2009: The US Dollar, Oil, and the EURO....

[libertad]

http://seekingalpha.com/article/112588-the-dollar-oil-surprise-what-does-2009-hold

The dollar finds bouyancy....particularly versus the EURO....

Why would Germany want to pay for it's comrade countries lack of discipline ?

This would be like US taxpayers paying for Canada or Mexico's lack of fiscal discipline....

And when the US Dollar improves....the price of oil does what ?

Another item worth mentioning.....Trillions of dollars have evaporated in derivatives evaluations....

 

[lemeeeplay]

Great article! Thanks for posting this.

 

[kiwi_trader]

Yes. Good article.

 

[Debaser82]

"That is set in Brussels by the European Central Bank (ECB)."

ECB is in Frankfurt.

Clown.

 

[Asparagus]

not sure about canadas lack of fiscal discipline...we have had a budget surplus for the last 10 years and have a positive current account...but that is just an aside...

very good article. i think the correlations in the first chart show asset inflation as a result of too much money supply from the housing boom...two sides of the same coin i guess

one thing the author fails to mention: what about the massive U.S.D foreign currency reserves held around the world?

just some thoughts.. all the best.

Quote from libertad:

http://seekingalpha.com/article/112588-the-dollar-oil-surprise-what-does-2009-hold

The dollar finds bouyancy....particularly versus the EURO....

Why would Germany want to pay for it's comrade countries lack of discipline ?

This would be like US taxpayers paying for Canada or Mexico's lack of fiscal discipline....

And when the US Dollar improves....the price of oil does what ?

Another item worth mentioning.....Trillions of dollars have evaporated in derivatives evaluations....

 

[libertad]

No....did not mean to make that implication....

The implication was one relating to sovereignty only....

One note about US currency....a lot of it evaporated in derivative contract evaluation....$Trillions....disappeared.....the idea being....Helicopter Ben's rain over a desert with no water....not rain over the ocean....

 

[moarla]

the conclusion must not be right:
if italy or Spain or some other countrys leave the Euro, the Euro should be stronger than bevore .... )))

 

[Ivanovich]

Quote from moarla:

the conclusion must not be right:
if italy or Spain or some other countrys leave the Euro, the Euro should be stronger than bevore .... )))

I think the thought process in the article is that Germany would leave the Euro because of the lack of fiscal discipline of the rest of Europe.

 

[drsteph]

Quote from Ivanovich:

I think the thought process in the article is that Germany would leave the Euro because of the lack of fiscal discipline of the rest of Europe.

Bring back the DMK!

Oh wait, the euro is a proxy for the DMK.

 

[C6H12O6]

Quote from libertad:

http://seekingalpha.com/article/112588-the-dollar-oil-surprise-what-does-2009-hold

The dollar finds bouyancy....particularly versus the EURO....

Why would Germany want to pay for it's comrade countries lack of discipline ?

because a huge part of German GDP depends on its comrades' spending.

E.g. think about cars: do you know how many Volkswagen, BMW, Mercedes are sold in Italy ?
Do you know how many of those cars are bought with debt ?
Do you know that if Italy and Spain and other comrades get out of the euro, nobody will be able to buy their cars ?

German industry depends on others EU countries' debt, much like Japanese industry depends on US debt.


oh BTW, I agree with Debaser82 about "clown"