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U.S. Dollar Meltdown Currencies / US Dollar Nov 10, 2009 - 12:42 AM By: Mike_Shedlock I had the pleasure of reading a final finished copy of The Dollar Meltdown by Charles Goyette this past week. Congressman Ron Paul offers an opinion on the front cover to which I certainly concur: "Goyette does a great job explaining why America faces a looming financial crisis and outlines commonsense strategies for individuals to protect themselves and their families. This book truly is a must read." Before publication, I read a preliminary copy which explains this quote on the back jacket "The Dollar Meltdown...

In the current fiscal year alone, the U.S. Congress and the administration have created a federal deficit of $1.4 trillion — more than TRIPLE the size of America's largest deficit in history. Worse, they now admit that the cumulative deficits through 2019 will be at least $9 trillion, and that they have no plan in place to reduce this monster in our midst. This is the greatest threat to your financial future of all time. As experts like Warren Buffett have noted, the only way Washington politicians know how to solve the debt crisis is by creating inflation. They are...

Tonight George Noory will interview Charles Goyette about what some say is an inevitable collapse of the dollar. Should be an interesting show!!

Dollar Reached 15-Month Low In Wake Of G20 MeetingEuro presses back above $1.50 Deborah Levine & William L. Watts MarketWatchNov. 9, 2009, 3:43 p.m. EST NEW YORK (MarketWatch) -- The dollar fell to the lowest level in 15 months against a basked of currencies on Monday after a weekend meeting of Group of 20 policy makers stressed continued economic stimulus, encouraging investors to move into riskier assets such as stocks and away from the dollar. Traders also took heed of an International Monetary Fund report issued at the G20 meeting that said the dollar has moved closer to "medium-term equilibrium"...

As regular readers know, I have been advocating the purchase of gold for quite some time. The big news in the gold market last week was the fact that India bought half of the gold the International Monetary Fund had said it wanted to sell. (I'll be interested to see who takes the other 200 tons, and I would not be at all surprised to find out that it's China.) As my ever-eloquent good friend Jim Grant of Grant's Interest Rate Observer said to me, "So much for the modern conceit that gold isn't money!" Folks might remember how the...

Nov. 9, 2009, 10:52 a.m. EST Dollar reached 15-month low in wake of G20 meeting Euro presses back above $1.50 By Deborah Levine & William L. Watts, MarketWatch NEW YORK (MarketWatch) -- The dollar weakened Monday, pushing an index of the greenback down more than 1% and to the lowest in 15 months, after a weekend meeting of Group of 20 policy makers offered no support for the U.S. unit. Traders also took heed of an International Monetary Fund report issued at the G20 meeting that said the dollar has moved closer to "medium-term equilibrium" but "still remains on the...

<p>NEW YORK (Dow Jones)--Gold futures - as well as spot metal - extended record highs shortly before futures floor trading opened in New York on Monday.</p> <p>A markedly weaker U.S. dollar was mainly behind the surge.</p> <p>In recent trading, December gold was up $11.70 at $1,107.40 an ounce after hitting a most-active record of $1,111.70. Nearby November gold hit $1,109.30, a front-month Comex record. Spot gold also hit a fresh all-time peak of $1,111.15 an ounce as the U.S. dollar weakened against the euro.</p>

You can put a fork in us down the road.... The U.S. currency dropped against 12 of its 16 major counterparts as the International Monetary Fund said traders are probably using the dollar to fund so-called carry trades around the world and it may still be overvalued. I hope everyone here in The United States takes a moment to understand what this means. Let me lay it out for you: When the global economy truly recovers oil will skyrocket up to or beyond the $150 where it was in late 2008. If the dollar is indeed still "overvalued" and going...

Last week the price of gold rose to $1,100, the highest ever recorded. Gold is still an important measure of the world economy. The theory of the 19th-century gold standard was that gold was “real money” in the same way as landed property was “real estate”. All types of paper money are capable of being created by banks or governments, so the supply is potentially unlimited. It was observed that gold holds its purchasing power over centuries, whereas paper money tends to depreciate towards the value of zero. Of course, the rise in the gold price reflects the weakness of...

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<p>The dollar will get "utterly destroyed" and become "virtually worthless", said Damon Vickers, chief investment officer of Nine Points Capital Partners.</p> <p>"We don't have resources. Neither does a lot of Asia to be quite frank," Vickers said on CNBC's Asia Squawk Box. "Countries that have resources -- the Brazils, the Canadas, Australia -- their currencies are doing well."</p>

he melt up in stocks on no volume was fully expected after the worst possible employment news to come in over 20 years: the market-economy disconnect is now complete, and all stocks are freeriding purely on Bernanke's printing press. At least gold vigilantes are beginning to whisper in Bernanke's ear he can go fornicate himself and his dollar destruction deathwish: let's see what happens when gold melts up ala the S&P to 1,200, 1,300 and maybe 1,500 in a few weeks. Look for some old-fashioned massive panic at the Federal Reserve. The melt up in stocks on no volume was...

