Dollar falls to a three years low.

[SSSnail]

Bloomberg

The currency fell for a fifth day, dropping below 103 yen for the first time since January 2005, and was within 1 cent of its weakest ever against the euro as stocks dropped and the cost of protecting corporate debt from default rose to record highs. The dollar slipped before an industry report forecast to show manufacturing in the U.S. dropped to the lowest level since April 2004.

Someone here touted that our manufacturing is strong, and 2006 was the strongest, care to comment?

`Free-Fall'

``The dollar is in a clear free-fall, down versus every major and emerging-market currency,'' Jan Loeys, head of global- market strategy at JPMorgan Chase & Co. in London, wrote in a note to clients. ``The rate story is the dollar's Achille's heel.''

So, experts are saying that it is in free fall. They're not predicting a turn around anytime soon and any ways you look at it, it won't be soon. The rate cuts are not helping it along, so when do you think enough is enough? When do you think the weak dollar will start to reap "benefits" from manufacturing returning to US shores?

Asians Slump

Asian currencies slumped against the dollar on speculation a U.S. slowdown will spread to the region. South Korea's won weakened 0.8 percent to 946.80 per dollar, the biggest one-day decline since November. The Singapore dollar declined 0.1 percent from late Asian trading on Feb. 29 to S$1.3938.

So other countries think that the slowed US economy will drag them down as well, what if they realize that it won't affect them a bit? Even slowed, the Singapore dollar has been gaining 8.7% on the US dollar within the last 6 months, that's 8.7%!

I don't know about you, but once everyone find a way to be without much ties to the US (I think the biggest tie currently is our currency), the US will be just another big country with a lot of people in it.

 

[GTaudiophile]

Tick, tock, tick, tock, tick, tock...until the world drops the USD as its only reserve currency.

Where will your money be when the U.S. Dollar becomes the next Peso?

I bet Hillary's/Obama's/McCain's money is already nice and safe somewhere in Swiss banks. They'll be fine. Will you?

 

[LegendKiller]

Originally posted by: GTaudiophile
Tick, tock, tick, tock, tick, tock...until the world drops the USD as its only reserve currency.

Where will your money be when the U.S. Dollar becomes the next Peso?

I bet Hillary's/Obama's/McCain's money is already nice and safe somewhere in Swiss banks. They'll be fine. Will you?

DOOM DOOM DOOOOOOOOOMMMMMM!

So what?

 

[GTaudiophile]

Originally posted by: LegendKiller

Originally posted by: GTaudiophile
Tick, tock, tick, tock, tick, tock...until the world drops the USD as its only reserve currency.

Where will your money be when the U.S. Dollar becomes the next Peso?

I bet Hillary's/Obama's/McCain's money is already nice and safe somewhere in Swiss banks. They'll be fine. Will you?

DOOM DOOM DOOOOOOOOOMMMMMM!

So what?

So what? What about get a real leader in the White House? How about real Congressmen? People who care more about the value of the Dollar than hearings on Roger Clemens? People who care more about fiscal discipline than whether they are black or female or a rock star?

 

[Capitalizt]

3 year low?

Try ALL TIME low.

http://quotes.ino.com/chart/?s=NYBOT_DX&v=dmax

Not long ago, the dollar was worth more than the Euro. Today, one Euro can buy $1.52 worth of goods in America. The purchasing power of the dollar is rapidly declining, and any way you look at it, savers and retirees are being SCREWED. The main beneficiary of this devaluation is the federal government, which is able to pay off it's $10 trillion debt with cheaper money.

Print Print Print. Party like it's 2099.

 

[SSSnail]

Originally posted by: LegendKiller

Originally posted by: GTaudiophile
Tick, tock, tick, tock, tick, tock...until the world drops the USD as its only reserve currency.

Where will your money be when the U.S. Dollar becomes the next Peso?

I bet Hillary's/Obama's/McCain's money is already nice and safe somewhere in Swiss banks. They'll be fine. Will you?

DOOM DOOM DOOOOOOOOOMMMMMM!

So what?

I don't get your attitude, this is you cruising at 80MPH, then...

Sign: SLOW DOWN! 35MPH MAX SPEED

.
.
.
Sign: SHARP CURVE!

.
.
.
Sing: CLIFFS, NO GUARD RAILS!


You: Meh, they're just signs, FULL SPEED AHEAD!

 

[LegendKiller]

Originally posted by: GTaudiophile

Originally posted by: LegendKiller

Originally posted by: GTaudiophile
Tick, tock, tick, tock, tick, tock...until the world drops the USD as its only reserve currency.

Where will your money be when the U.S. Dollar becomes the next Peso?

I bet Hillary's/Obama's/McCain's money is already nice and safe somewhere in Swiss banks. They'll be fine. Will you?

DOOM DOOM DOOOOOOOOOMMMMMM!

