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Keyword: devaluation

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  • KYLE BASS: 'We Are Facing The Largest Macro Imbalance In Global History'

    07/01/2016 1:42:13 PM PDT · by blam · 28 replies ^ | July 1, 2016 | Rachel Levy
    Rachael LevyJuly 1, 2016 "We are facing the largest macro imbalance in global history." That's according to Kyle Bass, founder of hedge fund Hayman Capital Management. Investors better prepare for a Chinese crisis that will mimic what happened in the US mortgage crisis, Bass said in a Friday interview with Real Vision Television. "When I look at what's happening now in China, the amplitude of what's happening is two, three, or four times what happened in the US," he said. Here are Bass' main points: •The Chinese are going to have to accept a devaluation of the yuan. • When...
  • Malawi's new president sells off presidential jet and 60 Mercedes

    06/02/2012 5:47:37 PM PDT · by bruinbirdman · 17 replies
    The Telegraph ^ | 6/1/2012 | Aislinn Laing, Johannesburg and Damien McElroy
    Joyce Banda, Malawi's new president, has announced the presidential jet and fleet of 60 Mercedes limousines would be sold in a move applauded by a British cabinet minister as an example to other African leaders. Mrs Banda said she was happy to "offload" the presidential perks, adding: "I can well use private airlines. I am already used to hitchhiking." It means that the 62-year-old head of state – the second woman to hold the position in Africa – will fly to the Queen's Jubilee celebrations in London this weekend with British Airways. Andrew Mitchell, the UK International Development Secretary who...
  • Dollar Dive On Fed Boosts Outlook For Exports, Corporate Profits [DEVALUTATION + DEFLATION]

    03/18/2016 3:25:19 AM PDT · by expat_panama · 10 replies
    Investors Business Daily ^ | March 18, 2016 | JED GRAHAM
    The dollar fell sharply for a second straight day to five-month lows Thursday on the Federal Reserve’s less-ambitious rate-hike plans. That in turn boded well for corporate earnings, lifting the S&P 500 to its highest level of the year. The Fed signaled Wednesday that it wants to make sure the economy builds up some momentum before it resumes normalizing interest rates. That was a much more inviting message than in December... ...a strong dollar, weak earnings, tepid growth and a plunge in commodity prices that raised fears of emerging market defaults. The central bank indicated that it now sees only...
  • Saudi Devaluation Odds Highest In 20 Years, Kingdom Now More Likely To Default Than Portugal

    01/07/2016 9:23:58 AM PST · by SeekAndFind · 12 replies
    Zero Hedge ^ | 01/07/2016
    On Monday, we brought you "Saudi Default, Devaluation Odds Spike As Mid-East Careens Into Chaos," in which we outlined the jump in riyal forwards and widening of CDS spreads that Riyadh witnessed in the aftermath of the kingdom's move to cut diplomatic ties with Iran.In short: the market is getting worried that Riyadh is about to careen into crisis. In the face of slumping crude, the Saudis are staring down double digit budget deficits and the prospect of having to once again tap debt markets in order to offset the SAMA burn and keep the kingdom from having to...
  • China Marks the Yuan Lower a Third Time

    08/12/2015 6:54:11 PM PDT · by TigerLikesRooster · 13 replies
    WSJ ^ | Aug. 12, 2015 | Ewen Chew
    China Marks the Yuan Lower a Third Time USD/CNY closed Wednesday at 6.3870 and its fixing was at 6.3306 By Ewen Chew Updated Aug. 12, 2015 9:26 p.m. ET 0122 GMT [Dow Jones] China’s central bank has adjusted the daily yuan benchmark weaker for a third day, moving the USD/CNY fixing to 6.4010 from 6.3306 on Wednesday. The move sent proxy currency pairs USD/KRW and USD/SGD higher, but not by much yet. Traders are awaiting the USD/CNY spot market opening in a few minutes to cement conviction that Asian currencies are going to fall again.
  • On This Day in 1933

    06/16/2013 5:40:22 PM PDT · by george76 · 14 replies
    Ludwig von Mises Institute ^ | June 13th, 2013 | Christopher Westley
    You were considered a hoarder and a slacker if you still resisted turning over your gold to the government. ... most of those who voted for FDR never expected him to confiscate private holdings of gold coins, bullion, and certificates. Roosevelt called the measure a temporary one (it wasn’t), and he followed it up by invalidating gold clauses in private contracts that obligated payment in gold dollars, which had the effect of devaluing the assets of bond and contract holders. ... By January 1934, Roosevelt increased the dollar price of gold from $20.67 to $35, thus devaluing the dollar by...
  • Why the price of oil may be about to tank

