A growing number of people are looking for an alternative to the failing U.S. dollar, and that has prompted a number of lawmakers to push for their respective states to allow gold and silver coins to be used as legal tender.
While the U.S. Constitution forbids the printing of paper money or the establishment of a currency by individual states, it does allow for the use of gold and silver coins for use as money, based upon the value of the content of the precious metal. Essentially it's not the creation of currency, but using the content of the metal as a means of exchange.
Utah, which has already approved of the idea, is experimenting with a system which will likely be close to what most states that approve the measure will adopt. The Utah Gold & Silver Depository, order that people won't have to carry around gold and silver coins in their pockets, will produce a system which will link the gold and silver coins they own with a debit card held by the owner of the metal coins. Once the spend money from the debit card, they will then have it removed from their accounts, just like regular currency would be.
Since the accounts would be based upon the value of the content of the coins, that means they would fluctuate in value on a daily basis, and even throughout the day, depending upon how the accounts are set up.
This is a good idea for an alternative currency, but my thought is most people that understand what this is, if they were to allow gold and silver-based accounts, would probably hold it rather than spend it as they would regular money.
Others that may not understand the implications and reasoning behind alternative currencies that are valued by the silver and gold content inherent in them, may choose to use the accounts as a checking account, rather than a store of value.
Either way, offering options currency options is a great way to allow people to choose for themselves the direction they want to go with their money.
More than likely a lot more states will embrace gold and silver coins as currency as more get on board with the idea, and demand grows for it in light of a U.S. dollar that continues to lose its value.
Showing posts with label US Dollar Collapse. Show all posts
Showing posts with label US Dollar Collapse. Show all posts
Thursday, February 7, 2013
Saturday, March 12, 2011
U.S. Dollar Drops Against Euro Again
The euro extended gains against the U.S. dollar on Friday after euro zone leaders came to an agreement on a competitiveness pact.
The euro hit $1.39 EUR=, up 0.8 percent on the day, according to Reuters data. Short covering played a major role in strengthening the euro zone single currency throughout the majority of the session, according to strategists.
The euro zone leaders reached a deal to establish higher retirement ages, more flexible labor markets and debt and deficit limits for euro zone countries.
The deal is expected to be officially adopted at a full 27-nation European Union summit on March 24-25.
The euro hit $1.39 EUR=, up 0.8 percent on the day, according to Reuters data. Short covering played a major role in strengthening the euro zone single currency throughout the majority of the session, according to strategists.
The euro zone leaders reached a deal to establish higher retirement ages, more flexible labor markets and debt and deficit limits for euro zone countries.
The deal is expected to be officially adopted at a full 27-nation European Union summit on March 24-25.
Friday, March 4, 2011
U.S. Dollar to Continue to Fall in Value
The U.S. dollar is likely to fall in the week ahead as investors continue to bet that interest rates in the euro zone will rise ahead of those in the world's largest economy.
U.S. February jobs data came in a touch better than expected on Friday but disappointed investors who had hoped for an even stronger report. For details see
Investors see strong U.S. jobs growth as necessary for the Federal Reserve to end its second round of quantitative easing and instead tighten monetary policy by raising rates.
The U.S. situation is in sharp contrast with that of the euro zone, where the zone's common currency is likely to remain supported after European Central Bank President Jean-Claude Trichet strongly hinted at an interest rate rise in April, bolstering the view the ECB will tighten monetary policy before the Fed.
"We had Trichet warning Thursday that the ECB is considering a rate hike and perhaps the start of a rate hike cycle," said Joseph Trevisani, chief market analyst at FX Solutions in Saddle River, New Jersey. "The U.S. job number came in as expected and provided little direction to the market other than it did not disappoint and that will support risk appetite."
Full Story
U.S. February jobs data came in a touch better than expected on Friday but disappointed investors who had hoped for an even stronger report. For details see
Investors see strong U.S. jobs growth as necessary for the Federal Reserve to end its second round of quantitative easing and instead tighten monetary policy by raising rates.
The U.S. situation is in sharp contrast with that of the euro zone, where the zone's common currency is likely to remain supported after European Central Bank President Jean-Claude Trichet strongly hinted at an interest rate rise in April, bolstering the view the ECB will tighten monetary policy before the Fed.
"We had Trichet warning Thursday that the ECB is considering a rate hike and perhaps the start of a rate hike cycle," said Joseph Trevisani, chief market analyst at FX Solutions in Saddle River, New Jersey. "The U.S. job number came in as expected and provided little direction to the market other than it did not disappoint and that will support risk appetite."
Full Story
Thursday, February 24, 2011
US Dollar No Longer Safe Haven?
The US dollar has traditionally been a safe-haven asset, meaning whenever people are afraid, they sell ‘risky’ assets and flee to the safety of the US dollar. The same goes for US Treasuries.
Indeed, at the height of the global financial crisis (right after Lehman Brother’s bankruptcy in September 2008), both the US dollar and Treasuries surged. The Chicago Board Options Exchange Market Volatility Index (VIX) also spiked at that time. In uncertain times, the VIX is probably the purest measure of the market’s fear because it tracks expectations of volatility in US stocks.
Meanwhile, risky assets – those most susceptible to an economic downturn, like industrial commodities, junk bonds, small-cap stocks – plunged.
In the period after the zenith of this panic, the value of the US dollar, US Treasuries, and the VIX continued to strongly correlate with the resurgence of fear and uncertainty in the global financial markets.
However, starting the week of February 21, 2011, this pattern appears to have broken down.
Full Story
Indeed, at the height of the global financial crisis (right after Lehman Brother’s bankruptcy in September 2008), both the US dollar and Treasuries surged. The Chicago Board Options Exchange Market Volatility Index (VIX) also spiked at that time. In uncertain times, the VIX is probably the purest measure of the market’s fear because it tracks expectations of volatility in US stocks.
Meanwhile, risky assets – those most susceptible to an economic downturn, like industrial commodities, junk bonds, small-cap stocks – plunged.
In the period after the zenith of this panic, the value of the US dollar, US Treasuries, and the VIX continued to strongly correlate with the resurgence of fear and uncertainty in the global financial markets.
However, starting the week of February 21, 2011, this pattern appears to have broken down.
Full Story
The US Dollar Ready to Collapse?
The turmoil across North Africa and the Middle East is threatening not only to overthrow aging dictatorships, autocracies and monarchies, but also to upset the geopolitical balance between the countries of that region and the Western powers that has existed since at least the 1950s. For the West, the issue has always been the security of oil. For the US there is a second issue, and that is the security of Israel. Now both are under threat.
