Dollar at Risk of Crashing,Triggering Inflation:Strategist

This does not look to good at all,the latest move from the Federal Reserve is not going over well with the rest of the world,and could have some serious ramifacations..
Here is the link
www.cnbc.com...
And another
apnews.myway.com...
And this
www.reuters.com...

reply to post by PatriotsPride
Going to give this thread a bump.

This is an important story to watch. I have a feeling we will not be able to afford groceries soon, let alone gasoline.

That is the kind of thing that will spark riots.

reply to post by butcherguy


Thanks for the bump,I feel the same way about it as you..

reply to post by PatriotsPride
I wonder how the stock markets in the US will respond to the results of the next G20 summit?

I don't think it will be good news for us coming out of that meeting.

reply to post by butcherguy


I think that our head is on the chopping block..

reply to post by PatriotsPride


I would say, I think it is too. Things were shaky before. I think this move by the fed is the "straw that broke the camels back" so to speak. There is no way they are gonna look the other way or be "convinced" this time.

reply to post by AngelsOnMyShoulder


I totally agree with you!! This is where the rubber meets the road!!

APEC ministers meet as doubts grow over U.S. approach
www.reuters.com...

I believe this is part of a plan to redesign and reposition he U.S. economy. Not because the nation will be more powerful or any wild and complex conspiracy like that, but because we have run out of options. Despite all the talk about recovery and repairing the system, it isn't going to happen, at least not in the idealized fashion that we would all wish for it to happen.

My contemplations have led me to believe that we will need to devalue the dollar significantly, purposely inviting the world to abandon it has a base currency. Once this is done we can do the tough things that will have to be done to reorganize our economic structure so that we can successfully fill a worthwhile role in the future, without unleashing economic hell on the world.

After the dollar is abandoned on the world stage I feel that we will continue to devalue by printing money a bit longer, thus inciting inflation to raise wages and increase the effectiveness of taxation. Life in this period will not be fun and the dangers of hyperinflation will be imposing. If we can manage this process, we can dilute the debt and also pay towards it at an aggressive rate. During this period there will also be major investment in industrial infrastructure and public infrastructure, in part to create jobs for the present time and in part to provide the foundation for jobs growth in the final stage.

As we emerge from this tricky economic polymorph, we will begin to reign in inflation and interest rates. We will use the weak dollar to increase exports to nations which will then be new consumerist economies. This will allow us to fill up the industrial infrastructure we build will profitable exporters that will create all sorts of new jobs.

I believe will become a production based economy, much like what we were prior to and a bit after World War II. We will have a host of high population nations, which will need to allow their currencies to valuate, as our customers and this will give us a comfortable and reliable niche.

I think we are going to play musical chairs folks. It's someone else's turn to have both the benefits and the drawbacks of being mega consumers, for awhile. In 100 years this process may occur again with another shift in roles.

reply to post by Fiberx


That's good in theory. The problem I foresee is that Americans won't be happy about it at all. Someone will have to be the scapegoat. Too many people are far too proud to quietly file into the poverty line. I'm expecting utter chaos.

Ron Paul explaining why it will happen and what this means. Watch and learn...

Wow!!!
$1AU = $0.98503 US

almost 1 to 1 - I remember when this thought was unrealistic.

Reminds me of Titanic sinking. Right now the US has its A up in the air and eveyone is jumping over board.
Meanwhile Obama and the rest of his band are continuing to play their music and assure everyone its all ok.

reply to post by byteshertz


Aussie Dollar = Commodity Dollar

It has been in the high 90's before, but I think people are being unrealistic with all these claims of crashing dollar and such. As today in the market proved if we continue to keep strong employment data the dollar will rise and so can our equity markets as well.

As proof of that see early 2010 where the same phenomena occurred. Although, you won't hear this in media clips because that doesn't sell advertising.

I don't think anyone's being unrealistic. The Aussie dollar used to consistently hover between, on average $0.75 to $0.90 U.S. (at least in the last couple of years). These days it doesn't seem to drop much below $0.90 U.S. and as of this writing, $1.00 U.S. dollar gets you $0.98 AUD!

reply to post by Stonesplitter


Currencies are highly volatile. It is unrealistic to correlate 1.02 AUD/USD to Dollar crashing. If you really feel that leverage yourself into AUD's in the currency market.

By the way, if you need the proof, here you go.

AUD/USD Futures

You can see in 2009 the AUD/USD was .60

So do you think 1.02 AUD/USD means anything? Take the mean over the past 3-4 years and you will see your assumption is very incorrect.

Have a nice evening.

reply to post by Dance4Life


I guess what i'm saying is the U.S. dollar has taken a pretty solid down turn in recent years. It never used to sit on par with ours.....and if it came close, it was brief.

www.bloomberg.com< br />
Maybe i'm wrong but the U.S. dollar doesn't appear to be doing so well. Just keep on Dancin' champ......4 life that is.

German Finance Minister Attacks Fed Move Again:Reportwww.reuters.com...

I don't know if it's related, but the price of gas where I live in West Virginia just jumped from $2.75 to $3.10 per gallon overnight. Not looking too good. I'm already scraping up change for juice and milk for my 3 year old grandson. I'm trying really hard not to have to apply for foodstamps, but there's not much more i can cut back on.

Ya, don't you guys realize there's a reason that certain topics hit the waves all at once or not at all, irregardless to when they are most needed? Obviously, this is a prepping of the people to the inevitable collapse of the dollar, but it's not here yet. I believe we've still got at least a solid year before anything that drastic happens.