{snip ...] "Since interest rates are zero, you can borrow dollars at no cost at all and use them around the globe," says Jeffrey Kleintop, chief market strategist of LPL Financial, a privately held brokerage firm based in Boston. "For example," explains Kleintop, you can borrow dollars at zero, and invest in Brazilian bonds yielding 5.2%. As the real (Brazil's currency) has risen 26% against the dollar so far in 2009, such a carry trade would have earned 31%, or double the loss of value in the dollar. Gold and oil, especially, have an inverse relationship to the dollar, underscores...

NEW YORK (CNNMoney.com) -- Gold was modestly higher Thursday as the dollar firmed and investors took a step back following the metal's recent push near $1,100 an ounce. December gold rose $3.70 to $1,091.10 an ounce in electronic trading after jumping as high as $1,095.20 an ounce earlier in the session. The advance came as the dollar regained some ground against rival currencies on safe-haven demand. The greenback was up 0.4% versus the U.K. pound and was flat against the euro. A stronger greenback makes commodities that are priced in dollars more expensive for holders of other currencies. Gold surged...

When The U.S. Dollar Rallies, The Stock Market Will Crash Currencies / US Dollar Nov 04, 2009 - 07:03 PM By: Mike_Whitney Interest rates. The Fed does not need slinky women in plunging necklines to peddle money. All it needs is low interest rates. When rates are pushed lower than the rate of inflation, the Fed provides a subsidy for borrowing. This is not as hard to grasp as it sounds. If I offered to give you $1.00 for very 90 cents you gave me in return, you would buy as many dollars from me as you could. The Fed...

Gold prices yesterday surged to an all-time high after India's central bank bought 200 tonnes of the precious metal, swapping dollars for bullion as the country's finance minister warned that the economies of the US and Europe had "collapsed". India's decision to exchange $6.7bn for gold, equivalent to 8 per cent of world annual mine production, sent the strongest signal yet that Asian countries were moving away from the US currency. The purchase by New Delhi's Reserve Bank from the International Monetary Fund pushed gold prices to a record $1,087.45 per troy ounce, up 2.7 per cent on the day,...

Fiscal Responsibility Has Moved Abroad 1 comment November 05, 2009 John Browne Last week, to the delight of its media cheerleaders, the government announced that economic growth had returned and the recession had ended. But before we start celebrating one quarter of modest growth, we should realize the only force driving this apparent recovery is an enormous increase in government spending. To finance its largesse, the government is now borrowing at a rate that has ordinary citizens and the international community extremely concerned. Leading into the first election season under Obama's reign, this unprecedented government borrowing and spending is creating...

Washington, Nov 4 - House Republican Leader John Boehner (R-OH) issued the following statement after the Congressional Budget Office (CBO) confirmed in a letter tonight that the Republican health care plan will lower health care premiums by up to 10 percent and reduce the deficit by $68 billion over 10 years without imposing tax increases on families and small businesses: “When it comes to reforming health care, controlling skyrocketing costs is the American peoples’ top priority.  Now CBO has confirmed that the Republican plan will lower health care costs for American families, and that’s good news for everyone struggling in...

Commentary: Rates to stay low as long as unemployment stays highWASHINGTON (MarketWatch) -- The Federal Reserve isn't going anywhere until the unemployment rate drops. In answer to all those who are clamoring for the central bank to begin raising interest rates or to at least explain when higher rates might come, the Federal Open Market Committee gave a simple response on Wednesday: Show us the jobs. Rates will stay "exceptionally low" as long as the unemployment rate is rising and inflation trends are subdued, the FOMC said. After its two-day meeting ended on Wednesday, the FOMC made essentially no changes...

'Mother of Carry Trades' Leading to 'Asset Bust': Roubini Published: Wednesday, 4 Nov 2009 | 8:19 AM ET By: Jeff Cox CNBC.com The "mother of all carry trades" that Nouriel Roubini warned of recently is growing and threatening to cause a global implosion, the economist warned in a CNBC interview. For the second time in as many weeks, Roubini cautioned that investors using cheap US dollars to embrace risk will quickly reverse course once the greenback strengthens. But he intensified his prediction, saying that the likelihood of the Fed keeping interest rates low and thus weakening the dollar will prolong...

