Falling Dollar

[Scout]

Here's another thought...

With the stock market going up, and other positive news, I think people will start to spend more which will help us get going again. For months now all anyone ever heard was crisis crisis crisis, and how bad things are/were. I think people are getting tired or bored of it and are starting to spend.

 

[Fletch]

Here's another thought...

With the stock market going up, and other positive news, I think people will start to spend more which will help us get going again. For months now all anyone ever heard was crisis crisis crisis, and how bad things are/were. I think people are getting tired or bored of it and are starting to spend.

Yes, but are they spending newly inflationary dollars, or actual results of production? That's the trouble you run into with fiat money. Spending inflationary dollars results in bubbles. Spending the results of production does not.

 

[smokingman]

Here's another thought...

With the stock market going up, and other positive news, I think people will start to spend more which will help us get going again. For months now all anyone ever heard was crisis crisis crisis, and how bad things are/were. I think people are getting tired or bored of it and are starting to spend.

There is little to no hope.Sorry to say that,but when the Federal reserve is printing 1 trillion in a day the best you can hope for is a huge drop in dollar value. Most do not seem to understand the congressional bailouts are chump change totaling less than 2 trillion(granted that alone more than doubles the national debt).The HUGE problem with the dollar is the 9+ trillion the federal reserve has printed(beyond what the treasury has asked for)with no one having a clue where it is.There is absolutely no oversight of the federal reserve,there is a bill in congress to do an audit that will probably pass though.Do you see the problem? The total number of dollars in circulation at the end of 2007 was around 14 trillion. We almost doubled that in less than 6 months.You can not double a currency and have ANY hope what so ever it will retain value.
As soon as some half ass intelligent banker figures this out the run on the dollar will start.When the run is over you will be lucky if a dollar has 20 cents of purchasing power.This is not an if,it is a given and Russia,China,Japan,and most of the rest of the world already know this.It is why they are all calling for another reserve curreny.Wait till next week when the Treasury tries to sell another 300 billion to meet our governments IMMEDIATE dollar needs.Already the Federal reserve has purchased 930 BILLION worth to prop up the dollar(did you understand that sentence? Would be like you giving your wife money and then borrowing it back to pay bills neither of you could afford). Farrell: Bernanke And Hoenig - CNBC Guest Blog - CNBC.com This week they hit 4.4% interest on 30 year notes( Bond Market News, Info on US Treasury Bond and Markets - CNBC.com is because investors(read that other countries sovern wealth funds)are demanding more to buy them,because of the risk they are declining in value.That is a huge rate increase.This is after all an auction of US bonds.In january they where dirt cheap earning nearly 0 percent.This comming weeks auctions will have a huge impact on the dollar.They will probably sell very high,or possibly not at all.If they do not sell the dollar will crash.China has already stopped buying 10,20,and 30 year notes,deciding 1-7 year notes better fit there "long term goals".
Do not put your head in the sand,this is happening already(the fall of the dollar as the dominant currency of the world and the value of the dollar itself).
Oh as far as the stock market goes the DOW could easily hit 20,000 but this is actually VERY bad news.I keep hearing the stocks are going up...must be a good thing.Well it is not,the only reason they are going up is the dollar is going down.So the same dollar buys less GE ect...this is forcing the inflation of the DOW.And most at any exchange are already realizing this.Today on CNBC
NY Markets Examiner: Jim Rogers says stocks could reach 20,000 This is an article talking about the DOW hitting 20k because the dollar is expected by some very smart people to lose almost all of the value is still has.Hell the German Chancellor Angela Merkel has already said the central banks have gone way to far.(Article Germany Blasts 'Powers of the Fed' - WSJ.com). Stock up on things you need now.

 

[smokingman]

[ame="http://www.youtube.com/watch?v=nVc9h26qk9M"]YouTube - Peter Schiff - T-bond sale failure 3/13/2009[/ame]
Very smart guy.Very worth 8 min of your time.

[ame]http://www.youtube.com/watch?v=BMtXgFh6nAY[/ame]

Peter Schiff - Wikipedia, the free encyclopedia
and on CNBC The Man Who Called The Collapse - Tomorrows Playbook - CNBC.com

 

[smokingman]

Treasury Holds 'Awful' Auction: 10-Year Yield Hits 3.99% - Bonds and Treasuries * US * News * Story - CNBC.com
The 30 year hit 4% today.So we pay the FED 6% to print the money and then the treasury sells the bonds at 4%.That is US the taxpayers paying 10% on every "new" dollar of the deficit. At least the auctions sold,so for now the dollar is not crashing.

 

[smokingman]

The dollar gained today.1.22% And for those that do not think that stocks where up from inflation,the dow lost 187 points as the dollar gained strength.
The only reason the dollar gained any what so ever is Russia saying the dollar is in good shape. Dollar is in 'good shape', says Russia's finance minister Alexei Kudrin - Telegraph
This as China,and Japan sell more dollars this month than they bought.Our own fed purchased more US Treasury bonds than any one else.The 10 year that hit almost 4% last week was a sign the market no longer wanted our long term debt.Then the 30 year auction sells for almost less than the 10 year bonds the day before.I call BS. If the fed was not buying over half of the 30 year debt it would have sky rocketed.
They saw the panic and decided they had to do something or the market for our debt would just up and die.So they purchase our own debt with printed money.This is nothing more than borrowing money from yourself with interest,just delaying and making it worse in the long run.Fed buying $300 billion in Treasurys, more mortgages - Mar. 18, 2009
And although Russia says the dollar is ok,they are selling more than buying just like everyone else.http://economictimes.indiatimes.com...suries-eyes-IMF-bonds/articleshow/4641810.cms

The dollar had a good day.It is still down 8% in the last 3 months.It will probably take a day or two but when the slide starts again it will be much faster.