    03/06/2014 4:21:03 PM PST · by rickmichaels · 63 replies
    Maclean's ^ | March 5, 2014 | March 5, 2014
    It’s easy to get lost in the incremental gyrations of oil prices. “Oil rises on colder weather,” screams a headline one day, only to be followed the next by “Crude edges down on inventory report.” When not being driven by “fears over the Middle East,” crude is being hammered by “weak Chinese data.” You’d almost think energy analysts have a roulette wheel of explanations they spin each time prices move a notch: “Well, what will it be today? Oh ho! Emerging market turmoil it is.” Which is why it’s so refreshing—and to be frank, scary—to talk with Bob Hoye, the...
  • The Fed's 'hidden agenda' behind money-printing [Weimar Republic: Germany, 1920s...]

    09/25/2013 11:50:30 AM PDT · by SoFloFreeper · 15 replies
    CNBC ^ | 9/25/13 | Peter J. Tanous
    The markets were surprised when the Federal Reserve did not announce a tapering of the quantitative easing bond buying program at its September meeting. Indeed, its signal to the market that it was keeping interest rates low was welcome, but there may be a hidden agenda. Since it began in late 2008, QE has spurred a vigorous debate about its merits, both positive and negative. On the positive side, the easy money and low interest rates resulting from quantitative easing have been a shot in the arm to the economy, fueling the stock market and helping the housing recovery. On...
  • In Race to Bottom, US Dollar Falls Behind

    07/10/2013 2:38:02 PM PDT · by ckilmer · 11 replies
    yahoo ^ | 7/10/2013 | Jeff Cox
    If there is a global currency devaluation war, the U.S. is losing.
  • Gold And Silver - The End Is Near; Just Not In Sight

    06/22/2013 9:50:04 PM PDT · by blam · 29 replies
    The Market Oracle ^ | 6-22-2013 | Michael Noonan
    Gold And Silver - The End Is Near; Just Not In Sight Commodities / Gold and Silver 2013 June 22, 2013 - 04:00 PM GMT By: Michael Noonan Whatever expectation[s] you may have, expect the unexpected and unlike what you may expect. So far, that has been playing out quite nicely, and one of our expectations is that it will continue to unfold in the same manner, and to the ongoing surprise of most. "Gold will be at/above $2,000 by the end of the year." "Gold will reach $3,000 [$5,000, $10,000, etc] and silver $100, [$250, $500, etc]" "The central...
  • New Bank of England chief Carney will devalue sterling, PIMCO warns

    06/01/2013 4:47:53 AM PDT · by Olog-hai · 4 replies
    Daily Telegraph (UK) ^ | 1:18PM BST 29 May 2013 | Philip Aldrick
    Mark Carney will try to devalue the pound by as much as 15 percent after he takes over as Bank of England Governor in July in a last ditch attempt to cement the UK recovery, PIMCO, the world’s largest bond house, has warned. Growth in Britain is going to remain “challenged” for the next three to five years as the Government continues to shrink the public sector and cut the budget deficit. As banks and households also grapple with their excessive debts, “that leaves one policy tool outstanding, which is basically the currency”, PIMCO managing director and sterling bond head...
  • Cypress To The Hill

    03/18/2013 9:28:08 AM PDT · by Shout Bits · 16 replies
    Shout Bits Blog ^ | 3/18/13 | Shout Bits
    Last Week, the EU and Cypress imagined another way to fund government bailouts and spending – wealth confiscation. Under the still changing plan, bank savings would be confiscated at a rate of 3 to 15%. The reaction, which only a EU bureaucrat could not foresee, has been a run on the banks; only an idiot would keep his money in a bank when confiscation was on the table. The EU showed its communist side with the plan; to the EU, there is no distinction between private and public wealth, and personal savings are not particularly sacred. Indeed, many European nations...
  • Devaluation Nations – Part Deux: Venezuela, Japan, Argentina, USA and Green Lettuce

