US dollar touches a new euro low

[CyberDuck]

Dollar Slumps to Record on China's Plans to Diversify Reserves

Nov. 7 (Bloomberg) -- The dollar slumped to a record low against the euro after Chinese officials signaled plans to diversify the nation's $1.43 trillion of foreign-exchange reserves in response to a falling U.S. currency.

``We will favor stronger currencies over weaker ones, and will readjust accordingly,'' Cheng Siwei, vice chairman of China's National People's Congress, told a conference in Beijing. The dollar is ``losing its status as the world currency,'' Xu Jian, a central bank vice director, said at the same meeting.

 

[dahunan]

Canadian dollar to hit 1.12 today?

I thought when the USA goes out and kills people that it is good for the economy?

 

[Trianon]

Originally posted by: CyberDuck
Dollar Slumps to Record on China's Plans to Diversify Reserves

Nov. 7 (Bloomberg) -- The dollar slumped to a record low against the euro after Chinese officials signaled plans to diversify the nation's $1.43 trillion of foreign-exchange reserves in response to a falling U.S. currency.

``We will favor stronger currencies over weaker ones, and will readjust accordingly,'' Cheng Siwei, vice chairman of China's National People's Congress, told a conference in Beijing. The dollar is ``losing its status as the world currency,'' Xu Jian, a central bank vice director, said at the same meeting.

these are some really bad news for the dollar, considering our trade deficit...

 

[GrGr]

Originally posted by: blackangst1

Originally posted by: GrGr

Originally posted by: SickBeast
I dunno, they're saying that the $CDN has overshot, but then people are saying that it will be worth $1.10US pretty soon...

IMO the US dollar is just in a temporary funk right now. Give it a year and things will get ironed out. When is the US election again? It might be fun to buy some US currency. 🙂

What on earth do you base that thinking on? The next bubble for the dollar will be hyperinflation ie further weakening.

I think what he's saying is...this too shall pass. It always does. It's like stock market corrections. Most intelligence in the finance world predict a 10-15% drop, I think 15-20%. Its not the end of the world.

The US dollar has lost 60 % in value to the euro since Bush took over in 2001. And just now the US dollar is starting to lose it's position as world reserve currency. This means the downward momentum is only now starting for real.

The "intelligence" in the finance world are making out like bandits on the present system, while most Americans are losing out. Look at the insane bonuses the Goldman Sachs crowd gave themselves. Merely the bonuses on Wall Street are larger than the bad loans destroying the housing market. If those bonuses were taxed there would be no housing problem and everybody would be happy right? The Goldman Sachians would survive perfectly well without those bonuses, I'm sure you agree...

Already real wealth is flowing out of the US. The other month was the first, I believe, for decades where more wealth left the US than came in. US wealth is fleeing the dying dollar and looking to gold and other metals and foreign currencies for a safe haven.

No wonder the "finance intelligence" prefer to pretend nothing major is going on. The destruction of the US dollar will end in a world wide depression. The euro cannot handle growing much stronger. The Chinese bubble will burst as all bubbles burst. It looks to me as if the "finance intelligence" want to deregulate everything so they can go full time Enron and suck out everything there is to be sucked out while there is any loot left. These guys don't care if there is a depression. They sit on mountains of cash and in depressions cash is king. It is not them who will freeze or starve to death homeless and jobless.

 

[Firebot]

The Canadian dollar was at 0.95$ US less then 2 months ago, and touched 1.10$ today. The Dowjones dropped another 370 points today. How can anyone in the US think this is healthy, and not care about the repercussions?

This is foreign / American money rushing out of American markets and investing elsewhere. How does it make any sense to hold assets in an American fund, when the US dollar has dropped about 25% in a year. No matter how hot the company may be, there is no way to counter that type of loss. I learned the hard way to not deal with the American market as a Canadian over 2 years ago, when I saw my American market assets drop about 15% solely from the weakening of the US dollar, from 0.78$ US to 0.90$ US in a year. I am now invested solely in the Canadian market now.

You know what the funny part is? The actual housing market crash has yet to happen. All the recent fed rate drops was done to delay the inevitable credit crunch that banks are dealing with. Expect a lot of hurt in the next year.

 

[GTaudiophile]

GrGr: I am glad someone else finally agrees that we are headed towards a world wide depression on a scale that will make the 1930s seem like paradise.

Only this time, pussified, got-to-have-it-now, impatient, irreverent, godless Americans will be shooting each other left and right for what little scraps there are for the taking.

When will the sheeple in America take off the blinders, fire its government, and start again with some real people?

 

[NoStateofMind]

Originally posted by: Firebot
The Canadian dollar was at 0.95$ US less then 2 months ago, and touched 1.10$ today. The Dowjones dropped another 370 points today. How can anyone in the US think this is healthy, and not care about the repercussions?