White House Budget Director Peter Orszag warned Tuesday that large federal deficits will eventually imperil the U.S. economy because they will lead to higher interest rates and more borrowing from overseas. Orszag, in a speech in New York, said that deficits, expected to add $9 trillion to the current national debt of $12 trillion over the next decade, are "serious and ultimately unsustainable." Orszag said that deficit spending was necessary to help boost the economy when unemployment is hovering around 10 percent. But he said that red ink must be stopped as the economy recovers. During a recovery, private investment...

The Federal Reserve pumped $1 trillion into the financial system during a year of harried efforts to rescue the economy. Brian Sack's job is to figure out how to get the money back out. Mr. Sack, 39 years old, is an economist who runs the markets group at the Federal Reserve Bank of New York. The group runs the Fed's trading, making it the bridge between the marble corridors of the Federal Reserve in Washington and the bustling trading floors of Wall Street. In normal times, it buys and sells Treasury securities to influence the level of interest rates. During...

Is the U.S. Dollar About To Crush Stocks? Currencies / US Dollar Nov 02, 2009 - 07:00 AM By: Graham_Summers Long-time readers know that I’ve begun to develop a love/hate relationship with the US Dollar. On one hand I believe the US currency is horribly flawed given our unserviceable debt load and the Fed’s profligate spending. However, on the other hand, to make money investing you have to be willing to go against the crowd. And with less than 3% of investors currently bullish on the US Dollar, the contrarian in me can’t help but wonder if we have the...

Everything has a fundamental essence, a quality that makes it uniquely itself. Take an orange, for example. It's not only a citrus fruit -- it's an orange-colored citrus fruit. Horticulturists can alter its size, its texture, its sweetness, and even (to a limited extent) its color, but as long as its color is orange, the fruit remains "an orange" because that color is its definition. Change the color, however, and suddenly you have the un-orange, the anti-orange. You have something completely different that no longer contains the essence of the original fruit. Lose the essence and you lose the orange....

Show me who he hangs with and I'll show you who (and what) he is. Sammy writes: The White House has been barraged with requests to release the names of its visitors. Today they release the first 500 visits, all from the period of Jan 20-July 31. Some of the Names you can find on the list are Bill Ayers 2x, George Soros 4x, Michael Moore 8X, the head of the ACORN affiliated Union the SEIU Andrew Stern 20x,Jeremiah Wright, GE/NBC head Jeff Immelt 5x, Jesse Jackson 6x, John Edwards2x, Al Sharpton 2x, and of course television goddess Oprah Winfrey....

The housing market is so bad you can't even give away homes these days. Officials in suburban Barrington put three homes up for a sale at just a dollar a piece - a dollar! - and didn't get a single bidder. A dollar! Let's review: For less than the price of a CTA ride, a Starbuck's coffee, or the typical tip slipped under a stripper's G-string, you could have bought a home in Barrington. Sure, buying a house means assuming the future costs of upkeep, but a dollar! "Even if you're offering a house for a dollar, sometimes all...

If you will not fight for right when you can easily win without blood shed; if you will not fight when your victory is sure and not too costly; you may come to the moment when you will have to fight with all the odds against you and only a precarious chance of survival. There may even be a worse case. You may have to fight when there is no hope of victory, because it is better to perish than to live as slaves. —Sir Winston Churchill (1874-1965) Through a combination of ineptitude, greed, and design, our “representatives” in Washington...

This press release is fresh - not up on his website yet ... Pelosi’s Halloween Healthcare Horrors: Death for the Baby Boomers, Jail for the Middle Class, Free Healthcare for Illegal Aliens By Congressman John Carter Today House Speaker Nancy Pelosi unveiled the long-awaited healthcare “reform” bill in the House of Representatives. It is a horrific assault on the health, economy, and freedoms of this country, especially our senior citizens who rely on Medicare. It was created behind closed doors, with Republicans, who represent nearly half the country, literally locked out of the room by Democrats. Democrat staffers had the...

It's Alive! End-of-Life Counseling In Health Bill By RICARDO ALONSO-ZALDIVAR WASHINGTON – It's alive. The Medicare end-of-life planning provision that 2008 Republican vice presidential nominee Sarah Palin said was tantamount to "death panels" for seniors is staying in the latest Democratic health care bill unveiled Thursday. The provision allows Medicare to pay for voluntary counseling to help beneficiaries deal with the complex and painful decisions families face when a loved one is approaching death. For years, federal laws and policies have encouraged Americans to think ahead about end-of-life decisions, and make their wishes known in advance through living wills and...

