Uhh, may I point out that other nations, whose currencies are NOT reserve currencies, do just fine. ;) Besides, the U.S. Dollar has not been the sole reserve currency for many years. The Yen, the Pound and now the Euro are reserve currencies -- the percentage of dollars held in reserve has declined ONLY because people also now accept Euros (as an example), so it is perfectly normal for China to have Euros in reserve too. Really, the general media is creating this situation, as are Monday morning Quarterbacks... with the net, all of a sudden, eveyone's an expert. Besides, many of the "Dollar Bears" out there today are just trying to hawk gold. Look, there is no sinister plot to get rid of the Dollar...to think so is abusrd. Will other currencies rise in usage and become more accpeptable? Of course. China and Russia want their respective currencies to be respected AND accepted, so much of this talk to try and hurry that process along. At some point, the Ruble and the Yuan will probably join the ranks of the Yen, Dollar, Euro and Pound. So?? Relax everyone.
and devastating for the Japanese transplants in North America.
As recently as 2007, the rate was 124 yen to a US dollar.
To put that into context.
That means that an engine costing $2500 to import from Japan in 2007 at 124 yen to the USD would now cost $6200 at 50 yen to the USD. At that exchange rate, it would be almost impossible for the transplants to get away with importing much at all from Japan. At the same time, Toyota has purposely cut their production in the United States, to centralize production in Toyota City.
This is a train wreck waiting to happen. And when it does, the Japanese economy is going to get pulled back under from the modest growth it's shown recently.
... If only we got mortgage crackdowns (is that what they were called) or if only we had an administration who thought it'd be a good idea to ban banks from forclosing given that homes going idle hurts people, hurts home prices, that be to simple though..
The cancer is rotting Florida too. This is going cause all kinds of problems to the markets in the coming months. It's one of the reason my plan has been to get out of debt asap and into things that retain some wealth.
And I'm thinking that right now is going to be the precious metals for then next several years. Checking out the widget http://www.learcapital.com/exactprice gold looks to me to have set a new four digit bottom.
Not an unexpected number, given that a tremendous number of laid-off people are now taking early Social Security retirement benefits, given the inability to find work in this incredibly shrinking labor market.
Things change. Armand Hammer predicted $100 a barrel oil back in the 1980s -- he didn't live to see it happen. And China will eventually be a developed nation. In the shorter term, I believe dollar weakness is convenient policy. I have been scaling in to Aussie dollar and Brazilian utilities (not a recommendation -- just my take on self-preservation in the current craziness). I see the "50 yen" target as much less important than shorter term market forces. Yes, I'd rather be paid in yen and euros, but my clients pay in dollars and my monthly bills are denominated the same way. As a matter of policy, I'd like to see all Fed governors and Treasury officials required to have all their personal holdings in dollar assets. Align their interests with ours.
Frank T.
Las Vegas Insanity, so while foreclosures are hitting an all time record (and there sure seems to be a lot of huff and puff claiming on helping homeowners and stemming foreclosures these real stats do not lie!) there also seems to be something funky going on in grabbing these properties.
I don't have any real insight on the CR Las Vegas insanity post.
Is it huff and puff or is it all a dire warning that the U.S. dollar is imminent to be removed as a reserve currency?
I have a hard time believing the globe would let that happen in a sudden move, unless they wanted to bring down the U.S. in some sort of financial terrorism. It would cause the entire financial globe to collapse I think.
I'm not sure I can believe any bank about anything, but this is still worth noting.
(Bloomberg) -- The dollar may drop to 50 yen next year and eventually lose its role as the global reserve currency, Sumitomo Mitsui Banking Corp.’s chief strategist said, citing trading patterns and a likely double dip in the U.S. economy.
“The U.S. economy will deteriorate into 2011 as the effects of excess consumption and the financial bubble linger,” said Daisuke Uno at Sumitomo Mitsui, a unit of Japan’s third- biggest bank. “The dollar’s fall won’t stop until there’s a change to the global currency system.”
...
“We can no longer stop the big wave of dollar weakness,” said Uno, who correctly predicted the dollar would fall under 100 yen and the Dow Jones Industrial Average would sink below 7,000 after the bankruptcy of Lehman Brothers Holdings Inc. last year. If the U.S. currency breaks through record levels, “there will be no downside limit, and even coordinated intervention won’t work,” he said.
