Lets face it, The United States has lost it’s super power status. It is one big credit card and it is time to pay our debts. It will take alot more time to fix the financial situation if it can be fixed at all. The U.S. is not made of any real susbtance as it once was. The politicians and big business has completely sold America out. The rich are in complete control and the rest of us are thier slaves.
Bounceback? Hardly.
The economy has only just entered the downward slope, and the runaway train has only now began picking up steam. There’s a ton more bad news ahead all leading to a full-blown depression; fantasies like this article are intellectually dishonest.
This country has been living beyond its means and is LONG overdue for a depression. All I can say is – pay off your credit cards, sock away money and prepare for a LONG lean stretch ahead. The US still needs to find the absolute rock bottom, which will see many people learning to live according to their means. Say goodbye to your boat, your big SUV, your McMansion, your plasma TV in every room and everything else that you really can’t afford. Say hello to $5/gallon gas, lean living and an infrastructure that is tottering on the brink of collapse.
Are you ready?
Brendan dear boy:
“Advanced infrastructure and technology”??? People are glued to cell phones, I-pods, and Blackberry’s as if talking itself were a mechanized thing? What kind of society would YOU have people live? “A large and mobile workforce”?? 372000 people would have agreed with you on that. With more to come, judging by the layoff announcements companies spew.
Oh, and for the record, soldiers fought and died in 1776 for a promise of worthless scrip payments.Worthless, that is, until the economy could accommodate it (circa 1830’s). Let’s not see a repeat anytime soon.
Folks, the dollar’s been on hiatus since before I was born and “M*A*S*H” aired on TV. When Nixon was President, he knew the “Guns and Butter” Society was tenuous (to put it mildly). Solution? Oust the gold standard. Fiat currency
is not backed by gold,but by the “Full faith and credit of the United States”. Some foreigners,and some American citizens like me,are wondering, as they look at a bill.
Sorry, anyone reading this doesn’t need the history lesson, I’m sure, but maybe some in Congress and Treasury should divert some attention to blog spaces and get a CLUE!!!!!
A lot of things have contributed to the high American life style. In **no small part** because we can use 10$/hour wages to buy products built with 2$/day labor. Raise your hand if you actually think that an American worker’s labor is worth 50 times a Chinese worker’s labor?
Realistically it isn’t. And that is the bottom line on the direction of the dollar. Global economy is a reality. It became real when we gained the ability to travel and trade globally with ease. The same thing that allowed us to get our goods built with 2$/day labor is going to put an end to it.
Those Chinese workers are not going to keep working 80 hours a week to live in a hovel and eat seasoned rice so we can live high on the hog. It will balance.
Get over yourselves America. You just are not that special.
Just too much to hope
But some see hope that the dollar will bounce back…
However, some see hope ahead for the dollar
Hoffman said he’s hopeful the dollar may have already bottomed out against the yen and may be in the process of doing so against the euro.
Hopefully, Knapp and Hoffman are right
Reading the posts on here the problem with the dollar is very very clear….it is NOT the rest of the world that has lost faith in it …it is the American people who have lost faith in it..Patriotism obviously does not extend to the finance houses of Wall St.
Forget about the dollar. Just wait for Chinese and Japanese to switch their reserves to other currencies. Soon enough it will be worth nothing. It’s worth almost nothing if you go overseas. I think we need more “great economists” in this country to weaken our currency further. Is it possible? Yes it is.
Going from a 1.59/euro to 1.58 is some big recovery. I guess you’re expecting overseas countries to trash their currency relative to the dollar. I’m sure you’re not expecting Bernanke to raise interest rates to bolster the dollar. I’m not.
Andy,
Your rebuttal:
“To your comment: “We will be in concentration camps in 2011″
AHAHAHAHHAHAHA
Well, at least one of us is educated.”,
is weak. You are still stupid. My main point that no currency has ever averted a crisis by debasing itself, still stands. You’re living in a dream world of debased realities or maybe you have a silver spoon inserted in some orifice of yours.
ARE You for Real . . . . A U.S. Dollar Bounce Back !!! Do you know anything about Economics ? Maybe in the short term through various Governments support but the long term trend is Down, Down, Down and that is really what the FED and Treasury wants.