Roubini Sees Market Crash All Over the World By Rocky Vega 10/29/09 Stockholm, Sweden – New York University Professor Nouriel Roubini, who recently saw the recovery as “U-shaped,” is now concerned a dollar rebound will cause global markets to crash. His main concern is the carry trade in the US dollar. The dollar is being borrowed at near-zero interest rates to then be invested into a wide array of now-popular assets including gold, commodities, equities, credit, and emerging markets. There are simply more dollars available in the system that are chasing the same types of things. The risk is that...

The Democrats have beaten the Republicans to court in NY-23, obtaining an order to show cause that requires the impounding of voting machines for what is expected to be another tight congressional special election. "Most of the time, you don't bring this until the day after the election, and then only if you think the race will be close," said attorney Frank Hoare, whom I reached on his cell phone as he was driving back to Albany after filing the order in Elizabethtown. "The Republicans usually play games and start the action the day of the election; in an effort...

Reach in your wallet, and pull out a dollar bill. Look at it for a moment. Now ask yourself, “What is this worth?” This isn’t a trick question. Don’t think about anything but that dollar in your hands. Don’t think about a soft drink. Don’t think about a bag of chips, or a handful of screws at the hardware store. Think about that dollar in your hands without thinking about what it can buy. Can you do that? It’s pretty difficult, isn’t it? That’s because a dollar, qua a dollar, isn’t worth anything more than the paper and ink on...

Exactly when China will uncouple its currency from the greenback is--outside the upper echelons of power in Asia's juggernaut economy--anyone's guess. But that it eventually will as the dollar keeps sinking is a good bet. For more than a year, as the U.S. credit crisis has given way to a global recession, China has pegged its currency to the dollar at an exchange rate of 6.83. Tying the yuan to the world's reserve currency has been good for China's exporters as the dollar depreciates in value against the euro, the yen and other currencies. For the U.S., too, it helps...

Medical Research Assistance by Mrs. Bulldog Dedicated to: Our Little Princess—May she live a long and fertile life “Never let a serious crisis go to waste. What I mean by that is it’s an opportunity to do things you couldn’t do before.” – Rahm Emanuel, White House Chief of Staff. Well, you probably are all wondering why I have been silent about Obama declaring a “National Emergency” Friday evening (he always releases critical news on Friday night in an attempt to bury the story by Monday when most of the editors come back from their weekend break—by then it is...

Asian Economies Face Double Whammy Export-dependent Asian economies are suffering from a double problem. One part is the continuing weakness of the U.S. dollar and accompanying depreciation of the Chinese yuan, which is hurting the price competitiveness of products exported by Korea, Indonesia, Malaysia and Thailand. The other is that they are being pressured by the international community to reform their economic structures to become more focused on domestic consumption as a way of relieving a perceived imbalance in international trade. China unpegged the yuan from the U.S. dollar in July 2005 and adopted a currency basket system, a more...

http://conservativehq.com/petitions Here is our chance to sign a petition to request the RNC to " Dump Dede"!

A fierce war of words has erupted in recent weeks between the two major camps in monetary circles. The first camp - the gold bulls/dollar bears - have been loudly voicing their twin belief that the gold price is poised to skyrocket while the dollar price is perched for a collapse. The other side - the gold bears/dollar bulls - are making the counter claim the gold price is setting up for a crash. There is another train of thought espoused by some that a slow, steady decline of the dollar's exchange value, rather than being a catastrophic event, is...

or over more than 18 months we have watched the gold price churn below $1,000 and in the process forming three tops, before breaking out to above $1,050 in early October 2009. Why will it not fall back to well below $1,000 and possibly as far as $850 this time? We say this because the moves occurred at a time when many facets of the gold market were absent from the gold market, such as investment demand, low jewelry demand and central bank demand. Traders held sway over the gold price and it is they that decided that the moves...

http://www.zerohedge.com/article/marc-faber-death-fiat-money-dollar-will-go-value-exactly-zero

We Are in the Mother of All Carry Trades: Roubini Published: Monday, 26 Oct 2009 | 9:20 AM ET Text Size By: Antonia Oprita Associate Web Producer, CNBC.com Most investors follow the same strategy of borrowing in dollars and investing in assets across the world and when the greenback's downward trend will reverse, there may be a crash in global assets, Nouriel Roubini, Chairman, RGE Monitor, told CNBC Monday. cnbc.com "There is a wall of liquidity…chasing assets," Roubini told "Squawk Box." "Now we are in the mother of all carry trades," he added. Asset prices have been inflated by the...