    02/13/2013 11:47:44 AM PST · by whitedog57 · 5 replies
    Confounded Interest ^ | 02/13/2013 | Anthony B. Sanders
    There is a Green Lettuce revolt in Venezuela. Green lettuce is a slang term for the US Dollar and is discouraged by the Venezuela government. Feb. 13 (Bloomberg) — Venezuela’s bolivar plunged to a record low in unregulated trading after last week’s devaluation of the official rate failed to increase the supply of dollars. The currency weakened 10 percent to 22.36 bolivars per dollar today, according to, a website that tracks the country’s currency in the black market. The bolivar has declined 18 percent in unregulated trading since President Hugo Chavez, who is recovering from cancer surgery in Cuba,...
  • The Venezuelan Train Crash

    02/12/2013 1:41:06 PM PST · by IBD editorial writer · 8 replies
    Investor's Business Daily ^ | 11 Feb 2012 | Editorial
    Economics: Venezuela has devalued its currency, joining Iran, Argentina and others whose wars on math brought the same result. Some call this a "restorative." It's not. It's what happens when big government hits a wall. Venezuela's monster 47% devaluation from 4.3 to 6.3 bolivars to the dollar, reportedly ordered by President Hugo Chavez from his hospital bed in Cuba, marks the reckoning for his regime's big-spending ways in Venezuela's low-growth economy. It was about as predictable as a crash from a runaway train, given his mad-lunatic war on economics — his lethal combination of welfare spending, destruction of the private...
  • Devaluation Nations: Argentina and Venezuela Suffer Ravages of Inflation

    02/09/2013 10:20:42 AM PST · by whitedog57 · 4 replies
    Confounded Interest ^ | 02/09/2013 | Anthony B. Sanders
    All eyes are on the Federal Reserve and their seemingly endless quantitative easing. For the most part, the massive liquidity surge has not manifested itself into South American-like inflation since our banks have most of the excess reserves still trapped in the banking system. Except for student loans, of course. This has resulted in a crashing of the M1 Money Multiplier and the M2 Money Velocity ratios signifying that the enormous increase in money supply in recent years isn’t translating into economic growth or lending. Depending on your measurement of inflation, the US has been spared South American inflation. Or...
  • Venezuela Devalues Its Currency

    02/08/2013 7:53:58 PM PST · by blam · 9 replies
    Venezuela Devalues Its Currency Matthew BoeslerFebruary 8, 2013, 3:43 PMVenezuela just undertook a massive currency devaluation, re-pegging the bolivar to a value of 6.3 per U.S. dollar from its previous official exchange rate of 4.3 bolivars per dollar. The government also announced that it would shutter the Venezuelan currency exchange system known as SITME. Given the currency devaluation underway in other economies around the world right now – perhaps most notably in Japan – a few are calling this Venezuela's foray into the global "currency war" between countries trying to devalue their currencies in order to increase export competitiveness. However,...
  • Venezuela announces currency devaluation

    02/08/2013 3:33:15 PM PST · by dynachrome · 5 replies
    AP via yahooooo ^ | 2-8-13 | FABIOLA SANCHEZ
    It was the first devaluation to be announced by Chavez's government since 2010, and it brought down the official value of the bolivar by 46.5 percent against the dollar. By boosting the bolivar value of Venezuela's dollar-denominated oil sales, the change is expected to help alleviate a difficult budget outlook for the government, which has turned increasingly to borrowing to meet its spending obligations.
  • Protest breaks out in Iran as currency crumbles under sanctions (Watch video)

    10/03/2012 5:25:03 PM PDT · by SeekAndFind · 6 replies
    Hotair ^ | 10/03/2012 | AllahPundit
    Via The Lede and Business Insider, which has an eye-popping graph showing what’s happening to the rial right now. We've all got debate fee-vah tonight but I want to put this on your radar screen in case things start to spiral in Tehran. The point of nuclear sanctions was to put Iran's economy in a vise so that public discontent would force the regime to either back down on uranium enrichment or risk destabilization from within. Here's a destabilizing tremor now: Clashes and at least one spontaneous protest erupted in Tehran on Wednesday over the plunging value of Iran’s currency,...
  • Argentine official denies devaluation planned

    06/01/2012 3:50:00 PM PDT · by dynachrome · 16 replies
    associated press ^ | 6-1-12 | MICHAEL WARREN
    BUENOS AIRES, Argentina (AP) -- A top Argentine official denied on Friday that the government plans to devalue the peso amid rumors that drastic official actions are looming. "We are not going to take any explosive measures," Deputy Economy Minister Axel Kicillof said at a news conference. Argentina's economy is under pressure from rising inflation and slowing trade, and people have been increasingly trading their pesos for U.S. dollars to shelter their earnings.
  • Under Obama, Price of Gas Has Jumped 83 Percent, Ground Beef 24 Percent, Bacon 22 Percent

