I keep reading in so many sites/blogs about govt intentionally killing the dollar to prop up the stock market. I just don't get it. Lower dollar tends to lead to higher oil, which ripples thru the economy like a tsunami ( my condolences to those in Samoa). I know the so called "green shoots" are nothing but bullshit, but that being said.....higher oil would crush any possible recovery. I used to vacation in Canada. I can remember going to the Bank of Montreal to convert my dollars, and the clerk asking me if I had any more. I think it was like $1.30 at the time. I said that will be enough for now. ( actually came home with Canadian currency in my wallet, duh). What am I missing???...Why would a country destroy it's currency, or even give the indication of such ???
Did you see what happened with unemployment when the dollar index went from 72 to 88 in a couple months? You saw the stock market go from 14k to 6500. You saw unemployment losing 500k+ jobs every month. No point in saving money on gas prices if nobody has a job to buy gas. Also...we owe 12 trillion on our deficit yet we only take in about 2 trillion per year in taxes. We also are overspending by a trillion every year. This is like a guy who makes 50k per year owing 300k on his credit card and after spending his entire salary for the year adding another 25k onto that card every year. How is he going to pay it off?
It is the masons that wants amero to take over dollar The whole world will be united and become one country. The interests of USA is irrelevant. It is the interest of the conglomarates and big corporations that matters. There is no government or borders. There was and is only special interests and all the laws and rules were and are for them. Wake up.
cut the dollar in half, what the government owes is cut in half, in real value everyone else be damned
I know all about the unemployment #'s, the last short cover rally in the dollar, etc. etc......And I don't care what the govt deficit/statistics on paper. If you continue to devalue the dollar, foreign countries will OWN your ass/assets quickly. It's total bullshit a Euro damn near a buck fifty right now. Are they 50% better than Americans?? Hell no. I say stop propping up the MF stock market and prop up the dollar, before you kill us all. A rising stock market is "sentiment"...it doesn't produce a single job. All pensions and social security are Ponzi's anyway, so accept the fact and do something to continue the scam by creating jobs. How simple can it be????? You make it. somebody buys it. If the shit is made overseas, make it here. So what if the jobs only pay 8-10 bucks an hour.....how much does it take to by a f***** tent??? which is what thousands of people are already living in...geezzzzzzzzzzzzz.. dump the big screens, Ipopds, fancy dinners, designer clothes/cars and you can make it on much less.
It's not that the government actually WANTS to destroy the $USD. Currency debasement is a way of confiscating the wealth of the citizenry in such a way that most don't understand how they're being hosed. In substance, it's no different than government storm troopers busting down your door and confiscating all of your possessions, bank accounts and investments. But of course if they did that we sheeple would riot against them. If they go the "currency destruction" route, most of our wealth will be gone before many of us even ask "what happened"?
"destroying the dollar" is not as easy as it sounds. FDR confiscated all the gold, gave people 20 per oz for their gold, then immediately set the POG at ~30/oz, an overnight 50% inflation. I've seen articles that speculate the FED wants inflation at 7% for 10 years or 5 to 6% for 13 years to half the value of the dollar. The problem with that today is, because of the electronic markets and information transfer, speculators would "smell" out the FED's intention, and jump ahead of the trade. So, the impact of the move would be rather sudden, and not gradual as intended. I doubt the FED would be able to perform the 2009 equivalent of confiscating gold in order to make this move happen as they envision it to happen. I'll add that there has to be inflation and not deflation for the US due to the massive size of the debts. With Social Security already insolvent (looking at cash flow and ignoring trust fund), any sizeable deflation, which makes debt payments more burdensome, would lead to default or mass selling of assets to cover the debt payments.
Devaluing the dollar is a way of taking money from the people who already have way too much of it (ie: the elderly), to people who don't have nearly enough of it (the young, and highly indebted). That's why the government would want to inflate the dollar. Money does little when its locked up in Grandma's savings account, where she keeps probably 10X more than she really needs in there. But it is incredibly powerful, economically speaking, when in the hands of a business owner, or in the hands of a young consumer or investor, who can actually put such funds at-risk, and create activity in the economy.
Think about the Manufacturing base, both private and public in this country. A weak dollar will help their exports. A weak dollar will help their profits and keep people employed. Nobody cares about the stock market other than those in their 401ks. At the end of the day, SWFs are buying up hard assets, tangable assets in the US. The SWFs are buying up infastructure, land, Oil fields and gold to shore up their holdings in the Green back. So, overall, a weaker dollar will help global trade and will bring down the debt amount owed to China. There is a reason the EMPIRE STATE BUILDING IS SHOWING THE COLORS OF CHINA! The funny thing is, the amatures focuse on the "STOCKMARKET". The truth of the matter is, it has nothing to do with the actual market. It runs far deeper than the markets. Obama wants to raise the capital gain tax. So, what do you think is going to happen to the stock market when and if that is passed next year? Sideways action? Weak dollar is for boosting trade, closing inthe Trade Gap and keeping the american goods flowing overseas in a cheap mannor. The consumer in America is finished for now and all trading partners know this. A weak dollar will not effect the average joe in the US. Of course, Imported goods will be out of reach for the majority of Americans in the future. Say good bye to 50k year wage earner driving a New 2011 BMW. Not gona happen. There is a huge shift in the world. Watch it take place, read between the lines and you will make a shit tone of money. However, if you think in the good old ways, focuse on the same old shit,...you will not only miss out on opportunity but will end up worth a lot less than you were 5 years ago.
That's the conventional wisdom, theory and bilge the politicos feed us. Sounds reasonable, so we accept it. But it's only "sort of true". For a weaker dollar to allow us to compete favorably with low labor cost countries, the dollar would need to be SMASHED... to the point that nearly all US citizens become bankrupt. American manufacturing expexts what, $20 per hour or more? Competing against Asian workers at $1 per hour. How much does the $USD have to be devalued to make it so our manufacturers can compete with theirs? Those who support the notion of a weaker $USD are nothing more than LIARS AND THIEVES!! And any one who accepts that notion is a fool.