Wake up and smell the Coffee. Its a continual erosion of the purchasing power of paper money. History repeats itself. No Paper monetary system as ever lasted . . . . .
Man, are Canadians brilliant or what?
I especially like the guy who thinks our citizens poor health and shoddy education (which, he would know about of course considering he’s Canadian) have ANYTHING directly to do with the value of currency. But that’s ok, because he backs it up by citing the social class of Beijing and Global Warming. Both of which CLEARLY determine the direction of our dollar. I suppose when the surface of the Earth begins to melt (when do say Greg, maybe by October of this year?), the fragile cotton dollar could spontaneously combust. Maybe the ink would run? That pesky Global Warming.
Hey, at least he says “infrastructure” a lot and left us with this gem … “unknown bad events are more likely to bring bad results”.
Really? What’s next, are you going to teach us that it’s tough to see in the dark?
Stocks will be valued by P/E ratios,not rumor.Unless companies have international exposure then their earnings are going down.Buffet said 330 billion dollars were taken out of houses in 2006 and pumped into the economy,where is that money going to come from now?The stock market rally now is a head fake.When low sales and high cost start hitting the next quarterly earnings the market will take a dump!!!
Dream on. The idea that the bottom of the housing market is near and that the economy will rebound in the second half of the year is dreaming. The optimists have been calling the bottom of hosuing for over a year. The bulk of the ARMS resets and foreclosures are still ahead of us. The economy is not about to rebound even with the tax rebates, because the consumer is heavily indebted with no source of additional credit. Also, the idea that the US$ will rebound because the Fed is near the end of cutting rates is absurd. They are only reason the Fed is slowing down is because they don’t have much left to cut. The trade imbalance continues to worsen even with a lower US$ and that implies the US$ must go even lower. We have been living beyond our means in this country for far too long and we have reached the end of the rope. The Fed tries to keep the economy inflated by bailing out banks and non-banks on the verge of failure while the M3 money supply is growing at 18%. That means a weaker US$. And as the economy goes into recession, the Federal budget deficits will mushroom with the result being either higher interest rates to make the huge supply of Treasury bonds salable or the Treasury will be forced to buy their own debt, putting more downward pressure on the US$.
It appears that circumstances have changed and the crystal balls are up and running. The Fed is in a pickle regardless of its decision on rates. The mindset that the dollar is not expendable in the world of energy commodities is dangerous thinking. Even if the dollar stabilizes demand will drive the price of oil and more importantly oil rich nations will be tempted to slowly decouple oil from the dollar. Globalization has made instability a fixture. Let us not forget the black sheep – the national debt. I suppose being the largest debtor nation means nothing.
Will the U.S. Dollar rebound? Funny thing to ask.
1. Boomers are nearing retirement which means transfer of equity to safer bonds and t-bills. Equity will depreciate because there are more sellers than buyers.
2. Social Security is “Broke” no ifs ands or buts about it. Anyone in the U.S. counting on SS is absolutely dreaming.
3. Interest rates continue to stay low, adding to an already excessive pool of money. While in the rest of the world, my country of Canada excluded, reacts to inflationary pressures increasing the interest rate differential.
4. Commodities, which are priced in U.S. dollars, continue to rise as more individuals in India and China enter the middle class.
5. Global Warming is just beginning to bring “Heavy Weather” which will reduce the supply of agricultural commodities which in turn will cause extreme situations around the world with regard to the food supply.
6. One of the worlds largest transfers of wealth is underway in the U.S. as it fights an illegal war in Iraq and the U.S. Govt. continues to use “Private” security forces and infrastructure companies where historically the U.S. Army and Corp of Engineers would have done the work. War mongers and profiteers continue to salivate at all the money coming their way.
6. You have a impending health crisis as far too many of your citizens are poorly served by a private system based on profit over life.
7. Your education system is close to falling apart as the haves continue the migration towards private education and the have nots drop out at increasing rates.
8. Your infrastructure is failing and you don’t have the money to invest in new infrastructure.
9. unknown bad events are more likely to bring bad results when your country is ill prepared to handle the simplest disasters.