    01/24/2012 4:25:59 PM PST · by OPS4 · 41 replies
    CNS news ^ | 1/24/12 | Christopher Goins
    So far, during the presidency of Barack Obama, the price of a gallon of gasoline has jumped 83 percent, according to data from the Bureau of Labor Statistics. (AP Photo) During the same period, the price of ground beef has gone up 24 percent and price of bacon has gone up 22 percent. When Obama entered the White House in January 2009, the city average price for one gallon of regular unleaded gasoline was $1.79, according to the BLS. (The figures are in nominal dollars: not adjusted for inflation.) Five months later in June, unleaded gasoline was $2.26 per gallon,...
  • Destroying the Dollar For Something Logically Impossible

    08/19/2011 6:33:22 AM PDT · by SeekAndFind · 2 replies
    Real Clear Markets ^ | 08/18/2011 | Jeffrey Snider
    The politics of economics has again risen in the wake of the stock market's recent haircut. Economists and experts from both the right and the left are now falling all over themselves to "do something". Why the stock market is the universal signal, the hunter's bugle call to action, is not yet known. After all, the economic and financial problems of August 2011 have been largely unchanged since August 2007, and indications of these unresolved imbalances have been, and continue to be, numerous. What is troubling is this bipartisan political urge to "do something". In the space of a few...
  • China: More Investors Ask, Why Not Short the Yuan?

    08/02/2011 4:11:09 AM PDT · by TigerLikesRooster · 5 replies
    Caing ^ | 08/01/11 | Huo Kan and Zhang Tao
    By staff reporter Huo Kan and Washington correspondent Zhang Tao 08.01.2011 17:29 More Investors Ask, Why Not Short the Yuan? Crisis theorists and others are wagering that the Chinese currency will veer from its long appreciation path against the dollar Plenty of smart money is betting on the rise of the yuan, but some overseas foreign exchange investors are looking the other way. Contrarians range from hedge funds to wealth management firms, and they generally agree that the possibility of yuan devaluation against the U.S. dollar is at least slightly greater than market consensus. Chinese policymakers, meanwhile, are not rushing...
  • Belarus devaluation spreads panic

    05/26/2011 5:28:17 PM PDT · by dynachrome · 9 replies
    AP via Seattle Post-Intelligencer ^ | 5-25-11 | YURAS KARMANAU,
    MINSK, Belarus (AP) — A sharp devaluation of the Belarusian ruble has spread panic across the country, with people rushing on Wednesday to buy dollars, euros, toasters and canned goods — anything that will not lose its value as quickly as the national currency. Belarusians swept store shelves and queued for entire days at currency exchange offices in a desperate attempt to protect their savings from the country's sinking fortunes. President Alexander Lukashenko promised that the national currency will remain stable following the devaluation ordered a day earlier, but experts warned it will continue its nosedive if Russia doesn't provide...

    05/21/2011 9:45:52 PM PDT · by blam · 13 replies
    Silver Doctors ^ | 5-19-2011 | Lonerangersilver
    LIVING THROUGH A CURRENCY DEVALUATION By Lonerangersilver May 19,2011 In 1976 I was managing an American subsidiary of a successful large US Company in Mexico. It had been a financial turnaround for our team. Cash flow had accumulated in our bank in Mexico and corporate didn’t want the money repatriated to the US. Although we had already paid a 35% income tax to the Mexican government, we would have to pay an additional 30% exit tax to repatriate the money. In addition, we would have to pay high fees for the peso/dollar exchange, in order to make the transfer. The...
  • Some See Rise Ahead for the US Dollar. Could the Slide be Over?