Some 56 per cent of the world’s oil reserves are in the Middle East, with another nine per cent in Africa. Therefore, unrest in the region could be the catalyst that sets off a global monetary-oil shock. The unrest in Libya has sparked a sharp rise in oil price. Libya holds the world’s ninth-largest reserves and is the twelfth-largest exporter, providing about two per cent of the world’s daily oil supply. Not large and it is possible that Saudi Arabia could pick up the slack but it sends out a wave of uncertainty and it is unknown where the next outburst might occur.
Saudi Arabia is the world’s second largest producer, behind Russia. Saudi Arabia exports roughly 75 per cent of its production. If the unrest spreads to Saudi Arabia then all bets might be off the table as to how high oil prices can go.
Saudi Arabia is governed by an absolute monarchy which rules by decree. While its people are generally well-off, it has a minority Shia Muslim population (about 20 per cent), largely employed in the oil-producing regions, who are at the margins of the society. Saudi Arabia has a poor human rights record and its Wabbabi brand of Sunni Muslim religion has often been noted to be behind alleged terrorist organizations. Unemployment is high at just under 11 per cent, although that is better than most Arab countries.
The US is the world’s largest consumer of oil, at roughly 19 million barrels per day. It imports almost 10 million barrels per day. China is now the second-largest consumer. Among the top 15 consumers we also find Japan, Germany, France, Canada, Italy and the UK. Yet outside of Canada and China (which, like the US, produces roughly half of its daily consumption and is also the world’s third-largest producer), none of the others are in the top 15 for production. And amongst the Western economies, only Norway and Canada are listed in the world’s top 15 exporters.
It has often been said the US dollar is a petrodollar. That is to say, it is earned through the sale of oil. Oil-producing countries such as Saudi Arabia and Venezuela, which peg their currencies (within a band) to the US dollar, are as result quite dependent on the value of the US dollar. These countries and many others earn large amounts of US dollars because of their oil production.
The US dollar is also the world’s reserve currency. All commodities are priced in dollars – not just oil. It is the most marketed currency in the world and it is owned more widely than any other currency. One would therefore believe that a strong dollar is not only in the interest of the United States, but everyone else as well.
But the US dollar is also a fiat currency. A fiat currency has value only because the government says so. The Latin word fiat translates as “let it be done”. Thus, the value of money is dictated by government decree.
Today, all national currencies are fiat currencies. The trend began in August 1971 when President Richard Nixon took the US dollar off the gold standard thus also taking the world off of the gold standard. Increasingly from then on, money was whatever a government said it was. As such it has no real value except being declared legal tender.
Fiat currencies have a long history, mostly of failure .The Romans didn’t have paper money but they developed an early form of fiat by constantly decreasing the amount of silver used in the denarius, their main medium of exchange. They continued this debasement until the coinage became intrinsically almost worthless.
The Chinese were the first to issue paper currency in around the tenth century but eventually they printed so much that hyperinflation occurred and their currency became worthless, even though its usage lasted close to 400 years.
History is respite with the failure of fiat currencies. The most recent example was collapse of the Zimbabwean dollar, and a famous example was the Weimar Republic of Germany in the 1920s.
Fiat currencies have a history of ending in hyperinflation – if a country starts printing money excessively, it is often on the road to ruin and hyperinflation. And this is the United States today. The US has unparalleled deficits and debt; it has increasing expansion of its money supply, using a fiat currency; and it is being misleading about its true economic situation through its published economic statistics.
But it also has the world’s reserve currency, and international trade is carried out in US dollars. Any country buying oil, for example, must first convert its currency into dollars to pay for it. The selling country receives those dollars, which are often recycled right back into purchasing US debt, so that the selling country does not adversely impact its own currency.
But the US dollar is a declining currency. In the last 100 years it has lost over 96 per cent of its purchasing power (this process accelerated after 1971).
Many items, including Social Security payments, are tied to the reported rate of inflation. With a much higher rate of inflation, many items would have increased in price faster and the US Treasury would have had to pay out far higher entitlements.
The recalculation of the inflation numbers were provided by www.shadowstats.com. That chart suggests that the US dollar has lost over 98 per cent of its purchasing power over the past 100 years.
Many would say that it doesn’t matter, that society today is far better off than it was 100 years ago. And it is, and more appear to be joining the middle class. But technological advances have changed society in a dramatic way from 100 years ago. That and lots of money provided by a rapidly expanding money supply and debt all courtesy of a fiat currency. With nothing tangible to back money, money intrinsically has no value – except what the government says it is.
But with the explosion in debt and money and the decline in the purchasing power of the US dollar, society has become more divided. Income and wealth is increasingly concentrated in fewer and fewer hands. During the financial crisis of 2008 the bailouts went to the financial institutions (and corporations) that were either indirectly involved or directly involved as the cause of the crisis. The taxpayer (public) footed the bill.
Meanwhile the housing market collapsed with tens of thousands (millions?) losing their homes to foreclosure and tens of thousands lost their jobs. General wages have been stagnant for at least the past two decades and those living on fixed incomes (pensions) have seen a constant decline in their living standards. Meanwhile, those involved in the creation of money particularly at the banks and investment management companies have seen an explosion in their wealth and pay packages.
The unemployment rate soared and while the headline unemployment rate (U3) in the US is at 9 per cent, the Bureau of Labour Statistics U6 number is closer to 17 per cent and www.shadowstats.com have calculated that based on calculating unemployment as it was it was done in 1990 the actual rate may be closer to 22 per cent. The current U3 number leaves out longer term unemployed, part time workers looking for full time work and very long term unemployed. If your unemployment insurance runs out the person falls out of the U3 number to the U6 number.
Today, with the future liabilities of Social Security, Medicare and Medicaid estimated (conservatively) to be about US$50 trillion or (more liberally) at upwards of $200 trillion, the US, with a debt at over $14 trillion and rising, has little chance of ever recovering or ever being able to pay it back. It has been said that the US could tax 100 per cent of income and still not be able to cover its commitments.
Further, the world is rife with imbalances. The US is the largest consumer in the world and imports heavily, creating huge trade deficits. It also runs huge budget deficits to finance entitlements and the Pentagon that finances the war machine. The US dollars circulating throughout the world, either because of general imports or because of oil, are recycled back into the US to purchase their debt. All of this appears to have worked reasonably well over the years but now the model is coming under severe stress. These global imbalances are not only causing problems for the US they are causing problems for other countries as well.
If the US were any normal country, its currency would now be in complete collapse and it would be arranging for IMF bailouts such as Greece and Ireland saw recently. But because it is the world’s reserve currency, the US has one big advantage: it can just print more dollars.
