Posted on 10/14/2010 6:41:22 PM PDT by jafojeffsurf
The dollar tumbled against most major currencies on Thursday, prompting warnings that the weakness of the world’s reserve currency could destabilise the global economy and push other countries into retaliatory devaluations to underwrite their exports.
Increasing expectations the Federal Reserve will pump more money into the US economy next month under a policy known as quantitative easing sent the dollar to new lows against the Chinese renminbi, Swiss franc and Australian dollar. It dropped to a 15-year low against the yen and an eight-month low against the euro.
The dollar index, which tracks a basket of currencies, reached its lowest level this year.
A senior European policy-maker, who asked not to be named, said a further aggressive round of monetary easing by the US Federal Reserve would be “irresponsible” as it made US exports more competitive at the expense of its rivals.
Simon Derrick, chief currency strategist for BNY Mellon, said: “In narrow terms, the US is winning the currency wars as a weaker dollar will help its economy, but it could damage the other big economic blocs of China, Japan and Europe.” Snip
(Excerpt) Read more at ft.com ...
Who knows. It seems to me from everything I’ve read there’s nothing good about our financial situation. However, these stories have been going on for a year and a half...
They are doing everything they can to prop up the most visible signs of the economy to get through the midterms.
I predicted DJIA at 11K for the midterms. The PPT is going crazy trying to keep it there though it desperately wants to correct.
Next year is going to be ugly, folks.
Read and heed my tagline.
The Saudis can’t be too happy about the devaluation of the dollar. Heck, we’ll have $100/bbl oil soon.
I agree, the stories have been out there a while, but we are now seeing movement and the logic dictates something has to give and paper money being printed at fractions which are much greater than 10 to 1 will surely have a bad... bad effect.
Audit The Fed!
Congress is suppose to COIN money!
PPT, if only they were limited to the 2 trillion that went missing...
The market really wanted to correct today.....financials were a mess but then....GOOG saved us! Lol
Agree, You will see large pushes for country pride all around the world. It will not help if things get as bad as I fear they will.
Our AZ Republic ran the story as “weakening dollar good news for economy”.....
But the good news of the day is that our Schweichert sign finally was put up in our front yard......we hope he beats Mitchell.....
And believe it or not...there’s a “safe” Democrat seat in AZ that might go Republican way......quite possibly turning the Az Congressional delegation 7-1 Republican from 5-3 Democrat......
After the election, there’s a chance that only Pastor remains as only AZ Dem in Congress......
A very real and worrying problem! Seems like the Fed is trying to reduce their debt load via inflation and that is going to be very scary if not terminal this time...
Just think of food prices doubling... could happen if these idiots in Washington don’t stop this nonsense...
Simon Derrick, chief currency strategist for BNY Mellon, said: “In narrow terms, the US is winning the currency wars as a weaker dollar will help its economy, but it could damage the other big economic blocs of China, Japan and Europe.”
These idiot don’t understand who is hurting as the price of Fuel,materials,and food go through the roof. Also those who have saved are decimated.
Fraudclosure is a factor this time.
The idea that this country is now as or more corrupt than the rest of them will make them run for the hills, so to speak.
NOT good.
The game of chicken resumes. Unfortunate, but probably the only way to break the currency pegs of Asia.
How very true.
All it will take is one European Finance Minister who does NOT refuse to be named, to declare that he believes the United States is likely to default on it’s massive debt, and that will effectively flush what’s left of the US economy straight down the drain without a courtesy lap around the bowl.
I figure with all of the automatic circuit breakers that are built in to slow down the inevitable, it will take a month for the Dow to shed 7-8 thousand points...
All it takes is the right trigger.
Devaluing the dollar to increase global demand for US exports works only if the US is capable of exporting things the rest of the world wants to buy. Unfortunately, so many US products are no longer produced in the USA.
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