PeakOil is You
US$ GETTING DESTROYED!!! (71.31)
Re: US$ DROPPING LIKE A ROCK!!! (76.96)
by perdition79 » Tue 30 Oct 2007, 04:02:55
$this->bbcode_second_pass_quote('roccman', '[')url=http://in.news.yahoo.com/071027/137/6mhrn.html]CARACAS (Reuters) - OPEC is likely to discuss creating a basket of currencies for oil pricing at its next summit due to the steady decline in the dollar, Venezuela's Energy Minister Rafael Ramirez said on Friday.[/url]
That's it, party's over. The doomometer just spiked beyond its mechanical limits; the dollar is dead.
roccman: best post ever. I think i just wept with joy.
http://www.thepeoplescube.com/
"We are building a religion; we are building it bigger. We are widening the corridors and adding more lanes."
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"We are building a religion; we are building it bigger. We are widening the corridors and adding more lanes."
Cake - Comfort Eagle
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Re: US$ DROPPING LIKE A ROCK!!! (76.89)
by seahorse » Tue 30 Oct 2007, 09:45:56
Interesting Bloomberg article on dollar demise - where the rubber hits the road so to speak.
$this->bbcode_second_pass_quote('', 'O')ct. 29 (Bloomberg) -- Bargaining while buying some trinkets in the Maldivian capital, Male, recently, I heard most unexpected words: ``You can keep your dollars.''
This tiny nation of 1,200 islands has long accepted U.S. currency out of convenience for visitors and financial sobriety. The dollar tended to do better in global markets than the local monetary unit, the rufiyaa. That may be changing and it's a bad omen for the world's reserve currency.
``My dollars aren't as popular here as they've been in the past,'' says Moyez Mahfouz, 51, who has visited the Maldives from Bahrain with his family once or twice a year for a decade. ``More and more on this trip, I'm being asked for rufiyaa.''
Why does it matter what happens in the Maldives? Its $1 billion economy is worth 1/59th of Microsoft Corp. co-founder Bill Gates's wealth and 1/27th of Sri Lanka's output. While it's an amazingly beautiful place, the Maldives is a rounding error on the global economic pie chart. Yet it may be a microcosm of a tectonic shift in finance: the demise of the dollar.
These things start out slowly, and in recent months I have had similar experiences from Mexico to Vietnam. In markets, restaurants, taxis and tourist shops that long accepted dollars, many are opting for local currency. The reason: concerns the dollar plunge that analysts have predicted for years is afoot and that the U.S. is uninterested in halting it.
Transformational Event
There's also a nascent realization that something transformational may be happening in global markets. Some states that long pegged their currencies to the dollar are scrapping the policy -- like Kuwait -- while others are quietly considering it. A survey by HSBC Holdings Plc found that twice as many Gulf businesses see benefits from dropping currency pegs to the dollar as those that see negative consequences.
Following Kuwait's May 20 move to drop its dollar peg, Gulf states are under pressure to do the same. The catalyst isn't so much anger over the Bush administration's policies, but how the dollar's slump is raising the price of imported goods. Inflation has reached record levels in Saudi Arabia, the United Arab Emirates, Qatar, Kuwait and Oman in the last 12 months.
President George W. Bush's handiwork doesn't help, of course. In December 2004, former Malaysian Prime Minister Mahathir Mohamad suggested Muslim countries should refuse to trade in dollars and use their economic influence to force a change in U.S. policies. The U.S. ``owes huge sums of money to the rest of the world,'' Mahathir said. ``If people do not keep giving money to the U.S., it will go bankrupt.''
`Rogue Nation'
For years now, Joseph Quinlan, chief market strategist at Bank of America Corp. in New York, has been warning that the U.S.'s image as a ``rogue nation'' is a key force behind the dollar's decline.
The subprime crisis doesn't help, and neither does the perception that U.S. officials -- who recently helped negotiate a bailout fund to calm credit markets -- are protecting reckless investors from losses.