Where in any of the above can a strong dollar be perceived? Everyday I wake up I thank my luck to have given up my green card and returned to the country of my origin as your country continues it’s path of devolution. My SS is fully funded, our social security net is solid. Our country is a net exporter or goods and commodities. Our financial institutions are more conservatively run and hence have weathered the storm, ie. Scotiabank’s purported interest in National City and it’s change from a market cap last year of only 20% the size of Citi to now almost 50%. And finally we don’t let God get in the way of making the right decisions for our citizens.
As in the parody of hosts and parasites, the WORLD ELITES have finally come to the realization that they are quickly killing the host, hence this concept of preparing “us” for a dollar surge. Stimulus packages, printing more $$, falsifying stock performances, all seems like the way to go…
I wish JQ Public took Ron Paul more seriously.
No, I don’t see the dollar rebounding in value in any meaningful way in the near future. This country continues to run such huge budget and trade deficits and thus need to borrow from abroad to support our country’s “phony” prosperity. The Fed continues to lower interest rates to obscenely low levels to please Wall Street as if the Dow were a solid indicator of our country’s overall well being. Unfortunately, the party is now over and it is time to start thinking about raising taxes in order to close the budget deficit. The idea of lowering taxes at a time of war was insane. It is time to close the deficits by raising taxes and bringing a quicker end to our involvement in Iraq. These two things will do the most to strengthen our dollar and truly strengthen the foundations of our economy. After years of thinking that our economy, because of the different manner it which it was being propped up, “was doing great”, it is time to recognize that… “Gee, the Emperor really does have No Clothes.”
This piece was written by an individual who takes heart because of a bit of a bounce yesterday, or last month, or whatever. Not much thought there.
We have a systemic problem of consumer debt (still on the rise!), untrustworthy commecial debt, and massive trade imbalance. These are long-term trends, measured in generations not in years.
And you liked the “bounce” yesterday???
This is nothing short of intellectual laziness and/or dishonesty. Which got us into this mess in the first place.
It is good to know that the dollar is coming back and as of right now (today) the stocks are up. I do have to say that we are not out of the woods yet. We have a long way to go. This is all cyclical. Hopefully soon the dollar will be stronger vs. the Yenn and the Euro.
-Andrew
Bush’s administration has been the most irresponsible financial management in US history. The accumulated debt can not possibly re-paid, except with cheap dollars. Count on a major decline of the greenback. If you have any, sell them quickly.
meanwhile……back on earth
massive deficits, importing all of our products, and exporting all of our jobs will not produce prosperity and the dollar will continue to fall.
Paul – dream on Buddy! There’s alot of “correction” that needs to be done in the cost of the economy before any bounce back that you’re refering to can happen.
I’m waiting for the person who states that you need to wallpaper your house with dollar bills and buy whatever gold is left because it’s the end of the world.
I tell you, it’s one thing to be a realist but now those who are claiming that the sky is falling are just as bad as the folks of the last few years who thought there was no end to making riches.
We will not be fine until people start thinking on a more balanced level.
The dollar will bounce back… to 1.20 no, 1.30 no… not anytime soon but around 1.40 by the end of this year.
Just like oil and gold, the fundamentals are not there. No, the world is not running out of oil either. Heard about Brazil lately?
If you are going to use people as sources for the dollar bouncing, you ought to explain what interests they represent. These guys aren’t taking time to talk to the media for nothing. You can find someone to say anything, but who are these people and why should we pay any attention to them?
The idea that housing is anywhere near the bottom has no basis. Housing prices are still at historically inflated levels even without a recession to push prices down further. As are oil prices. As are food and other commodities.
The fundamental reality for the dollar is that the US government continues to have an enormous deficit. That money has to come from somewhere. The US is importing more than it is exporting. That money has to come from somewhere. The Fed is passing out low interest dollars and bailing out investors. That money has to come from somewhere. Where is there any evidence that the market fundamentals are shifting in the dollar’s favor?
Frank from CA -
To your comment: “We will be in concentration camps in 2011″
AHAHAHAHHAHAHA
Well, at least one of us is educated.
Why on earth would the USD bounce????
Because the corporatocracy says it will?
Its laughable.
The only way for the dollar to rebound would be for the FED to begin RAISING interest rates.