    05/18/2011 7:32:10 AM PDT · by SeekAndFind · 24 replies
    New York Times ^ | 05/18/2011 | Landon Thomas
    Could the long dollar slide be over? For the better part of the past decade, and particularly in the last few months, the American dollar has been the 98-pound weakling of the foreign exchange world. It has lost value against almost every other global currency — not just the euro, pound and yen but even the Romanian new leu and the Latvian lats. Driven largely by the Federal Reserve’s policy of printing dollars to help spur a healthy economic recovery that remains stubbornly elusive, the dollar, weighed against a basket of other currencies, hit a 40-year low this month. But...
  • Charlie Chan and the Case of the Incredible Shrinking Dollar

    05/14/2011 9:27:26 AM PDT · by SeekAndFind · 2 replies
    American Thinker ^ | 05/14/2011 | Lee Cary
    As the value of the dollar continues to decline, that legendary Honolulu police detective of yesteryear, Charlie Chan, is summoned to question several persons-of-interest. With his Number Three Son, Tommy, Chan enters the plush, mahogany paneled meeting room at the Department of the Treasury where several likely suspects await.  In the center of a conference table, inside a tamper-proof glass box, is a single dollar bill that appears to be smaller than normal. We listen in on the conversation: Vice President Joe Biden: Welcome to America, Charlie. I've heard so much about your restaurant in Honolulu. I love cashew...
  • What Is Gold Really Worth?

    05/12/2011 7:09:24 AM PDT · by SeekAndFind · 64 replies
    Forbes ^ | 05/12/2011 | Louis Woodhill
    What is gold really worth? In one sense, the answer is obvious. Gold is worth $1,515.10/oz, because that is what it is trading for in the market as of this writing. However, all this number means is that an ounce of gold has 1,515.1 times the market value of our current, undefined, “fiat” dollar. A deeper and more interesting question is, “What should gold be worth?” In other words, in terms of what quantity of gold would we define the dollar if we wanted to have a stable currency, a stable economy, and stable financial markets? This is not just...
  • Why the weak dollar isn't fixing the economy

    05/06/2011 7:20:57 AM PDT · by SeekAndFind · 7 replies
    Business Insider ^ | 05/06/2011 | Joe Weisenthal
    A disappointment in Q1 was the relatively modest growth of US exports, confounding economists who might have assumed that the weak dollar would rectify that problem. As explained in his latest FX Focus, Citi's Steven Englander points out that the connection between a weak currency and strong exports is dicey at best. Here are the three main reasons why: 1) It may be small beer in the big picture. Productivity changes and the regulatory environment among other factors may in practice matter more than measured shifts. EM countries climbing up the quality ladder may matter more for growth in export...
  • Bernanke’s weak dollar policy

    05/06/2011 6:44:26 AM PDT · by SeekAndFind · 3 replies
    Marketwatch ^ | 05/06/2011 | Kurt Brouwer
    If our leaders in Washington DC wanted to stop the decline of the dollar, they could. Easily. Therefore, if the dollar is falling — and it is — they want it to fall. The dollar is falling against most major currencies and this decline has been underway, with an occasional rally, for years. Also, as we have seen, the price points for oil, commodities and precious metals have been buoyed by the declining dollar.Here is a chart showing history of the dollar versus major currencies dating back to 1973: Source: Scott Grannis Scott Grannis made an excellent point in...
  • Mark Steyn : Discredited. The Fed’s policy is accelerating American collapse

    05/01/2011 6:15:41 AM PDT · by SeekAndFind · 58 replies
    National Review ^ | 04/30/2011 | Mark Steyn
    <p>The other day Paul O’Neill said that . . .</p> <p>Oh, wait. I suppose I ought to explain who Paul O’Neill is. A decade ago, he was President Bush’s first Treasury secretary. I have no very clear memory of him except that he toured Africa with Bono and they were photographed in matching tribal dress looking like Colonel Qaddafi’s Mini-Me twins at a Tripoli sleepover. Other than the dress-up fun, I’ve no idea why they were in Africa, but you paid for it, so I’m sure there was a good reason.</p>
  • Gold settles at a record high as Fed stands pat on interest rates

    04/27/2011 1:12:00 PM PDT · by SeekAndFind · 5 replies
    Marketwatch ^ | 04/27/2011 | Maera Saefong
    Gold futures settled at a record Wednesday, getting a boost after the Federal Reserve kept its key interest rate at an historic low range and said rates will likely stay low for an “extended period.” The Federal Reserve’s Federal Open Market Committee on Wednesday left its key interest rate at an historic low range of 0% to 0.25% and said its $600 billion bond-buying program would end as scheduled on June 30. The decisions were widely expected. Read more about the Fed decision. “The continued wording of exceptionally low rates for an extended period says it all,” Keith Springer, president...
  • Hey Ben Bernanke, are $5 Wheaties a fluke?

    04/27/2011 1:07:41 PM PDT · by SeekAndFind · 14 replies
    Christian Science Monitor ^ | 04/27/2011 | Bill Bonner
    We’ve always wondered why there is so much debate about the rate of inflation. It seems like such a simple thing to track. You go in the store. You buy a box of Wheaties. You write down the price. Next month, you do the same thing. What’s so hard about that? But what if the box is smaller next month? What if the Wheaties are twice as good? What if you can get the same enjoyment from a box of Wheatie-Puffs at half the price? What’s the real rate of inflation? It depends on how you figure it. The Labor...
  • SILVER: Everything You Need To Know

    04/25/2011 11:11:41 AM PDT · by SeekAndFind · 28 replies
    Business Insider ^ | 04/25/2011 | Joe Weisenthal
    In case you're not paying attention, the silver market has gone nuts today, surging until near $50, before collapsing to around $46. It's the most controversial, hotly-followed asset class in the world. So what's the real story. Earlier this month, Philip Klapwijk of GFMS presented a very through, complete look at the silver market: from its demand, its production, and where the current market stands in history. It's definitely a great, complete lesson. CLICK ABOVE LINK FOR THE REST
  • Mark Steyn: The Disappearing Dollar. How much longer can it remain the world’s currency standard?

    04/23/2011 1:18:05 PM PDT · by SeekAndFind · 41 replies
    National Review ^ | 04/23/2011 | Mark Steyn
    <p>Congressman Paul Ryan, one of the least insane men in Washington, has a ten-year plan.</p> <p>President Obama, one of the most insane spenders in Washington, has a twelve-year plan.</p> <p>After hearing the president’s plan, Standard & Poor’s downgraded the U.S. sovereign-debt outlook to “negative.” Ah, the fine art of understatement. In 1940, after the fall of France and the evacuation from Dunkirk, presumably they downgraded Britain’s outlook to “spot of bother.”</p>
  • For the dollar, a 'crisis' is relative. With no alternative, a USD collapse is unlikely

    04/23/2011 8:21:27 AM PDT · by SeekAndFind · 75 replies
    Los Angeles Times ^ | 04/23/2011 | Tom Petruno
    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...
  • How Low Can It Go? Don't Like a Weak Dollar? Might as Well Get Used to It

    04/21/2011 3:01:49 PM PDT · by SeekAndFind · 23 replies
    CNBC ^ | 04/21/2011 | Jeff Cox
    Weakness in the US dollar, which is causing everything to go up—including gas prices, food and stocks—is unlikely to go away soon as a selling frenzy hits the currency market. The greenback is approaching pre-financial crisis lows and threatening to smash through its all-time low when measured against the world's predominant national currencies. A combination of factors accounts for the weakness, with the Federal Reserve's easy-money policies, huge national debts and deficits and the consequential possibility of a debt downgrade because of the financial mess in Washington leading the way. In short, as trader Dennis Gartman noted Thursday, "the rout...
  • Fleeing the Dollar Flood. The World tries to protect itself from a devaluing US Currency.

    04/21/2011 6:34:18 AM PDT · by SeekAndFind · 17 replies
    Members of the International Monetary Fund emerged from their huddle in Washington last weekend resolved to keep every option open to slow the flood of dollars pouring into their countries, including capital controls. That's a dangerous game, given the need for investment to drive economic development. But it's also increasingly typical of the world's reaction to America's mismanagement of the dollar and its eroding financial leadership. The dollar is the world's reserve currency, and as such the Federal Reserve is the closest thing we have to a global central bank. Yet for at least a decade, and especially since late...
  • Don't Wait for GDP, $1,500 Gold IS the Recession

    04/20/2011 9:48:48 AM PDT · by SeekAndFind · 21 replies
    RealClearMarkets ^ | 04/20/2011 | John Tamny
    Back around 2005 when housing was booming, far from a sign of economic vitality, the proverbial "rush to the real" signaled a growing economic downturn. Thanks to a dollar in freefall as evidenced by a spike in the price of gold, always limited capital was migrating toward the hard, unproductive assets least vulnerable to currency devaluation. To put it simply, the real recession was the housing boom. Since the dollar's lurches in either direction tend to set the tone for global currencies, our monetary error was something shared by everyone as a run on paper currencies around the world fostered...
  • Gold futures rally above $1,500 an ounce as US Dollar Suffers Steep Losses

    04/20/2011 6:35:07 AM PDT · by SeekAndFind · 5 replies
    Marketwatch ^ | 04/20/2011 | Polya Lesova and Virginia Harrison
    Gold futures rallied above $1,500 an ounce on Wednesday, as the U.S. dollar fell sharply and investors bought the precious metal as a hedge against inflation and economic uncertainty. Gold for June delivery /quotes/comstock/21e!f:gc\m11 GCM11 +0.47% rose $10.70 to $1,505.80 an ounce in electronic trading on Globex. The weaker dollar, European sovereign-debt worries and Standard & Poor’s move Monday to cut its outlook on the U.S. sovereign rating have all spurred appetite for gold. In the currency markets on Wednesday, the greenback posted steep losses as the euro /quotes/comstock/21o!x:seurusd EURUSD +1.25% rallied 1.1% to $1.4498. The dollar index /quotes/comstock/11j!i:dxy0 DXY...
  • Gold Extends Gains to a Record in New York as Dollar Declines. $1500/oz Within Reach.

    04/19/2011 6:40:37 AM PDT · by SeekAndFind · 8 replies
    BusinessWeek ^ | 04/19/2011 | Maria Kolesnikova and Kyoungwha Kim
    Gold extended gains to a record in New York as a drop in the dollar buoyed demand for the metal as an alternative investment. Futures surged yesterday after Standard & Poor’s revised its U.S. credit outlook to negative. Gold has jumped 5.3 percent this year as the dollar dropped 4.8 percent against a basket of six other currencies including the euro and British pound. Gold prices may keep rising for “some years into the future,” Blackrock Inc. fund manager Evy Hambro said in an interview with Mark Barton on Bloomberg TV’s “On the Move.” Gold for June delivery rose $1.60,...
  • Why Are The Republicans So Silent On The Falling Dollar?

    04/14/2011 6:42:19 AM PDT · by SeekAndFind · 62 replies
    Forbes ^ | 04/14/2011 | Seth Lipsky
    The most astounding feature of the political fray as the 2012 election comes into view is that not a single Republican other than Congressman Ron Paul is stepping forward to brand as his or her own the issue of honest money. The whole party is into the negotiation with the president over the budget, and the underlying issue--the failure of our fiat currency--is up for grabs. It is true that there's plenty of blame to go around on the dollar. It had a value of 265th of an ounce of gold on the day that George W. Bush acceded to...
  • The US Dollar is not Sick, it’s Terminal

    04/12/2011 9:31:04 AM PDT · by SeekAndFind · 3 replies · 1+ views
    Market Pulse FX ^ | 04/12/2011 | Dean Popplewell
    This week the dollar has had the classic opportunity to rally aggressively. Global risk appetite has subsided, commodity currencies have fallen and investors were willing to take profit. Instead, we have witnessed only a feeble attempt to rise. The dollar is more than sick, it’s terminal. With the Fed expected to now trail all other Cbanks when it comes to tightening, is putting the dollar near the bottom of the G10 carry trade league and up there with the classic funding currencies. Even the hawks are unable to save their currency from the abyss. Expect the fears of a...
  • Silver and Gold Prices Delivering Terrible News for America -- Dollar on the edge of free fall.

    04/11/2011 7:17:35 AM PDT · by SeekAndFind · 33 replies
    American Thinker ^ | 04/11/2011 | Steve McCann
    In the United States, the media's interest has been focused on who won the game that was the potential government shutdown.  As usual the reporting is based on a sporting event and not the importance of the change of direction the shutdown represents.  At the moment there is no winner or loser; that will be decided if and only if spending is dramatically reduced and government begins to shrink appreciably.   Many of us have repeatedly called attention to the financial markets and international uncertainty precipitated by American monetary, fiscal and foreign policies by focusing on bell-weather commodity prices, particularly...
  • Former Top Obama Adviser Christina Romer: A Weaker Dollar Is Good For America

    04/07/2011 1:17:56 PM PDT · by SeekAndFind · 25 replies
    Yahoo Finance ^ | 04/07/2011 | Aaron Task, Daily Ticker
    Frustrated by "the suffering of real families," President Obama's former top economic adviser recently called for action: "If I have a complaint about policy these days, it's that we're not doing enough," Christina Romer said in a speech last month at Vanderbilt University. "I think there are tools we have tools we have that we can use, and I think it's shameful that we're not using them." With unemployment still near 9% and the "real" unemployment rate at 15.7%, "we can't afford not to do more," Romer tells me in the accompanying video. "For heaven's sake with this many people...
  • Warren Buffett Warns: The Dollar Will Decline. Sells off longer-dated bond holdings.

