giving it momentum toward becoming a reserve currency of choice — a position long held by the now-weakening dollar.

The 13-nation euro bought as much as $1.4064 in morning trading in Europe before falling back slightly to $1.4040, above its previous high Wednesday night of $1.3987, and more than the $1.3964 it bought in late New York trading.

The dollar also fell against other currencies, reaching parity with the Canadian dollar for the first time since November 1976. One U.S. dollar now buys one Canadian dollar.

http://www.foxnews.com/printer_friendly_story/0,3566,297473,00.html
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Oil Hits New High Over $83

MoneyNews
Thursday, Sept. 20, 2007


NEW YORK -- Oil surged over $83 a barrel on Thursday in the seventh straight record-breaking session as companies shut Gulf of Mexico output on forecasts a tropical depression churning through the region would become a storm.

U.S. crude gained $1.44 to $83.37 a barrel at 1817 GMT after hitting an all-time high of $83.60 earlier. London Brent rose 40 cents to $78.87.

http://moneynews.newsmax.com/scripts/money/printer.pl?page=http://moneynews.newsmax.com/money/archives/articles/2007/9/20/144200.cfm?s=mnm

 

[MoGal]

I saw an article last night, China won't dump the US dollar if we don't interfere with their takeover of Taiwan.

The American people have had the greatest atrocity committed against them when the Federal Reserve lowered the interest rate........ not all Americans play the stockmarket but ALL americans will pay the price of a collapsed dollar with higher prices for the goods they want to buy. IF ONLY Congress would get as excited over the Federal Reserve (WE the american people must be in control of our money instead of foreign bankers) as they have over a moveon.org advertisement.

Supposedly they was gonna announce in the German Stern (not sure if that is a paper, tv or what) they they were willing to allow the Euro to become the world reserve currency. They were supposed to announce it today.
But I've been busy cleaning house today and I haven't had a chance to look at the internet news. You cannot trust the American news they water it down too badly.

Ok- correction - greedy Greenspan is the one promoting the Euro in an interview that came out in that paper today.
http://www.informationclearinghouse.info/article18416.htm

 

[Steve]

Faster Horses

Hey OT...how about a little GOOD NEWS for a change?

with a weak dollar,..

Our export products appear cheaper to foreign markets..(and our own)
who does this help?...

American manufacturing......Farmers/Ranchers..small businesses.,...
any American Industry that sells a product is now cheaper then their foreign competitors...

I just sold a expensive boat that I was stuck with to a guy in Sweden in cash...for twice what it's worth...because of the poor dollar...Boat ships out at the end of the month...I was handed a bag of cash today...


Import products are in effect "tariffed" with out the negative reaction from our trading partners..

who does that hurt...EU,..China,..

Americans who see an opportunity will make plenty of dollars,..

then when the dollar recovers they will "double their money"...


ever noticed scrap prices...???

locally a marooned fishing boat was scrapped, a businessman from china paid $$$ for the boat...then paid local labor to cut it up...then paid a barge to ship it to NY,..ect...

this piece if crap sat leaking in the harbor for years...the government said it would cost millions to "clean up"... the insurance company spent millions trying to say they weren't liable...

now because of the low dollar...and high scrap prices...it's gone...

 

[Brad S]

There is a trade imbalance trigger point at which the Dollar value corrects. We hit that correction trigger point (about 3.5%) over ten years ago. Yes the correction is overdue by about a decade. Certainly the correction would have been less painful in "96", but then we couldn't bash "neocons" and "globalism" and all the rest of those smart pretending words.

Sombody say neocon and all that $hit and relate that to the fact the US standard of living is something like 25% higher than the next highest in the world



btw What Silver said a year ago was exposed as nonsensicle

 

[Anonymous]

Sombody say neocon and all that $hit and relate that to the fact the US standard of living is something like 25% higher than the next highest in the world

Seems the educated of the world don't agree with you-- to them the highest we rank on any of the studies is 8th....I have said the same as you Brad-- but been corrected by my well traveled sister and her pilot brother in law that are all over the world all the time....

On comprehensive measures such as the UN Human Development Index the United States is always in the top ten, currently ranking number eight. Scandinavian countries, Ireland, Belgium, Canada, Australia, and (until recently) Japan; Canada and Norway have alternately held the top spot for some time. On the Human Poverty Index the United States ranked 16th, one rank below the United Kingdom and one rank above Ireland.[4] On the Economist's quality-of-life index the United States ranked 13, inbetween Finland and Canada, scoring 7.6 out of a possible 10.

And too me the below issue is the number one reason that our economy will continue to go downhill- and may eventually bring the collapse of the economy and our country...Especially if we keep importing in the very poor slave class labor for the Corporate worlds greater profits...