This scenario will not happen soon, as the FED keeps rates low for the trough feeders (investment banks) who in turn take this money and illegally invest it in the markets.
Criminal activity.
They will continue to lower rates, otherwise the pigs on Wall Street will lose money…and the consumer will be saddled with even more inflationary pressure.
Sad state of affairs, where the 1%’ers
make the cake, whilst the lower end poor people pay for it in the long run.
SHAME!
Yes, the dollar will bounce, temporarily. And then, continue to fall. The Fed will continue to steal via the printing press MZ to M3 being printed at 20-27% respectively. While the boards correctly reflect that the Fed has done nothing to defend the dollar, the Fed can’t afford to defend the dollar! With oil at $3.35/gal or $.21/cup, inflation is the price we pay for these dangerous times.
The U.$ has been in a recession since 2001, not accurately reflected by our govt. If it were, it would have negatively affected morale,pyschology, and caused a MASSIVE PANIC. Please examine the latest earnings bonanzas-IBM, GOOG, INTC, CAT-all reporting STRONG NON-US Growth. Though GE disappointed, it was their US Finance division that lost the most. Industrials-non US growth was very STRONG. If the Fed purposely strengthens the dollar, bye-bye earnings and bye-bye stock market. There are few things to consider.
One, the 1st baby boomer eligible for Social Security began last Summer ‘07 (right when the market started falling-coincidence???) and the elites have been pushing 401ks for the past 28 years to get the middle class invested in Wall Street and lesson the corporate costs in a global competitive environment. There is NO WAY with eliminated pension plans, and 79% of those making under $100,000, nearly 8.1 million people, that the elite are going to have a PROLONGED STOCK MARKET CRASH. With our US Social In-Security CRISIS, it would make the 1930s look like a economic boom! NO WAY the elites would have Mom, Dad, Grandma & Grandpa starving in the streets! Thus, to keep the strong stock market, we MUST HAVE A WEAK DOLLAR for overseas earnings.
Two, despite a slight drop in real estate values for US citizens, it is still VERY ATTRACTIVE for foreigners. Look at Manhattan-NO HOUSING CRASH. Thus, to keep real estate high in US World Cities like DC, NY, SF, LA, CHI, HOU, the DOLLAR MUST REMAIN WEAK. Admittedly, not everyone lives in those cities, but the weak dollar does have casualties.
Three, as noted correctly, the US govt has borrowed money (PRC, Royal Saudi Govt) from those with money to finance our war against evildoers and Wall Street has borrowed to save the world financial system (Various SWFs). Remember, we did not start the war and evil people attacked us on 9/11. McCain is correct in saying this is the deciding story of our time. We must confront evil as we did in WWII and the cold war. We cannot afford to back down, and we must win. To win is expensive, and the borrowing continues.
Therefore, the weak dollar will continue. Retirement plans (401ks), asset appreciation, and the war against evil depends on it.
I don’t see that anything has changed to make us expect a dollar rebound. The dollar is weak because of federal and trade deficits. We are asking the world to subsidize our debts by accepting our dollars. The world is realizing that it’s a bad deal. What’s going to change that?
Your dreaming if you think the greenback will make a comeback without the help from the G7. You seem to forget the Bush Admin has had the treasury printing cash like mad. Since they cut taxes on the wealthy they had to come up with money someplace to fund two wars.
Until the seven start to buy up all the extra US dollars in circulation -devaluing the Euro in the process- and the fed halts rate cuts, the dollar will continue to fall.
Also, lets get real about the housing market. It will not have a come back for at least 2-3 years if not more. It took that long to start to have a comeback in the nineties after the S&L scandal. Sorry, but the current problem is far worse than the old S&L problem. And if the weak dollar with the high cost of living can’t be brought under control, do you really think people can afford a house? Do you think banks are going to be less stringent on lending money out to anyone with a worthless currency? I think the only people buying US property will be foreign companies taking over ours. Lets face it. Bush and Cheney have sold America out at wholesale pricing to big foreign business.
Don’t believe me? Why don’t you go write an article on how JBS a Brazilian Beef company is trying to buy up all of the US beef companies to monopolize the industry? Just think about it. We could soon have foreign interest running our food pricing just like our oil pricing. Do you think things will get better if we start to lose control of our major exported items, which is food?