This strategy has unnerved the holders of US debt, led by China, which is estimated to hold almost $900 billion as of December 2010. Japan also holds almost as much. The UK has over $500 billion. Almost 60 per cent of the US debt held by foreigners is in the hands of just those three plus the oil producing nations led by Saudi Arabia. Of the total US debt of over $14 trillion, over $9 trillion is held by the public and roughly half of that is held by foreigners.
No wonder there are calls for an end to US dollar hegemony and a new Bretton Woods agreement to determine a new world reserve currency, and possibly even bring back a gold standard. The calls have ranged from the IMF, the World Bank, and many countries including France and Germany and of course China, the country that has the most to lose, given its large holdings of US dollars. Even Saudi Arabia has joined a group of countries seeking an alternative for the pricing of oil solely in US dollars. China and Russia are now conducting trade between themselves in Yuan and Roubles.
US debt is vulnerable to a downgrade as well. The IMF and the rating agencies have issued numerous warnings about the US debt situation. The effect of the US losing its AAA rating could be a financial earthquake. The US is also approaching its legal debt limit and, with the rift in Congress, the Republicans have threatened not to grant a new, higher debt limit. This could in the worst case result in the shutdown of government and a US debt default. This is not to predict that any of this will happen, but only to point out that it could.
Some are also saying that the so-called quantitative easing, or QE, could spiral the US into hyperinflation. While there are currently few signs of it, an event such as an oil shock in the Mid-East could trigger severe inflation which in turn could trigger further QE and start an acceleration in monetary inflation. Sharply rising oil prices have a history of causing recessions so it could stop the current feeble recovery in its tracks. An economy reeling from higher oil prices plus rapid monetary inflation could soon spiral out of control.
In the midst of all of this it is no surprise that gold has soared over 450 per cent in the past decade. Although relatively flat thus far in 2011, gold is up almost 28 per cent since the end of 2009. It is becoming an alternative currency. The world’s central banks still hold some 30,000 metric tonnes of gold, and investment demand for it has brought investment holdings in line with what is in the world’s central banks. In many countries, particularly in Asia, gold is seen as a savings vehicle rather than the speculation it seems to be viewed as in North America.
It is not so much that gold prices are rising but that fiat currencies led by the US dollar are declining. The chart of gold shows the stair step action that has taken place since the double bottom lows of 1999 and 2001. The action since that time has seen a series of triangular patterns form that continually break to the upside. And gold is rising not only in dollars but in all currencies, as the series of charts below attest.
Finally not only is the US Dollar Index declining the trade weighted Dollar Index is also falling. The trade weighted Dollar Index called the Broad Index is a weighted average of the foreign exchange values of the U.S. dollar against the currencies of a large group of major U.S. trading partners. The index weights, which change over time, are derived from U.S. export shares and from U.S. and foreign import shares. In some respects this more fairly reflects the value of the US dollar then does the more broadly watched US Dollar Index. The US Dollar Index is a weighted valuation against a basket of 6 major free trading currencies. Notably the US Dollar Index excludes the Chinese Yuan.
Source
Some 56 per cent of the world’s oil reserves are in the Middle East, with another nine per cent in Africa. Therefore, unrest in the region could be the catalyst that sets off a global monetary-oil shock. The unrest in Libya has sparked a sharp rise in oil price. Libya holds the world’s ninth-largest reserves and is the twelfth-largest exporter, providing about two per cent of the world’s daily oil supply. Not large and it is possible that Saudi Arabia could pick up the slack but it sends out a wave of uncertainty and it is unknown where the next outburst might occur.
Saudi Arabia is the world’s second largest producer, behind Russia. Saudi Arabia exports roughly 75 per cent of its production. If the unrest spreads to Saudi Arabia then all bets might be off the table as to how high oil prices can go.
Saudi Arabia is governed by an absolute monarchy which rules by decree. While its people are generally well-off, it has a minority Shia Muslim population (about 20 per cent), largely employed in the oil-producing regions, who are at the margins of the society. Saudi Arabia has a poor human rights record and its Wabbabi brand of Sunni Muslim religion has often been noted to be behind alleged terrorist organizations. Unemployment is high at just under 11 per cent, although that is better than most Arab countries.
The US is the world’s largest consumer of oil, at roughly 19 million barrels per day. It imports almost 10 million barrels per day. China is now the second-largest consumer. Among the top 15 consumers we also find Japan, Germany, France, Canada, Italy and the UK. Yet outside of Canada and China (which, like the US, produces roughly half of its daily consumption and is also the world’s third-largest producer), none of the others are in the top 15 for production. And amongst the Western economies, only Norway and Canada are listed in the world’s top 15 exporters.
It has often been said the US dollar is a petrodollar. That is to say, it is earned through the sale of oil. Oil-producing countries such as Saudi Arabia and Venezuela, which peg their currencies (within a band) to the US dollar, are as result quite dependent on the value of the US dollar. These countries and many others earn large amounts of US dollars because of their oil production.
The US dollar is also the world’s reserve currency. All commodities are priced in dollars – not just oil. It is the most marketed currency in the world and it is owned more widely than any other currency. One would therefore believe that a strong dollar is not only in the interest of the United States, but everyone else as well.
But the US dollar is also a fiat currency. A fiat currency has value only because the government says so. The Latin word fiat translates as “let it be done”. Thus, the value of money is dictated by government decree.
Today, all national currencies are fiat currencies. The trend began in August 1971 when President Richard Nixon took the US dollar off the gold standard thus also taking the world off of the gold standard. Increasingly from then on, money was whatever a government said it was. As such it has no real value except being declared legal tender.
Fiat currencies have a long history, mostly of failure .The Romans didn’t have paper money but they developed an early form of fiat by constantly decreasing the amount of silver used in the denarius, their main medium of exchange. They continued this debasement until the coinage became intrinsically almost worthless.
The Chinese were the first to issue paper currency in around the tenth century but eventually they printed so much that hyperinflation occurred and their currency became worthless, even though its usage lasted close to 400 years.
History is respite with the failure of fiat currencies. The most recent example was collapse of the Zimbabwean dollar, and a famous example was the Weimar Republic of Germany in the 1920s.
Fiat currencies have a history of ending in hyperinflation – if a country starts printing money excessively, it is often on the road to ruin and hyperinflation. And this is the United States today. The US has unparalleled deficits and debt; it has increasing expansion of its money supply, using a fiat currency; and it is being misleading about its true economic situation through its published economic statistics.