The United States has one of the widest rich-poor gap of any high-income nation today, and that gap continues to grow. In recent times, some prominent economists including Alan Greenspan have warned that the widening rich-poor gap in the U.S. population is a problem that could undermine and destabilize the country's economy and standard of living.

The U.S. ranks 4th in GDP, yet it is 92nd in distribution of wealth—UN measurement. In other words the top 5% live the best of all nations, and the bottom 25% live worse than in countries such as Greece. This disparity explains why the U.S. with the most expensive medical system is counted as 37th as to quality of care by the World Health Organization. Instead of addressing this disparity, both parties have been handing out tax breaks to the top 5% and corporations.

http://en.wikipedia.org/wiki/Standard_of_living_in_the_United_States

http://skeptically.org/economics/id21.html

 

[Cal]

And where would those countries be without tourism and trade with the US? Also, as far as disparity in income, those that want to climb the ladder are free to do so if they so desire and want to put forth the effort.

 

[Anonymous]

with a weak dollar,..

Our export products appear cheaper to foreign markets..(and our own)
who does this help?...

American manufacturing......Farmers/Ranchers..small businesses.,...
any American Industry that sells a product is now cheaper then their foreign competitors...

With the weakening dollar and the growing recession the problem is that the dollar will not buy as much--because with the weakening dollar we usually get the rising of prices of goods (inflation) that accompanies that...

And while recessions/depressions can raise the prices of commodities again the price that the farmer/rancher gets is usually nothing like what the rise in the cost at the store is...

My concern for beef is whether many will be able to afford it if the price rises too high with the weakening dollar-- as middle class wages have been stagnant or went backwards already for several years-- and we have a much larger amount of people on fixed incomes-pensions or social security- which because the government has not told the truth about the "true inflation rate" have not kept up with the GABA's and also been falling behind for years...Now that the dollar buys less they are taking a double hit...

The farmer/ranchers that are going to take a big hit are those that have their operations heavily financed- and have to count on large operating/equipment purchase loans each year-- as some of the economists are already predicting that in order to stop the inflation/recession/depression we are heading toward we will see interest rates like back in the 80's-- at 20+% interest...

This winter will probably tell the story of how deep we go-- with the weather and oil/fuel prices playing some role....Many think the major players right now is the consumer and those that hold all our loans- and the confidence they have and whether they panic...I believe, as many economists do, that consumer confidence is very shakey--and much lower than the financial crisis we faced in the 80's, 90's, or after 9/11( 75% of people surveyed think the country is headed in the wrong direction-- with little faith in our leadership)...And now with the major portion of our notes in the hands of people that have to be considered non allies- makes the ground a little shakier....

 

[Goodpasture]

with the drop in the fed the other day, Bushco sent the message that investors don't have to be responsible for their investment decisions. That is going to weaken the dollar even more. The lower interest rate is going to dry up foreign credit (who wants to lend to the US at 2 or 3 points less than they can get in Europe or Asia?). And that in turn is going to reduce the value of the dollar even more.

Expect a major recession/depression this winter. It is going to be tough on a lot of people. Already I am getting phone calls every day from loan officers trying to switch people from ARM's to FHA fixed loans. And this is on houses that already had 100% financing two years ago, the ARM is kicking in, the interest rate is nearly double, payments have gone from $850 a month to $1500 a month, and if they sold the house they would have to pay $10,000-$15,000 to the buyer.

Bushco bankrupted three companies, now he is bankrupting the rest of us......except he is willing to sell everything we have to Dubai.

 

[MoGal]

The Federal Reserve is run by mostly German bankers. There also is a clause whereby the people can buy it back and bcome in control of our own money (which is where it should be in the first place) and its either 400,000 or 4 mil ... I've got to find the article again. We need to jump on that like a hot potato.
Did you all see the Democratic debate the other night.... they were asked if the FR was in their opinion doing a good job and all 5 of them said yes........... what a crock of chit.

TRILLIONs have been lost in this scam generated by the fed reserve and the next bubble is the credit card debt at 800 billion. We're falling apart and the American people should be bombarding Congress to take back our own printing press of American money.

Lowering the interest rate so they can allow the housing bubble crap to be passed around the world is a crime.

those that want to climb the ladder are free to do so if they so desire and want to put forth the effort.

They keep talking about easing college costs.... but the better paying jobs have gone overseas under the guise of global economy. What are you going to train people for? (bartender, waittress, nurse aid are not jobs that support a family).