``Bubbles are easier to inflate than to sustain,'' says Richard Duncan, a partner at Blackhorse Asset Management in Singapore, and author of the 2005 book ``The Dollar Crisis: Causes, Consequences, Cures.''
It also hasn't escaped Asians that Treasury Secretary Henry Paulson is talking out of both sides of his mouth. He supports a strong dollar while the U.S. stands to gain from its decline through more-competitive exports and repayment of international debts with cheaper dollars. That's the problem with beggar-thy- neighbor policies -- the neighbors realize what's going on.
Debased Dollar
Investors such as Jim Rogers, too. ``It's the official policy of the central bank and the U.S. to debase the currency,'' Rogers, a former partner of George Soros and chairman of Beeland Interests Inc., said in Amsterdam last week.
Not that the U.S. has enough currency reserves, $44 billion, to halt a dollar crash. The real stockpiles are in Asia. China has $1.4 trillion of reserves, followed by Japan with $923 billion, Taiwan with $263 billion, South Korea with $257 billion and India with $249 billion. Were Asians to dump dollars, the U.S.'s reserve-currency status would be in jeopardy.
The rise of sovereign wealth funds adds another wrinkle. There's much chatter in markets about whether these massive, politically connected funds will shift assets from dollars to euros or other currencies. Islamic finance also gives Gulf states an alternative to dollar-denominated markets.
View From Maldives
There are many arguments against dumping the dollar. The result of diversifying revenue for oil exporters and reserves held by central banks might be a dollar rout, says Larry Hatheway, a London-based analyst at UBS AG. The ensuing jump in U.S. risk premiums and the deflationary impact on the world economy could boomerang on OPEC and central banks via a collapse in oil prices and weaker exports.
With the euro coming into its own, the dollar looking wobbly and some nations miffed by U.S. policies, a slow and steady shift may nonetheless be under way.
Not that the Maldives can tip the balance. Yet the more nations, no matter how small, that begin eschewing the dollar, the bigger the challenges facing the U.S.
To contact the writer of this column: William Pesek in Tokyo at wpesek@bloomberg.net
Last Updated: October 28, 2007 11:25 EDT
$this->bbcode_second_pass_quote('', 'O')ct. 29 (Bloomberg) -- Bargaining while buying some trinkets in the Maldivian capital, Male, recently, I heard most unexpected words: ``You can keep your dollars.''
This tiny nation of 1,200 islands has long accepted U.S. currency out of convenience for visitors and financial sobriety. The dollar tended to do better in global markets than the local monetary unit, the rufiyaa. That may be changing and it's a bad omen for the world's reserve currency.
``My dollars aren't as popular here as they've been in the past,'' says Moyez Mahfouz, 51, who has visited the Maldives from Bahrain with his family once or twice a year for a decade. ``More and more on this trip, I'm being asked for rufiyaa.''
Why does it matter what happens in the Maldives? Its $1 billion economy is worth 1/59th of Microsoft Corp. co-founder Bill Gates's wealth and 1/27th of Sri Lanka's output. While it's an amazingly beautiful place, the Maldives is a rounding error on the global economic pie chart. Yet it may be a microcosm of a tectonic shift in finance: the demise of the dollar.
These things start out slowly, and in recent months I have had similar experiences from Mexico to Vietnam. In markets, restaurants, taxis and tourist shops that long accepted dollars, many are opting for local currency. The reason: concerns the dollar plunge that analysts have predicted for years is afoot and that the U.S. is uninterested in halting it.
Transformational Event
There's also a nascent realization that something transformational may be happening in global markets. Some states that long pegged their currencies to the dollar are scrapping the policy -- like Kuwait -- while others are quietly considering it. A survey by HSBC Holdings Plc found that twice as many Gulf businesses see benefits from dropping currency pegs to the dollar as those that see negative consequences.
Following Kuwait's May 20 move to drop its dollar peg, Gulf states are under pressure to do the same. The catalyst isn't so much anger over the Bush administration's policies, but how the dollar's slump is raising the price of imported goods. Inflation has reached record levels in Saudi Arabia, the United Arab Emirates, Qatar, Kuwait and Oman in the last 12 months.