But it also has the world’s reserve currency, and international trade is carried out in US dollars. Any country buying oil, for example, must first convert its currency into dollars to pay for it. The selling country receives those dollars, which are often recycled right back into purchasing US debt, so that the selling country does not adversely impact its own currency.
But the US dollar is a declining currency. In the last 100 years it has lost over 96 per cent of its purchasing power (this process accelerated after 1971).
Many items, including Social Security payments, are tied to the reported rate of inflation. With a much higher rate of inflation, many items would have increased in price faster and the US Treasury would have had to pay out far higher entitlements.
The recalculation of the inflation numbers were provided by www.shadowstats.com. That chart suggests that the US dollar has lost over 98 per cent of its purchasing power over the past 100 years.
Many would say that it doesn’t matter, that society today is far better off than it was 100 years ago. And it is, and more appear to be joining the middle class. But technological advances have changed society in a dramatic way from 100 years ago. That and lots of money provided by a rapidly expanding money supply and debt all courtesy of a fiat currency. With nothing tangible to back money, money intrinsically has no value – except what the government says it is.
But with the explosion in debt and money and the decline in the purchasing power of the US dollar, society has become more divided. Income and wealth is increasingly concentrated in fewer and fewer hands. During the financial crisis of 2008 the bailouts went to the financial institutions (and corporations) that were either indirectly involved or directly involved as the cause of the crisis. The taxpayer (public) footed the bill.
Meanwhile the housing market collapsed with tens of thousands (millions?) losing their homes to foreclosure and tens of thousands lost their jobs. General wages have been stagnant for at least the past two decades and those living on fixed incomes (pensions) have seen a constant decline in their living standards. Meanwhile, those involved in the creation of money particularly at the banks and investment management companies have seen an explosion in their wealth and pay packages.
The unemployment rate soared and while the headline unemployment rate (U3) in the US is at 9 per cent, the Bureau of Labour Statistics U6 number is closer to 17 per cent and www.shadowstats.com have calculated that based on calculating unemployment as it was it was done in 1990 the actual rate may be closer to 22 per cent. The current U3 number leaves out longer term unemployed, part time workers looking for full time work and very long term unemployed. If your unemployment insurance runs out the person falls out of the U3 number to the U6 number.
Today, with the future liabilities of Social Security, Medicare and Medicaid estimated (conservatively) to be about US$50 trillion or (more liberally) at upwards of $200 trillion, the US, with a debt at over $14 trillion and rising, has little chance of ever recovering or ever being able to pay it back. It has been said that the US could tax 100 per cent of income and still not be able to cover its commitments.
Further, the world is rife with imbalances. The US is the largest consumer in the world and imports heavily, creating huge trade deficits. It also runs huge budget deficits to finance entitlements and the Pentagon that finances the war machine. The US dollars circulating throughout the world, either because of general imports or because of oil, are recycled back into the US to purchase their debt. All of this appears to have worked reasonably well over the years but now the model is coming under severe stress. These global imbalances are not only causing problems for the US they are causing problems for other countries as well.
If the US were any normal country, its currency would now be in complete collapse and it would be arranging for IMF bailouts such as Greece and Ireland saw recently. But because it is the world’s reserve currency, the US has one big advantage: it can just print more dollars.
This strategy has unnerved the holders of US debt, led by China, which is estimated to hold almost $900 billion as of December 2010. Japan also holds almost as much. The UK has over $500 billion. Almost 60 per cent of the US debt held by foreigners is in the hands of just those three plus the oil producing nations led by Saudi Arabia. Of the total US debt of over $14 trillion, over $9 trillion is held by the public and roughly half of that is held by foreigners.
No wonder there are calls for an end to US dollar hegemony and a new Bretton Woods agreement to determine a new world reserve currency, and possibly even bring back a gold standard. The calls have ranged from the IMF, the World Bank, and many countries including France and Germany and of course China, the country that has the most to lose, given its large holdings of US dollars. Even Saudi Arabia has joined a group of countries seeking an alternative for the pricing of oil solely in US dollars. China and Russia are now conducting trade between themselves in Yuan and Roubles.
US debt is vulnerable to a downgrade as well. The IMF and the rating agencies have issued numerous warnings about the US debt situation. The effect of the US losing its AAA rating could be a financial earthquake. The US is also approaching its legal debt limit and, with the rift in Congress, the Republicans have threatened not to grant a new, higher debt limit. This could in the worst case result in the shutdown of government and a US debt default. This is not to predict that any of this will happen, but only to point out that it could.
Some are also saying that the so-called quantitative easing, or QE, could spiral the US into hyperinflation. While there are currently few signs of it, an event such as an oil shock in the Mid-East could trigger severe inflation which in turn could trigger further QE and start an acceleration in monetary inflation. Sharply rising oil prices have a history of causing recessions so it could stop the current feeble recovery in its tracks. An economy reeling from higher oil prices plus rapid monetary inflation could soon spiral out of control.
In the midst of all of this it is no surprise that gold has soared over 450 per cent in the past decade. Although relatively flat thus far in 2011, gold is up almost 28 per cent since the end of 2009. It is becoming an alternative currency. The world’s central banks still hold some 30,000 metric tonnes of gold, and investment demand for it has brought investment holdings in line with what is in the world’s central banks. In many countries, particularly in Asia, gold is seen as a savings vehicle rather than the speculation it seems to be viewed as in North America.
It is not so much that gold prices are rising but that fiat currencies led by the US dollar are declining. The chart of gold shows the stair step action that has taken place since the double bottom lows of 1999 and 2001. The action since that time has seen a series of triangular patterns form that continually break to the upside. And gold is rising not only in dollars but in all currencies, as the series of charts below attest.
Finally not only is the US Dollar Index declining the trade weighted Dollar Index is also falling. The trade weighted Dollar Index called the Broad Index is a weighted average of the foreign exchange values of the U.S. dollar against the currencies of a large group of major U.S. trading partners. The index weights, which change over time, are derived from U.S. export shares and from U.S. and foreign import shares. In some respects this more fairly reflects the value of the US dollar then does the more broadly watched US Dollar Index. The US Dollar Index is a weighted valuation against a basket of 6 major free trading currencies. Notably the US Dollar Index excludes the Chinese Yuan.
Source
Saturday, August 7, 2010
Peter Schiff Says Run from U.S. Dollar
The payroll report on Friday confirmed what many of us knew, that the outrageous monetary and fiscal stimulus has failed, and that sends a signal to all of us that we should flee the U.S. dollar, says Peter Schiff.
Rather then following in the footsteps of other countries, which have been removing stimulus, the U.S. is actually planning on increasing “quantitative easing,” which is just a fancy phrase for printing money to acquire government debt.
