Do not WORRY the dollar is at new lows for the year....76.72

Do no worry, everything is fine, the dollar at new lows is a good thing....

What is going to happen when the real collapse in the dollar happens and inflation runs rampant through the economy, too many people again are ignoring what is going to happen as always, these are the same people who brushed aside the coming housing collapse in 2006 and 2007, very ignorant fools. How anyone can believe that trillions being injected into this economy will not create any signs of inflation is beyond me, dumb fools only see higher stock prices and are happy at the end of the day, good things dont last forever on wallstreet, adding trillions of stimulus is only a short term fix, its creating a worthless dollar and an upside down economy.




Dollar Drops to Weakest in 2009 on Record Low Interest Rates

By Ye Xie and Matt Townsend

Sept. 10 (Bloomberg) -- The dollar declined to the weakest level against the euro in 2009 as record low U.S. borrowing costs encouraged investors to sell the currency and buy higher- yielding assets.

Sterling rallied against most of its major counterparts as the Bank of England kept its bond-buying program unchanged in a sign policy makers think the recovery is on track for now. The dollar extended its drop versus the yen as higher-than-forecast demand in the U.S. Treasury’s $12 billion 30-year bond auction pushed yields lower.

“The market increasingly believes that the U.S. is one of the slowest countries to move rates,” said Adrian Owens, a London-based fund manager who overseas about $600 million in currency funds at Augustus Asset Managers Ltd. “That’s weighing on the dollar.”

The dollar depreciated 0.2 percent to $1.4586 per euro at 1:35 p.m. in New York, from $1.4557 yesterday. It touched $1.4613, the weakest level since Dec. 18. The dollar dropped 0.4 percent to 91.68 yen, from 92.04, after reaching 91.44, the lowest level since Feb. 16. The euro fetched 133.72 yen, compared with 133.99.

Thirty-year bonds rose for the first time in five days as the debt drew a yield of 4.238 percent, the lowest level since March. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 2.92, the highest since November. The average for the past 10 auctions is 2.31.

Stronger Pound

Sterling rose as much as 0.8 percent to $1.6677, the strongest level since Aug. 10, and advanced 0.6 percent to 87.43 versus the euro.

The decision by the Bank of England’s nine-member Monetary Policy Committee to keep buying as much as 175 billion pounds ($289 billion) of assets to cement the economy’s recovery was forecast by all 35 economists in a Bloomberg News survey. Policy makers also kept the main rate at a record low of 0.5 percent.

“The market was concerned that the BOE may introduce additional asset purchases,” said Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto. “The BOE did nothing. There’s a window opportunity for the pound to pick up some ground in the next two months.”

The Canadian dollar slid 0.2 percent to C$1.0802 versus its U.S. counterpart after the Bank of Canada kept its key interest rate at a record low of 0.25 percent. Policy markers said the currency’s 13 percent appreciation this year is threatening signs of faster-than-expected growth in the second half.

Norway’s Krone

Norway’s krone dropped the most in more than three weeks against the euro as inflation unexpectedly slowed in August, reducing the likelihood of an increase in the 1.25 percent target lending rate. The krone lost as much as 1.2 percent to 8.6908 per euro in the biggest intraday decline since Aug. 17. The underlying inflation rate, excluding energy costs and taxes, fell to 2.3 percent, from 2.5 percent, Statistics Norway said.

The Swiss franc depreciated as much as 0.5 percent to 1.0465 per dollar after it touched 1.0366, the strongest level since July 29, 2008, on speculation the central bank will intervene to weaken its currency. A Zurich-based spokesman for the Swiss National Bank, Nicolas Haymoz, had no comment today. The euro gained as much as 0.3 percent to 1.5201 francs. Both the dollar and euro later dropped.

“There are rumors about the SNB being in the market, but that’s all I’ve heard,” said Martin Furrer, a currency trader in Lucerne at Luzerner Kantonalbank. “I don’t think it’s likely.”

March Intervention

The franc posted a record 3.3 percent decline against the euro on March 12, when the central bank said it began intervening to weaken the currency.

The greenback dropped 1.7 percent versus the euro this week as the cost of borrowing in London dropped to a record low, making the dollar the cheapest currency for investors to fund purchases of higher-yielding assets.

The three-month London interbank offered rate for the dollar fell to 0.30 percent yesterday, compared with 0.31 percent for the franc, according to the British Bankers’ Association. The corresponding rate for funds in yen was 0.37 percent, increasing its premium to the widest level since January 1993.

The Dollar Index, which the ICE uses to track the value of the U.S. currency versus the euro, yen, pound, Swiss franc, Canadian dollar and Swedish krona, dropped as much as 0.5 percent to 76.720, the lowest since Sept. 26, 2008. It fell 14 percent from its 2009 high of 89.624 reached in March.

The Norwegian krone, the Australian dollar and New Zealand’s dollar will gain further as “investors focus on relative countries’ fundamentals and policy actions,” said Owens. “Those central banks that are in no hurry to hike rates will see their currencies struggling, including the dollar, the Swiss franc and the yen,” he said.

The Australian dollar gained 22 percent this year to 85.93 U.S. cents, and New Zealand’s currency rose 20.6 percent to 69.84 cents on global economic recovery prospects.

 

?.....Get ready for all of the hype regarding an export-led recovery.

 

The market is so distorted. Yields won't budge, yet the stock market is flying higher.

Gold at $1000.00..... 90 day yields 0.14%...SP500 PE 88.2..... go figure.

 

I already said Ben Bernanke is expanding the monetary base like a mad drunk on steroid and crack. My posts got bashed, I was ridiculed. Look for the thread - long equity, short us dollar is ben bernanke's zimbabwe bailout trade.

I think there's a dip next week i'm going to buy more. Ben Bernanke is insane. He's sacrificing the currency and it's finished. Your purchasing power is gone. He's stealing from everyone to bail out his bankers friends.

The only thing that helps is the fact that oil is still relatively cheap at $71. When the economy recovers, it's going through the roof, that I am very sure of.

But at the end of the day, even when Dow jones is at 30,000, it will never be the same value as it is when it was 14,000 in 2007. This guy is insane. Period.

 

If oil goes higher we will be in deeper shit

I hope not

 

Hey, hey, hey people. Don't worry. Be happy.

Just follow your good "leaders".

Whaaaat? You don't have confidence in them??