So what?

So what? What about get a real leader in the White House? How about real Congressmen? People who care more about the value of the Dollar than hearings on Roger Clemens? People who care more about fiscal discipline than whether they are black or female or a rock star?

agree with you 100%.

 

[LegendKiller]

Originally posted by: SSSnail

Originally posted by: LegendKiller

Originally posted by: GTaudiophile
Tick, tock, tick, tock, tick, tock...until the world drops the USD as its only reserve currency.

Where will your money be when the U.S. Dollar becomes the next Peso?

I bet Hillary's/Obama's/McCain's money is already nice and safe somewhere in Swiss banks. They'll be fine. Will you?

DOOM DOOM DOOOOOOOOOMMMMMM!

So what?

I don't get your attitude, this is you cruising at 80MPH, then...

Sign: SLOW DOWN! 35MPH MAX SPEED

.
.
.
Sign: SHARP CURVE!

.
.
.
Sing: CLIFFS, NO GUARD RAILS!


You: Meh, they're just signs, FULL SPEED AHEAD!

Wow, I never knew I was like that. Judging from my posts, I guess I was a closet eternal optimist. Never posted things about fiscal responsibility, smaller government, housing rationality, asset valuation, or irresponsible lending by financial institutions. Nope, you really showed me the light.

Guess perhaps now I should take your outlook too, that things suck, they will get so much worse that we'll be in a depression in 3 months, and that things aren't going to balance out.

Thank you so very much.

 

[SSSnail]

Originally posted by: LegendKiller

Originally posted by: SSSnail

Originally posted by: LegendKiller

Originally posted by: GTaudiophile
Tick, tock, tick, tock, tick, tock...until the world drops the USD as its only reserve currency.

Where will your money be when the U.S. Dollar becomes the next Peso?

I bet Hillary's/Obama's/McCain's money is already nice and safe somewhere in Swiss banks. They'll be fine. Will you?

DOOM DOOM DOOOOOOOOOMMMMMM!

So what?

I don't get your attitude, this is you cruising at 80MPH, then...

Sign: SLOW DOWN! 35MPH MAX SPEED

.
.
.
Sign: SHARP CURVE!

.
.
.
Sing: CLIFFS, NO GUARD RAILS!


You: Meh, they're just signs, FULL SPEED AHEAD!

Wow, I never knew I was like that. Judging from my posts, I guess I was a closet eternal optimist. Never posted things about fiscal responsibility, smaller government, housing rationality, asset valuation, or irresponsible lending by financial institutions. Nope, you really showed me the light.

Guess perhaps now I should take your outlook too, that things suck, they will get so much worse that we'll be in a depression in 3 months, and that things aren't going to balance out.

Thank you so very much.

Alright, maybe that was a bit much. But everything you've mentioned we all know about, and there are virtually NOTHING is being done by anyone. Yes they're tightening the lending practice, but that's just to prevent further fubar.

About fiscal responsibility, smaller government... everything you said, NOTHING is being fixed. So, we'd have what we have right now.

Maybe you and I are both on that bus heading to that curve (and you're hoping the driver will wake up and slow down), very observant and knowing of the consequences, but aren't at the wheel to do anything about it. We can do one of two things, hang along for the ride or jump and take our chances. Perhaps we might want to educate the couple too busy kissing on the next seat over to notice of their impending demise, instead of just glazing over the situation and tell everyone on the bus things will be just fine.

 

[homercles337]

Originally posted by: Capitalizt
3 year low?

Try ALL TIME low.

http://quotes.ino.com/chart/?s=NYBOT_DX&v=dmax

Not long ago, the dollar was worth more than the Euro. Today, one Euro can buy $1.52 worth of goods in America. The purchasing power of the dollar is rapidly declining, and any way you look at it, savers and retirees are being SCREWED. The main beneficiary of this devaluation is the federal government, which is able to pay off it's $10 trillion debt with cheaper money.

Print Print Print. Party like it's 2099.

Exactly. Thats what i came in here to mention. The dollar has never been lower.

 

[SSSnail]

Originally posted by: homercles337

Originally posted by: Capitalizt
3 year low?

Try ALL TIME low.

http://quotes.ino.com/chart/?s=NYBOT_DX&v=dmax

Not long ago, the dollar was worth more than the Euro. Today, one Euro can buy $1.52 worth of goods in America. The purchasing power of the dollar is rapidly declining, and any way you look at it, savers and retirees are being SCREWED. The main beneficiary of this devaluation is the federal government, which is able to pay off it's $10 trillion debt with cheaper money.

Print Print Print. Party like it's 2099.

Exactly. Thats what i came in here to mention. The dollar has never been lower.

We all know that, I just wanted to make sure the original article's name stay.

 

[StageLeft]

At least the low interest rates by the federal reserve are opening up lenders' wallets.

Oh, wait...

