Where is everybody?
Posted on 10/05/2009 11:54:51 PM PDT by bruinbirdman
Greenback fell further after the G-7 would not come to the rescue.
The Group of Seven will let the dollar fall.
The heated climate before the Istanbul meeting led some to expect global policymakers to take a stand, but despite the strong tone, Andrew Wilkinson, senior market analyst at Interactive Brokers, said it was short on action. "It invites investors to test the dollar's lines of resistance in order to see what response, if any, might be forthcoming in the event of a further fall in the value of the dollar," Wilkinson said.
The dollar's loss of value over the past six months has been a cause for concern for the world's financial chief's, Wilkinson said, and reasonably so because the greenback's instability threatens financial markets and economies.
"Many currency traders were braced for some hint of intervention to prevail from this meeting," Wilkinson said, "especially given several verbal warnings or complaints from central bankers and politicians who had warned against dollar weakness."
The problem with intervention is that it would only be partially effective, especially if the U.S. isn't on board. The Treasury Department would never admit this, but for the time being it's in the country's interest to keep its currency low because it stimulates exports for the economy's manufacturing base and lowers the value of the debt that the Treasury is piling up.
The Australian dollar saw gains as the global economic outlook warms and speculation mounts that its central bank will raise rates this week. (See "Aussie ETF Spread Tastier Than Vegemite.") The Aussie wasn't alone though. As Wilkinson pointed out, the G-7 stance appeared to provide a green light for investors waiting to buy the dip in on commodity currencies.
(Excerpt) Read more at forbes.com ...
Soros’ finger prints all over it...
"The problem with intervention is that it would only be partially effective, especially if the U.S. isn't on board."
If The Obammunist and his Commissars are not interested in the almighty greenback, we're doomed. Doomed, I tell ya.
yitbos
A second stimulus bill will take care of all this.
Where is everybody?
Soros may be rich, but he is not that rich.
It is the Fed and the US government that is destroying the dollar. You can’t blame others for not wanting to use the dollar and be stuck with them.
Globalist Illuminati private banking cartel elite crime scene.
Palin is a traitor for doing what exact?
Obama and his Zimbabwee Economics is the real problem.
A lot of us, myself included, have been popping off lately because what is happening to our country, so fast, and so unbelievable scares the cr@p out of us.
Every day, another piece of our country seems to be chipped away. Some days the chips are bigger than others.
A second stimulus is on the way and this one will put us in a decade long recession. Obama will blame Bush, as he continues to steer us down the road third world status with his every move.
This is good for the dollar, in the long run.
A Poisonous Cocktail: Expanding the Community Reinvestment Act
"For all the talk of unsold condos in Miami and foreclosed McMansions in California, the epicenters of the mortgage crisis are inner-city urban areas--precisely those areas where the CRA was most applicable. As the Boston Federal Reserve put it in a massive 2008 study, "In the current housing crisis foreclosures are highly concentrated in [urban] minority neighborhoods." The study found that borrowers in these areas were seven times more likely to be foreclosed on than the general population. Analysis by the Pew Research Center and another by The New York Times found that mortgage holders in these areas had foreclosure rates four times higher than the national average."
yitbos
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