That will bring even more pressure on the dollar, and drive its value down even more. The U.S. Dollar Index has dropped eight weeks in a row, and will probably continue to do so in light of the misguided government policies.
If quantitative easing resumes, which at this point appears inevitable, some believe it will kill the dollar as we know it. One of those is St. Louis Federal Reserve President James Bullard.
Rather then following in the footsteps of other countries, which have been removing stimulus, the U.S. is actually planning on increasing “quantitative easing,” which is just a fancy phrase for printing money to acquire government debt.
That will bring even more pressure on the dollar, and drive its value down even more. The U.S. Dollar Index has dropped eight weeks in a row, and will probably continue to do so in light of the misguided government policies.
If quantitative easing resumes, which at this point appears inevitable, some believe it will kill the dollar as we know it. One of those is St. Louis Federal Reserve President James Bullard.
Wednesday, March 10, 2010
US Dollar Mixed Against Currencies
US Dollar Mixed
The U.S. dollar today was mixed and without much movement, as relatively little news of significance emerged to effect the greenback.
Other currencies were similar, other than the British pound which continues to be hammered by the numerous events and pressures it's undergoing.
Neither currency is particularly appetizing at this time, neither will the be over the long term.
The U.S. dollar seems to have a chance to strengthen based on perhaps nothing else than contrarian investing, as most people have been dollar bears for a long time, and little positive is leaking out about the currency.
US Dollar Mixed
The U.S. dollar today was mixed and without much movement, as relatively little news of significance emerged to effect the greenback.
Other currencies were similar, other than the British pound which continues to be hammered by the numerous events and pressures it's undergoing.
Neither currency is particularly appetizing at this time, neither will the be over the long term.
The U.S. dollar seems to have a chance to strengthen based on perhaps nothing else than contrarian investing, as most people have been dollar bears for a long time, and little positive is leaking out about the currency.
US Dollar Mixed
Saturday, November 14, 2009
Countries Fighting Collapsing Dollar Value
A number of countries around the world are acquiring larger positions in the U.S. dollar in hopes it'll help shore up the plummenting value of the greenback to the detriment of their exports.
The most recent countries snatching up the dollar are Russia, South Korea, the Philippines and Thailand. The 15-month low of the U.S. dollar continues to raise concerns on slowing down any economic recovery because of exports from the countries having strong domestic U.S. competition because of the dollar's weakness.
Countries like Taiwan an Brazil are also concerned about the strength of their currencies against the dollar, and in the case of Taiwan they've now forbidden foreign investors from placing time deposits in the country in hopes of weakening their own currency. Comments from official in Brazil also imply there could be more action on taking steps to weaken the real.
In spite of rhetoric from Washington that they support a strong U.S. dollar, no steps have been taken to make that happen, and so it seems that's a direct nod to U.S. manufactures and unions who had backed Obama's presidential run. Exports from the U.S. increase when the U.S. dollar declines in value.
For now, China doesn't care whether the dollar rises or falls against the yuan because it's pegged to rise or fall against the dollar, keeping it at an even keel. Other countries have been pressuring China to allow the yuan to rise in value as Chinese exports also benefit from a weaker dollar as far as when competing against non-American exports.
With that in mind, there's no incentive for China to change its monetary policy, even though regional competitors complain about it. We might see some carrots thrown out to manage some of the complaints, but other than that, I don't see China making any drastic changes to their current monetary policy any time soon.
China holds all the cards in this economic battle, as if too much pressure is put on them, they could keep the import of goods from those particular nations at a small level, a major concern with the huge population in China and a solid, emerging middle class which will resume spending once the global economy rebounds.
Consequently, individual nations will have to take their own steps to make their currencies competitive, and not mistakenly wait around for some type of move by China.
For the U.S. dollar, it almost assuredly will continue to fall in value, making it even harder for other nations to compete on the international stage and with China for U.S. imports. Other nations as well are concerned, as the Euro continues to strengthen against the dollar, also making it harder for European nations to increase exports to the U.S.
The most recent countries snatching up the dollar are Russia, South Korea, the Philippines and Thailand. The 15-month low of the U.S. dollar continues to raise concerns on slowing down any economic recovery because of exports from the countries having strong domestic U.S. competition because of the dollar's weakness.
Countries like Taiwan an Brazil are also concerned about the strength of their currencies against the dollar, and in the case of Taiwan they've now forbidden foreign investors from placing time deposits in the country in hopes of weakening their own currency. Comments from official in Brazil also imply there could be more action on taking steps to weaken the real.
In spite of rhetoric from Washington that they support a strong U.S. dollar, no steps have been taken to make that happen, and so it seems that's a direct nod to U.S. manufactures and unions who had backed Obama's presidential run. Exports from the U.S. increase when the U.S. dollar declines in value.
For now, China doesn't care whether the dollar rises or falls against the yuan because it's pegged to rise or fall against the dollar, keeping it at an even keel. Other countries have been pressuring China to allow the yuan to rise in value as Chinese exports also benefit from a weaker dollar as far as when competing against non-American exports.
With that in mind, there's no incentive for China to change its monetary policy, even though regional competitors complain about it. We might see some carrots thrown out to manage some of the complaints, but other than that, I don't see China making any drastic changes to their current monetary policy any time soon.
China holds all the cards in this economic battle, as if too much pressure is put on them, they could keep the import of goods from those particular nations at a small level, a major concern with the huge population in China and a solid, emerging middle class which will resume spending once the global economy rebounds.
Consequently, individual nations will have to take their own steps to make their currencies competitive, and not mistakenly wait around for some type of move by China.
For the U.S. dollar, it almost assuredly will continue to fall in value, making it even harder for other nations to compete on the international stage and with China for U.S. imports. Other nations as well are concerned, as the Euro continues to strengthen against the dollar, also making it harder for European nations to increase exports to the U.S.
Wednesday, October 14, 2009
Central Banks Fleeing U.S. Dollar
Banks are fleeing the U.S. dollar at an unprecedented rate as 63 percent of new cash is going into the euro and yen rather than the dollar over the last three months.
A decade ago the U.S. dollar accounted for about 66 percent of investment for the new cash in banks, while today it stands at only 37 percent.
Overall the greenback is only 62 percent of the currency reserve at central banks, the lowest level ever that has been recorded, according to the International Monetary Fund.
The obvious reason is it's losing it's value at an unprecedented rate, as it's down 10 percent over the last 90 days alone, generating interest in abandoning the U.S. dollar as the reserve currency and looking at alternatives, although that would take time to happen.
In the short term, money will continue to flow away from the dollar as the extraordinary run of the printing presses of the Federal Reserve and the outrageous Obama administration bailouts continue to hammer the U.S. dollar into the ground.