This is foreign / American money rushing out of American markets and investing elsewhere. How does it make any sense to hold assets in an American fund, when the US dollar has dropped about 25% in a year. No matter how hot the company may be, there is no way to counter that type of loss. I learned the hard way to not deal with the American market as a Canadian over 2 years ago, when I saw my American market assets drop about 15% solely from the weakening of the US dollar, from 0.78$ US to 0.90$ US in a year. I am now invested solely in the Canadian market now.

You know what the funny part is? The actual housing market crash has yet to happen. All the recent fed rate drops was done to delay the inevitable credit crunch that banks are dealing with. Expect a lot of hurt in the next year.

Heres the truth about our dollar. no wonder its falling like a rock.

 

[LegendKiller]

Originally posted by: GTaudiophile
GrGr: I am glad someone else finally agrees that we are headed towards a world wide depression on a scale that will make the 1930s seem like paradise.

Only this time, pussified, got-to-have-it-now, impatient, irreverent, godless Americans will be shooting each other left and right for what little scraps there are for the taking.

When will the sheeple in America take off the blinders, fire its government, and start again with some real people?

And I only thought Bin Laden wanted "godless" americans to sink. I am bearish, but you're ridiculous.

 

[SickBeast]

I'm pretty sure I heard that the US dollar hit another record low against the Euro today. The $CDN briefly hit $1.10US which is nuts.

I'm not sure what has happened to the US, but I do know that the president is a moron. How and why 50% of Americans voted to re-elect him is beyond my most vivid imagination.

 

[dahunan]

At least Haliburton is diversified and oil prices are up so our neocons will not go hungry when the recession hits

 

[Capitalizt]

Originally posted by: GTaudiophile

When will the sheeple in America take off the blinders, fire its government, and start again with some real people?

We are trying damn it...Thats why everyone is so psyched about Ron Paul. I firmly believe he is the last hope for this country.

 

[blackangst1]

Originally posted by: Capitalizt

Originally posted by: GTaudiophile

When will the sheeple in America take off the blinders, fire its government, and start again with some real people?

We are trying damn it...Thats why everyone is so psyched about Ron Paul. I firmly believe he is the last hope for this country.

Everyone? lol I wouldnt call a single digit percentage everyone...and he is not the answer. He's been in federal government for 30 years...he's a fucking politician. No different than any other in WADC who is in their 3rd or greater term.

To think otherwise is truly delusional.

 

[ponyo]

If I was trading currency which I don't, I would be tempted to take the other side of the trade right now. I would go long US dollar for a trade. When you have all of Anandtech bearish on the US dollar along with all the journalists, supermodel Gisele, and even rapper Jay-Z flashing Euros, you have to wonder if the short trade on the dollar is little crowded. I'm not saying long term the dollar isn't in trouble but sometimes enough is enough and the market will give you a quick whiplash.

 

[imported_Tango]

Originally posted by: Naustica
If I was trading currency which I don't, I would be tempted to take the other side of the trade right now. I would go long US dollar for a trade. When you have all of Anandtech bearish on the US dollar along with all the journalists, supermodel Gisele, and even rapper Jay-Z flashing Euros, you have to wonder if the short trade on the dollar is little crowded. I'm not saying long term the dollar isn't in trouble but sometimes enough is enough and the market will give you a quick whiplash.

You'd be right if you were talking about investment products. When an asset class starts being targeted by your mother and her friends, it's usually nearing the end of a bubble.

But currencies are not investment products, they are just a ratio, and are linked to very practical macroeconomic shifts which are completely unaffected by Jay-Z and his friends investing opinions. The currency movements are so huge even the entire hedge fund industry can barely cause a noticeable blink in the Yen, when carry trades unwind for example. It's just too big a market for investing patterns of private actors to really be significant.

A shift in the currency reserves of major countries, on the other hand, could of course cause a significant change in the ratios. But if anything many countries are diversifying away from the dollar, thus depressing it even more.

 

[Pabster]

Originally posted by: blackangst1
Everyone? lol I wouldnt call a single digit percentage everyone...and he is not the answer. He's been in federal government for 30 years...he's a fucking politician. No different than any other in WADC who is in their 3rd or greater term.

To think otherwise is truly delusional.

QFT. :thumbsup:

 

[ponyo]

Originally posted by: Tango

Originally posted by: Naustica
If I was trading currency which I don't, I would be tempted to take the other side of the trade right now. I would go long US dollar for a trade. When you have all of Anandtech bearish on the US dollar along with all the journalists, supermodel Gisele, and even rapper Jay-Z flashing Euros, you have to wonder if the short trade on the dollar is little crowded. I'm not saying long term the dollar isn't in trouble but sometimes enough is enough and the market will give you a quick whiplash.

You'd be right if you were talking about investment products. When an asset class starts being targeted by your mother and her friends, it's usually nearing the end of a bubble.