 

[Cal]

The Federal Reserve is run by mostly German bankers. There also is a clause whereby the people can buy it back and bcome in control of our own money (which is where it should be in the first place) and its either 400,000 or 4 mil ... I've got to find the article again. We need to jump on that like a hot potato.
Did you all see the Democratic debate the other night.... they were asked if the FR was in their opinion doing a good job and all 5 of them said yes........... what a crock of chit.

TRILLIONs have been lost in this scam generated by the fed reserve and the next bubble is the credit card debt at 800 billion. We're falling apart and the American people should be bombarding Congress to take back our own printing press of American money.

Lowering the interest rate so they can allow the housing bubble crap to be passed around the world is a crime.

those that want to climb the ladder are free to do so if they so desire and want to put forth the effort.

They keep talking about easing college costs.... but the better paying jobs have gone overseas under the guise of global economy. What are you going to train people for? (bartender, waittress, nurse aid are not jobs that support a family).

Seriously, if that's all you can come up with then you're probably better off cleaning toilets before some Mexican steals that away from you. :roll:

 

[Cal]

That is going to weaken the dollar even more. The lower interest rate is going to dry up foreign credit (who wants to lend to the US at 2 or 3 points less than they can get in Europe or Asia?). And that in turn is going to reduce the value of the dollar even more.

But I thought foreign investment was a bad thing....like the Chinese already own us or something :???: :???:

 

[Anonymous]

That is going to weaken the dollar even more. The lower interest rate is going to dry up foreign credit (who wants to lend to the US at 2 or 3 points less than they can get in Europe or Asia?). And that in turn is going to reduce the value of the dollar even more.

But I thought foreign investment was a bad thing....like the Chinese already own us or something :???: :???:

We wouldn't be needing all these foreign loans and foreign investment if we didn't have almost a 9 TRILLION DOLLAR National Debt-- that increases by $1.36 BILLION a day....

If this is the Republican idea of "fiscally conservative"- I think I may want to be a Democrat :roll: :shock: :wink: :lol:

Better yet being an Independent (fastest growing political segment of the country) has its advantages....

 

[Anonymous]

Interestingly-- the local banks are still charging 10% discount on Canadian money!!!

Dollar hits another low against euro

By JACKIE FARWELL
AP Business Writer

NEW YORK (AP) -- The U.S. dollar dropped to a record low against the euro for a sixth consecutive session Thursday, sagging under expectations of a U.S. Federal Reserve rate cut next month.

The dollar has skidded to new lows against the European currency since the Fed last week cut interest rates by a larger-than-expected half percentage point.

The euro rose as high as $1.4189 Thursday, breaking its previous record of $1.4162 from early Wednesday. It later retreated to $1.4160 in late New York trading, up from $1.4136 late Wednesday.

In other trading Thursday, the dollar hovered near parity with Canada's currency, buying 1.0013 Canadian dollars, down from 1.0056 late Wednesday.

 

[Anonymous]

THANK YOU AGAIN---GW :wink:

Dollar Weakens as Investors Cash Out of U.S. Stocks

The dollar dropped to a record low against a basket of currencies and the euro Thursday after Bank of America's third-quarter earnings results missed estimates and renewed concerns of a U.S. economic slowdown.

http://moneynews.newsmax.com/money/archives/articles/2007/10/18/121232.cfm?s=al&promo_code=3BA4-1

Japan sliced its holdings of U.S. government-backed securities by 4 percent, to $586 billion. China dumped 2.2 percent of its holdings, to $400 billion. In all, $163 billion in U.S. government obligations flooded the market.

http://moneynews.newsmax.com/money/archives/articles/2007/10/18/121232.cfm?s=al&promo_code=3BA4-1

Unreal U.S. Inflation Figures — Politically 'Cooked'

Today it was announced that Social Security payments will show their smallest rise in four years — an increase of 2.3 percent.

This may look generous, considering that the official, "core" inflation rate trumpeted by our government is a staggeringly low annualized rate of a mere 2.1 percent. (The actual, year-on-year increase of 2.8 percent is barely mentioned.)
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Yet today we learned that, in fact, consumer inflation had risen at the fastest pace in four years — at an annual rate of 3.6 percent.
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It may even reach the rate (as calculated before changes made under the Clinton administration) of 7 percent — much more like the present, effective rate of inflation, what ordinary people "feel" buying everyday things now.
http://moneynews.newsmax.com/money/archives/articles/2007/10/17/154024.cfm

NEW YORK -- Oil prices extended a record rally to more than $89 a barrel on Thursday, supported by record weakness in the dollar, lingering geopolitical worries and tight inventories heading into winter.
Oil's climb of about 13 percent since last week has renewed concerns that soaring energy costs could hinder world economic growth and raised a red flag for OPEC, which may call an early formal meeting to discuss output.
http://moneynews.newsmax.com/money/archives/articles/2007/10/18/144158.cfm?s=mnh

