For the dollar, a 'crisis' is relative. With no alternative, a USD collapse is unlikely

Los Angeles Times ^ | 04/23/2011 | Tom Petruno

[SeekAndFind]

The greenback has been in decline for a decade, but the latest slide is setting off alarms. Still, a collapse seems unlikely given the lack of a real global alternative to the dollar's status.

Housing crisis, 2007. Banking crisis, 2008. Unemployment crisis, 2009. European debt crisis, 2010.

For 2011: a dollar crisis?

You will probably hear more warnings to that effect soon if the U.S. currency continues on its current path. Although the dollar has mostly been falling against its major foreign rivals since 2001, the slide this spring is taking it to levels that fit conveniently with a variety of doomsday predictions for the economy.

What better symbol of debt-hobbled America's decline than the collapse of the once almighty dollar?

Except the dollar isn't collapsing — not yet, anyway. It is, however, weak and getting weaker. And you may be having your own personal dollar disaster if you were planning to take a foreign vacation soon. The greenback's loss of purchasing power in much of the world may scuttle more than a few overseas jaunts by Americans.

But the kind of dollar crisis envisioned in most doomsday scenarios would entail investors fleeing dollar-denominated stocks and bonds in a mad rush. And there's no sign of that.

The Dow Jones industrial average ended this holiday-shortened week at 12,505.99, its highest level since June 2008. Most broader stock indexes are within 1% of their recent highs.

In the bond market, yields on Treasury securities have mostly moved lower over the last two weeks. Ditto for yields on most corporate and municipal bonds. A selling binge would mean higher, not lower, yields.

Still, it's easy to see why the dollar's latest slump would set off alarms.

[ken21]

the boomer generation inherited a great economy,

but they don’t seem too concerned about passing on a better economy to their children.

[RushingWater]

Obama is destroying the greatest valuable asset the US has.

[dirtboy]

The same kind of folks said real estate wasn’t a bubble back about 2006 or so.

[Spartan79]

. . . you may be having your own personal dollar disaster if you were planning to take a foreign vacation soon.

Actually, I have my own personal dollar crisis every time I pull up to the gas pump.

[KoRn]

"the boomer generation inherited a great economy,"

That tends to happen when virtually every other industrial power is bombed/nuked back into the stone age, and your country is the only one left standing.....

[Ghost of Philip Marlowe]

All the majors currencies have been dying for years. The dollar included. But because they were all going down together and their strength of each is analyzed and reported relative to the others, it didn’t appear that the dollar was falling as badly as the others. It is like several planes in the sky that are all crashing toward the earth, but one plane is crashing less slowly, so compared to the other plans, it is still flying all right.

This has only been possible because the dollar is the world’s reserve currency and because so many other nations are so heavily invested in it that they didn’t want it to nosedive, so they’ve propped it up with loans upon loans.

Make no mistake about it. When these currencies crash, our way of life crashes. These currencies are being crashed on purpose so that all the world demands a new, global currency that is controlled by a global, centralized banking system. This will effectively put an end to national sovereignty and to our Constitutional way of life.

And if you think this is a good idea, study the Federal Reserve and learn what an awful job they have done in meeting their stating goals (low inflation, strong dollar, no recessions, etc.) and what a great job they have done in destroying our currency and wreaking havoc on our economy, which wreaks havoc on our daily lives. The dollar has lost 90% of its purchasing power since the Fed took over. Back in the 1950s and 1960s, one earner in a household could work and support the American dream. Now it takes both adults in a household working to support that same dream.

Now imagine this on a global scale. And imagine those global controllers being the same “-ism” group that hates America and Americans and the American way of life and thinks that “justice” is redistributing America’s wealth (better read that ‘earnings’ and ‘savings’) to other nations who are the ‘victims’ of American ‘theft’ and ‘oppression.’

Do not be misled. They aim to punish each and every one of us and to give us the third-world standard of living they believe is ‘justice.’

[vladimir998]

boy, ain’t that the truth. I just heard a commentator say that he thinks gas will go up to $6 a gallon this summer. I have at least 2,000 miles to drive in addition to all my usual driving this summer. Sheesh!

[VRW Conspirator]

Back in the 1950s and 1960s, one earner in a household could work and support the American dream. Now it takes both adults in a household working to support that same dream.

This is the cursed inflation foisted upon us the the collusion of the Fed-Gov and the Fed. Once I did a simple analysis with inflation (just at 1%-5%) and demonstrated that my (then) current income would eventually be surpassed by inflated cost of living, even with annual raises of income! The Fed via the Fed-Gov has been draining the value from us at a frog-in-slow-boiling-pot rate. It is as if a thief has been slowly changing the coins in my pocket from silver to worthless metal-no, uh, wait, uh...

