USD Dollar Plunge, This says China doesnt believe USA growth (GDP)

Quote from empee:

what? According to the media, a weak dollar is good for us !!

:p
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the media is vested in making this administration look brilliant


no one wants to hold them accountable for destroying the multi-billion dollar surplus,

for sending us into trillions of dollars of debt, as a nation,

for bringing back the 30yr Treasury Note, and the 10yr Treasury Bond (or substantially increasing the float)

for increasing taxes on everyone below positive net worth of $10,000,000.00 while selling the notion that they were lowering one's taxes.... (add in the state, local, municipal, county, sales, usage (DMV, etc.) and other associated school taxes that have tripled as a result of these tax breaks for the rich)...

oh, we didn't even approach the property tax issue of them just about doubling in the last 7 years..

they tout increasing tax flow from real estate transactions increasing, however, that has abruptly ended too...

so, what's good about the last currency we (collectively) have going lower?, namely the exchange rates on the substantially devalued dollar?

oh, yeah, we have the media to thank for pointing out what we already are experiencing and see as facts, not conjecture...
 
Quote from empee:

what? According to the media, a weak dollar is good for us !!

:p
More...

I haven't read anybody in the media saying a weak dollar is good. In fact, I just read that the low dollar coupled with higher oil prices are concerning many with inflation even though there is no evidence (in their eyes of course) for inflation based on traditional measures. (Yes, we all know there is "money supply inflation" that noone is measuring.)
 
Okay, I eat my words. This link documents a Barron's writer saying just what you said. But I love the comment at the end:

"No nation has ever devalued itself into prosperity."

http://finance.yahoo.com/expert/article/business/52932

BEST COLUMNS OF THE DAY

What does the weak dollar mean?

The U.S. dollar really did hit a "historic" low yesterday, says Ben Steverman in BusinessWeek.com. But blaming the Chinese officials who said China should diversify its foreign currency stockpiles is silly -- their views hold as much power as "the mayor of Milwaukee making comments on the war in Iraq." Instead we should "look at economic fundamentals": the bond markets are expecting "a deep slowdown in the U.S.," so investors are switching to "other currencies that will give them better returns." The dollar will probably stay low for "quite a while," so "Americans will have to get over the embarrassment of a weak currency."

Well "so far, Americans have made out quite well from the decline in the dollar," says Randall Forsyth in Barron's Online. "Forget the economics textbooks." The 9 percent drop in the dollar this year has effectively cut our foreign debt by $155 billion, and it is doing "relatively little to restrain imports." Plus, it is good for our foreign investments, be they a multinational's new overseas factory or an individual's international mutual fund. Besides, the dollar still has some way to fall: the greenback hit "its nadir against the Japanese yen in 1995," and was at its weakest against gold in 1980.

The falling dollar is being "spun by the Goldilocks crowd to be a positive event because of its impact on exports," says Herb Greenberg in SeekingAlpha.com. But it's really nothing more than "a sign of weakness by the U.S." The greenback is "now the economic equivalent of the Blue Light Special, and we all know what happened to K-mart." And as Stephen Roach at Morgan Stanley noted two months ago: "No nation has ever devalued itself into prosperity."
 
Quote from Digs:


Ben is on the phone as I write this saying sorry to Peking, please dont dump the USD !!!
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What is he going to convert the USD into? The Euro? Oh yeah, there is a great growth story there, even higher debt and the same loose fractional reserve banking scheme.

Or the Yen? Where the Bank lends money at 0%.

Oh wait, maybe buy up the Swiss Franc. Even though it has been a fiat for the last few years.

Seriously, what is China going to convert dollars into, that they would be willing to send their economy & employment picture into a tailspin?
 
Quote from Hydroblunt:

What is he going to convert the USD into? The Euro? Oh yeah, there is a great growth story there, even higher debt and the same loose fractional reserve banking scheme.

Or the Yen? Where the Bank lends money at 0%.

Oh wait, maybe buy up the Swiss Franc. Even though it has been a fiat for the last few years.

Seriously, what is China going to convert dollars into, that they would be willing to send their economy & employment picture into a tailspin?
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so what's a Euro? anyway?

are there enough BP's? available?

what other large currency is there to go into?


hard commodities (gold, silver, precious metals, oil, etc.)
 
Quote from Hydroblunt:

What is he going to convert the USD into? The Euro? Oh yeah, there is a great growth story there, even higher debt and the same loose fractional reserve banking scheme.

Or the Yen? Where the Bank lends money at 0%.

Oh wait, maybe buy up the Swiss Franc. Even though it has been a fiat for the last few years.

Seriously, what is China going to convert dollars into, that they would be willing to send their economy & employment picture into a tailspin?
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This is actually an good question as the Euro is really the only reasonable currency for them to go into, yet they have a balance with Europe too:

http://www.atimes.com/atimes/Global_Economy/IJ16Dj07.html

"Europe is now experiencing double trouble as its surplus with the US begins to fall while its deficit with China is large and growing. Between 2002 and 2006 the European Union’s deficit with China rose from 54 billion euros to 128 billion euros. At current exchange rates the 2006 deficit was $179 billion, and the EU Chamber of Commerce expects that deficit to hit $260 billion in 2007. "
 
Quote from AOL_9.0 Man:


hard commodities (gold, silver, precious metals, oil, etc.)
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I guess they could. But they can barely consume these fast enough much less hold them...
 
Quote from AOL_9.0 Man:

so what's a Euro? anyway?

are there enough BP's? available?

what other large currency is there to go into?


hard commodities (gold, silver, precious metals, oil, etc.)
More...

There is no hard currency, no major one, on the face of the planet. The Euro is nothing more than another dollar. In fact, central bank concepts originated in Europe, not US, so the same game is played and if you look up the key statistics, you will find that there is no fundamental reason for Euro to trade that much higher than USD, except general sentiment & media attention. Do you see many articles regarding the huge debts held by European nations with half the GDP growth of US?

Gold is not an option on a large scale, most of the supply (current & future) is held by a few major players. Silver is an option, but also limited. Oil, well U.S. is a big player in oil while China has NONE. Maybe grains? Well take a look at the middle of US.

Common sense scenario is China using USD to buy assets in the US, primarily through the stock market. No major buyouts will be allowed for them (like Unocal), however, having a US FINANCIAL manager (like Blackstone) is a great way to recycle those dollars. Or using dollars to pay US contractors to come in, develop infrastructure, set up technology, etc. Which is all fine for any major global corporation.
 
Quote from Hydroblunt:


Common sense scenario is China using USD to buy assets in the US, primarily through the stock market. No major buyouts will be allowed for them (like Unocal), however, having a US FINANCIAL manager (like Blackstone) is a great way to recycle those dollars. Or using dollars to pay US contractors to come in, develop infrastructure, set up technology, etc. Which is all fine for any major global corporation.
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Makes sense. And I like that: let's take them down with us over the cliff!
 
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