Amazing how the corporate controlled media is trying to spin a storyline. Love how the PPT is dumping even more money into the tank to push up positive casino numbers…guess you have to lure the lemmings one way or another.
A dollar bounce back…LOL…dead cat bounce is more like it.
Please…stop the lies and get to REAL reporting…and not AFTER the so-called ‘elections’. Thank you.
Andy,
For an educated guy, you are really stupid. No currency has ever saved itself from crisis by debasing itself. We are printing fiat currency and scattering it to the wind. The whole world is watching how we add value to the USD. There’s your perception pal. Foreign banks know what we did and poisioned them too with securitzed junk loans. They’re pretty pissed and they all got their hands out and we’re paying them to keep their distance by letting them borrow tax payer money. They’re just being passified for now. Just wait until they start asking for repayment in gold (confiscation) or our first born. Oil is thru the roof and it’s not coming down any time soon because they want value for a barrel of oil. You better be investing in commodity and forex mutual funds. We will be in concentration camps in 2011. Siding with this propaganda isn’t going to save you.
The dollar will come back. People are shorting it now because of political views about our foreign policy that have nothing to do with economics. Our economy is still gigantic. People say “Woo, China’s grew 10% while ours only grew 4%”. Which would you rather have, 10% of 10 billion, or 4% of 100 trillion? We sneeze, the rest of the world gets a cold.
America still enjoys numerous advantages others do not, including advanced infrastructure and technology, a large and mobile workforce, and the ability to rapidly realign capital with innovation. Hidebound centrally managed economies like China’s grow quickly when speculative foreign capital floods in, and then crash when ham-fisted central planners make a few gaffes. I’m betting on the U.S., and it’s hard not to – it’s been a smart bet since 1776. Underestimating the U.S. as a nation and as an economy is a blunder on par with the class “land war in Asia” – when people are down on the U.S., that’s the BEST time to start buying.
No, in my opinion, the dollar will not rebound very strongly and will likely fall back even if it does surge past $1.50 to the Euro. The reason is the US consumer is broke. The consumer will remain strapped until the cash inflow he/she lost due to the disappearance of home equity is replaced. The federal government’s getting into the mortgage business with its bailout plan will be a negative for the dollar because the temptation to abuse it will eventually prove too much to resist (isn’t that true of just about everything in our society?). Add to that a possible second stimulus tax rebate next year with more federal borrowing to finance it. I just don’t see a lasting big surge in discretionary spending until the consumer’s cash flow delimma permanently improves on a net worth basis rather than on a credit basis – and that will require a mega-shift in our culture’s pysche. The financial system will probably be eased somewhat by the federal bailout, but people who don’t make enough to buy beyond the essentials are not going to borrow – especially if the ten year T-Bill keeps falling as the DOW marches on in its rally. Lastly, gas prices will not stay down until more refineries are built.
You think the dollar is dropping now, wait until the ‘investing’ countries figure out they have been had in a Ponzi scheme… Then you will see the dollar drop.
The dollar is down because of
1) Interest rate spreads
2) Unceratinty about the war in Iraq/Afghanistan
3) Uncertainty about the credit problems
4) No new innovation is the US
The Fed can’t start raising rates until the homeowners policies are straightened out. The current home policies are linked to interest rates.If interest rates go up, thousands of homeowners fill be forced into bankrutpcy.
Because Europe is facing inflation pressure and the US is a mortgage problem, interest rate differentials will continue to exist and the dollar will be weak.
of course, there is also the problem with Iraq, Afghanistan, and Iran. If we do invade Iran, then confidence in the US economy will plummet.
All these problems could be relieved if we had a new technological break through. Unfortunately, most of America is too busy watching American Idol and going to the movies for a killer innovation to occur.
The World: Dollars, we don’t need no stinkin dollar$…The FED has done NOTHING to protect the dollar, it is printing money like it’s Kinko’s (TM) the Swiss franc has gone from .55c to 1$ in 2 years, gas, food, inflation up up – weak dollar, this is like touting a losing race horse UNTIL they cut the money supply & raise % rates, that will help attract people & coutnries to the $$ this is a bear rally, gee one day up and the dollar is saved….yeah right go to the market, go to the movies, go anywhere, a $20 is now like a $10, etc…..