President George W. Bush's handiwork doesn't help, of course. In December 2004, former Malaysian Prime Minister Mahathir Mohamad suggested Muslim countries should refuse to trade in dollars and use their economic influence to force a change in U.S. policies. The U.S. ``owes huge sums of money to the rest of the world,'' Mahathir said. ``If people do not keep giving money to the U.S., it will go bankrupt.''
`Rogue Nation'
For years now, Joseph Quinlan, chief market strategist at Bank of America Corp. in New York, has been warning that the U.S.'s image as a ``rogue nation'' is a key force behind the dollar's decline.
The subprime crisis doesn't help, and neither does the perception that U.S. officials -- who recently helped negotiate a bailout fund to calm credit markets -- are protecting reckless investors from losses.
``Bubbles are easier to inflate than to sustain,'' says Richard Duncan, a partner at Blackhorse Asset Management in Singapore, and author of the 2005 book ``The Dollar Crisis: Causes, Consequences, Cures.''
It also hasn't escaped Asians that Treasury Secretary Henry Paulson is talking out of both sides of his mouth. He supports a strong dollar while the U.S. stands to gain from its decline through more-competitive exports and repayment of international debts with cheaper dollars. That's the problem with beggar-thy- neighbor policies -- the neighbors realize what's going on.
Debased Dollar
Investors such as Jim Rogers, too. ``It's the official policy of the central bank and the U.S. to debase the currency,'' Rogers, a former partner of George Soros and chairman of Beeland Interests Inc., said in Amsterdam last week.
Not that the U.S. has enough currency reserves, $44 billion, to halt a dollar crash. The real stockpiles are in Asia. China has $1.4 trillion of reserves, followed by Japan with $923 billion, Taiwan with $263 billion, South Korea with $257 billion and India with $249 billion. Were Asians to dump dollars, the U.S.'s reserve-currency status would be in jeopardy.
The rise of sovereign wealth funds adds another wrinkle. There's much chatter in markets about whether these massive, politically connected funds will shift assets from dollars to euros or other currencies. Islamic finance also gives Gulf states an alternative to dollar-denominated markets.
View From Maldives
There are many arguments against dumping the dollar. The result of diversifying revenue for oil exporters and reserves held by central banks might be a dollar rout, says Larry Hatheway, a London-based analyst at UBS AG. The ensuing jump in U.S. risk premiums and the deflationary impact on the world economy could boomerang on OPEC and central banks via a collapse in oil prices and weaker exports.
With the euro coming into its own, the dollar looking wobbly and some nations miffed by U.S. policies, a slow and steady shift may nonetheless be under way.
Not that the Maldives can tip the balance. Yet the more nations, no matter how small, that begin eschewing the dollar, the bigger the challenges facing the U.S.
To contact the writer of this column: William Pesek in Tokyo at wpesek@bloomberg.net
Last Updated: October 28, 2007 11:25 EDT
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seahorse - Expert
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Re: US$ DROPPING LIKE A ROCK!!! (76.89)
by roccman » Tue 30 Oct 2007, 10:02:18
And one of the primary reasons the world has turned its back on the dollar...
WE ARE DEBTORS THAT DO NOT PAY OUR BILLS.
The once "great" amerika will be remembered for defaulting on our debts.
You think you have a good job...skill..."balance"...entering in PO...
Forget it...you will default like our country will default.
But here is the upside...
You cannot take your FICO to your heaven...
Really...you can't...ask your god when you get a chance...he will tell you it is true.
Here are some stats for you from the latest Mauldin blog ("Out of the Box")
Individuals:
1. First time home equity cash outs (Freddie Mac data) were $151 bb in 2007H1 = 50% of rise in total consumer spending (PCE)
2. For 2002 - 2007H1, $1.1 Trillion in equity has been extracted from homes = 46% of the increase in PCE over the same 5.5 years
3. End of June 2007, household mortgage debt = 10.143 Trillion vs $4.3 Trillion in 1999, an increase of 136% in 7.5 years.
