Skip to comments.Is the dollar beginning it's decline?
Posted on 05/04/2009 1:13:38 PM PDT by mikelets456
Is this the VERY beginning of the downward spiral of our currency? I am beginning to notice that the Euro and Pound are going up daily. The Euro was at 1.23 now at 1.35 and the Pound previously 1.36 to 1.50...is this the beginning of inflation? Oil rising as well...this could be the tip of the "turd" ready to erupt. Hey, printing all that $$$ will eventually have consequences, there really is no escape from that. Never in the history of man kind has "throwing money" at a crisis helped...NEVER!
...Bob Brinker doesn’t think so, for what it’s worth.
Bob Brinker voted for Obama
Aren’t they spending like drunken Obamites over there too? Question is, who is going to win the race?
As are almost every commodity.
A bet on the dollar is a bet on Obama.
Right now he is still fairly popular. Watch what happens to the dollar if he becomes unpopular.
Natural gas bottomed last Thursday and it’s current trajectory is sharply vertical. See UNG (NYSE) up 12.75% in three trading days. Yippee!
Wait a minute......are you saying that if I owe a whole bunch of money, that I can’t pay back, borrowing more won’t help? I’ll be darned. I didn’t know that.
“Beginning” its decline????
Is the Pope Catholic?
Was the Prophet Mohammad a child molester?
Is Obama a sneaky little bitch?
.....Yes, Yes, Yes and Yes. Of course the dollar is declining.
By removing all those dollars from the pool, you'll make the remaining dollars more valuable.
If this doesn't bring up the value enough, then just print another few trillion and burn them.
Well, here’s a chart. The dollar did fairly well for a while, because other countries were having even worse economic problems. But Obama has been spending money like there’s no tomorrow, so that will probably shift.
Peter Grandich, who has a pretty good forecast record, has come out recently with a VERY BEARISH report on the dollar. I can’t link to it here, but here’s an earlier report of his:
Almost time to max out the credit cards ;)
I’d like to know why the stock market is doing so well.. suspicious.
The dollar has been falling occasionally without much interruption since 1973. But it isn't going to zero. The financial crisis consisted (and consists) in an epic crowd of credulous fools all betting that it would at once, all being wrong.
If the dollar in the future were going to be worth zero, borrowing dollars to buy any real asset in existence would be an automatic win. Everybody tried that, and they can't pay back the dollars, because those dollars are not worth zero, but oh about 3-4 times as much as the reckless bettors expected (in oil, in houses, in every industrial commodity you can name...).
Central banks that tighten enough to break bubbles even if it wipes out $10 trillion in wealth do not see repudiation of their currencies. It is all reckless slander and always was. Stop regurgitating it, already.
I find it very hard to believe that my right wing bias is blinding me to Obama’s brilliance. Something is not making sense.
The market always moves so as to inconvenience the greatest crowd of fools. Always.
Yeah, I posted that somewhere else...How the heck can the market be going through the roof with all this “Anti-business, Government control and massive spending...”!
it’s all a mirage and will disappear very soon!
And I told you that conservatives predicting the end of the world instead would look like fools, and that the Dems would stand there and take credit for the natural recuperative powers of capitalism and the technocratic strength of the Fed and the whole system, all while slander those who actually run it.
And you-lot were played like a violin...
Nothing makes sense anymore.. and Im sure that is the way they like it. We are being lead to a cliff..
All the metals were up today, energy was up, the Euro and the Sterling were both up. So maybe.
In the short term you're probably right. In the long term, not so much.
the UK Currency is going down as well. Their problem is worst than the US at moment. plus they dont have the advantage of having their currency as the reserve currency.
I held tight when it was all going into the crapper.. Just seems like the same careless money lending is happening again.. It won’t end well this time, either.
Obama may well screw up foreign policy stuff enough to let Iran get nuclear weapons, and five or ten years from now a million or more people may fry in consequence. He can be a disaster of that sort. But capitalism isn't going to roll over and die because he isn't as conservative as the Cato institute, and betting the movement on that happening was and always will be, dumb as rocks.