I see people referencing the financing of war, national debt, jobless claims and deflated home prices. Even mortgage writedowns, CPI (when it’s convenient to their argument) and “sluggish” growth in the GDP.
What they’re forgetting is that all of this has already been built into the value of various markets, currency included.
Why is this significant? For the same reason Citi can eliminate 9,000 jobs, report a 5 billion dollar loss … and watch their stock INCREASE by 8%.
The negative forecast has already established a perceived value for the foreseeable future. If there’s an anticipation of devaluing based on poor economic expectation, and the actual comes in as “not so bad”, all of a sudden that value goes up. If the actual *shatters* expectation, well, then the Bulls are on parade and you pouting gloomers just missed the boat to paradise.
It’s more about perception than performance. The negative outlook has already been valued. The slightest news of positive reporting (in any market or vertical) is going to been met with an exaggerated positive response. The same holds true for the economic stimulus package. It’s less about Circuit City getting your money and more about the idea that Circuit City will likely get your money. When they DO get your money, and report it, we win two-fold.
And I want to remind everyone that we’re all on the same side here. Being right about an economic downturn gets you absolutely nothing. The problem is, we live in a society full of unimportant people trying to find a way to feel a sense of importance or some degree of control over the situation.
That said, every time you doom and gloomers perpetuate the perception of devaluation, I buy into another mutual fund. I’ll thank you all in 2011, when the Dow is sitting at 18,000 and I when on a spending spree at eleven-six.
Love, Andy
The US dollar is not going to rise anytime soon. Ther US is in debt to heavily and continues to cut taxes at a time when it needs to take a strong dose of medicine to fix these issues.
The US will be in an impossible stitution if the oil producing nations decide to base oil off of the Euro onstead opf the dollar. If you think gas is expensive now (3.79 in NY) that would cause gas o be about ten dollars a galon.
Also we need to be careful pushing China on human rights as if they decide to strike back at the US by selling off thier cash reseves of US greenbacks the dollar wont be worth a quarter.
This is a “cute” but premature attempt to lie us back to a healthy economy. As soon as any positive news is seen, out they come to try and brainwash “The People” into spending every dime they have.
More job cuts announced today: Citibank: 9,000 people (not jobs, people) were axed from the payrolls.
Anyone who really thinks this is over should go spend all their money: take out additional loans, vacation, buy a new car or go get a full tank of gas.
You’ll have no one to blame but yourselves….
Yes, some people believe the dollar is about to “bounce back.” Some people also believe in the Tooth Fairy. What the hell is the matter with you people? This isn’t a dip in the business cycle. This is a catastrophe driven by funny money and socialist Ponzi Schemes.
No !! The dollar shows strength in Mickey D’s, and I can get a good deal at some flop-house hotel in Marrakesh !?! I might be able to afford to drive to a Mickey D’s, but what sort of bargain airline fare can I get to Morocco ?!? A $5 lunch half-way around the world doesn’t do me much good – do they deliver ?? The yen may have hung-up just short of that magic threshold of 1-cent-American, but don’t count on Europe to play into either our scheme, or at most, the timing that suits US.
Is anyone tracking how much of the funds the Fed is lending to banks and investment firms is being invested in currency, oil and other commodity futures?
Unless the great majority see and act to create a dollar bounce there is real trouble ahead. The rise in oil is due to a weak dollar – the food crisis that are hitting various countries is due to a weak dollar. Now the Fed may cut rates – rightly or wrongly – but the responsibility of the traders in currency is to the greater world rather than the profit and loss ledger.
The poor in the US would benefit from lower gas prices bought with a strong dollar and basic food stuffs would also fall in price, not only locally but world wide.
Just standing by and waiting for the EU central to cut rates in order to support the dollar is a fools game. Invest in the currency today and see the benefits in the weeks that follow; its that simple.
Blame the government for war expenditure if you like but it will not add one cent to the quality of life in the USA today if we quit tomorrow. That will take years to filter through. BUT the dollar can be strengthened in the short term by aggressive trading by US based traders on those perceived stronger currencies.