Yuan's Fall Annoys the Neighbors Link to Dollar Pulls Down China's Currency; Other Countries Scramble By ALEX FRANGOS HONG KONG -- As the dollar continues to weaken, concerns are mounting in much of Asia over another descending currency: the Chinese yuan. For more than a year, China has kept the yuan largely unchanged against the dollar. So, like the dollar, the yuan has been falling steadily against the currencies of China's neighbors, including the Malaysian ringgit, the Indonesian rupiah and the South Korean won. That makes goods produced in those countries more expensive compared with China's. "If you have one...

The crucial Nov. 3 special election in upstate New York features two candidaties -- liberal Republican Dede Scozzafava and Democrat Bill Owens -- connected to the Working Families Party (WFP) which is the New York political arm of the Association of Community Organizations for Reform Now (ACORN). <snip> With both Big Labor and ACORN working to defeat the Conservative -- who is also being attacked by the national GOP Establishment -- Hoffman's campaign is sending out a nationwide call for volunteers to help match the "community organizers" being brought into the 23rd District by his major-party opponents. "We need boots...

Every sort of idiotic expanation is offered by academic economists for the financial crisis. Explaining the crisis has become a major industry. The academics by and large haven’t a clue. Grass might as well grow where their classrooms now stand. Wall Street greed and absence of risk management was the usual answer. That’s silly. The investors who bought subprime assets in 2006 weren’t any greedier than when they bought prime assets in 2004. The difference is that monstrous demand crushed the returns on prime assets. During 2006, I tried (in vain) to build up a research department at the second-tier...

Market Outlook: Stocks Could Struggle Amid 'Buyer's Fatigue' Published: Friday, 23 Oct 2009 | 8:21 PM ET By: Patti Domm Executive Editor Stocks could struggle in the week ahead as the market's 7-month rally shows signs of tiring. There is another barrage of third quarter earnings reports, including names like ExxonMobil, Procter and Gamble, Aetna and Verizon. A trader at the New York Stock Exchange. Photo: Oliver Quillia for CNBC.com A trader at the New York Stock Exchange. But investor focus should shift to economic news with the first look Thursday at third quarter GDP. The number is significant in...

I found this recent interview of globalist George Soros discussing the new "financial new world order." He goes into why he thinks the dollar has to be put aside as the major currency used and how China must be involved. He describes the way the ''new world order'' will have operate. Here are a couple choice quotes from Soros. The video is 10 minutes long so there are plenty more: "China will emerge as the mortar replacing the U.S. consumer." "China will be the engine driving it forward. The U.S. will be a drag with the decline of the dollar."...

WASHINGTON - During consideration of H.R. 3126, legislation to establish a Consumer Financial Protection Agency (CFPA), Democrats on the House Financial Services Committee voted to pass an amendment offered by Rep. Maxine Waters (D-CA) that will make ACORN eligible to play a role in setting regulations for financial institutions. The Waters amendment adds to the CFPA Oversight Board 5 representatives from the fields of "consumer protection, fair lending and civil rights, representatives of depository institutions that primarily serve underserved communities, or representatives of communities that have been significantly impacted by higher-priced mortgages" to join Federal banking regulators in advising the...

The big profits made by some of Wall Street’s leading banks are “hidden gifts” from the state, and taxpayer resentment of such companies is “justified”, George Soros, the fund manager, said in an interview with the Financial Times. “Those earnings are not the achievement of risk-takers,” Mr Soros said. “These are gifts, hidden gifts, from the government, so I don’t think that those monies should be used to pay bonuses. There’s a resentment which I think is justified.”

IN ONE sense, a weak dollar is good news for the world. Behind the global economy’s current revival is a returning appetite for risky investments, such as equities and corporate bonds. At their most panicky investors shunned all but the safest and most liquid assets: American Treasuries were a favoured comfort blanket. That demand for safe assets prompted a rally in the dollar in the months after the collapse of Lehman Brothers last September. Now that stockmarkets and economies have bounced back, dollar weakness has returned, causing a headache for countries with floating exchange rates (see chart). That has prompted...

Most of us are gathered at the station, watching for the Inflation Express to come rumbling in. But we've been waiting for a while now. Just when should we expect the big locomotive to arrive and start pushing the prices of most things uphill? We'd all like to know the exact date, of course, but no one can know for sure. Not even a careful reading of the Mayan calendar will help. What we can do is estimate a time range for price inflation to show up, and that alone should have some important implications for investment decisions. Why It's...

CNBC featuring David Goldman Video at Link