Oct. 14, 2010 7:04 PM ET Dollar keeps falling as investors await Fed action
MARTIN CRUTSINGER, AP Economics Writer
A businessman walks past an electric board showing the day's currency rate between U.S. dollar and Japanese yen in Tokyo Thursday, Oct. 14, 2010. The dollar fell to a fresh 15-year-low against the yen in Tokyo on Thursday amid growing speculation that the U.S. Federal Reserve will ease monetary policy next month. (AP Photo/Shuji Kajiyama)
WASHINGTON (AP) — The dollar keeps falling around the world, tumbling against other major currencies because investors expect the Federal Reserve to pump more money into the economy next month to try to stimulate growth.
The effects can be seen almost everywhere.
Since late summer, when Chairman Ben Bernanke first hinted that the Fed was ready to act, anticipation of the move has rippled across the economy: Stock prices have surged. So have oil prices. Commodities like gold, silver and corn have risen. Treasury yields have slid. Mortgage rates have sunk, too, along with yields on money markets and CD accounts.
The steep decline has even raised worries of a global currency war in which nations would compete to keep their currencies from rising in value as the dollar sags.
On Thursday, the dollar fell to a 15-year-low against the yen in Tokyo, after flirting with a post-World War II bottom. It also touched its lowest level against the euro since January. The dollar has slid more than 10 percent against the euro in the past three months.
What does all this mean for American consumers and businesses?
For one, imports can cost more. So does travel abroad. Goods from U.S. companies become cheaper for foreigners, and oil tends to cost more. Even the likelihood of some new price bubble in investments such as stocks or real estate could rise.
When you total it all up, the U.S. economy is so weak right now that the Fed considers a cheaper dollar to be a good thing. That's especially true when a low dollar is accompanied by super-low interest rates..................>>>>..........................>>>>.................http://hosted2.ap.org/FLJAJ/d0.....45e7bf964ee9b834bf1e
That is because printing money and pissing it away at a world-record pace will do that to a currency and a nation. The public may never wake up because they have the 'gimme gimme gimme' mentality.
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
The next generation wont even know what money is or it's value.....THEY DEAL IN DEBIT/CREDIT CARDS.......the only thing the future generations will have for trading will be their credit scores and their allotted units on their debit/credit cards....the definition of value is changing by the day......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Whether it is the trade imbalance that sends hundreds of billions (?) of dollars to China and OPEC nations, or entitlements that special interests will lobby to ensure we remain on the hook for...
I see no end to the declining value of our dollar.
Whether it is the trade imbalance that sends hundreds of billions (?) of dollars to China and OPEC nations, or entitlements that special interests will lobby to ensure we remain on the hook for...
I see no end to the declining value of our dollar.
how?
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Whether it is the trade imbalance that sends hundreds of billions (?) of dollars to China and OPEC nations, or entitlements that special interests will lobby to ensure we remain on the hook for...
I see no end to the declining value of our dollar.
If you are correct, which many economists say the same.....our dollar will be worth squat!! We own tons of gold....some of our own and some inherited! We call it our 'retirement fund'!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Dollar Declines for Fifth Week on Prospects of More Monetary Easing by Fed By Catarina Saraiva - Oct 16, 2010
The dollar fell for a fifth week against the euro, matching a losing streak that ended in December 2008, as traders speculated the Federal Reserve will further ease monetary policy, debasing the greenback.
The U.S. currency dropped this week to a 15-year low against the yen and fell to parity with the Australian and Canadian dollars before next week’s Fed report on regional economies. Asian currencies rallied against the dollar as Singapore sought faster currency appreciation, pulling back from efforts to stem gains.
“There’s a bit of push and pull in dollar weakness: the push has been revolving around quantitative easing, and the pull has been the attractiveness of emerging-market currencies,” said Alan Ruskin, global head of Group of 10 foreign-exchange strategy at Deutsche Bank AG in New York.