[LomanBill]

>>The same kind of folks said real estate wasn’t a bubble back about 2006 or so.

This graph is typical of the house valuations in zip code 80917 -  Right in the front yard of NORAD, Airforce Academy, Ft. Carson, Northern Command...

Given that "Liar Loans" and dishonesty were a central element of how the bubble got blown,  it doesn't exactly inspire confidence in the calibration of the moral compass of those "leading" the Technocratic Military Industrial Oligarchy.

It's almost as if Yuri Bezmenov...

1. Ideological subversion is the process which is [a] legitimate, old word, and open. You can see it with your own eyes.  All American mass media has to do is to "unplug bananas" from their ears, open up their eyes,  and they can see it.  There is no mystery.  

 

It has nothing to do with espionage. I know that espionage intelligence gathering looks more romantic.  It sells more deodorants through the advertising.  That's probably why your Hollywood producers are so crazy about James Bond types of films. But in reality the main emphasis of the KGB is NOT in the area of intelligence at all.

 

According to my opinion, and the opinions of many defectors of my caliber, only about 15% of time, money, and manpower is spent on espionage as such. The other 85% is a slow process which we call either ideological subversion, active measures, or psychological warfare. What it basically means is: to change the perception of reality of every American that despite of the abundance of information no one is able to come to sensible conclusions in the interest of defending themselves, their families, their community, and their country.

 

It's a great brainwashing process which goes very slow and is divided into four basic stages.

 

The first stage being "demoralization"....

 

---KGB DefectorYuri Bezmenov

http://www.freerepublic.com/focus/news/2095202/posts

 

...knew what he was talking about.

 

 

 

 

[rj45mis]

“the boomer generation inherited a great economy”

I’m a boomer and we may likely go down as the most self-absorbed generation in our storied history.

[dhs12345]

The problem is that the foundation of the US economy is quickly eroding. We have lost our manufacturing and engineering — we have lost our industry and are producing less and less. We are consumers and not producers.

Some think that this is okay — mostly the Left.

I’d like to think that we’d be able recover. When Americans are forced into a corner, we are very innovative and determined. Unfortunately, many on the Left are slowly killing what little initiative remains.

The Left tell us that mediocrity is okay and then tie both of our hands behind our back through regulation. And they remind us time and time again how evil America is. They only focus on the bad and not the good.

[ponygirl]

That looks like the kind of bubble graph that would get Barney Frank really excited.

[A message]

Make no mistake about it. When these currencies crash, our way of life crashes. These currencies are being crashed on purpose so that all the world demands a new, global currency that is controlled by a global, centralized banking system. This will effectively put an end to national sovereignty and to our Constitutional way of life.

This is, in my opinion, exactly what is transpiring.

[bolobaby]

"Exxxxxcellent. The fools suspect nothing!"

[Psalm 144]

“The Left tell us that mediocrity is okay and then tie both of our hands behind our back through regulation.”

Because we let them. The time for disregarding their diktat, whether in the form of a suffocating PC miasma or threat of law and the inherent violence which lies behind each law, is rapidly approaching.

We must eventually turn and face them, as they will accept nothing less than totalitarian control. We must eventually defeat them or wear their yoke. There is no middle ground.

[Mariner]

"But the kind of dollar crisis envisioned in most doomsday scenarios would entail investors fleeing dollar-denominated stocks and bonds in a mad rush. And there's no sign of that. "

LAT carrying the commies water as usual.

The US dollar will collapse. Not due to printing but due to sovereign default.

The US Taxpayer will not pay back $14trillion...or eventually $20Trillion...or $30trillion...much less meet their supposed other obligations of $60-$100trillion of unfunded liabilities.

It's not going to happen, ever, because it can't. We don't have the money.

As the interest on that debt continues to grow with the principal, and worse, with a greater risk premium driving interest rates higher, the US Taxpayer/Voter will OFFICIALLY DEFAULT.

It's easy to imagine a scenario where our annual interest payment is $1 trillion.

Who in the right mind would pay that?

[dhs12345]

Unfortunately, we’ll need a major crisis to set things right. Americans are too warm and comfortable right now to do anything about it.

Not being able to get to work because gasoline is too expensive, not being able to feed our families because prices are way too high, not being able to heat our houses because energy prices are too high, not being able to find a decent paying job to pay for the necessities.....etc.

We will quickly find out that we can’t afford the extravagances of the Politically Correct and environmentalism when we are freezing and starving in the dark.

[cowtowney]

“a collapse seems unlikely given the lack of a real global alternative to the dollar’s status.”

What an idiot. Why is gold and silver going up so fast?

There’s always an alternative unless we let the IMF take over all currencies.

[panaxanax]

You are 100% correct!