“The explosion in US high-powered money via quantitative easing runs the risk of a sharply lower dollar in the future.”
- David Powell, Bank of America, November 25, 2008
November 26, 2008
Soot & Ashes Quote of the Day
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18 comments:
Even though we are going through hard times, I still believe that the world will have faith in America. Our currency will still reign supreme over all others. Notice that during the past three weeks, the dollar has gained about 20% against the Euro! The world is voting and putting their faith on us.
Nick, dude, you should just do the opposite of whatever you think you should do. I've never seen you post a comment, voice an opinion, type a keystroke that I didn't disagree with completely.
Firstly, this isn't really an issue of USD v. other currencies. It's USD v. other assets (ie: commodities).
Check out USD v. Gold over the last couple weeks.
Secondly, the world has not voted and put their faith in us. Speculators had borrowed money in USD to invest overseas and they now need to pay those loans back so they are having to convert back to USD, increasing demand and therefore the price of USD.
Notice that the Yen has done well too? Because speculators did the same thing with the Yen: borrowed it to convert to another currency to invest in some other country. Speculators are having to pay back their Yen loans as well.
Get out of fiat currencies and into hard currencies: precious metals. Get into agricultural commodities too since even poor, unemployed people will need to eat.
Hey Nick,
Is this what you really mean:
http://www.youtube.com/watch?v=CjNPH06A24g
7 seconds...check it out.
This is good news:
http://tinyurl.com/6bz9xf
Former Federal Reserve Chairman Paul Volcker will chair a new economic advisory panel created by President-elect Barack Obama and designed to stabilize financial markets, the Wall Street Journal reported on Wednesday.
__________________________
Volker has cojones of steel, unlike Nick's foam rubber cojones.
The world is putting their faith in America because the taxpayers of America are on the hook .As the rest of the world strives in the future America will be a faltering Nation .
This mornings news:
Volcker, 81, will head the President's Economic Recovery Advisory Board.
I'm thrilled Obama has chosen Volcker. However, I dont think there is much he can do with this economy Greenspan left behind.
"Nick said...
Even though we are going through hard times, I still believe that the world will have faith in America."
Asshole. Plain and simple.
Gobble Gobble dickhead.
Very entertaining keith!
RayNLA
Keith,
Will you please enable the post to be E-Mailed.
Thanks.
Today is 1 US dollar ~ 40 Indian Rupees
2012 is 1 US dollar ~ 1 Indian Rupee
Yep folks, it is gonna be THAT bad!!!
The Wallstreet/Bushco mafia is intent on not only running this country into the ground now, but for the forseeable future. Unaccountable bailouts with the same den of thieves remaining as "captains" of the ships they have run into the ground.....no crime here folks....move along.
The correct path is a grinding depression with Americans learning to live within their means.
THAT is the ONLY solution.
Instead....printing presses in overdrive in attempt to maintain the "status quo".
Nick,
Why don't you leave economics and high finance to the big kids. You're no financial savant as evidenced by your horrible decision making processes. Being in a some state of foreclosure isn't something to be proud of. It just indicates that you're white trash/ghetto garbage like the other pieces of human filth that litters this land.
Anyway, the dollar is going down, now or later. With what will soon amount to a budget deficit of $1-2 trillion (and that's being optimistic) and a national debt of what will also have skyrocketed to $14-15 trillion (100% of GDP mind you), the dollar is DOOMED. I won't bother explaining why our twin debts are a bad omen for the dollar.
Why an idiot like you even weighs in on things like this is incredible. I imagine you and your wife are given to long, intellectual conversations about the perils of deficit spending and the efficacy of stimuli packages. Or maybe your conversations entail asking the other whether or not your credit cards are completely maxed out or if you can spare a few hundred for a Coach bag or iPhone. My money's on the latter.
The dollar hasn't gained on the Euro or the Pound Sterling - they're just losing value against the dollar. The unwinding had something to do with it, but the temporary flight to security is almost over.
"Nick" throughout history...
1588: "The world has faith in the Spanish Navy."
1695: "The world has faith in the power of Dutch trade."
1921: "The world has faith in the British Empire."
Believe me Nick, the foreigners stockpiling $$$$ are going to be putting more than their faith in us before this is over. Get ready for the Fourth World: a Banana Republic, w/o the bananas!
*****
BWAHAHA!
Keith I just noticed the title change!
I'm getting a decidedly HP feel to this blog all of the sudden. Is it just Mozzilo or are you smelling real panic finally?
...Suzanne, year-round-golf, upgrades, bathtubs ...give in to your hate, Keith!!!!
"Why don't you leave economics and high finance to the big kids. You're no financial savant as evidenced by your horrible decision making processes. Being in a some state of foreclosure isn't something to be proud of."
Can't have it both ways. Darned if all you care about is American Idol, damned if care about economics. I have no economic background, all I know I have learned from reading HP daily for 2 years.
This has become my new form of educational entertainment. But now that I am hooked, I expect to be a financial genius like Paulson and Greenspan, people that really know economics, so nothing can go wrong.
I love the name Quantitative Easing. It sounds like some sort of exercise in restraint when in fact just the opposite is happening.
Q.E. is very dollar negative and answers my question Re: what the endgame will be: A devalued dollar and massive inflation.
Time to buy more gold.
Listen up class...
Really... that means YOU!!
The crash of the dollar should come as no surprise...started 95 years ago.
Why...
Because no money...no food.
Most die.
Thomas Malthus had it right a couple hundred years ago...and the bankers read his work.
YOU are useless eater.
Need a case study you say...??
Zimbabwe...no big game left to eat...cost a billion dollars for a slice of bread.
This game is about depopulating the planet class.
The sooner you get that into your economic brains the less pain you will suffer.
It is a horrible time to buy Gold.
There will be a massive plunge in the stock markets next week. Anyone think it's odd that the crappiest stocks rose the most this week? GM rising back over $5 LOLOLOLOLOLOL
DOW target 7000 then buy.
[[ Source: http://news.bbc.co.uk/2/hi/business/7750193.stm ]]
The annual rate of inflation in Iceland has escalated to a record high of 17.1% as the country battles the worst financial crisis in its history.
The Icelandic statistics agency said prices rose in November alone by 1.74% compared to the previous month.
Food prices increased fastest, up 30.6% over the year, as the country's currency plummeted.
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Can it happen here? Perhaps, rabbit, perhaps.
Buy gold today, get delivery in 4/2009....maybe.
The value of the dollar will be destroyed, time to look for a save shelter for your life's savings. That perception might have something to do with the recent market rally. Even in Weimar Germany the stock market held up pretty well when compared to the currency. People that had their money in stocks lost some, those who had their holdings in currency lost everything. I still wouldn't be rushing out loding up on GM or some other loser.
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