Why the death of the dollar is greatly exaggerated.

[Anaconda]

Quote from trefoil:

The one thing his theory said was really really simple: save for a rainy day, spend it when it rains.
It's raining.

No, that is not what his theory is. He has an extensive focus on the role of the government to stimulate & influence the economy and also justifying government debt for "helping" the economy.

Saving for a rainy day is plain common sense. The fact that you would even attribute a known economist for basically saying just that, is plain silly.

 

[Kassz007]

Quote from xenix:

I love how some people get a trading account and a subscription to the WSJ and suddenly think that they have a PhD in economics. Yeah. I got your PhD right here.

Hilarious comment. I picture you standing there doing the "jack off" motion while saying this LOL

 

[Jym]

China will have the final word on when the Dollar dies and they seem more than willing to suck it for all for they can at the moment.

I think the Fed will be able to keep it propped up at about this same area for the next year or 2 then I'm not really sure what'll happen.
I just dont see this ending well.

 

[rowingdude]

I agree with you, I think the whole situation was greatly exagurated to promote fear.

 

[ByLoSellHi]

Quote from Jym:

China will have the final word on when the Dollar dies and they seem more than willing to suck it for all for they can at the moment.

I think the Fed will be able to keep it propped up at about this same area for the next year or 2 then I'm not really sure what'll happen.
I just dont see this ending well.

After thinking about this for many, many hours, I am still unsure as to who the greater fool is regarding China's financing of much of the U.S.'s deficit spending, China or the U.S.

Some claim China can break off the affair and diversify (although this would probably cause the very value of the dollars they hold to depreciate and kill off an export market for them) while others claim the U.S. has China in a precarious position, forcing China to subsidize the U.S. consumer and now, banks, by helping us to keep interest rates low (by purchasing so many U.S. treasuries at such a low yield).

 

[maxpi]

Quote from Trendytrader:

Wrong. 2/3rs sof the economy is the consumer. The consumer is in debt up to his eye balls. Likely has little equity to tap into and now has his credit lines also being cut.

Horse shit.. there is a minority of the US population that makes all the news.. the bottom performing 15%... they cycle between jails, mental hospitals.. er.. uh.. rehab.. apartments.. welfare, jobs, marriages.. etc.. I sort of use that picture for underperformers... the percent of citizens that are "up to their eyeballs" is not 100 as your statement flat out says... it's probably about the same percent that believe that UFO's are here to save us or something.. there are plenty of really wealthy consumers in the US. Currently I think they have loaded up on rentals, taken advantage of the Clunkers program [you do realize that they had to qualify for loans or pony up cash for a brand new car and it was a huge success.. those people weren't "up to their eyeballs" in anything but good credit, good lifestyle decision, good income, fat bank accounts, etc...] and probably bought a ton of stock in good companies that pay dividends in Feb or March...

NEXT.. they might start buying stuff for their houses, RV's, boats, wardrobe.. etc... they might wait until they see investment money coming off the sidelines though... that is really Obama's job for his first six months in office.. so far, not too good in that department.. they announced that derivatives were going to trade transparently on an OTC exchange but what have they actually done to make that happen? They TARP'ed the bejezus out of the banks but the banks are using the money to buy other banks... we need for the derivatives huge question mark to be put to bed and we need for lending to start up in earnest.. once that happens even the bottom performing 30% of workers will be not only employed but working overtime....

 

[ByLoSellHi]

Quote from maxpi:

...we need for lending to start up in earnest.. once that happens even the bottom performing 30% of workers will be not only employed but working overtime....

You have the order reversed, IMO.

Who are lenders going to lend to as they have to repair their balance sheets with the TARP/TALF/etc funds they're given in an economic climate with more loan defaults, greater delinquency rates, record foreclosures, small businesses getting crushed, and most importantly, high and rising unemployment rates.

There has to be hiring first, before lenders are willing to expand their loan base, given that they're still repairing gaping losses.

 

[zdreg]

china is trying to let the air out of the balloon slowly as it diversifies away from the west or the future caliphate in Europe.

the same goes for obama. he does not believe in free enterprise. he is trying to destroy the private sector sllowly while sucking out the assets for his friends and associates

 

[Kassz007]

Quote from ByLoSellHi:

After thinking about this for many, many hours, I am still unsure as to who the greater fool is regarding China's financing of much of the U.S.'s deficit spending, China or the U.S.

Some claim China can break off the affair and diversify (although this would probably cause the very value of the dollars they hold to depreciate and kill off an export market for them) while others claim the U.S. has China in a precarious position, forcing China to subsidize the U.S. consumer and now, banks, by helping us to keep interest rates low (by purchasing so many U.S. treasuries at such a low yield).

This reminds me of a quote I read on here not too long ago which holds true. If you owe the bank a little, you are at their mercy. If you owe the bank a lot, they are at your mercy.

 

[AKUMATOTENSHI]

Quote from zdreg:

china is trying to let the air out of the balloon slowly as it diversifies away from the west or the future caliphate in Europe.

the same goes for obama. he does not believe in free enterprise. he is trying to destroy the private sector sllowly while sucking out the assets for his friends and associates

You better beleive it they are way overloaded. When they were buy base metals it was a sign they had currency to dump. China still has major amounts of buying power world wide and has been dumping alot of it in Africa. As long as they keep the currency at a basicaly fixed rate. They will also cause volitilty in other currencies to stabilize US dollar included.

Akuma.