Is the dollar beginning it's decline?

Me | 5/4/2009 | Mike

[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!

[NeoCaveman]

All the metals were up today, energy was up, the Euro and the Sterling were both up. So maybe.

[BfloGuy]

And I told you that conservatives predicting the end of the world instead would look like fools

In the short term you're probably right. In the long term, not so much.

[4rcane]

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.

[irishjuggler]

...Bob Brinker doesn't think so, for what it's worth.

I pay close attention to whatever Bob Brinker recommends... and then try to do the opposite. I can remember him talking up SPDRs when the S&P 500 was 50% higher than it is now. Thanks, Bob.

[divine_moment_of_facts]

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.

[JasonC]

Capitalism always recovers, and the American economy always grows. The sun also comes up each morning and water remains wet. Pretending that Obama is only bad if these things stop happening on his watch is setting a bar so low that any fool can clear it, and is stupid, stupid, stupid.

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.

[JasonC]

It doesn't end, there is never any "end". It is a normal economic cycle, it busts and it booms. Expecting neat morality plays from economic or financial cycles is dumb, it is like expecting a rainstorm net week to end civilization. When did conservatives lose their trademark sense of proportion for ideological extremism and doom-mongering?

[TexasRepublic]

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.

[OpusatFR]

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.

[Southack]

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.

...but...

You’ll see lots of people continuously promising you that “it’s just around the corner.”

They’re clueless.

Inflation isn’t even close.

[rbg81]

I used to listen to Bob Brinker. Maybe it was me, but it seemed he talked alot but never said anything.

[TwelveOfTwenty]

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.

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.

[tbw2]

We were rather PO’d that he recommended Ginnie Maes as dead solid, and then they died.

[divine_moment_of_facts]

It is a normal economic cycle, it busts and it booms

You have to be kidding me. This has not been a Normal bust and boom.. for crying out loud!

[mikelets456]

“...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!

[MSF BU]

Well, I get more of an economics lesson than anything else, although his guests are often interesting.

[JasonC]

Sure it has. You are just spoiled by the last 2 recessions being unusually mild, and continuing the long financial uptrend since 1982. This sort of thing is utterly normal in the history of capitalism. In 1973-4 we had it, it was worse at the end of the 70s, about the same in 71, much worse in the 30s, worse in 1922, worse in 1907, worse in the 1890s, etc. Read Kindleberger sometime and then we'll talk.

[JasonC]

The course of American history hasn't been changed by anything short of world war, for centuries. Even those have provided only inflection points. No, the election of Obama is not the end of the world, nor of capitalism. A bear market is not poverty. Unemployment hitting for a year the levels western Europe has lived with for a generation is not catastrophe. This too shall pass.

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...

[Designer]

"Inflation isn’t even close."

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?

[Centurion2000]

Printing 4 trillion dollars + of currency (even if it’s electronic) is not a normal business cycle.