Dollar breaking down

[EMRGLOBAL]

The logic is simple. Lower cost of "everything" across the bord. Inflation will bring oil back to 100s, cost of food, through the roof, buying power will drop like crazy, Cost of "running a business like manufacture, will increase 10 fold. This will not help the economy. Inflation will do far more damage than deflation.

Wages are dropping like a rock. Why would you want inflation with high unemployment and lower wages?

 

[dhpar]

Quote from JamesVU2000:

Seems like people are desperate for the dollar to sell off

yeah - i am sure cnbc is correct.

 

[JamesVU2000]

The whole world seems to desperate for any whiff on inflation because they are loaded with so many worthless assets. Its a game thats worked for a longtime, but now its not

 

[dhpar]

Quote from EMRGLOBAL:

The logic is simple. Lower cost of "everything" across the board. Inflation will bring oil back to 100s, cost of food, through the roof, buying power will drop like crazy, Cost of "running a business like manufacture, will increase 10 fold. This will not help the economy. Inflation will do far more damage than deflation.

Wages are dropping like a rock. Why would you want inflation with high unemployment and lower wages?

no. you need to decrease real liabilities and equate spending habits across the world (or at least make them more similar).

lower real wages helps productivity which is one way that can pay off your debts if coupled with increased savings - just Google "Solow model of growth"....

 

[dhpar]

Quote from JamesVU2000:

The whole world seems to desperate for any whiff on inflation because they are loaded with so many worthless assets. Its a game thats worked for a longtime, but now its not

yup. no more maxing out of credit cards by "fat Americans". it is a pay time - and it will get much worse.

by the way your first sentence does not make much sense - it is US that is desperate for inflation. the world is loaded in treasuries which usually do not fare very well with inflation.
the world is going for a nasty surprise too when they will lose much of the excess (stored in reserves) they helped to create (and still support as we will see within one minute when 10y auction results are out....)

 

[MrDODGE]

1.34 in the next hour or so isn't out of the question :eek:

 

[Debaser82]

 

[scriabinop23]

Quote from Debaser82:

awesome...

This is a great place to buy a straddle. I think within 2 months we'll either be at 1.45 or back to 1.25 pretty easily.

 

[JamesVU2000]

The euro is a total joke. Its a monetary union and europes banks are in just as bad of shape as the US if not worse. I here the UK has the worse, that could be why the pound is dropping like a stone

 

[Debaser82]

Quote from JamesVU2000:

[ europes banks are in just as bad of shape as the US if not worse. [/B]

You mean insolvent and very insolvent?