Government, central banks and investors are getting more concerned about the U.S. dollar going forward, as the almost non-existent return isn't worth the money they've invested in it to cover the growing U.S. government debt.
"He's (Bernanke) in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."
With the horrific decision by the Obama administration to bail out everything, it has left no viable options on the table, because if the Federal Reserve raises interest rates, it'll smother any economic growth and clobber the housing market, which would slump back into a horrid situation it hasn't even escaped at this time.
On the other hand if he keeps things like they are, inflation could go as high as into the triple digits, collapsing the economy into something we would no longer recognize.
As Schiff and others have rightly concluded, "The stimulus is what's toxic -- we're poisoning ourselves and the global economy with it." Unfortunately no one that has power to make monetary decisions has the political and personal will to step in and stop the monetary madness of the Obama administration and the Federal Reserve.
A decade ago the U.S. dollar accounted for about 66 percent of investment for the new cash in banks, while today it stands at only 37 percent.
Overall the greenback is only 62 percent of the currency reserve at central banks, the lowest level ever that has been recorded, according to the International Monetary Fund.
The obvious reason is it's losing it's value at an unprecedented rate, as it's down 10 percent over the last 90 days alone, generating interest in abandoning the U.S. dollar as the reserve currency and looking at alternatives, although that would take time to happen.
In the short term, money will continue to flow away from the dollar as the extraordinary run of the printing presses of the Federal Reserve and the outrageous Obama administration bailouts continue to hammer the U.S. dollar into the ground.
Government, central banks and investors are getting more concerned about the U.S. dollar going forward, as the almost non-existent return isn't worth the money they've invested in it to cover the growing U.S. government debt.
"He's (Bernanke) in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."
With the horrific decision by the Obama administration to bail out everything, it has left no viable options on the table, because if the Federal Reserve raises interest rates, it'll smother any economic growth and clobber the housing market, which would slump back into a horrid situation it hasn't even escaped at this time.
On the other hand if he keeps things like they are, inflation could go as high as into the triple digits, collapsing the economy into something we would no longer recognize.
As Schiff and others have rightly concluded, "The stimulus is what's toxic -- we're poisoning ourselves and the global economy with it." Unfortunately no one that has power to make monetary decisions has the political and personal will to step in and stop the monetary madness of the Obama administration and the Federal Reserve.
Thursday, October 8, 2009
Asia Intervenes - Props Up Dollar
Central banks in Asia moved into the currency markets in order to stop the strengthening of their currencies against the U.S. dollar in order to keep their manufacturing sector from faltering as their exports slow down.
From the middle of 2005, China has allowed the renminbi to appreciate against the U.S. dollar by about 20 percent, but now has re-pegged the currency with the U.S. dollar to also protect their exports against slowing down, thus the response by the other Asian countries to strengthen their currencies in order to counter China's move.
Among Asian central banks buying U.S. dollars were Hong Kong, Singapore, Taiwan, Thailand and Malaysia.
While some fear the move violated the recent agreement of the Group of 20 to work on a more balanced global economic growth, most traders seem to feel that this is an effort to control the pace of the weakening U.S. dollar, rather than attempt to artificially prop it up.
From the middle of 2005, China has allowed the renminbi to appreciate against the U.S. dollar by about 20 percent, but now has re-pegged the currency with the U.S. dollar to also protect their exports against slowing down, thus the response by the other Asian countries to strengthen their currencies in order to counter China's move.
Among Asian central banks buying U.S. dollars were Hong Kong, Singapore, Taiwan, Thailand and Malaysia.
While some fear the move violated the recent agreement of the Group of 20 to work on a more balanced global economic growth, most traders seem to feel that this is an effort to control the pace of the weakening U.S. dollar, rather than attempt to artificially prop it up.
Dollar Index Slides to Lowest in 14 Months
The Dollar Index has fallen to its lowest level since August 2008, dropping to 75.767. The Dollar Index measures the U.S. dollar against the Canadian dollar, Swedish krona, Swiss franc, yen, pound and euro.
Low interest rates and U.S. dollar value have investors treating the greenback as a carry trade, and are selling of their dollars in order to get better returns on higher-yielding currencies.
While the U.S. asserts they want a strong dollar, their practices contradict that assertion, and foreign countries are concerned over their own manufacturing bases which are dependent on a stronger dollar to sell goods in the U.S. at a decent profit.
Of course U.S. manufacturers would like a weak dollar to continue, as that would help prop up the industry; strengthening it and eventually creating more jobs, while also shrinking trade deficits.
Low interest rates and U.S. dollar value have investors treating the greenback as a carry trade, and are selling of their dollars in order to get better returns on higher-yielding currencies.
While the U.S. asserts they want a strong dollar, their practices contradict that assertion, and foreign countries are concerned over their own manufacturing bases which are dependent on a stronger dollar to sell goods in the U.S. at a decent profit.
Of course U.S. manufacturers would like a weak dollar to continue, as that would help prop up the industry; strengthening it and eventually creating more jobs, while also shrinking trade deficits.
Wednesday, October 7, 2009
Collapsing US Dollar Driving Gold Prices
The continuing weakness and collapse of the U.S. dollar is driving gold prices as much as anything else, as in terms of the U.S. dollar, gold broke an all time record again, reaching $1,500 a troy ounce, as investors ignore the plunging jewelry demand from India and other nations and look toward safety and an inflation hedge.
To get a grasp of how weak the U.S dollar is, in other currencies gold is far from breaking records, as in being measured by the yen it's 15 percent below their all time record in gold, and the Australian dollar is even stronger, being 30 percent away from their all-time high for gold prices as measured by their currency. Even against sterling gold is 6 percent away from record past highs.
Again, gold is being moved by the increasing lack of faith in the U.S. dollar, along with complete uncertainty on the condition of the economy, as mixed signals and postive thinking reports from the government continue to hide the real condition of the global and U.S. economy, which is probably much worse than being reported.
The response to the U.S. dollar shows investors believe this completely.
To get a grasp of how weak the U.S dollar is, in other currencies gold is far from breaking records, as in being measured by the yen it's 15 percent below their all time record in gold, and the Australian dollar is even stronger, being 30 percent away from their all-time high for gold prices as measured by their currency. Even against sterling gold is 6 percent away from record past highs.
Again, gold is being moved by the increasing lack of faith in the U.S. dollar, along with complete uncertainty on the condition of the economy, as mixed signals and postive thinking reports from the government continue to hide the real condition of the global and U.S. economy, which is probably much worse than being reported.
