U.S. Dollar Biggest Decline In Quarter Century On Fed Bond Buying !!

By no means assume that the reaction to the Fed’s quantitative-easing announcement has run its course. Fed purchases of Treasuries are likely to be quite problematic for the U.S. dollar, particularly given large foreign holdings of Treasuries and the loss of yield support for the dollar that Fed purchases have caused.

Goldman Sachs Group Inc. raised on March 19 the target on its bet against the dollar to $1.40 per euro, and Citigroup Inc. recommended on the same day that its clients buy the euro versus the dollar.

Hummm...I wonder how they knew? Martha, what do you think??

The dollar dropped the most against the currencies of six major U.S. trading partners since the Plaza Accord almost a quarter-century ago as the Federal Reserve’s plan to purchase Treasuries spurred speculation that it’s debasing the greenback.

“What it introduces is the problem of the currency to the extent that the Fed is buying what isn’t desired by foreign holders,” said Bill Gross, co-chief investment officer of Pacific Investment Management Co., in an interview on Bloomberg Television on March 19. “The Fed can keep interest rates where they want to keep them, at least for a 6- to 12- to 18-month period of time, but it will have consequences down the road.”

www.bloomberg.com...

Related Above Top Secret Thread!!

[edit on 21-3-2009 by burntheships]

And we all know where they got the money to do this with, right? What they are really betting on is that they will be able to get out of the country before the rioting mobs get ahold of them. Treason carries a high penalty.

reply to post by burntheships


You know, I've been warning and warning. I've even sent letter after letter, post after post..And now that its finally rearing it's ugly head I take no comfort in having been right, because from this point forward things are NOT going to be good.

Financial Crisis Worst is Yet to Come, Market Forecasts Into 2015...

Stage four
The dire economic scene (fear of loss of job, loss of money invested in the stock market, reduced resale value of their house, etc.) has seen, in turn ,

a major increase in savings (the personal savings rate rose by 5.0% in January, the highest rate since 1995)
a reduction in spending (it dropped 0.2% in December)
a reduction in the sale of goods and services
a decline in the price of such goods and services (as evidenced by the U.S. GDP Price Index which declined by 0.1% on a quarter-over-quarter annualized basis in the 4th Qtr of 2008 - the 1st decline since 1954 - and supporting the Fed's obtuse view that "inflation pressures will remain subdued in coming quarters." That tells us that deflation is imminent.

Stage five
We are going to see a self-reinforcing escalating vicious cycle of stage two, stage three and stage four over and over again. The downward "spiral' is in progress.

So there you have it! We are in the early weeks of stage five. As such, it is fully understandable why the governments of the world are throwing money at the credit problem so excessively in an attempt to get the wheels of industry turning to stem the decline before it takes hold. It is an extremely dire situation with no end in sight at the moment.

Most investors don't take seriously warnings about the future of the economy and the financial marketplace, but those who did avoided the dreaded "Cs" of finance: the Credit Crisis and Crash of '08. What warnings are we talking about you might ask? Well, it was the headlines of several years ago screaming that a 'Category 6 Fiscal Storm', 'Debt-Driven Meltdown', 'Systemic Banking Crisis', 'Financial Train Wreck', 'Wild Ride', 'God-Awful Fiscal Storm', 'Major Upheaval', 'Rude Awakening', 'Great Disruption', 'Debt Bombshell', 'Major Upheaval', 'Unwelcome Economic Spiral', 'Perfect Financial Storm', 'Serious Collapse', 'Drastic Fall', 'Financial Disaster', 'Major Bear Market' and/or an 'Economic Earthquake' was in store for the U.S. and, indeed, the global economy in the very near future. And the future is now!

www.marketoracle.co.uk...

reply to post by projectvxn


Hey, dont stop now...I just read some post that said the economy was
recovering...???

Thanks for great information, and great posts. Good Work!



[edit on 21-3-2009 by burntheships]

Indeed. This is a storm whose clouds you could see over the horizon. And everyone knew, except of course for those of us living life and trying to get by the best we can. And now here we are 2 years into a largely ignored recession, now turned into a depression, and our dollar is dying on top of that.

This is no Great Depression, This is a Great Decline, and a steep one. We will NOT crawl out of this for generations to come and we will be relegated to "Developing Country" status, and soon thereafter, Undeveloped.

reply to post by burntheships


Yes of course, I have to keep going. You've read alot of my posts. My warnings have been dark, but there isn't much light in this mess. Light at the end of the tunnel being a freight train...

No, I can't stop. And I will continue. I see myself as a guard on duty.
And I don't abandon my post.

Originally posted by projectvxn

This is no Great Depression, This is a Great Decline, and a steep one.

Quoted!

For those who may be looking for another source of confirmation that we are not in fincanial recovery...The Global Euorpean Anticipation Bulletin
(LEAP 2020) and aka know as GEAB...had the most dire warnings. They have been on the mark starting all the way back in 2006, down to the month in the forcasts. It is a forboding read, your stomach will turn and your palms will get sweaty!

www.leap2020.eu...

End of 2008: The world enters the decanting phase of the global systemic crisis - Anticipations over 2008-2013 for six groups of countries experiencing very different evolutions

[atsimg]http://files.abovetopsecret.com/images/member/091ad699dd81.jpg[/atsimg]

[atsimg]http://files.abovetopsecret.com/images/member/be1d83b15d40.jpg[/atsimg]

[edit on 21-3-2009 by burntheships]

The dollar has a lot farther to drop if you ask me. If you take into account the fact that the current bill for the stimulus and bailout dealings is a little over 3 trillion dollars more than the money supply for the entire US according to the Fed.

