Dollar Plunges on Chinese Central Bank Comments

There were other factors that contributed to the drop, other than words spoken in China....

Attn. General Andrew Cuomo has issued subpoenas to Freddie Mea and Freddie Mac as he delves deeper into the idea that the financial institutions played a large role in the inflating of the housing bubble by pressuring appraisers to inflate their apraisals.

And, that, I think is still what is driving alot of the momentum in the stock market...

Still, the concern on the Street is that the extent of the fallout from the credit market crisis that has led to billions of dollars in losses for major banks and investment firms is not yet known. With Citigroup Inc. announcing Sunday it needed to take an additional $8 billion to $11 billion in writedowns, investors are very uneasy not just about stocks, but the economy as a whole.

"The financials are the bodyguards of the market and when the bodyguards are taking shots then the market can't do well," said David Darst, chief investment strategist for Morgan Stanley's global wealth management group.

"A lot of the bad stuff is known; what the markets are worrying about is the unknown," Darst said.
biz.yahoo.com...

There may have been plans to dump the petro dollar for the petro euro and all that, but, it seems to me, that the greed of US business men, lenders and the like has more than likely led to a quicker abandonment of the dollar in the world scene. They're dumping billions and then more billions trying just trying to save the financial institutions in the country.
What someone says in China probably has little effect when compared to this.

I believe the current drastic decline in the dollar is deliberate.

The more the worlds wealth is concentrated into one money (euro) the easier it is to control, and collect interest off of it.

If China owns a large amount of American debt, and the dollar starts to plunge, the Chinese will have to trade in their dollars for euros, or it will bring the yen down with it.

Who it the largest purchaser of American debt lately? England. How you say?

Through a money that only exists in the digital world. The "Eurodollar".

The Eurodollar is only allowed in offshore accounts, i.e. "The Isle Of Man".

Banks are being encouraged to purchase Eurodollars through the LIBOR system.

The LIBOR system, controls the rate of the Eurodollar against the dollar.

The US Central Bank system held $84 trillion in Hedgefund Debt (derivatives) in 2004. 9% of this is in currency.

This 9% is what they are using to manipulate the market, to make money off the drastic swings. They keep the profits in $US, but sell off the base 9% into Eurodollars, hiding it. IMO

All of this, was made possible in 1982 by the computer. Look at a longterm stock market chart.

The worst crisis I've seen in 30 years .

Should we be worry, hell yeah!!!!!!!!!!!!!!!! Do not let the markets propagandist tell you that is just a slow down and that everything is peachy.

The truth is that the major players within US and Britain the holders of the worlds wealth and central banks has lost their grip on the Markets and they can not undo the damage and their littler games are biting them now in their arses.

Britain and America have lost control and do not have the means to regain it as quickly as we might hope. With an oil price approaching $100 a barrel, we are in an uncharted and dangerous place.

.

politics.guardian.co.uk...

It seems that people are overlooking another fact in the markers when it comes to the importance of the Dollar abroad.

When you have oil almost at 100 dollars a barrel, somebody wants to capitalize as much as it can on that price and the dollar is not doing it for them.

I can only imagine the panic, the phone calls and the briberies going on right now to keep the Middle Eastern oil barons from dumping the Dollar.

Funny that almost one year ago everybody got on Chavez butt because he pay off his debt to World Bank and change to Euro.

Guess what he is a business man after all and he knew where the Dollar and the world banks were going in the future.

Funny that such an enemy of the US corporate Barons have better inside information than most regular American Investors, (you know the bunch that are suffering the ups and downs in the markets).

Interesting that this should tell that somebody already knew something a while back but the prosperity illusion of a well to do American economy was still being played for the benefit and consumption of the regular American citizen

Where is the outrage!!!!!!!!

People don’t get it, while US and European banks are all intertwined we have now new competitors waiting to cash out on the fall out that is coming.

China, Russia and the evil oil countries unfriendly to the US will, like Venezuela and Iran will be waiting for the fall out due to unrestricted greed of the Wealth holders.

But as usual we the hard working tax payers are the only losers in the monopoly game that has been played with our nation’s wealth for decades.