And on a related note, there is no shortage of dollar bears out there.
A former US deputy assistant treasury secretary and now head of Encima Global, David Malpass is quoted saying, "Money wants to go to where it can get a steady return in real money, not in funny money. And in many ways the dollar is becoming the funny money currency for the world."
They've only grown more confident in their theft. They really thought it was over after the subprime rort and then you rewarded their greed. Now they know nothing can stop them. It's your own fault.
Frankly I think she should be impeached for representing corporate lobbyists in Congress. I hear ya and know the history.
What kills me is there were some great candidates as I recall running against her and the DNC didn't plain tell her she couldn't have that seat and endorsed the other ones.
I mean it's just ridiculous, you cannot get anything close to representation in so many of these "so called" elections because it's run by the parties and the districts are gerrymandered on top of it.
Tired of hearing "don't separate safety & soundness from consumer protection" meme from the GOP. I guess I missed the part where the Fed and the rest did a great job with both functions.
mark-up of CFPA. It is incredibly frustrating. I am not sure how much more I can stand. Rep. Melissa Bean (D) is supposedly submitting an amendment that will strip away the key provision of CFPA - issue of pre-emption. GOP is trying to kill it with a bunch of amendments.
I delete the comment spam in the moderation queue but I do not believe someone is going to try to repeatedly say we're all full of shit and link to the U.S. Chamber of commerce's "white paper" on "health care" over and over for free.
I've seen ads on craigslist and in other very cheapo "writing jobs" or "per line" jobs as well as things like cheap labor elance and so on.
So, they are hiring professional comment spammers somewhere, of course they do not identify themselves as major lobbyists and MNC's to do this sort of thing.
Believe this or not, the U.S. chamber of commerce is trying to spam this blog with their propaganda. (They hire people, paying peanuts to put corporate agenda comments in blogs).
Do you have some articles you can point towards to show us this?
Not profits.
If you want to know what that really means, look at what the dollar does compared to the stock market. They have an inverse relationship.
If the dollar goes down, the stock market goes up that day. And visa verse.
We are cheapening our currency to get an nominal asset boom. The dollar has dropped 25% this decade, so in real value the DOW is less than 7,600.
This is the same dynamic that happened in Wiemar Germany. Their stock market kept pace with their inflation until just before their currency completely collapsed.
That's not to say we will have hyperinflation (I don't expect it), but the same dynamic is at work.
Wall Street's Favorite Democrat: Rep. Melissa Bean (IL)
RebelCapitalist.com - Financial Information for the Rest of Us.
Uhh, may I point out that other nations, whose currencies are NOT reserve currencies, do just fine. ;) Besides, the U.S. Dollar has not been the sole reserve currency for many years. The Yen, the Pound and now the Euro are reserve currencies -- the percentage of dollars held in reserve has declined ONLY because people also now accept Euros (as an example), so it is perfectly normal for China to have Euros in reserve too. Really, the general media is creating this situation, as are Monday morning Quarterbacks... with the net, all of a sudden, eveyone's an expert. Besides, many of the "Dollar Bears" out there today are just trying to hawk gold. Look, there is no sinister plot to get rid of the Dollar...to think so is abusrd. Will other currencies rise in usage and become more accpeptable? Of course. China and Russia want their respective currencies to be respected AND accepted, so much of this talk to try and hurry that process along. At some point, the Ruble and the Yuan will probably join the ranks of the Yen, Dollar, Euro and Pound. So?? Relax everyone.
and devastating for the Japanese transplants in North America.
As recently as 2007, the rate was 124 yen to a US dollar.
To put that into context.
That means that an engine costing $2500 to import from Japan in 2007 at 124 yen to the USD would now cost $6200 at 50 yen to the USD. At that exchange rate, it would be almost impossible for the transplants to get away with importing much at all from Japan. At the same time, Toyota has purposely cut their production in the United States, to centralize production in Toyota City.
This is a train wreck waiting to happen. And when it does, the Japanese economy is going to get pulled back under from the modest growth it's shown recently.
I wonder if the Social Security Administration keeps data at the state level, and makes it available online.
... If only we got mortgage crackdowns (is that what they were called) or if only we had an administration who thought it'd be a good idea to ban banks from forclosing given that homes going idle hurts people, hurts home prices, that be to simple though..
