Bill Gates: ''The ol' dollar, it's gonna go down.''

Number 23, welcome back, rude as usual.
The man who claimed that the Nasdaq performance is a standard to measure the strenghth of an economy has returned

Printing money is part of the money supply, as a matter of fact is an very important factor! The M3 Data is the most important money aggregate for investors, economists to determine at what speed the printing press is running.

Destroying the M3 money supply evidence enables the Federal Reserve to secretly intervene in the money market without causing hyperinflation. According to sources in the U.S. Treasury the order was given to print two trillion Dollars and put them immediately into circulation, a claim which sounds very plausible as no one is able to trace it anyway.

If M3 money supply details would still have existed - and the Federal Reserve had actually put two trillion Dollars into circulation - hyperinflation would immediately occur. Since M3 money supply data are no longer reported, the Federal Reserve is able to pay off US debts and simultaneously avoiding hyperinflation. There's no way for the public, investors and bondholders to know how much Dollars are in circulation and, thus no way to gauge the actually value of the Dollar.

It's a pity that such a strategy only works in the short-term.

The dollar has plunged to its lowest level against the euro since April 2005 amid concerns for the US economy.

The euro surged to $1.30 against the dollar, with many other currencies following suit.

Sterling rose almost 1% to $1.93, the yen hit a two-month high and Russia's rouble rose to a seven-year high.

Analysts have voiced concerns about the US economy after the White House downgraded its growth forecasts amid a sharp slowdown in the housing market.

BBC

Nov. 22 (Bloomberg) -- The dollar fell to a five-month low versus the euro and tumbled against the yen as a report showing an increase in jobless claims suggested the economy is cooling.

Dollar losses accelerated as a government report showed more workers filing for unemployment benefits during the past week.

Bloomberg

The everlasting depreciation of the Dollar is not good at all for European exports, however, for investments denominated in Dollars it neither is very positive. Financial experts agree that the downwards pressure only seems to continue. Personally, I wonder how many months or years the collapse is away.



One remark I might add: the Euro has been $1.35 but that happened due to intervention from the Federal Reserve - to boost US exports - currently, it's caused by the steadily growing deficits, the collapsing housing market, and the cooling economy


[edit on 24-11-2006 by Mdv2]

BEIJING: Countries holding large stockpiles of foreign exchange reserves face problems diversifying their holdings away from dollar-denominated assets because of the potential market reaction to any such move, a senior Chinese forex official said on Saturday.

Guan Tao, deputy director-general of the general affairs department of the State Administration of Foreign Exchange (SAFE), highlighted the potential pitfalls of such a move, without specifically referring to China or its plans for managing its reserves.

“It is very difficult for these countries to make significant adjustments in their reserve asset portfolios,” Guan told a forum, adding that that was his personal view and not a statement of SAFE policy.

“As we all know, every move by these countries in the market is under the spotlight once you say ‘forex reserve currency diversification’, regardless of whether you’re talking about the past or the present, there will definitely be market reaction,” he said.

A growing chorus of Chinese government economists has begun calling for Beijing to shift some of the country’s reserves, the world’s largest at more than $1 trillion, away from dollar assets and into other currencies or strategic resources such as oil.

The composition of the reserves is a state secret, but bankers and academics assume that at least two-thirds is invested in dollars, mainly US government debt.

The role of the United States in world trade meant that it and major holders of foreign exchange had formed a mutually dependent relationship, said Guan.

“The US buys cargo, and countries with a trade surplus buy US treasuries they actually have no other choice,” he said.

“If I have a surplus on the trade account, if I have foreign exchange income, I can certainly invest part of it in non-dollar assets, but the size of the market for non-dollar assets is very limited so the great majority of foreign exchange reserve assets has to be invested US financial markets.”

Daily Times

Due to the large deficit the Dollar has become so volatile that diversifying is almost impossible for countries such as Japan and China. They will all go down with the sinking ship. I wonder how bad the consequences will be for China's economy.

SINGAPORE (Reuters) - Gold hit its highest level in more than three months above $648 an ounce on Friday before losing some of its gains to profit taking, but a weaker dollar would offer support for the precious metal.

"I don't think we will cross $730 again this year, but I dare say the new year will bring a new high for gold," said a dealer in Singapore.

"If the Fed cuts the interest rate now, you will see the dollar collapsing," he said.

Reuters

Meanwhile the Euro continues to appreciate agains the Dollar, which is disadvantageous for both the European Union and the US.





[edit on 1-12-2006 by Mdv2]

I've been reading in british newspapers the past couple of days about the dollar's downward trend. Some have even sounded rather alarming....just wondering....
has anyone heard anything from any US media outlets....

Originally posted by Mdv2
Meanwhile the Euro continues to appreciate agains the Dollar, which is disadvantageous for both the European Union and the US.

The 'disadvantage' is inherently more AGAINST the European Union than the US.
The US economy continues to be strong despite the ailing dollar, something which you did not mention, and the majority of European Union countries economies continue to decline or get no better as the Euro "appreciates," something which you did not mention.

Is this more of your European Union is a military superpower rhetoric?
How about do a Dollar vs. Euro comparative and when you do, take notice that as long as the Euro continues to "appreciate against the dollar," European economies continue to falter and/or fail. Unemployment rates, etc. in France and Germany are STILL at historical levels; recession since October 2002. 9.6% unemployment is definately something to be bragging about, huh? Need I say more?

[edit on 1-12-2006 by Seekerof]

Originally posted by Seekerof
The 'disadvantage' is inherently more AGAINST the European Union than the US.
The US economy continues to be strong despite the ailing dollar, something which you did not mention, and the majority of European Union countries economies continue to decline or get no better as the Euro "appreciates," something which you did not mention.

Trying to set an example of American ignorance? You are foolish to speak about something you don't know anything about. I'd suggest you to start reading the news.

EU economy strong despite U.S. slowdown
EU economy to outpace US in 2007

Trying to set an example of American ignorance? The we-are-the-best baseless nonsense. One negative side-effect of conceited and ignorant attitude your is that it makes you look like a clown as you obviously have no clue on what you're talking about.

Try at least to convince me with evidence, and please, don't come up with CIA factbook figures or manipulated unemployment rates, as one Zibi is more than enough.

The downwards pressure on the Dollar does not effect European export business as for the moment, it does, however, effect profits for European MNCs exchanging US Dollars, in the long term.

But it will be much worse for the US economy. A depreciating Dollar causes unrest among speculators and US debt buyers such as China, what long-term consequences will this have? At one point - when the Dollar has reached a certain level - investors will lose trust, trust in the US economy. They will start wondering whether the US will be able to pay off its debts. The fact that Central Banks recently started to diversify is just the beginning.

Enjoy your American dream now you still can, soon enough the situation will change... China and Japan have the power to make or break the US.

Originally posted by Seekerof
in France and Germany are STILL at historical levels; recession since October 2002.

What are you talking about? The German economy is doing great.

Germany's economy is booming and unemployment is dropping steadily.
Source

BRUSSELS, Belgium — The jobless rate in the 12 nations that use the euro hit a new low Friday, falling slightly to 7.7 percent as the economy picks up steam

Source

Originally posted by Seekerof
9.6% unemployment is definately something to be bragging about, huh? Need I say more?

No you don't need to say more, what you should do instead, is research the American unemployment rate, which is actually between 11-15%. The German unemployment rate does include prisoners, while 7 million US prisoners are not included in the US labour force survey. Nice way of manipulating the unemployment rate, huh?



[edit on 1-12-2006 by Mdv2]

It is only a matter of time. There has never been a currency in the history of time that has not fallen eventually when a nation starts printing notes it doesnt have backed up. It seems like common sense really. I am suprised it has managed to get this far (7 - 8 Trillion in debt!)

Its amazing how economists and bankers/taders try to complicate things with fancy words to dupe the public when the whole thing is nothing but a scam.

The new currency will be called the 'Amero', and it will be the final stepping stone to world currency, then we are all screwed.

I am not sure on this but i think that you can get just about $2 for every £1, so come on brits get over to the US and spend spend spend while you can, might aswell take advantage of this and get some cool stuff.

I think that paper money was created with the purpose to fall from the very begining, in order to grab peoples lives by the balls and take full control.

is the stage being set for a currency changeover? I saw on the news that the supreme court has ruled that our current money is unconstitutional, it discriminates against the blind since there's no way for them to determine the denomination. it does seem rather convenient time for them to change.....and when you exchange the old dollar for the new, you get half the value...

Alternative measures of labor underutilization

Yep its just a matter of time. Plus with all the new countries joining the E.U. the value of Euro's is contantly rising.

Even if they were to create a North American union the Canadian dollar and Mexican peso wouldnt be enough to save them.

Originally posted by Mdv2
Enjoy your American dream now you still can, soon enough the situation will change... China and Japan have the power to make or break the US.

Keep talking sport.
Seems you and the Euro are on the "make or break," eh?
A doomed currency

How inconvenient...

MDV, you might find this amusing:

video link: Death of the Dollar

Of course, it's Al-Jazeera, which means that certain posters will immediately write it off... I wonder if the plunge protection team are sweating much?

Oh, and this can't be a good sign:

Mint bans melting coins now worth more as liquid than loot

December 14, 2006
WASHINGTON -- Given rising metal prices, the pennies and nickels in your pocket are worth more melted down than their face value -- and that has the government worried.

U.S. Mint officials said Wednesday they were putting into place rules prohibiting the melting down of 1-cent and 5-cent coins, with a penalty of up to five years in prison and a fine of up to $10,000 for people convicted of violating the rule.

Because of the prevailing prices of metals, the cost of producing pennies and nickels exceeds the coins' face value.

In french, this article shows that the real estate market is doing worse and worse everyday.

From the article:
1.2 million of house lost to the banks in 2006.
Just in november: 120 334 housing near lost, a 4% increase since october 2006, and 68% more than in november 2005.
Rate of seizures in Nevada: 12% more In California: 19% more than in october.

The real estate market is crashing everyday more.

The nations of the Organization of Petroleum Exporting Countries are selling U.S. Treasuries at the quickest pace in more than three years, according to U.S. Treasury Department data. Concerned analysts predict a dollar sell-off coupled with rising interest rates.

In the three months ending in November 2006, oil-exporting nations including Indonesia, Saudi Arabia and Venezuela sold 9.4 percent of their U.S. government debt—a significant amount, considering these countries own more than $100 billion worth.

Over the past few years, oil producers have become very important dollar supporters, rivaling the United Kingdom, and even China and Japan.

Source

Many officials know what is going to happen, but they cannot disclose it in order to avoid an instant collapse. A collapse is probably years a few, but no decade.

Jan. 24 (Bloomberg) -- Kuwait, the third-largest Arab oil producer, may abandon the dinar's peg against the dollar in favor of a basket of currencies to help minimize economic harm after the dollar declined.

``We might go to a basket for an interim period,'' Bader al- Humaidhi, Kuwait's finance minister, told reporters today at the World Economic Forum in Davos, Switzerland. ``The dollar fell a lot against the euro last year, but if we'd been linked to a basket we wouldn't have suffered'' as much.

Dollar reserves are being replaced with euros by oil producers including the United Arab Emirates and Venezuela. China, which has the world's largest foreign-exchange reserves, and Indonesia say they plan to increase euro reserves and Iran says it's boosting oil sales priced in euros.

Source

The long list of countries starting to abandon the sinking Dollar ship continues to grow. This trend is accelerating very rapidly and is in no way beneficial to anyone but terrorists.

[edit on 26-1-2007 by Mdv2]

Conservative economist Bruce Bartlett accused President Bush of "bankrupting" America and betraying the Reagan legacy in an interview on PBS's Tavis Smiley Show on Tuesday.

A domestic policy adviser to President Ronald Reagan and a treasury official under President George H.W. Bush, Bartlett assailed Bush's "big government conservatism" and said he was surprised at Bush's policies, despite his campaign pledge to be a "compassionate conservative."

"In 2000 I thought that was election year rhetoric," said Bartlett. "I didn't think it meant anything. I learned the hard way as a lot of us did what he really meant it when he talked about compassionate conservatism."

When asked how the current President Bush compared to his father, Bartlett responded, "If I didn't know with a certainty they were related, I wouldn't think that they were."

Bartlett also argued that current conservative fiscal rhetoric regarding supply-side economics is outdated. "We have a completely different economic situation, completely different fiscal and tax situation and I think people are still using rhetoric that was appropriate at one time for a situation that in which it is no longer appropriate."

Bartlett was also not optimistic about the remainer of Bush's term.

"I think we are on automatic pilot," said Bartlett. "Very few administrations do much of anything the last year and a half in office. I think the best thing we can hope for is a new president who will take America in a different direction."

Recently, I saw new threads popping up telling how good the depreciation of the Dollar is for the US economy. I decided to not respond anymore as it doesn't make sense: the majority of people with knowledge on this particular subject agree: the US economy is close to bankruptcy.

As a matter of fact, it could be already bankrupt as we do not know how many Dollars are printed day after day (They stopped publishing M3 Money supply details), but officially, no, it's not bankrupt yet.

As Bartlett says: ''The Best thing we can hope for is a new president who will take American in a different direction.


Video embedded:

[edit on 19-4-2007 by Mdv2]

FRANKFURT, Germany: The euro climbed to an all-time high against the dollar Friday as weak U.S. growth figures reinforced fears of a widening economic disparity between Europe and the United States.

The surge will not be kind to Americans visiting Europe this summer, who will feel like they are paying more for hotel rooms in Rome, entrance fees at the Louvre and chocolates in Belgium.

The euro hit US$1.3682, shooting past its previous high of US$1.3667 from December 2004, after the U.S. Commerce Department reported that economic growth slowed to a 1.3 percent annual rate in the first quarter, its weakest performance in four years.

The 13-nation currency then settled back to US$1.3655 in late European trading, still up from its US$1.3601 level in New York late Thursday.

International Herald Tribune

The US deficit could be sustained indefinitely if foreigners are indefinitely willing to buy US assets.

Some argue that this is possible because the US financial system is always creating attractive new assets with potential for capital growth.

But that seems implausible. In any case, foreigners are not looking for equity or direct investments, as they did in the late 1990s, but for bonds.

The International Monetary Fund recently reported that 80 per cent of the deficit is financed by foreign purchases of bonds, and that investors were increasingly willing to dump those bonds in favour of non-US assets in response to interest rate and exchange rate fluctuations.

All this means that an abrupt dollar collapse still cannot be ruled out.

Financial Times

As mentioned before, every now and then I'll update this thread with new articles.