[edit on 8-11-2007 by marg6043]

Everyting is being manipulated behind the scenes

21stcenturysocialism.com...

reply to post by infinite




i really do not think the chinese central banks statement was the cause of the dollar drop...

the dollar drop is because of the extreme credit growth & the resulting credit collapse & the linkages to the sub-prime bad paper...
China is just trying to mitigate their losses,
they are not pulling strings etc.

~~~~~~~



side bar:

btw?

is your new avatar associated with the recent passing of Marcel Marceau

if so, nice tribute

reply to post by mentalempire


That's not what I said. Read what I said. China's investment in Africa is geared toward future growth. Long term. What I am talking about, relative to any type of future economic crisis here in the US, because of China's deep investment here, China's economic position relative to the US will remain unchanged. Even if China is still holding all of that paper (US Treasuries) should a crash occur, worthless or not, China will still have the same grip on our economic future. Not only that, its political position and influence on American politics will strengthen significantly.

Banks are not going to want to see two large economies, one growth and one mature, fail. What country do you think is likely to hold favor with the banks in such a scenario? No banks are going to be thirsty to dive in to help on short term emergency plans, they will only pay attention to long term plans in such a scenario, and sorry to say, China and Asia have the edge. They have it by leaps and bounds. That's where the bulk of the world's manufacturing occurs. Hardly any occurs in the US anymore.

reply to post by bcdefxyz2000


Ace post! That's exactly what investors should be doing because of the dollar's decline. They should be buying and selling short term to protect the value of their long term portfolios.





[edit on 8-11-2007 by Areal51]

Originally posted by NGC2736
The American crash of 1929 was felt world wide. Maybe not as hard as in the states, but it hurt a lot of people everywhere. Now a total crash would bring collapse to some nations. If we couldn't but China's goods, then China's boom would bust.

The world is tied too tightly for economic wars. Yeah, bloody their nose, hurt their feelings, but don't try to knock out any major players. You only hurt yourself.

This statement is very true. The ripple would be a ripple at all, but a tidal wave that would wipe out the world economy.

China isn't trying to pull the strings in the U.S. economy with this statement. And I am usually very critical of China. The dollar is a bad investment right now, and China invests in the United States heavily because they need the U.S. This official was stating that they'll reduce such holdings (though who knows if they actually will or not). But they won't reduce holdings because they want to injure the U.S. and thus much of their capital, but because it is just business.

reply to post by Jazzyguy


For an example you might take a look at what Reagan did to the Japanese. The results were very fast.

I don't think the shelves would be even half empty before they caved.

Most essential goods like Electronics and the like do not come from China. Many are actually manufactured in the US but the companies are owned by Foreign interest. Many are assembled here and shipped as components.

If push came to shove, I think we could stop buying Chinese Products for a few weeks without suffering much. I don't think their Market could handle it for very long. They have been given a taste of a decent life and they covet it now.

[edit on 11/8/2007 by Blaine91555]

reply to post by antar


Money is not based on air. It is based on Productivity. The paper is just a representation. A Countries Productivity is weighed against the amount of currency in circulation. The Fed could send the dollar back up any time they want. Remember we are a Nation with 5% of the population and nearly 50% of the wealth. Our buying power alone sustains us. We stop buying entire economies collapse and yes it is that simple.

The old, failed Gold Standard was dumb to say the least. The country with the most Gold was the richest. It was ridiculous.



[edit on 11/8/2007 by Blaine91555]

reply to post by dionysius9


There is no Amero? That is a fantasy. There is no support for a Union strong enough to enact legislation let alone ratify a Treaty or pass the Constitutional Amendment to make it possible.

There are people attempting to scare people into believing it because they hate Authority or they are selling books or tapes for a living. Bush may have leaning that way but he is a "Lame Duck" and he is gone shortly. Billary does not have the power, even if elected, to Ratify a Treaty of that sort let alone cause a Constitutional Congress to be formed.


[edit on 11/8/2007 by Blaine91555]

China tightens foreign investment rules

AFP - Friday, November 9 SHANGHAI (AFP) - - China has released new rules to prohibit or limit foreign investment in key industries as it seeks to cool its overheated economy and clean up its damaged environment, state press reported Thursday. Link

As part their economic & environmental reform policy, this move is also aimed-at balancing China's massive trade surplus without having to revalue the currency. Beginning in the 80's, multinational investment seeking low Chinese labor & manufacturing costs soared. Foreign owned processing facilities now account for better than 50% of China's export figures. Apparently the Chinese want to narrow their trade imbalance, develop their domestic economy, and believe that a slowdown in the economies of the US & EU will be buffeted by increased export to developing countries (see Russia..South Africa etc). These new protectionist measures, along with increased export tariffs, and reduced export rebates instituted in 2006...don't point to a country that is afraid of reduced exports...just those that favor foreign profiteers at the expense of China's domestic economy.

The new restrictions also underscore China's interest in protecting it's raw materials base.

Raw materials and energy resources...the stuff that stuff is made-of...will be the stuff that wars are made-of going forward.

China bars Goldman Sachs company bid

Originally posted by infinite
Interesting fact.;

26 year high record oil levels

26 year high of Sterling against the Dollar

26 year gold high.


odd

none of that is really accurate. The prices are only going up (in dollars) because the dollar is falling in value. It's not like the price of gold is fluctuating that much, it's the dollar fluctuating in relation to gold (or other commodities).

Most of us have never known hunger or what it's like to not have electricity or running water. Most of us have never stood in bread lines or worried about finding a job. We have never had to deal with military law or travel restrictions caused by gas shortages. We have never had another country use financial leverage against us as a political tool. Well let me tell you one thing folks, we will be finding out how all of this feels and much more very very soon.
The biggest obstacle to world peace the American people face and indeed the world faces is coming from right here in America.
This is not a Democratic thing or a Republican thing rather this is an evil thing that calls itself both Democrat and Republican.
We know this as well, but for some reason we are too busy pointing fingers at each other to really talk about it. We watch 30 minutes of T.V. news each night and think we have a firm grasp on the issues. How very very sad.
Yes I believe that we will be seeing how it feels very very soon.

OK, so Congress votes 'YES', we want to increase our debt past 9 TRILLION.

Question. Does that force our creditors to LOAN us more money? The last TIC report was a wake up call, so wake up! Voting to allow more debt is like me telling the credit card company that they have to loan me more money or I'll default on what they've already loaned me.

China has learned to hunt and feed itself thanks to us. To think they NEED us is pompous and foolish.

[edit on 8-11-2007 by HimWhoHathAnEar]

reply to post by Blaine91555


Maybe you're right. However, if you watch closely, the american elites fear china, they didn't fear japan back then, they just didn't like them. If you often watch CNBC, you'll know even wall street fear china the most, even more than terrorism.

Why Admiral Fallon, Paulson, Guiterez and recently Bob Gates went to china? So many of them, really, those are communists they were talking to. Bush is so for "freedom" or "democracy". Yet he spoke to Dalai Lama in private (not official), not wanting to insult china. Even Nixon was very polite to Mao. Just ask Kissinger if you don't believe me.

America never do that to anyone. Ever. Not to a non-ally. Not to any world power, especially, a competitor. Don't that make you wonder?

Originally posted by mek12
Most of us have never known hunger or what it's like to not have electricity or running water. Most of us have never stood in bread lines or worried about finding a job.

It did really happened in 1929. Listen to mek12, don't be pompous.

To me it seems that the chinese have every right to dump the dollar and there is nothing the US can do about it, the bankers want the dollar gone and the Amero in its place.

This is just foundation framing for the Amero to be built on top of the usd.

reply to post by Blaine91555


We also have a trade deficit because a nation can not survive on consumerism alone, what made our nations wealth was not the baying power but the manufacturing power and that is already almost none exiting.

How long do you think is going to take for our nation to start imploding as people can not longer support consumption of goods due to economic factors.

Like I say this holiday season that retailers depend so much for their survival will prove how good or bad consumers across American are doing with the present state of affairs in our everyday lives and the economy.