 

[Red Robin]

NEW YORK -- Oil prices extended a record rally to more than $89 a barrel on Thursday, supported by record weakness in the dollar, lingering geopolitical worries and tight inventories heading into winter.
Oil's climb of about 13 percent since last week has renewed concerns that soaring energy costs could hinder world economic growth and raised a red flag for OPEC, which may call an early formal meeting to discuss output.
http://moneynews.newsmax.com/money/archives/articles/2007/10/18/144158.cfm?s=mnh

This would be better attributed to Speaker Nancy Belousy. Oil has moved higher on the troublesome news about Turkey.

 

[Anonymous]

NEW YORK -- Oil prices extended a record rally to more than $89 a barrel on Thursday, supported by record weakness in the dollar, lingering geopolitical worries and tight inventories heading into winter.
Oil's climb of about 13 percent since last week has renewed concerns that soaring energy costs could hinder world economic growth and raised a red flag for OPEC, which may call an early formal meeting to discuss output.
http://moneynews.newsmax.com/money/archives/articles/2007/10/18/144158.cfm?s=mnh

This would be better attributed to Speaker Nancy Belousy. Oil has moved higher on the troublesome news about Turkey.

GW is the man in charge ( or should/supposed to be :???: )- and he and Republicans have been totally for 6 of the last 7 years--- or don't Republican neocons believe in:

The Buck Stops Here
Harry Truman

And I'm not talking about the buck they're stuffing in their own pockets :wink: :lol:

 

[Red Robin]

NEW YORK -- Oil prices extended a record rally to more than $89 a barrel on Thursday, supported by record weakness in the dollar, lingering geopolitical worries and tight inventories heading into winter.
Oil's climb of about 13 percent since last week has renewed concerns that soaring energy costs could hinder world economic growth and raised a red flag for OPEC, which may call an early formal meeting to discuss output.
http://moneynews.newsmax.com/money/archives/articles/2007/10/18/144158.cfm?s=mnh

This would be better attributed to Speaker Nancy Belousy. Oil has moved higher on the troublesome news about Turkey.

GW is the man in charge ( or should/supposed to be :???: )- and he and Republicans have been totally for 6 of the last 7 years--- or don't Republican neocons believe in:

The Buck Stops Here
Harry Truman

And I'm not talking about the buck they're stuffing in their own pockets :wink: :lol:

You blame Bush for prancy nancy's move to destabilize Turkey? What do you base that on?

 

[Anonymous]

This would be better attributed to Speaker Nancy Belousy. Oil has moved higher on the troublesome news about Turkey.

GW is the man in charge ( or should/supposed to be :???: )- and he and Republicans have been totally for 6 of the last 7 years--- or don't Republican neocons believe in:

The Buck Stops Here
Harry Truman

And I'm not talking about the buck they're stuffing in their own pockets :wink: :lol:

You blame Bush for prancy nancy's move to destabilize Turkey? What do you base that on?

Where did I do this :???: Our economy started heading in the dump long before prancy nancy even figured out Turkey wasn't something you eat....
Did you also count the number of Repubs sold out to the American Armenian Caucus :???: Why're those idiots more worried about what happened 90 years ago 2000 miles away-- then what the hell is happening in mid America :???:

Oil prices surged Thursday, rising to new records near $90 a barrel, as the falling dollar drew new foreign investors and speculators to dollar-denominated energy futures.


"The main driving factor today is ... the dollar making an all-time low against the euro," said James Cordier, president of Liberty Trading Group in Tampa, Fla.


While oil prices have risen sharply in dollar terms in recent days, the steadily weakening dollar means oil futures are seen as a bargain overseas. Data released in recent weeks shows speculative buying of oil futures is on the rise. Buying by foreign investors sends prices up, which draws more speculators into the market.


"It becomes a self-fulfilling prophecy," said Brad Samples, commodities analyst at Summit Energy Services Inc. in Louisville, Ky.


Many analysts feel that the underlying fundamentals of supply and demand do not support oil prices of $90 a barrel. On Wednesday, the Energy Department reported that oil and gasoline supplies rose more than expected last week, countering suggestions that supplies are tight.

"Fundamental reasons, we're kind of running out of them," Cordier said.


http://www.newsmax.com/newsfront/oil_prices_$90_barrel/2007/10/18/42126.html

Reminds me of you RR-- running out of excuses to pin everything on Dems and Libs-- while kissing GW's behind :???: :wink:

Fundamentally-- Could it be worldwide unchecked profitteering at the expense of mid America :???: