Tag: u.s. dollar

Will This Be The USA in 2012?

Filed in BP, economy, Gold Prices, inflation, o by on January 15, 2011 0 Comments

The economic condition of the country continues to decline toward its rendezvous with an, as yet, unknowable catastrophe. Here is… a look (not a prediction) at a series of not improbable events that could develop [and which] would change our economic world overnight. Words: 1550

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Dollar Hits Low Against the Swiss Franc

Filed in commodities, currencies, euro, Gold, New Gold, o, silver, swiss franc by on December 28, 2010 0 Comments
Dollar Hits Low Against the Swiss Franc

Filed under: Market Matters , Currency Three intermarket commodities are on the move today. The Financial Times reported that the U.S. dollar hit a low against the Swiss franc. Why is this noteworthy? First the Swiss franc is a separate currency, not part of the euro. With Europe in disarray, the only safe currency is the Swiss franc. Anyone wanting to hedge against the eurozone getting worse would buy the Swiss franc. On the futures market, the March Swiss is trading at 1.05610, up 0.0138 (9:20 EDT). The March U.S. dollar is trading at 80.18, down 0.49. Continue reading Dollar Hits Low Against the Swiss Franc Dollar Hits Low Against the Swiss Franc originally appeared on BloggingStocks on Tue, 28 Dec 2010 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Will the Euro Rally to $1.50?

Filed in euro, inflation, New Gold by on October 7, 2010 0 Comments
Will the Euro Rally to $1.50?

Filed under: Forecasts , Market Matters , Economic Data , Currency In an interview with CNBC, Warren Mosler, principal broker dealer with AVM, lays out his argument for the euro’s rise to $1.50 . His main argument is that Europe is creating austerity measures that are curbing inflation and thus strengthening the euro. Notwithstanding the fact that the European Central Bank (ECB) is buying bonds from weaker members like Greece, Ireland, Spain and Portugal, these moves will not create inflation. No longer can speculators attack a single country like Greece and in doing so take down the entire eurozone. Continue reading Will the Euro Rally to $1.50? Will the Euro Rally to $1.50? originally appeared on BloggingStocks on Thu, 07 Oct 2010 12:40:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Gold Rises to $1,300 per Ounce; U.S. Dollar Sinks

Gold Rises to $1,300 per Ounce; U.S. Dollar Sinks

Filed under: Major Movement , International Markets , Market Matters , Commodities , Federal Reserve , Currency Spot gold in London hit $1,299.65. The December gold futures contract traded at $1,301.30, setting new record highs, as reported in Reuters . Gold resumed its rally mode when the U.S. Federal Reserve indicated that it will provide more stimulus to the U.S. economy . That triggered commodities to move higher in anticipation of more inflation. Continue reading Gold Rises to $1,300 per Ounce; U.S. Dollar Sinks Gold Rises to $1,300 per Ounce; U.S. Dollar Sinks originally appeared on BloggingStocks on Fri, 24 Sep 2010 11:20:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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China’s War Uses U.S. Debt Against U.S. Dollar

Filed in Debt, deflation, economy, Federal Reserve, lead, New Gold, Spot Gold, yuan by on September 15, 2010 0 Comments

Recently, the U.S. Treasury Department released data showing an 11% decline in official Chinese holdings of U.S. government bonds during the past year. The Chinese government isn’t adding to its U.S. bond position. Nor is it rolling over its previous purchases. Instead, between September 2009–June 2010, Chinese holdings of U.S. bonds fell from $938.1 billion to $843.7. That’s a drop of over $94 billion over nine months. The Chinese are backing away from U.S. debt. They’re reducing their exposure to the U.S. dollar, and by extension their vulnerability to a declining U.S. economy. What’s going on? Is the decline in Chinese holdings of U.S. bonds strictly an economic assessment? Or is there something else afoot? What factions are driving this decision? And what does all of this mean for precious metals? China’s Growing Confidence, and U.S. Decline First let’s note how, in recent years, China has exhibited a newfound measure of international confidence, if not swagger. It’s easy to understand why. China’s leaders see that the U.S. suffers from a weak economy, hampered by chronic overspending on consumption and underinvestment in new capital. In the wake of the global financial crisis of the past few years, Chinese leaders have concluded that U.S.-style democracy and Wall Street-style capitalism are discredited. In other words, to use a Chinese term, the U.S. is a “sunset power.” China, on the other hand, sees itself as a “sunrise power.” The Chinese are going places in this world. The Chinese have developed a different approach to development than other nations, and they have the economic statistics to back it up. The Chinese are not afraid to trumpet their success, either. Recently, for example, the German magazine Der Spiegel noted, “All around the world, from Africa to Asia to South America, Beijing is trying to tout its model of authoritarian state capitalism as the better alternative.” The Chinese Military Influence One way to look at things is that we’re watching historical waves unfold. China is on the rise, while U.S. power and influence wanes. But in a nation and culture as complex as that of China, it’s also useful to take a close look at how and why things happen. One key source of influence within China is a hard-core military faction. The Chinese military offers a viewpoint that almost always holds sway on issues of supreme national importance. Such issues definitely include areas of so-called “core Chinese interests” that cover Taiwan and Tibet, as well as the South China Sea and the Yellow Sea. It’s common knowledge, for example, that Chinese military advisers are incensed over U.S. arms sales to Taiwan. No amount of U.S. diplomacy ever is enough to smooth the troubled waters that divide mainland China from Taiwan. Indeed, the Chinese view their relations with Taiwan as an “internal matter” and consider most U.S. activities that touch on that relationship as “officious meddling.” In a new development this summer, the Chinese military expressed outrage over joint U.S.-South Korean…

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How Long Can the U.S. Dollar Maintain Its Dominance?

Filed in economy, Federal Reserve, Gold, Spot Gold by on March 1, 2010 0 Comments
How Long Can the U.S. Dollar Maintain Its Dominance?

Filed under: Market Matters , Economic Data , Commodities , Federal Reserve In 1971, President Nixon took the U.S. off the gold standard. On that day, world finance changed forever. What that meant is the Fed no longer backed the U.S. currency with gold. Now the currency was free to trade on a relative basis against other world currencies. Eventually, a U.S. dollar index contract was established on the NYMEX. The index is traded against a basket of currencies. Now, 40 years later, the dollar is still dominant. Our economy went along merrily until we began racking up huge deficits. The deficits have become so great that we face a loss of confidence from investors in our ability to worm our way out of this mess. This year the Fed had to issue between $1.5 to $2 trillion dollars of notes and bonds. Investors are receiving only 4% on the 10-year note, whereas in the past the average yield was 7% to 9%. Continue reading How Long Can the U.S. Dollar Maintain Its Dominance? How Long Can the U.S. Dollar Maintain Its Dominance? originally appeared on BloggingStocks on Mon, 01 Mar 2010 16:40:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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They’re Going to Kill the Fed

Filed in Debt, Federal Reserve, Gold, New Gold, silver, Spot Gold, US Dollar by on December 3, 2009 0 Comments

They’re going to kill the Fed. Tentative last safe date to get your Bernankes traded for something of intrinsic value is the end of the first quarter, 2010. Well…you you could just take my word for it and save both of us some valuable time, but you probably want enough details to know how I made this dizzying leap a couple of weeks ago. My landing spot has been confirmed to my satisfaction by what Chris Dodd is up to. It is the usual combination of what the dogs did not do in the night, how I would solve the problem if it were mine and I were a Statist, and wisdom accumulated from my gracious hosts at Agora Financial and a lot of time reading obscure articles and foreign newspapers. (English papers can be far more informative than ours.) I am supposing that you are aware of the money-laundering scheme which funds the current regime? Congress raises the debt ceiling, Treasury Timmy burns out bearings on the printing presses and funnels the money over to Benny Big Bucks; the “money” swooshes through the system several times to US and foreign banks and corporations, including that which is smuggled over so that other governments can “buy” treasuries with the newly-created money substitute, sticking to assorted fingers in copious amounts. Fiat currency is rather like depreciation on your house, as interpreted by your insurance company which does not recognize that the value of a thing is what it costs to replace it. Every time fiat money changes hands it is worth less for the reason insurers give: it’s older. In the meantime, the Fed has been very busy buying up sliced and diced materials to have sausage to hang in the window. (Okay, call them “toxic mortgages,” but while I’m telling you the roof is really going to fall in this time we may as well indulge in a little flippancy.) Ostensibly, the Fed is rescuing Fannie Mae, Freddie Mac, and assorted banks who have no idea who holds title to many properties any more, and being the savior of what Hillary refers to contemptuously as “the little people” and their underwater mortgages. Right. If you insist drearily on having that in dignified macroeconomic terms, the Fed is buying up GSE’s by the trainload. The Fed has also announced that it will purchase another 1.2 trillion (yes, TRillion) in treasuries in the next quarter (and a mere two or three hundred billion more before the end of the year) and that it will buy no more after that–which was why I gave you the 31 March deadline. It is busy taking on all the debt it can…but has warned it will not continue to do so. In the meantime we have learned from a censorious Congress that the Fed cannot account for umpty trillions and that it declines to say which banks it “bailed out” …

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U.S. Dollar Woes Boost China’s Global Muscle

Filed in economy, Gold, US Dollar by on November 25, 2009 0 Comments

Washington continues to believe that the U.S. dollar is a weapon and most of the G8 is playing along. They simply can’t see – or won’t acknowledge – where the dollar is actually headed, even though the evidence is right before their eyes. On the other side of the world, however, China is refusing to drink the U.S. Kool-Aid. It sees what’s really happening with the greenback, and understands the implications for its own finances and economic growth. That’s why Beijing has taken matters into its own hands. As Beijing breaks with the West, Western investors need to take notice – China is now a serious player on the global financial stage. It’s only going to grow in power and stature. And it has a powerful hand to play. Wheeling and Dealing Not only does the Red Dragon have a $2.3 trillion cache of reserves to work with, it also has the world’s most powerful growth engine: An economy that’s advancing at an 8% clip, 1.3 billion consumers who save an average of 35% of their incomes, and a government that’s spending money in an effort to propel them into the 21st century. What makes this especially poignant is that China understands its role – past, present and future. Most of its leaders are exceptionally well versed in Western history, meaning there’s a profound understanding of the problems and potential obstacles the West faces as it attempts to bounce back from the worst financial crisis since the Great Depression. There’s an irony here, since China may understand our problems even better than we do. China’s outlook and economic fate is no longer totally dependent on the United States and other Western counterparts. China knows that it has to take matters into its own hands if it is to avoid being dragged down and smothered by Western has-beens. Beijing is doing just that. What’s more, China’s leaders are taking a whole host of steps that will affect basically every asset class on the planet for years to come. Some of these moves are subtle on their face, but will have a broad and lasting impact that investors need to see and understand. Others are as shrewd as they are aggressive. For instance, China is actively diversifying its dollar risk by buying up hard assets – including oil, gold and all sorts of other commodities – as part of a global shopping spree that’s unparalleled in recent memory. As part of his global game of …

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