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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (17975)	2/28/2009 10:03:33 AM
From: re3	Read Replies (1) \| Respond to of 71462

<<<It's about to get the boot from international trade. so is gold a better bargain than ever at $ 950 or wherever it closed yesterday ?

To: Real Man who wrote (17975)	2/28/2009 10:55:34 AM
From: Giordano Bruno	Read Replies (1) \| Respond to of 71462

Who's pulling the strings regarding the dollar?

To: Real Man who wrote (17975)	3/1/2009 3:30:36 PM
From: Hawkmoon	2 Recommendations Read Replies (1) \| Respond to of 71462

It's about to get the boot from international trade. And gee whiz.. I guess that means that the rest of the world, especially Europe, has all of their ducks in order and no need for US markets?? You're myopic about this global financial crisis. It's not just the US.. IT'S EVERYWHERE!!! Look at the cutbacks in industrial production that are being suffered from those economies who sold primarily to the US. People didn't think it could get any worse in Japan, but their production was down 30% LAST QUARTER!! "The Japanese economy is crumbling because of its massive dependency on exports," said Yoshiki Shinke, senior economist at Dai-ichi Life Research Institute. "Japan will only see a recovery when the economies of its export markets recover." google.com Europe is no better off. In fact, some credible analysts perceive the risks to the European fiancial system FAR OUTSTRIP the problems here in the US: finance.yahoo.com There's some VERY FRIGHTENING stats in that article, and it's possible that European problems made wind up overshadowing the current focus on the US crisis. It also might result in capital flight from Europe to the US. Btw, one of the reasons the SEC permitted the IBs to go to 40-1 leverage is because they couldn't compete with the leverage the European banks were using. But the Europeans could get away with high "gearing" so long as they had US markets to purchase their exports. Furthermore, the Chinese, Japanese, and Europeans have attempted to manipulate currency exchage rates by keeping a lot of capital denominated in USDs. They don't want to ship their profits back home because that would necessitate them to sell those dollars and convert to their own currency. That foreign money was CRAVING YIELD and all of those mortgage and investment banks were more than willing to meet that demand. So they colluded with the Rating Agencies to package all that stuff up and sell them off as CDO's, RMBS.. etc, each with a stamp of approval from Moody's or S&P, from analysis based upon CDS spreads derived sum BS mathematical risk analysis equation from David X. Li.. Just insane, but EVERYONE was involved, as well as responsible. But most of all, I agree with Barry Ritholtz that the Rating Agencies bear the ultimate responsibility for becoming involved in obvious conflict of interests and using bogus analytical models. Hawk

To: Real Man who wrote (17975)	3/1/2009 3:36:24 PM
From: RockyBalboa	Respond to of 71462

Mexico’s Carstens Says Peso Undervalued, Reserves to Increase Email \| Print \| A A A By Ben Sills and Emma Ross-Thomas March 1 (Bloomberg) -- Mexican Finance Minister Agustin Carstens said the country’s currency is undervalued and the country’s foreign exchange reserves will increase this year. “Really the peso is undervalued, it’s been an excessive reaction by the market,” Carstens told reporters in Porto, Portugal, today. “The fundamentals of the Mexican economy are very healthy.” The economy will begin to recover before the end of this year and foreign exchange reserves will likely increase by as much as $20 billion to around $100 billion, he added. Last Updated: March 1, 2009 14:40 EST