4. Incomes have lagged. Mortgage debt / disposable personal income: 64.7%(end of 1999); 100.2% (end of June 2007).
Corporations:
1. Non-financial corp debt = 43.7% of GDP (2007June); From 1952 to present, this has averaged 34.3% of GDP.
2. Non financial sector debt (including households) = 217% of GDP (2007June). From 1952 to present, average = 154.8%
Bwhahahahahhahahahahhahahahahahahhahahah!!!
The pain will be exquisite.
WE ARE DEBTORS THAT DO NOT PAY OUR BILLS.
The once "great" amerika will be remembered for defaulting on our debts.
You think you have a good job...skill..."balance"...entering in PO...
Forget it...you will default like our country will default.
But here is the upside...
You cannot take your FICO to your heaven...
Really...you can't...ask your god when you get a chance...he will tell you it is true.
Here are some stats for you from the latest Mauldin blog ("Out of the Box")
Individuals:
1. First time home equity cash outs (Freddie Mac data) were $151 bb in 2007H1 = 50% of rise in total consumer spending (PCE)
2. For 2002 - 2007H1, $1.1 Trillion in equity has been extracted from homes = 46% of the increase in PCE over the same 5.5 years
3. End of June 2007, household mortgage debt = 10.143 Trillion vs $4.3 Trillion in 1999, an increase of 136% in 7.5 years.
4. Incomes have lagged. Mortgage debt / disposable personal income: 64.7%(end of 1999); 100.2% (end of June 2007).
Corporations:
1. Non-financial corp debt = 43.7% of GDP (2007June); From 1952 to present, this has averaged 34.3% of GDP.
2. Non financial sector debt (including households) = 217% of GDP (2007June). From 1952 to present, average = 154.8%
Bwhahahahahhahahahahhahahahahahahhahahah!!!
The pain will be exquisite.
Last edited by roccman on Tue 30 Oct 2007, 10:13:18, edited 1 time in total.
"There must be a bogeyman; there always is, and it cannot be something as esoteric as "resource depletion." You can't go to war with that." Emersonbiggins
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roccman - Light Sweet Crude
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Re: US$ DROPPING LIKE A ROCK!!! (76.89)
by Ludi » Tue 30 Oct 2007, 10:08:10
$this->bbcode_second_pass_quote('roccman', ' ')Mortgage debt / disposable personal income: 64.7%(end of 1999); 100.2% (end of June 2007).
This looks like mortgage debt exceeds disposable personal income by .2%. Is this over the life of the loan, per year, or what?
Sorry, I'm such a dope about this stuff....
- Ludi
Re: US$ DROPPING LIKE A ROCK!!! (76.89)
by RonMN » Tue 30 Oct 2007, 16:35:09
Close to the end of the day...market is droppin'...dollar is droppin'.
What will happen if big Ben decides to NOT cut the fed funds rate?
What will happen if he DOES cut?
What will happen if big Ben decides to NOT cut the fed funds rate?
What will happen if he DOES cut?
Quis custodiet ipsos custodes.
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RonMN - Intermediate Crude
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Re: US$ DROPPING LIKE A ROCK!!! (76.89)
by FoxV » Tue 30 Oct 2007, 16:49:28
$this->bbcode_second_pass_quote('RonMN', 'W')hat will happen if big Ben decides to NOT cut the fed funds rate?
What will happen if he DOES cut?
What will happen if he DOES cut?
The ShadowFed at Itulip pretty much have it nailed on the Head.
The Fed and its interest rate lever are pretty much useless. The only thing they can do now is keep things together till the next election (with the help of the Chinese who don't want the world to realize during the olympics what a basket case they really are). So pretty much the Fed will do whatever is expected of them from now until next fall.
Keep an eye on
Shadowstats. M3 reaching for 15%. Total Insanity!
$100 oil, $800 Gold? Bah! $1000 oil, $8000 gold!
Angry yet?
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it was once as valuable as gold.