The response to the U.S. dollar shows investors believe this completely.
Will Weak Dollar Destroy Wal-Mart?
Peter Schiff made an interesting correlation between the weak U.S dollar, the Chinese and the future of Wal-Mart (NYSE:WMT).
Schiff asserts that the days of Wal-Mart being able to buy up cheap products from the Chinese like they've done in the past are over, he even said Wal-Mart could become the next Saks Fifth Avenue, meaning their prices will only rise, taking away their unique competitive advantage.
Of course if that were to become a reality, Wal-Mart would struggle, so would their competitors who rely on Chinese products as well.
Wal-Mart could of course go to other countries providing cheaper prices like China currently does and take advantage of that, but it would take a lot of workers to make up the difference, seeming to imply they would have to enlist a number of countries to meet the low price demand behind the reason people shop Wal-Mart in the first place.
If Wal-Marts' competitors are better positioned than they are in getting their products from other countries, then this really could make things interesting, and bring the price differences between them and their competitors much closer.
Maybe this one of the reasons Wal-Mart has been working hard at attempting to bring in higher end clothing to the stores, other than attempting to reach people at higher income levels.
Schiff asserts that the days of Wal-Mart being able to buy up cheap products from the Chinese like they've done in the past are over, he even said Wal-Mart could become the next Saks Fifth Avenue, meaning their prices will only rise, taking away their unique competitive advantage.
Of course if that were to become a reality, Wal-Mart would struggle, so would their competitors who rely on Chinese products as well.
Wal-Mart could of course go to other countries providing cheaper prices like China currently does and take advantage of that, but it would take a lot of workers to make up the difference, seeming to imply they would have to enlist a number of countries to meet the low price demand behind the reason people shop Wal-Mart in the first place.
If Wal-Marts' competitors are better positioned than they are in getting their products from other countries, then this really could make things interesting, and bring the price differences between them and their competitors much closer.
Maybe this one of the reasons Wal-Mart has been working hard at attempting to bring in higher end clothing to the stores, other than attempting to reach people at higher income levels.
Tuesday, October 6, 2009
U.S. Dollar Still Under Pressure
As some foreign currencies respond to their own pressures and result in raising of interest rates, the decision by the Federal Reserve to hold its rates down will continue to put downward pressure on the collapsing U.S. dollar, as the Fed holds to its loose monetary policy.
Other growing factors of concern for the dollar are the increasing number of countries calling for either a new reserve currency, basket of reserve currencies, or to trade in targeted sectors like oil not using the dollar as the currency used for trade.
That will also continue pushing the price of gold up as investors migrate to the yellow metal to hedge against the inevitable inflation coming, and which some say is largely understated by the U.S. government.
Other growing factors of concern for the dollar are the increasing number of countries calling for either a new reserve currency, basket of reserve currencies, or to trade in targeted sectors like oil not using the dollar as the currency used for trade.
That will also continue pushing the price of gold up as investors migrate to the yellow metal to hedge against the inevitable inflation coming, and which some say is largely understated by the U.S. government.
UN: New Global Reserve Currency
U.S. Dollar Reserve Currency
Saying that the U.S. dollar as the global reserve currency has empowered America to build up their huge trade deficit, UN undersecretary-general for economic and social affairs, Sha Zukang, said "Greater use of a truly global reserve currency, such as the IMF's special drawing rights (SDRs), enables the seigniorage gained to be deployed for development purposes."
Zukank added, "Important progress in managing imbalances can be made by reducing the reserve currency country's 'privilege' to run external deficits in order to provide international liquidity."
SDRs are used for IMF transactions, and currently base their value on a basket of four currencies: the U.S. dollar, pound, yen and euro.
There is mounting pressure for the U.S. dollar to play a lesser role as the reserve currency of choice around the world, and a number of talks have gone on on how to go about that.
U.S. Dollar Reserve Currency
Saying that the U.S. dollar as the global reserve currency has empowered America to build up their huge trade deficit, UN undersecretary-general for economic and social affairs, Sha Zukang, said "Greater use of a truly global reserve currency, such as the IMF's special drawing rights (SDRs), enables the seigniorage gained to be deployed for development purposes."
Zukank added, "Important progress in managing imbalances can be made by reducing the reserve currency country's 'privilege' to run external deficits in order to provide international liquidity."
SDRs are used for IMF transactions, and currently base their value on a basket of four currencies: the U.S. dollar, pound, yen and euro.
There is mounting pressure for the U.S. dollar to play a lesser role as the reserve currency of choice around the world, and a number of talks have gone on on how to go about that.
U.S. Dollar Reserve Currency
Monday, October 5, 2009
Oil Trading with U.S. Dollars? Not for long!
A number of nations have been getting together and discussing using a basket of currencies in place of the U.S. dollar to trade oil with one another.
Along with some Arab states, also participating in talks to stop using the U.S. dollar for trading oil are France, Russia Japan Brazil and China.
Evidently the deadline for all of this to transpire is 2018.
While publicly a number of countries and U.S. officials have talked about the importance of a strong U.S. dollar, that has largely become a joke privately, and we'll continually see a private push to move away from the U.S. dollar with the failed policies of the Obama administration, along with the continued actions and practices of the Federal Reserve.
This is why Ron Paul and so many others are moving so strongly to audit the Fed, and Paul's case - eventually end it altogether.
The U.S. dollar is collapsing all around us, and so-called financial experts, in many cases, continue to act as if it has a long life ahead. It may have, but it's going to continue to be on a respirator as its buying power continues to weaken.
We'll get some occasional spurts and upward movement of the dollar, as nothing falls straight off the cliff, but it will continually fall in strength endlessly unless our policies concerning the U.S. dollar change.
From the looks of it, very few have the will to make that decision, and so we'll go on until the pain of it forces the decision to be made. Hopefully by that time it won't be too late.
Along with some Arab states, also participating in talks to stop using the U.S. dollar for trading oil are France, Russia Japan Brazil and China.
Evidently the deadline for all of this to transpire is 2018.
While publicly a number of countries and U.S. officials have talked about the importance of a strong U.S. dollar, that has largely become a joke privately, and we'll continually see a private push to move away from the U.S. dollar with the failed policies of the Obama administration, along with the continued actions and practices of the Federal Reserve.
This is why Ron Paul and so many others are moving so strongly to audit the Fed, and Paul's case - eventually end it altogether.
The U.S. dollar is collapsing all around us, and so-called financial experts, in many cases, continue to act as if it has a long life ahead. It may have, but it's going to continue to be on a respirator as its buying power continues to weaken.
