or perhaps part of the british conspiracy to control the mineral wealth of the world by using the enviromentalists as a front or is it the old line italian banks which have been around for over six centuries. I think that all conspiracy theorists should have a diversified porfolio of theories that you can pull out of your hat on a second's notice depending on the current trend of angst and anxiety.
no country has ever succeded in increasing prosperity by depreciating its currency. the end result is that the currency becomes worthless and is replaced with a new currency
value of the currency has nothing to do with deficit as a percentage of GDP dont you know anything about macroeconomics??? the dollar in the U.S.A. is sinking because operating a heavy deficit budget causes inflation, inflation then causes less people wanting the shit all you stupid americans hawk, less exports equals less foreign demand for dollars, less demand = lower price of the U.S. dollar. do you get it ya stupid yankee??
IMHO, all those betting against the dollar will get financially destroyed in the next 12 months. You heard it here first.
Tomcole, You have provided no reasoning for your argument. So in the interest of a two-sided "debate", here is my well-argued opinion: IMHO, all those betting in favour of the US dollar will get financially destroyed in the next 12 months. You heard it here first.
let's skip imho. as we know from any chat board those who use imho don't know the definition of humble.
http://www.elitetrader.com/vb/showthread.php?s=&postid=744491#post744491 Read the last 2 posts (fwd'ed stuff). Start with the letter by Mr Neely, Research Officer of St.Louis Fed, refuting the points that Bejing can dictate US policy. Mr Neely's argument basically says: "So what if China sells? US dollar drops further by -20% to -50% (maybe more). Last time USD lost 50% of its value (86-87) nobody in US noticed. Just some american tourists cancelled their trips abroad" I agree that it would make no economic sense for China or Japan or Korea or India etc to sell dollars for political reasons. But what if some of these countries decide they want to ACTUALLY SPEND some of those dollars? To improve their local infrastructure, invest that capital domestically and improve their lifestyle, rather then keep $2.5trillion in US bonds in custody of Fed? It's like having a lot of money in your bank account, but you can't take any of it out and spend it, because as soon as you do, it's purchasing value will drop like a rock. And this is the situation in which most of those countries are in. They have lots of USDs but can't SPEND them! Those countries did it for political / mercantilistic reasons, knowing that they'll probably lose big on them, but would transfer jobs and know-how into their countries. So don't feel too bad for them. USA was smart to unload lots of paper USD, in return for real goods and services. I would imagine that the USA will inflate its way out of those obligations (with a SHARPLY DEPRECIATED DOLLAR). Otherwise US would have to either default on those obligations (like Russia,Argentina etc), or the people of USA would have to work for decades just to payback the debt with interest. Take your poison. Buffet himself (to get back to the subject of this thread) said he believed US would inflate its way out of this debt. Which is why he hedged his exposure to the USD. The following text is from recent article of Sean Corrigan of Sage capital:
how to get rich REAL easy... if you think about it, B-Hathaway shares came with ONE major instruction to their purchasers: "NEVER SELL." If YOU owned shares of a company that NEVER sold any, you'd get rich too because the value of each share would go through the roof. Exactly as the price of B-Hathaway's shares have. s
"I think that all conspiracy theorists should have a diversified porfolio of theories that you can pull out of your hat on a second's notice depending on the current trend of angst and anxiety." Not me, I just make this sh(t up as I go along! But thanks for the insult. CB