But currencies are not investment products, they are just a ratio, and are linked to very practical macroeconomic shifts which are completely unaffected by Jay-Z and his friends investing opinions. The currency movements are so huge even the entire hedge fund industry can barely cause a noticeable blink in the Yen, when carry trades unwind for example. It's just too big a market for investing patterns of private actors to really be significant.

A shift in the currency reserves of major countries, on the other hand, could of course cause a significant change in the ratios. But if anything many countries are diversifying away from the dollar, thus depressing it even more.

I bet George Soros would disagree. He "broke" the Bank of England with just 10 billion. If there was report tommorrow that Soros and Buffett were taking extremely long position in dollar, I bet that would have a big impact of the price of the dollar short term as others join or take opposite trade.

 

[SSSnail]

Originally posted by: Naustica

Originally posted by: Tango

Originally posted by: Naustica
If I was trading currency which I don't, I would be tempted to take the other side of the trade right now. I would go long US dollar for a trade. When you have all of Anandtech bearish on the US dollar along with all the journalists, supermodel Gisele, and even rapper Jay-Z flashing Euros, you have to wonder if the short trade on the dollar is little crowded. I'm not saying long term the dollar isn't in trouble but sometimes enough is enough and the market will give you a quick whiplash.

You'd be right if you were talking about investment products. When an asset class starts being targeted by your mother and her friends, it's usually nearing the end of a bubble.

But currencies are not investment products, they are just a ratio, and are linked to very practical macroeconomic shifts which are completely unaffected by Jay-Z and his friends investing opinions. The currency movements are so huge even the entire hedge fund industry can barely cause a noticeable blink in the Yen, when carry trades unwind for example. It's just too big a market for investing patterns of private actors to really be significant.

A shift in the currency reserves of major countries, on the other hand, could of course cause a significant change in the ratios. But if anything many countries are diversifying away from the dollar, thus depressing it even more.

I bet George Soros would disagree. He "broke" the Bank of England with just 10 billion. If there was report tommorrow that Soros and Buffett were taking extremely long position in dollar, I bet that would have a big impact of the price of the dollar short term as others join or take opposite trade.

Unfortunately for the dollar (and the almost dead middle class of America), Buffet is smart and has abandoned the dollar.

 

[ponyo]

Originally posted by: SSSnail
Unfortunately for the dollar (and the almost dead middle class of America), Buffet is smart and has abandoned the dollar.

I know Buffett is bearish on the dollar longterm. That's why his recent acquisitions have been companies that generate revenues outside of the US. For the record, I'm bearish as well.

 

[blackangst1]

Originally posted by: Naustica

Originally posted by: SSSnail
Unfortunately for the dollar (and the almost dead middle class of America), Buffet is smart and has abandoned the dollar.

I know Buffett is bearish on the dollar longterm. That's why his recent acquisitions have been companies that generate revenues outside of the US. For the record, I'm bearish as well.

Well, sort of. His most recent purchases of significance are B&N Railroad, BofA, Dow Jones, Sanofi-aventis (pharms), USBank, Wellpoint healthcare, and United Health. Not exactly BIG revenues outside the US...

edit: I think I get what youre saying. Revenue, not home country. Soooo....

 

[imported_Tango]

Originally posted by: Naustica

Originally posted by: Tango

Originally posted by: Naustica
If I was trading currency which I don't, I would be tempted to take the other side of the trade right now. I would go long US dollar for a trade. When you have all of Anandtech bearish on the US dollar along with all the journalists, supermodel Gisele, and even rapper Jay-Z flashing Euros, you have to wonder if the short trade on the dollar is little crowded. I'm not saying long term the dollar isn't in trouble but sometimes enough is enough and the market will give you a quick whiplash.

You'd be right if you were talking about investment products. When an asset class starts being targeted by your mother and her friends, it's usually nearing the end of a bubble.

But currencies are not investment products, they are just a ratio, and are linked to very practical macroeconomic shifts which are completely unaffected by Jay-Z and his friends investing opinions. The currency movements are so huge even the entire hedge fund industry can barely cause a noticeable blink in the Yen, when carry trades unwind for example. It's just too big a market for investing patterns of private actors to really be significant.

A shift in the currency reserves of major countries, on the other hand, could of course cause a significant change in the ratios. But if anything many countries are diversifying away from the dollar, thus depressing it even more.

I bet George Soros would disagree. He "broke" the Bank of England with just 10 billion. If there was report tommorrow that Soros and Buffett were taking extremely long position in dollar, I bet that would have a big impact of the price of the dollar short term as others join or take opposite trade.

Yes, but that was quite a long ago, the british pound is not the US dollar, and Soros was enjoying the surprise effect, as at the time it was considered out of question that a major currency could be attacked by private speculators, albeit big ones as Soros' Fund.

Currency instruments are used to secure every cross-country trade transaction against future currency movements, so that today it's a huge market compared to when Soros was active.