The dollar fell 0.3 percent to $1.3977 per euro, from $1.3939 on Oct. 8 It slid to $1.4159 yesterday, the weakest level since Jan. 26. The greenback slid 0.6 percent to 81.45 yen, from 81.93 last week. It touched 80.88 yesterday, the weakest level since April 1995, when it reached the post-World War II low of 79.75 yen. The euro dropped 0.3 percent to 113.88 yen, from 114.19......................>>>>........................>>>>...........................http://www.bloomberg.com/news/.....y-easing-by-fed.html
the second dip of the double dip recession is upon us
of course now that we have spent a couple trillion dollars that we didn't have on bank bailouts that didn't really help the housing industry and economic stimulus packages that really didn't create any jobs ......... what do we have left in the "magic bag of tricks" ????
oh .... I have an idea .... 2 words .. first word has 3 letters .. second word has 4 letters ...... hint .. something that John Kennedy, Ronald Reagan, and George W. Bush ALL did ...
George Amedore & Christian Klueg for NYS Senate 2016 Pete Vroman for State Assembly 2016[/size][/color]
"For this is what America is all about. It is the uncrossed desert and the unclimbed ridge. It is the star that is not reached and the harvest that is sleeping in the unplowed ground." Lyndon Baines Johnson
John Kennedy, Ronald Reagan, and George W. Bush all cut taxes ... and those tax cuts led to economic expansion AND the government ended up taking in more revenue not less.
George Amedore & Christian Klueg for NYS Senate 2016 Pete Vroman for State Assembly 2016[/size][/color]
"For this is what America is all about. It is the uncrossed desert and the unclimbed ridge. It is the star that is not reached and the harvest that is sleeping in the unplowed ground." Lyndon Baines Johnson
how would one use it? call it buttons? what and how does this work?
There are different shades of financial collapse.
If it is slow, even, controlled... Then inflation will drive prices up, we'll spend more on bread, gas, etc... And gold, silver, and other commodity prices, will rise. Stock funds that we own that are tied to gold - whether they are ETF's or gold miner finds, will appreciate substantially as the value of the dollar slides, and more investors move to the save haven of precious metals.
Now if you were to own physical gold, one could later sell that gold or silver and move it back into legal tender currency, at a (much?) higher price.
However if SHTF (brown stuff hits the rotating object).... Then silver and gold might be the new barter currency.
A LOT would have to happen for that to occur... Not a pretty scenario if it did. Katrina on a nationwide scale perhaps. In such a worst case scenario (which is unlikely)... Commerce could look very different. Production of staples could drop. Deflation could mean that refineries close (for instance) because why would they spend $2 today to manufacture gasoline if it is going to sell for only $1.50 tomorrow, and maybe $1 the day after. (Again - only exploring the possibilities here...) In such a worst case scenario, the new currency might be food, ammunition, soap, silver, etc...
Note I am not a financial adviser. I could be completely wrong. It has happened before you know
However with the perfect storm of our debt, deficit, entitlements, special interests, trade deficit, the fact we're now a services based economy instead of a production based economy, and the impact of the fiscal crisis in Spain, Greece, Italy, etc...
There is reason to be very concerned about our financial future.
The entitlements that are "locked" in place by special interests... That is why I'm so doom and gloom here. I see no sustainable exit. If we just had $14T in debt, and a surplus instead of growing deficit, I would see a way out. But what is happening in our country is not just unsustainable - it's incompetent negligence.
The govt wants inflation it makes 1.5 trillion seem cheap, - tomorrow The buying back of 100 billion to 500 billion of govt treasury bonds in the coming months will most likely bring this forward
Talking to each other is better than talking about each other
Yes it seems ideal, until of course central banks around the world start selling dollars and their US bond holdings....
Of course that has risks to them as well since their economy is tied to the US economy, in some cases highly leveraged to our economy. (China most specifically)
Bernanke has stated that inflation would be 'good' for the country. However, most economists are saying that the country is in avery fragile economic state right now.....teatering on collapse. While gold is presently at $1375!!!
We know many people who are not 'moving'! It's like everyone has stopped spending. Everyone is holding on to every dollar they have. Until this country gets back on solid ground, and people start getting back to work and regain trust in their leaders, nothing will get better.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
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