    03/28/2011 12:08:56 PM PDT · by SeekAndFind · 10 replies
    Motley Fool ^ | 03/28/2011 | Rich Smith
    Let the word go forth: On Friday, March 25, 2011, Warren Buffett predicted the decline of the U.S. dollar. In a speech given in New Delhi (where he's hunting up some cheap Indian stocks), the chairman of Berkshire Hathaway (NYSE: BRK-A ) (NYSE: BRK-B ) warned investors to avoid "long-term fixed-dollar investments" such as 10-year U.S. Treasury bonds. Buffett worries that the $2.3 trillion in new money our government has pumped into the economy, when combined with interest rates so low they're practically giving money away, are combining to dilute the value of the dollar. As a result, Buffett warns:...
  • China’s Central Bank Recommends Gold For “Value Preservation”

    03/27/2011 8:11:01 PM PDT · by Tolerance Sucks Rocks · 6 replies
    Forbes ^ | March 26, 2011 | Robert Lenzner
    Believe it or not Ripley! The People’s Bank of China(PBOC) recommended yesterday that 1 billion Chinese consider buying gold as a hedge against inflation and to preserve values in a world where currencies can fall. The PBOC Financial Markets Review came out just as several major currencies were indeed declining in value against gold; the dollar,1%, the Swiss franc,2.5%, t he British pound, 2%, and the Japanese yen, 2%. Wow! Be like the Fed telling you to buy oil stocks or crude oil futures due to expectation higher gasoline prices this summer. So, add the PBOC to other secular influences...
  • A ‘Unique’ Form of ‘Terrorism’ -- Currency Debasement

    03/21/2011 6:54:10 AM PDT · by SeekAndFind · 6 replies
    New York Sun ^ | 03/21/2011
    Here is a thought experiment concerning two men who have issued money. One issued gold and silver coins that will today bring more in dollars than he charged for them. The other issued paper notes that are today worth but fraction the gold or silver they were worth at the time they were issued. One man is facing the possibility of years in prison after a federal jury found his issuing of money to have been a crime. The other man is walking around free and being treated by the authorities with great deference. Which is which? It turns out...
  • Bright Gold, Dim Economy. Is the stock market up in 'real money' terms?

    03/17/2011 6:54:10 AM PDT · by SeekAndFind · 14 replies
    Forbes ^ | 03/17/2011 | Louis Woodhill
    The front page of Section R of the March 14 edition of The Wall Street Journal was devoted to the pros and cons of investing in gold. The section posed the question, “Is gold a good investment?” It then, of course, presented two different points of view. One writer, a certified financial planner, answered, “Yes.” The other author, a chief investment officer, said, “No.” A better answer to the WSJ’s question would be, “Gold had better not be a good investment, because if it is, we are in for a dismal economy.” Of course, by the time that the WSJ...
  • The Floating Dollar as a Threat to Property Rights

    03/12/2011 7:12:36 PM PST · by Tolerance Sucks Rocks · 17 replies
    Imprimis (Hillsdale College) ^ | February 16, 2011 | Seth Lipsky
    The following is adapted from a speech delivered on February 16, 2011, at a Hillsdale College National Leadership Seminar in Phoenix, Arizona. TO BEGIN, consider one of the most important measures of property, the kilogram. It’s a measure of mass or, for non-scientific purposes, weight. According to the papers last week, a global scramble is under way to define this most basic unit after it was discovered that the standard kilogram—a cylinder of platinum and iridium that is maintained by the International Bureau of Weights and Measures—has been losing mass. You may think that this is impossible. Of all the...
  • The incredible shrinking dollar

    01/19/2011 9:57:08 AM PST · by FromLori · 16 replies
    Market Watch ^ | 1/19/2011 | IRWIN KELLNER
    Spending power erodes, and Fed may do more damage Guess what? Your pocket has been picked. I don’t mean your wallet, or even its contents. What I am referring to is the buying power of the money it contains. The consumer price index (CPI) tells the story. As you know, it measures the change in prices of a fixed basket of goods and services that the typical household supposedly purchases every month. The recent trend of the CPI does not reveal much to worry about. In 2010, consumer prices rose a relatively benign 1.5%. However, there is more to this...