The cancer is rotting Florida too. This is going cause all kinds of problems to the markets in the coming months. It's one of the reason my plan has been to get out of debt asap and into things that retain some wealth.
And I'm thinking that right now is going to be the precious metals for then next several years. Checking out the widget http://www.learcapital.com/exactprice gold looks to me to have set a new four digit bottom.
GREAT CATCH!
"..837,200 persons left the labor force.."
Not an unexpected number, given that a tremendous number of laid-off people are now taking early Social Security retirement benefits, given the inability to find work in this incredibly shrinking labor market.
Things change. Armand Hammer predicted $100 a barrel oil back in the 1980s -- he didn't live to see it happen. And China will eventually be a developed nation. In the shorter term, I believe dollar weakness is convenient policy. I have been scaling in to Aussie dollar and Brazilian utilities (not a recommendation -- just my take on self-preservation in the current craziness). I see the "50 yen" target as much less important than shorter term market forces. Yes, I'd rather be paid in yen and euros, but my clients pay in dollars and my monthly bills are denominated the same way. As a matter of policy, I'd like to see all Fed governors and Treasury officials required to have all their personal holdings in dollar assets. Align their interests with ours.
Frank T.
Las Vegas Insanity, so while foreclosures are hitting an all time record (and there sure seems to be a lot of huff and puff claiming on helping homeowners and stemming foreclosures these real stats do not lie!) there also seems to be something funky going on in grabbing these properties.
I don't have any real insight on the CR Las Vegas insanity post.
Is it huff and puff or is it all a dire warning that the U.S. dollar is imminent to be removed as a reserve currency?
I have a hard time believing the globe would let that happen in a sudden move, unless they wanted to bring down the U.S. in some sort of financial terrorism. It would cause the entire financial globe to collapse I think.
I'm not sure I can believe any bank about anything, but this is still worth noting.
And on a related note, there is no shortage of dollar bears out there.
They've only grown more confident in their theft. They really thought it was over after the subprime rort and then you rewarded their greed. Now they know nothing can stop them. It's your own fault.
Nice honor, one of my favorite blogs esp. tracking the big world of corrupt finance.
You have GOT to read this NC post lobbyists not only block new but try to further weaken old regulations.
Rebel, I think the site could use a "can you believe these corporate lobbyists" sort of links, must read the horror of it all type posts too.
This is astounding!
Frankly I think she should be impeached for representing corporate lobbyists in Congress. I hear ya and know the history.
What kills me is there were some great candidates as I recall running against her and the DNC didn't plain tell her she couldn't have that seat and endorsed the other ones.
I mean it's just ridiculous, you cannot get anything close to representation in so many of these "so called" elections because it's run by the parties and the districts are gerrymandered on top of it.
Tired of hearing "don't separate safety & soundness from consumer protection" meme from the GOP. I guess I missed the part where the Fed and the rest did a great job with both functions.
RebelCapitalist.com - Financial Information for the Rest of Us.
mark-up of CFPA. It is incredibly frustrating. I am not sure how much more I can stand. Rep. Melissa Bean (D) is supposedly submitting an amendment that will strip away the key provision of CFPA - issue of pre-emption. GOP is trying to kill it with a bunch of amendments.
RebelCapitalist.com - Financial Information for the Rest of Us.
I delete the comment spam in the moderation queue but I do not believe someone is going to try to repeatedly say we're all full of shit and link to the U.S. Chamber of commerce's "white paper" on "health care" over and over for free.
I've seen ads on craigslist and in other very cheapo "writing jobs" or "per line" jobs as well as things like cheap labor elance and so on.
So, they are hiring professional comment spammers somewhere, of course they do not identify themselves as major lobbyists and MNC's to do this sort of thing.
Do you have some articles you can point towards to show us this?
Not profits.
If you want to know what that really means, look at what the dollar does compared to the stock market. They have an inverse relationship.
If the dollar goes down, the stock market goes up that day. And visa verse.
We are cheapening our currency to get an nominal asset boom. The dollar has dropped 25% this decade, so in real value the DOW is less than 7,600.
This is the same dynamic that happened in Wiemar Germany. Their stock market kept pace with their inflation until just before their currency completely collapsed.
That's not to say we will have hyperinflation (I don't expect it), but the same dynamic is at work.
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