Re: U.S. 'Dollar' going-down-the-drain
Leo Marx
>
> x-no-archive: yes
>
> http://www.lewrockwell.com/blog/lewrw/archives/023394.html
>
> October 08, 2008
>
> "When in doubt -- turn on the crank!"
>
> Posted by Bill Anderson at October 8, 2008 07:56 AM
>
> Surprise, surprise. Bernanke is not going to give up on his belief that
> inflation will solve everything. Today, he and his fellow central bankers
> [1] around the world have acted in concert to present themselves as
> financial action figures. Despite the fact that the U.S. Dollar has become
> something akin to the Zimbabwean Dollar, Bernanke has ordered the Fed's "key
> rate" cut to 1.5%, which essentially means that the Fed now has negative
> interest rates.
>
> NEW YORK (CNNMoney.com) -- The Federal Reserve, working in coordination
> with other central banks worldwide, enacted an emergency interest rate cut
> on Wednesday.
>
> The Fed lowered its fed funds rate by half of a percentage point to
> 1.5%. The central bank's statement said the move was necessary because of
> the worsening crisis in global financial markets.
>
> "The recent intensification of the financial crisis has augmented the
> downside risks to growth and thus has diminished further the upside risks to
> price stability," the Fed said.
>
> The rate cuts are just the latest in a series of groundbreaking moves
> by the world's top central banks to try to breathe life into embattled
> financial markets.
>
> Earlier in the week, the Fed took steps that could potentially make
> trillions of dollars available to banks and the nation's leading businesses.
> That's on top of the controversial $700 [850] billion Wall Street bailout
> approved by Congress Friday. Earlier Wednesday, the Bank of England
> announced a bailout plan of that nation's banks, as it said at least $350
> billion will be made available to British banks.
>
> U.S. stock futures soared on the news of the rate cuts, after five days
> that saw the Dow Jones industrial average plunge more than 1,400 points.
>
> No doubt, this one-day jump in the markets (to be followed by several days
> of declining values) as traders give the Pavlovian response to this
> "historic" action will be cited as "proof" that Bernanke and his friends are
> following the "correct" strategies.
>
> Yet, it seems that even the "experts" realize that "easy money" got us into
> this fix, so does it not logically follow that we need to stop this "easy
> money" strategy? The best way to describe Bernanke's madness is to draw an
> analogy to the band in "Animal House," which tries to march through a wall
> in an alley. Toga! Toga!!
>
> [1] http://money.cnn.com/2008/10/08/news/economy/fed_move/index.htm?cnn=yes
>
> ---
>
> Gold $914 $ +29.00
> Silver $11.77 $ +0.21
I'm not an economist, and from your analysis neither are you.
It is fraud in the real estate markets that have caused this problem not
"easy money".
A weaker dollar makes imports more expensive and exports cheaper, some
think this is a good thing, and I agree.
JAM
oly
>
> - Show quoted text -
The present financial crisis is based upon numerous cheats, not just
dicey real estate mortgages.
Over time, you won't be especially able to tell the real value of the
U.S. dollar based upon currency indexes and posted exchange rates,
because everybody is debasing their currency simultaneously. It is a
race for the bottom.
The newness and probable instability of the Euro (the product of a
currency union of many nations with various financial goals and
preferences) also makes it difficult to tell what a U.S. dollar is
worth at any moment. You may see many currencies collapse before the
USD and the Euro might be one of the zombies.
To navigate what is coming with some sucess, one MUST think in terms
of "purchasing power" of the U.S. dollar, not in nominal units.
oly
Leo Marx
>
> x-no-archive: yes
>
> "Leo Marx" <Leo...@nospam.net> wrote in message
> news:48ECE1EE...@nospam.net...
>
> > It is fraud in the real estate markets that have caused this problem not
> > "easy money".
>
Just watch the news, any news, even FOX.
>
> > A weaker dollar makes imports more expensive and exports cheaper, some
> > think this is a good thing, and I agree.
>
> Are you in the export business, or something?
> Otherwise, you are a big loser in the deal.
No, it means people in the U.S. will buy products produced in the U.S.
Also, if you are a producer in the U.S. it makes your products more
attractive, lower priced, to the countries you export to.
JAM
Jud
currencies lately.
Euro = $1.37 British Pound = $1.87 Canada Dollar = 90¢ Australia
Dollar = 78¢
These exchange rates are more favorable for the US dollar than a week
or a month ago.
Jeff R.
> Actually, the US dollar isn't doing that badly against other
> currencies lately.
> Euro = $1.37 British Pound = $1.87 Canada Dollar = 90¢ Australia
> Dollar = 78¢
Ha!
78¢ !
We Aussies *wish*.
66¢ last I looked - and we were almost at parity a few short weeks ago.
Glad I'm not buying. (The farmers are happy, though)
--
Jeff R.
Charles Cooper
could then just take whatever is desired by brute force, while the populace
cowers in fear. If you want another man's wife, take her. Another man's
water and guns, take it.....etc.
"oly" <oly...@aol.com> wrote in message
news:25a690f1-870a-41f7...@o40g2000prn.googlegroups.com...
oly
> the meltdown of all world markets would be a good thing. People like myself
> could then just take whatever is desired by brute force, while the populace
> cowers in fear. If you want another man's wife, take her. Another man's
> water and guns, take it.....etc.
>
>
> - Show quoted text -- Hide quoted text -
>
> - Show quoted text -
What drugs did you forget to take today, Chuckie???
oly
Leo Marx
>
> the meltdown of all world markets would be a good thing. People like myself
> could then just take whatever is desired by brute force, while the populace
> cowers in fear. If you want another man's wife, take her. Another man's
> water and guns, take it.....etc.
>
Until one of them puts a bullet in your head.
JAM