I estimate that the dollar will be worth about half of what it is now in very little time.

There's more on it here in this thread

Stimulus/Bailout Total Exceeds Total US Money Supply

Agreed. But it won't end there. They just released details of another bank rescue program, the UN has called for a dollar decoupling, and state bond markets are losing value very quickly...

The US Treasury market will be what brings down the house. Because it is directly tied to all of this crap.

Exactly, which leads me to have to post this chart, from GEAB....
and thier summary of choices that lay before the G20 meeting April 2...

Growing Transatlantic tensions on the eve of the G20 summit: An illustration of Wall Street’s and the City’s attempt to destabilize the EU banking system and the Euro

According to LEAP/E2020, there are only two options left for the G20 leaders who gather next April 2nd in London: either they rebuild a new international monetary system, creating the conditions for a new global system that involves all the main global players, and reducing the crisis to a maximum of 3 to 5 years; or they strive to prolong the current system, thrusting the world into a decade long tragic crisis starting at the end of 2009.

LEAP 2020

[atsimg]http://files.abovetopsecret.com/images/member/49ddd526f8b7.jpg[/atsimg]


[edit on 21-3-2009 by burntheships]

[edit on 21-3-2009 by burntheships]

reply to post by burntheships


I like the line on the graph that says "sense of impending doom".

Also I'm having a hard time trying to figure out if the "likelihood that you will lose your job" line is actually leaning backwards.

It seems that "They" have done a very perfect job of getting us into a situation where we have no other option but to accept a global currency. If it didn't affect me so much I would almost say it was interesting to watch and masterfully executed, like a good game of chess.

Looks like we're all in check.

Geithners proposed plan is a Despairing Zombie Mess
with
Haunting Crappy Paper
casued by
Troubled Toxicity...and i am with you... that line going backwards?!

...well I am just going to have to get my fight on cause I am not going down without one!

reply to post by Shadowflux


Yes it seems like we will be forced...I cant imagine our corrupt complicit congress saving us by using The Constition of The United States to declare it all illegal, charge treason on some like they could as they are our public servants and that is what we pay them to do!

reply to post by Shadowflux


Actually, I see the "endgame" as being a stalemate. It took years for the EU to accept a unified currency and they still haven't brought all of Europe into the fold.

Also you have to factor in by the time the G-20 rolls around our(US) congress is going to be suffering severe political backlash if they can't get a hold of this bogus bailout fiasco.

People are buying gold right now in hordes. There are lots of people invested in gold right now and it is really hard for them to manipulate the gold price.

Also it is going to take trillions upon trillions of Capital to create a new world currency, and I've read somewhere that a fiat world currency would die a miserable death before it even got fully implemented.

So, the world reserve currency has to be tied to something and non-fiat. The actual implications of everything they are proposing is not going to work. They really did a number on themselves.

Personally, it looks to me that the robber-barons are stuffing their pockets and heading for the hills because once people start figuring out that "x" was going to happen even if we did or didn't bailout the banks and now the gov has just made it worse. It is over for them.

It isn't looking good, at all.

It is most probable that they have the checkmate planned...we need to factor in the food chain, and in my opinion that is the one of the last moves...
In last couple of weeks the developments have hit hard and fast...we have the current U.S. Administration under President Obama utilizing the Hegelian Dialectic; or aka Management by Crisis and the "excess of fear"
www.abovetopsecret.com...'

We have the Treasury Bond pump which devalued the dollar; the biggest drop in a quarter century...
www.abovetopsecret.com...'

And the U.N. is calling for a basket currency to replace the U.S. Dollar as the World Reserve Currency...

www.abovetopsecret.com...'

Hang on for dear life...and get your house in order.

According to LEAP/E2020, there are only two options left for the G20 leaders who gather next April 2nd in London: either they rebuild a new international monetary system, creating the conditions for a new global system that involves all the main global players, and reducing the crisis to a maximum of 3 to 5 years; or they strive to prolong the current system, thrusting the world into a decade long tragic crisis starting at the end of 2009.

LEAP 2020 GEAB

reply to post by burntheships


As much as I agree with your spirit I have to say that Congress will never ever use the Constitution because it exists solely for the benefit of we, the People and to protect us from the excesses of government. In other words, it's our duty as citizens to use the Constitution against Congress.

reply to post by burntheships


See though that is the thing, the food chain they won't ever be able to fully take it under control.

If they try to start nationalizing the food chain or starve people it would send us into major civil unrest.

I just don't see it happening, this isn't Venezuela. America is an entirely different culture.

reply to post by Hastobemoretolife


Granted, I hold no faith in a global fiat monetary system but I think you need to factor in the ability of the government and the media to all but do people's thinking for them. A large crowd is almost easier to influence than an individual if that large crowd is scared and desperate.

Remember, people like us, people who realize what's happening are in a small minority. The vast majority of the populous has no clue how anything works let alone whats causing this economic turmoil. People want to go back to being blissfully ignorant, they want to sit and watch Nascar and drink their beer and they will choose whatever option will allow that, especially if the media tells them it's a good thing and it's the answer to our problems.

People have been conditioned to fear and reliance on the government over the past 8 years, people who were 10 when 9/11 happened are now old enough to vote and they may have little or no recollection of an America without fear. Everyone is worried about losing their jobs and their houses, no one wants to be hungry and living on the street.

Obama is attending the G20 meeting, if America's golden boy comes back from that meeting with a smile on his face and tells us all to relax, they have the answer, people will breath a sigh of relief and be all for it.