We'll get some occasional spurts and upward movement of the dollar, as nothing falls straight off the cliff, but it will continually fall in strength endlessly unless our policies concerning the U.S. dollar change.
From the looks of it, very few have the will to make that decision, and so we'll go on until the pain of it forces the decision to be made. Hopefully by that time it won't be too late.
Jim Rogers: Inflation Going Higher
U.S. Dollar Inflation
In a recent interview, Jim Rogers said that the U.S. government is lying about inflation, and that the current rate is probably more around six to seven percent, in contrast to what is being asserted.
Rogers simply points to the obvious, that when you go out shopping, the prices are definitely higher, and obviously that can't be spun by the government.
The best play going forward, according to Jim Rogers is to invest in gold and commodities, as raw materials will outperform other assets in the future.
U.S. Dollar Inflation
In a recent interview, Jim Rogers said that the U.S. government is lying about inflation, and that the current rate is probably more around six to seven percent, in contrast to what is being asserted.
Rogers simply points to the obvious, that when you go out shopping, the prices are definitely higher, and obviously that can't be spun by the government.
The best play going forward, according to Jim Rogers is to invest in gold and commodities, as raw materials will outperform other assets in the future.
U.S. Dollar Inflation
Thursday, October 1, 2009
Jim Rogers: Dollar Collapse Long-term
Most people that understand the cause and effect of the disastrous policies of the Obama administration and how it will continue to damage the U.S. dollar, are rightly very pessimistic about its long term future.
But because people run in packs and follow the crowd, and most at this time see the U.S. dollar as a disaster, over the short term it wouldn't be a surprise to see it rally, and Jim Rogers concurs with that assessment, saying many investors have sold the dollar short, so that could result in a short term rally, which while not being a true measure of the U.S. dollar strength, would benefit those on the right side of the trade.
Even so, over the long term Jim Rogers continues to believe the U.S. dollar will remain a disaster and will continue to collapse.
Long term there is no doubt about the U.S. dollar continuing to lose its value. But there will be times when the dollar will temporarily shoot up in response to the ongoing negative feeling toward it, so it's something to keep in mind when making your plays on the dollar.
But because people run in packs and follow the crowd, and most at this time see the U.S. dollar as a disaster, over the short term it wouldn't be a surprise to see it rally, and Jim Rogers concurs with that assessment, saying many investors have sold the dollar short, so that could result in a short term rally, which while not being a true measure of the U.S. dollar strength, would benefit those on the right side of the trade.
Even so, over the long term Jim Rogers continues to believe the U.S. dollar will remain a disaster and will continue to collapse.
Long term there is no doubt about the U.S. dollar continuing to lose its value. But there will be times when the dollar will temporarily shoot up in response to the ongoing negative feeling toward it, so it's something to keep in mind when making your plays on the dollar.
Timothy Geithner Wants Strong Dollar?
The idea that U.S. Treasury Secretary Timothy Geithner said a strong U.S. dollar was important to the U.S. would be hilarious if it wasn't so pathetic and damaging.
Geithner's boss Barack Obama and the Federal Reserve have done everything they can to continually debase and destroy the value of the U.S. dollar, and they still aren't stopping printing money as Geithner speaks out of one side of his mouth, while giving orders to spend more money on the other.
We don't have to believe Geithner, who pleaded that we have to "recognize" that he means it. All we have to do is watch his actions, the Federal Reserves actions, and the horrendous policies of Barack Obama to know the U.S. dollar is in one of the biggest crisis of its existence, and absolutely nothing is being done to correct that except nonsensical talk from people like Geithner, while they continue in the same practices they always have. which led us to this economic crisis in the first place.
This year an extraordinary record-breaking deficit of about $1.8 trillion will be experienced by the U.S.
None of us should listen to anything politicians say about the U.S. dollar, with the exception of Ron Paul, as the rest are either clueless or outright dishonest as to what they've allowed the secretive and renegade Federal Reserve to do. Just watch and observe what is being done while you block out the talk. That's the only way to get the reality of what's happening, and not the fiction being asserted.
Hopefully the bill to audit the Fed will go through. At that time we'll see what it is they've been fighting to keep from having to disclose. They're worried. They should be!
U.S Dollar Collapse
Geithner's boss Barack Obama and the Federal Reserve have done everything they can to continually debase and destroy the value of the U.S. dollar, and they still aren't stopping printing money as Geithner speaks out of one side of his mouth, while giving orders to spend more money on the other.
We don't have to believe Geithner, who pleaded that we have to "recognize" that he means it. All we have to do is watch his actions, the Federal Reserves actions, and the horrendous policies of Barack Obama to know the U.S. dollar is in one of the biggest crisis of its existence, and absolutely nothing is being done to correct that except nonsensical talk from people like Geithner, while they continue in the same practices they always have. which led us to this economic crisis in the first place.
This year an extraordinary record-breaking deficit of about $1.8 trillion will be experienced by the U.S.
None of us should listen to anything politicians say about the U.S. dollar, with the exception of Ron Paul, as the rest are either clueless or outright dishonest as to what they've allowed the secretive and renegade Federal Reserve to do. Just watch and observe what is being done while you block out the talk. That's the only way to get the reality of what's happening, and not the fiction being asserted.
Hopefully the bill to audit the Fed will go through. At that time we'll see what it is they've been fighting to keep from having to disclose. They're worried. They should be!
U.S Dollar Collapse
Peter Schiff: Carry Trade Dollar
Peter Schiff has been making the rounds lately and talking about the continuing collapse of the U.S. dollar, which will make it an ideal carry trade candidate going forward, and which will make many people very wealthy as a result.
Schiff has also said that he has no idea when, or even if, the U.S. dollar will strengthen any time soon. Of course that can't be counted on at all with the ongoing spending spree of the Federal Reserve and U.S. government.
Schiff is of course the president of Euro Pacific Capital, an investment firm he runs.
Peter Schiff - Collapsing U.S. Dollar
Schiff has also said that he has no idea when, or even if, the U.S. dollar will strengthen any time soon. Of course that can't be counted on at all with the ongoing spending spree of the Federal Reserve and U.S. government.
Schiff is of course the president of Euro Pacific Capital, an investment firm he runs.
Peter Schiff - Collapsing U.S. Dollar
Subscribe to:
Posts (Atom)
![[Most Recent Exchange Rate from www.kitco.com]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_teqUgDFA2YbCguBZ-n-4EJ1AbWmGJgpomKaBXkzOxculJx6Dri5T5lIATetMrrnglDwcN3ZXApdXGs_TZ_QOGp5IFtiOWD-mMymP-CWgS09KfKNmkgfx8=s0-d)