With so many of the commodities of the world traded in dollars – something we need to keep in place at all costs – it is imperative that traders use their massive funds to trade their way out of the problem……George Soros did it well with the old EU currencies and he has far less clout that the combined efforts of Wall Streets finest…..supported by the Fed.
M3, the money supply, is now getting close to 20% – see Shadow Government Statistic (http://www.shadowstats.com/)
That means if this rate of printing money stay at this level; you have 20% more $$$ floating around the globe – how this can be positive for the US currency. Also from Shadow Government Statistic: INFLATION is close to 12% NOT the “doctored & official” 4% released by the government. Because inflation is so under estimated it affects everything, including the GDP which is at -5% right now.
As stated by many, trillions of debts from the Federal, State and Municipal Governments as well as businesses, consumer debts (1Trillion on credit cards). Federal Government budget deficit of 1 Trillion (not 300 billions from the phony accounting), trade and account deficits still well above 60 billions per month, the housing market has just begun to correct which will keep pressure on banks and more and more …
How can the $$$ goes up in this environment..?
The only way the dollar will go up against other major currencies is if/when other countries will do the same as the US – mismanage their spending, run outrageous budget and trade deficits and print more money than the Feds do.
At this point in time, commodities will go much higher in all currencies. Conclusion, protect yourself in invest a big chunk of your portfolio in commodities.
GEE THE GREENBACK IS SET TO BOUNCE BACK… OK WHEN I SEE PIGS FLYING PAST MY WINDOW I DRINK THE KOOL-AID AND START TO BELIEVE. MAYBE BEN BERNANKE CAN HELP IT WITH MORE RATE CUTS OR BY PRINTING MORE OF THEM. AS FOR THE SECOND QUARTER RISE OH. OK WHEN EVERYBODY IS DONE SPENDING THEIR LAVISH REBATE CHECK EVERYING WILL BE JUST HUNKY DORY. IF YOU BELIEVE THIS BULL I’VE GOT SOME OCEAN FRONT LAND IN NEVADA YOU’VE JUST GOT TO SEE..
Considering we still are seeing increases in jobless claims, the federal defecit is increasing, which attacts more and more foreign debt, housing prices are still falling, (with more fallout to come till 09,) and we are still fighting a war…
These are not indicators of a strong currency…
Then you have the fed bailing out Bear Sterns along with this two edged stimulus that represents appx 400 Billion in “Printed” money within a 3 month period. Where are the assets to back that kind of money?
I’m not beign negative, I’d love the money I work for to have strength, and for my kids as well, but we have too many accountability issues, and nobody wants to call a spade a spade.
I hope the dollar does rebound, but it just cant do so long term, not yet at least. It has to get worse, before it can get better…
Urgent call for Bailor Ben. Urgent call for Bailor Ben. Citi and Merrill Lynch are hurting a bit (but fortunately not many bigwigs). Emergency bailout with taxpayer funds is needed.
The dollar is going nowhere but down. We continue to borrow $2-3 billion a day from the rest of the world, and that is not going to change (oil requirements, govt. debt funding.) The Fed will create another bubble if they don’t stop lowering (already created the housing bubble with low interest rates,) so perhaps the interest rates will go back up, only to make the recession that we are already in even worse. The dollar is doomed.
“There is a universal despisement of the dollar. Everything negative about the U.S. economy is discounted. There are no secrets,” said David Hoffman, managing director with Brandywine Global Investment Management, a fully-owned subsidiary of Legg Mason
Man, he is the guy talking about Goldilocks economy last year, right? LOL.
“There are no secrets” until you know there are!! I remember last year Paulson & Ben sweared that subprime loan problem was “very contained”. Well, guess what?!
Let’s take a look at the dollar index –>http://quotes.ino.com/chart/?s=NYBOT_DX&v=dmax
So now lets ask ourselves 5 questions
1. Are we still borrowing at an alarming pace to finance two wars?
2. Are we import / export neutral?
3. Is government spending under control and all liabilities fully funded?
4. Has the housing market turned around and prices stopped falling?
5. Have we gone a full quarter without a major bank write down or fed rate cut?
The dollar is finished, all hail the Amero!
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I agree with Hackensack NJ april 25th . I also think the Government should pay back every dime of the SS money they have takin for what ever reason