What is it with the $ tanking against the ? these days?

[GTaudiophile]

A few weeks ago, 1 ? would buy "only" $1.25 USD. Now it is at $1.40.

What news of late is causing the USD to deflate?

 

[LegendKiller]

Originally posted by: GTaudiophile
A few weeks ago, 1 ? would by "only" $1.25 USD. Now it is at $1.40.

What news of late is causing the USD to deflate?

MOre silly thoughts that Europe is in a better position than the US. I guess they haven't checked out what's happening with Italy, Spain, Germany, Poland, and the remainder of the former soviet bloc states.

 

[Atreus21]

Originally posted by: LegendKiller

Originally posted by: GTaudiophile
A few weeks ago, 1 ? would by "only" $1.25 USD. Now it is at $1.40.

What news of late is causing the USD to deflate?

MOre silly thoughts that Europe is in a better position than the US. I guess they haven't checked out what's happening with Italy, Spain, Germany, Poland, and the remainder of the former soviet bloc states.

What's happening with those states?

I honestly don't know.

 

[soccerballtux]

Those guys don't have much of an economy, a lot of European states run banks; finance; produce little else. They're dependent on the American economy doing well.

 

[OCGuy]

Its called Obama printing money.


You print fiat currency, you devalue that currency.

 

[Slick5150]

Originally posted by: OCguy
Its called Obama printing money.


You print fiat currency, you devalue that currency.

Um, no. It actually has nothing to do with that.

 

[OCGuy]

Originally posted by: Slick5150

Originally posted by: OCguy
Its called Obama printing money.


You print fiat currency, you devalue that currency.

Um, no. It actually has nothing to do with that.

Really? Creating money out of thin air does nothing?



I would like to subscribe to your economics periodical if you happen to publish one.

 

[JeffreyLebowski]

Originally posted by: Slick5150

Originally posted by: OCguy
Its called Obama printing money.


You print fiat currency, you devalue that currency.

Um, no. It actually has nothing to do with that.

Yes it does. More money in circulation = money worth less.

 

[GTaudiophile]

Or it could simply be the "lost faith in America" thing. That enough can devalue a currency.

 

[Craig234]

Wild speculation is that there may be a move in anticipation of countries like China buying less US debt - something that's reportedly already quietly started.

It seems a pretty clear picture that the old saying 'power tends to corrupt' was followed when the US got power after WWII to be the dominant global currency, and then proceeded to spend so far beyond its means so as to move from the world's biggest creditor to the biggest debtor and run the risk now of crashing even further.

Nothing like 'narrow short-term interests' getting to hijack the nation's political system for the purpose of enabling bad economic policies that benefit them.

 

[LegendKiller]

Originally posted by: OCguy
Its called Obama printing money.


You print fiat currency, you devalue that currency.

That is but one piece of the puzzle. Relative thought on value and assets purchased is also another.

 

[OCGuy]

Originally posted by: Craig234
Wild speculation is that there may be a move in anticipation of countries like China buying less US debt - something that's reportedly already quietly started.

It seems a pretty clear picture that the old saying 'power tends to corrupt' was followed when the US got power after WWII to be the dominant global currency, and then proceeded to spend so far beyond its means so as to move from the world's biggest creditor to the biggest debtor and run the risk now of crashing even further.

Nothing like 'narrow short-term interests' getting to hijack the nation's political system for the purpose of enabling bad economic policies that benefit them.

You have to be kidding me? Me and Creig agree on something?


You just described bailing out the auto unions down to the letter!

 

[Slew Foot]

The US is printing money like a maniac. But Europe is doing the same thing, its a race to the bottom.

 

[Firebot]

The US is about to put up an extra 100$ billion dollars of treasury bonds by the end of next week. Crude oil is going higher, and the effect of all of the bailout money and stimulus money actually going out on the market is starting to have its effect. In reality, the dollar should never have shot up like it had, it was seen as a safe haven when the stock market plummeted for little reason other then fear. Reality is setting in.

The canadian dollar is at 89 cents now. It went down to 78 cents for little reason, beforehand it was actually at par before the stock crash.

 

[bamacre]

Originally posted by: OCguy
Its called Obama printing money.


You print fiat currency, you devalue that currency.

Originally posted by: OCguy
You have to be kidding me? Me and Creig agree on something?


You just described bailing out the auto unions down to the letter!

And how much new money was created when Bush and Greenspan were in charge? You have any idea at all?