 

[blackangst1]

Meanwhile the trade deficit is shrinking. Thats a bad thing though,

 

[GrGr]

According to Bloomberg today:

*US manufacturing is contracting, despite the dying dollar.

*Commodities are rising sharply as the dollar dies. (I believe Gold will hit $ 1000 soon, and there is talk about $ 120.00 Oil.)

*Pension funds are desperate to find a decent return to cover liabilities, and are increasingly forced to gamble on riskier investments.

I think the rosy scenarios where Chinese products will be replaced by US made ones in Walmart is flawed. Many US worker will soon simply have no money to buy either Chinese made, or US made, stuff.

 

[GrGr]

Originally posted by: blackangst1
Meanwhile the trade deficit is shrinking. Thats a bad thing though,

Yeah it is shrinking because the US economy is shrinking. Is that a good thing?

"Wohooo we have no money to pay our debts with!! Woot! Our currency just died! Yipee we are bankrupt and can't pay our debts! Wooooo!!"

I am very curious how the big dollar holders will react to this deliberate killing off of the dollar. Soon they will be forced to take real action.

 

[Modelworks]

We are not in a recession though.
You just need to keep your fingers in your ears like the rest of the government and keep repeating "The economy is strong" !

 

[GodlessAstronomer]

On the plus side, it's now cheaper than ever for me to buy stuff from American stores from New Zealand. It wasn't long ago that our dollar bought USD$0.64, now I'm buying $0.81. Of course our exporters are hurting, but when I can buy from Amazon and Thinkgeek.com at these prices I'm not too worried

Edit: forgot to mention, the NZ dollar has never been this valuable against the USD since it was floated.

 

[Fern]

I remember not too long ago when everyone was screaming about the Chinese keeping their currency so low and how it was killing the US economy.

Years before that we had a cycyle where the dollar was low again and everyone was screaming about the Japanese buying up the USA (they bought the Empire State Building and panic set in).

Other than oil prices, so far this just looks like one of those periods in the never-ending series of up & down cycles.

Whether it will short or long, mild or steep, no one can say because it depends on future events.

But a good start would be fixing Sarbanes-Oxley. It's driving too much of the capital market overseas and out of the US$.

Fern

 

[SSSnail]

Speaking of SOX, other countries are drafting similar if not identical regulations. And SOX is pretty much worldwide, because if you're listed, you have to comply.

 

[LegendKiller]

Originally posted by: Modelworks
We are not in a recession though.
You just need to keep your fingers in your ears like the rest of the government and keep repeating "The economy is strong" !

Well, technically it is impossible to be in a recession.

 

[Fern]

Originally posted by: SSSnail
Speaking of SOX, other countries are drafting similar if not identical regulations. And SOX is pretty much worldwide, because if you're listed, you have to comply.

You're referring to companies listed on the NYSE?

But it's a long haul for a company to make it there.

You've gotta start out at a smaller market. Because of the expense and hassle of SOX most companies are opting to raise capital on one of the British or German "emerging markets" instead of here in the US. That was business we used to get here.

Fern

 

[jpeyton]

Time to invest in Euro-backed companies. Any gains would be two-fold: gains based on company performance, and gains based on the devaluation of the dollar.

Hell, even if you stuffed 10,000 Euro under your mattress today, you'll gain 30% in 2-3 years when the Euro finally hits the 2-for-1 mark against the USD.

 

[blackangst1]

Originally posted by: GrGr

Originally posted by: blackangst1
Meanwhile the trade deficit is shrinking. Thats a bad thing though,

Yeah it is shrinking because the US economy is shrinking. Is that a good thing?

"Wohooo we have no money to pay our debts with!! Woot! Our currency just died! Yipee we are bankrupt and can't pay our debts! Wooooo!!"

I am very curious how the big dollar holders will react to this deliberate killing off of the dollar. Soon they will be forced to take real action.

uh...I guess you dont know how a trade deficit in realtionship to a strong or weak dollar works. Thats ok.

 

[blackangst1]

Originally posted by: jpeyton
Time to invest in Euro-backed companies. Any gains would be two-fold: gains based on company performance, and gains based on the devaluation of the dollar.

Hell, even if you stuffed 10,000 Euro under your mattress today, you'll gain 30% in 2-3 years when the Euro finally hits the 2-for-1 mark against the USD.

Yet another person who doesnt understand buying low and selling high.

 

[LegendKiller]

Originally posted by: blackangst1

Originally posted by: jpeyton
Time to invest in Euro-backed companies. Any gains would be two-fold: gains based on company performance, and gains based on the devaluation of the dollar.

Hell, even if you stuffed 10,000 Euro under your mattress today, you'll gain 30% in 2-3 years when the Euro finally hits the 2-for-1 mark against the USD.

Yet another person who doesnt understand buying low and selling high.

Is it really that much of a surprise?