devaluation of the dollar

[thriftybob]

Why are you surprised? Its not being done by mistake or in error. If you go read history from the 1930's you'll find that the way countries got out of the depression was by devaluing their currencies.

Therefore, I expected this, and I own gold.

Let them devalue it till our trading partners are willing to buy as many dollars worth of US exports as the imports we buy from them. IMO, until we stop trying to borrow more from them every day, the collapse will continue.

 

[zdreg]

Quote from Ivanovich:

I think that he believes he's trying to get in front of this thing, and he no longer wants to play catch up. If this doesn't work, I truly believe the Fed is out of tricks.

one possibility that has been suggested is the elimination of the 50 year bond in order to lower rates for 5 and 10 and 20 year maturities.
I suggest you do further research before saying the Fed is out of tricks.

 

[zdreg]

Quote from thriftybob:

Why are you surprised? Its not being done by mistake or in error. If you go read history from the 1930's you'll find that the way countries got out of the depression was by devaluing their currencies.

Therefore, I expected this, and I own gold.

Let them devalue it till our trading partners are willing to buy as many dollars worth of US exports as the imports we buy from them. IMO, until we stop trying to borrow more from them every day, the collapse will continue.

you are wrong about history, devaluing currencies does not work as other countries will do the same. world war II brought the US out of depression.

 

[thriftybob]

Quote from zdreg:

you are wrong about history, devaluing currencies does not work as other countries will do the same. world war II brought the US out of depression.

Just read the other day that as countries devalued, they subsequently came out of the depths of the depression.

Until the trade deficit is stopped, I don't think there is any chance because the big problem now is that we are up to our ears in debt, and borrowing more daily to finance its continuation. Nobody even CONSIDERS who, when or how any of it will ever be repaid.

 

[zdreg]

that u read it doesn't make it correct..

there is no need to repay anything as long as the rest of the world is willing to hold US paper or buy US tangibles ie real estate etc.

 

[thriftybob]

Quote from zdreg:

that u read it doesn't make it correct..

there is no need to repay anything as long as the rest of the world is willing to hold US paper or buy US tangibles ie real estate etc.

I'm not holding my breath how long that lasts...

 

[Daal]

In the year Roosevelt devalued the dollar against gold the stock market had one of its best years ever

 

[rothschild]

http://www.ft.com/cms/s/46db7d1e-bcec-11dd-af5a-0000779fd18c.html

Warren Buffett called credit default swaps "financial weapons of mass destruction" and they are about to annihilate Main Street. In a disturbing new trend, international banks are creating syndicated credit facilities that "weaponise" credit default swaps (CDS) by using the trading price of a borrower's CDS to set the interest rate paid by the borrower. Unfortunately, banks don't understand that they are arming speculators to ambush and kill unsuspecting and otherwise healthy companies. Regulators are oblivious to this danger as are the victims.

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Once this tool has made enough damage, they will cut it and things will slowly come to normal..oh well once they've cut credit again to keep inflation on check because of all that money infusion.

2 years where so many things could disrupt the public infrastructures and kill it for real.

There is no alternative but hope and constant coordination to keep on check every panicking in the streets or big criminal activities.

 

[bxptone]

Quote from Daal:

In the year Roosevelt devalued the dollar against gold the stock market had one of its best years ever

Ummmm just one problem with that, the dollar wasn't already NEAR ZERO, when Teddy did that.

Now of course there really is no zero in currency land, but you get the picture.

 

[harkm]

Quote from Daal:

In the year Roosevelt devalued the dollar against gold the stock market had one of its best years ever

It had to rise as it is priced in the Dollar.