Posted on 09/21/2009 6:38:27 AM PDT by SeekAndFind
"A strong dollar is in America’s best interest," the Bush and Obama administrations have repeatedly assured us.
And yet for most of this decade the dollar has been sliding. Now, the greenback again is one of the world’s currency weaklings. But global financial markets, and governments, seem to be taking it in stride.
The dollar has taken a renewed pounding over the last two weeks, driving the DXY index -- which measures the buck’s value against six other major currencies -- to nearly a one-year low.
The euro has been the big winner as the U.S. currency has lost ground. The euro was at $1.47 on Thursday, its highest level since last September and up from $1.42 on Sept. 1.
But the dollar’s troubles haven’t set off alarm bells in Washington. Nor have the Chinese raised a new stink about the buck’s weakness and the devaluation threat it poses to their American asset holdings.
The lack of a ruckus this time reflects that the dollar is dropping for the right reasons, currency analysts say.
For one, investors worldwide are feeling better about the global economy, which is pulling money out of the classic hiding place of the dollar in favor of riskier assets, including emerging-market stocks.
"A lot of money is coming out of safe-haven dollar bets," said Michael Woolfolk, senior currency strategist at Bank of New York Mellon.
Investors and traders also are reacting normally to the interest rate differential between the U.S. and other countries: With U.S. short-term interest rates lower than those of most other nations, and the Federal Reserve in no hurry to raise them, the dollar naturally is at a disadvantage to currencies in countries with higher rates.
(Excerpt) Read more at latimesblogs.latimes.com ...
I would like to see Soros’s positioning the last 8 months.
lefties done agree...they believe in a weak dollar
The silence from the left on Obama’s ruining our dollar’s value is deafening.
If the government is not doing everything it possibly can to strengthen the dollar here and abroad then that is as treasonous an act as selling atomic, nuclear or technological advancements to our enemies.
If the government is not doing everything it possibly can to strengthen the dollar here and abroad then that is as treasonous an act as selling atomic, nuclear or technological advancements to our enemies.
If I see the price of milk at the store go up, I say "Inflation is here".
When I see the value of the dollar dropping against other major currencies, I interpret that as inflation as well. Am I wrong?
I'm expecting to see hyperinflation at some point (because of our spending) and I don't see it too much at home, but maybe I'm not looking in the right place?
But, doesn't a weaker dollar suggest that manufacturing (aka "jobs") would move back in this direction?
Correct. But our treasonous criminal media whitewashed the entire Clinton/Gore transfer of warhead miniaturization technology to the Chinese. There was no penalty for transferring this nuclear technology to the Chi-Comms in exchange for campaign cash to Democratic party coffers. It wasn’t even allowed to be a story. Treason is accepted by the new America, who voted for a return of this behavior.
Yes. While making purchases from overseas (such as imports of oil and Chinese stuff for Walmart) more expensive. On the whole I would call this good, so long as the impact is moderate.
You are correct. I believe that since most Lefties don’t believe in American Exceptionalism, they also don’t believe it is “fair” that our dollar is the monetary benchmark for the world, due to it’s stablity over time. I believe Obama is letting the dollar decline so that another currency will become the international standard, thus making sure that the US is never again the world’s monetary superpower, as it were. The unfortunate part is that if Obama succeeds, future conservative presidents won’t be able to change it back very easily.
In general government loves inflation. It pays its debts with dollars that are worth less than when they spent them and it quietly moves everyone up in the tax brackets getting ever larger shares of peoples incomes all “without raising taxes”...
Inflation is only a problem for government when the sheeple take notice of it. As long it remains under the radar all is well...
I also think it is the very height of arrogance and stupidity to start a trade war with the Chinese.
All they would have to do is to call in our debt and we’d be finished.
I also think it is the very height of arrogance and stupidity to start a trade war with the Chinese.
All they would have to do is to call in our debt and we’d be finished.
Exactly.
Soros collapsed the British currency and he is trying to do the same with ours using Obummer as his tool.
Soros collapsed the British currency and he is trying to do the same with ours using Obummer as his tool.
Thanks to Obama a dollar can buy a dime.
It should help sell more exports.
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