 

[Firebot]

BTW there are fears of US potentially losing their AAA credit rating, after Britain just had their AAA rating scrutenized for the first time in 30 years.

http://www.reuters.com/article.../idUSTRE54L5BX20090522

 

[Firebot]

Originally posted by: bamacre

Originally posted by: OCguy
Its called Obama printing money.


You print fiat currency, you devalue that currency.

Originally posted by: OCguy
You have to be kidding me? Me and Creig agree on something?


You just described bailing out the auto unions down to the letter!

And how much new money was created when Bush and Greenspan were in charge? You have any idea at all?

Clearly they had absolutly no effect. It's all Obama's fault! (sarcasm aside, he certainly isn't helping).

 

[bamacre]

Originally posted by: Firebot
BTW there are fears of US potentially losing their AAA credit rating, after Britain just had their AAA rating scrutenized for the first time in 30 years.

http://www.reuters.com/article.../idUSTRE54L5BX20090522

http://www.lewrockwell.com/blo...w/archives/026896.html

 

[Carmen813]

Originally posted by: JeffreyLebowski

Originally posted by: Slick5150

Originally posted by: OCguy
Its called Obama printing money.


You print fiat currency, you devalue that currency.

Um, no. It actually has nothing to do with that.

Yes it does. More money in circulation = money worth less.

Only if the money circulates at the same rate.

 

[Jaskalas]

Originally posted by: bamacre

Originally posted by: OCguy
Its called Obama printing money.


You print fiat currency, you devalue that currency.

Originally posted by: OCguy
You have to be kidding me? Me and Creig agree on something?


You just described bailing out the auto unions down to the letter!

And how much new money was created when Bush and Greenspan were in charge? You have any idea at all?

Interesting Democracy we have. Two parties, same policies. The people won't do anything to change it. Guess they're getting what they want, eh?

 

[heyheybooboo]

When the dollar is devalued, asset prices re-inflate.

Paulson (and Bernanke) set this in motion last Fall. Faced with a deflationary global economy this was the best they could come up with. A few folks were paying attention and predicted the Q2-09 devaluation.

Them furriners will be able to buy more of our stuff hopefully 'igniting' the US economy (and inflation).

It looks like the current plan (if it works) is to slowly begin cranking the discount rate starting next year to combat the inflationary pressures - with some predictions of 4-5% by the end of 2011.

 

[ElFenix]

Originally posted by: bamacre

Originally posted by: OCguy
Its called Obama printing money.


You print fiat currency, you devalue that currency.

Originally posted by: OCguy
You have to be kidding me? Me and Creig agree on something?


You just described bailing out the auto unions down to the letter!

And how much new money was created when Bush and Greenspan were in charge? You have any idea at all?

bush printing money would have been factored into the price already, and so a current change in the price of euros in dollars wouldn't have much to do with it.

 

[bamacre]

Originally posted by: Jaskalas

Originally posted by: bamacre

Originally posted by: OCguy
Its called Obama printing money.


You print fiat currency, you devalue that currency.

Originally posted by: OCguy
You have to be kidding me? Me and Creig agree on something?


You just described bailing out the auto unions down to the letter!

And how much new money was created when Bush and Greenspan were in charge? You have any idea at all?

Interesting Democracy we have. Two parties, same policies. The people won't do anything to change it. Guess they're getting what they want, eh?

They are getting what they want, in some way. But the problem is they don't know what they want, or rather at least, what they need.

 

[First]

Originally posted by: bamacre

Originally posted by: Jaskalas

Originally posted by: bamacre

Originally posted by: OCguy
Its called Obama printing money.


You print fiat currency, you devalue that currency.

Originally posted by: OCguy
You have to be kidding me? Me and Creig agree on something?


You just described bailing out the auto unions down to the letter!

And how much new money was created when Bush and Greenspan were in charge? You have any idea at all?

Interesting Democracy we have. Two parties, same policies. The people won't do anything to change it. Guess they're getting what they want, eh?

They are getting what they want, in some way. But the problem is they don't know what they want, or rather at least, what they need.

Americans know what they want and in many cases what they need. The fringe loonies who don't vote with either party are, frequently, the most poorly educated and ignorant. Comes with being a conspiracy theorist.

 

[Martin]

Here's a little tool I wrote: http://fxconsulting.oanda.com/...-price-movements.shtml

Funny thing is, when I was writing this last summer, the volatilities used to be about half of what they are now.