Don't make the Dem mistake of betting against America... and don't conceed to Dems, victory if American succeeds. America will succeed, small thanks to them, and never let the people forget it.
Over half of this country will passively watch as Obama plays Hugo Chavez II. If nothing is done, it won’t be business cycles as usual.
It may have. I’ve bet on the dollar’s demise personally.
Of course, it may go back and forth over the next couple of years, but the trajectory is down. Below 80, I’d get out completely.
Inflation is dead, kid. D E A D.
They’ve been searching for inflation since 1989 in Japan...can’t find it.
Won’t find it here for years, either. Maybe longer.
You’ll see lots of people continuously promising you that “it’s just around the corner.”
Inflation isn’t even close.
I used to listen to Bob Brinker. Maybe it was me, but it seemed he talked alot but never said anything.
That's a good thought. The Dems didn't credit Reagan/Bush Sr. for the Cold War ending on their watch or feel any compulsion to reelect Bush Sr. as a result, and we don't have to credit the Dems should America pull herself out of this recession.
We were rather PO’d that he recommended Ginnie Maes as dead solid, and then they died.
“...It doesn’t end, there is never any “end”. It is a normal economic cycle, it busts and it booms....”
I guess printing trillions of $$$, allocating billions to “pork projects”, lying and ready to spend another 3.7 trillion will have no consequences? You call this a NORMAL business cycle?
This will change the course of American history...come on!
Well, I get more of an economics lesson than anything else, although his guests are often interesting.
Once upon a time, conservatives has a better sense of proportion and hard nosed realism than flighty hysterical liberals and their doom mongering panics. Apparently something got into the water and you have all lost your marbles...
Now that our beneficient government has re-defined inflation, they can also take a moment and re-define re-distribution, taxes, government spending, growth of government, loss of freedom, and all the rest.
That way, we are living fat and happy because daddy o-bomber will take care of us.
Since when does printing more money NOT mean inflation?
That is the definition that most of the intelligensia use, so why not you, too?
Printing 4 trillion dollars + of currency (even if it’s electronic) is not a normal business cycle.
Bob Brinker has his, and that's all that's important to him.
Just listening to him, I realized he was a liberal.
Wealthy liberal, but just as ignorant as all the other liberals.
Printing new money is only part of the equation. The other part is Credit.
Cash + Credit = Money Supply.
If credit availability is destroyed (e.g. no more sub-prime home loans) faster than new money is printed, then you get Deflation because the Money Supply shrank.
That is all correct, but don't look for any deflation in this lifetime.
Deflation just means that prices deflated. Well, prices on homes and stocks are quite a bit down from their peak. They've deflated.
Salaries are down. And because employment is down, wages and overtime hours are down in aggregate.
Less credit being available generally brings prices down, too.
Stocks and homes are big-ticket items. So are salaries and wages.
They are all down.
Oil has fallen from $147/barrel down into the $50's.
Copper is half of its peak.
The daily rate for supertankers making the crude run from Saudi Arabia to Japan has plunged from $177,000 last year to $16,000 this month.
That's substantial deflation.
I don't know...maybe you could find some grandma to tell you that she's paying a few pennies more for milk...but not much is going up in price compared to the peaks last year.
Deflation is here in a big way.
I don’t know if he is a liberal. I DO KNOW that I have NEVER heard him make mention of any family member ever having served in the military. Interesting.
We shall see what happens when the treasury tries to fund the deficit. It will be interesting.
Bob Brinker totally missed the market downturn.
That's been going on already. You're 2 months behind the times.
Just like Japan for the past 20 years.
Not in ernest, the real spending and the debt to finance it has yet to begin.
The U.S. has poured $12.8 Trillion in new cash and credit into the economy since May of 2008.
That’s 100% of GDP. Huge!
From a year ago.
You’re stuck claiming the same thing as every other discredited inflationist...that somehow inflation is “just around the corner.”
Not even close.
Inflationists have been wrong for at least a year here in the U.S., and have been wrong each year for the past 20 years in Japan.