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

To: Real Man who wrote (23056)	9/24/2009 7:15:57 PM
From: DebtBomb	Read Replies (1) \| Respond to of 71475

Faber: Fed Will Destroy Dollar, Buy Gold Wednesday, September 23, 2009 9:38 AM By: Julie Crawshaw Article Font Size Investing guru Marc Faber advises investors to switch off Ben Bernanke, ignore his government-sponsored “We will keep inflation in check” line — and be sure to buy gold to protect yourself. “Government is there to do something for itself, not for people,” he observes. Faber says the government will have no choice but to print money like crazy and soon. He points out the huge existing debt and the financial crunch that’s coming by 2018 when more retiring Baby Boomers make demands on Social Security and Medicare, Don’t buy bonds or keep your money in cash, Faber counsels: Put money instead into things that will hold their value, like gold, preferably stored outside the U.S. “With a chairman like Mr. Bernanke, I would assume that cash will be worth zero,” he says. “Gold … has been a relatively stable commodity, unlike oil, which (last year) went from $147 to $32 a barrel.” “I repeat what I have said in the past,” Faber says. “No decent citizen should trust the Federal Reserve for one second. It’s very important that everyone own some gold because the government will make the dollar useless.” President Barack Obama said that when it comes to declaring the recession over, he’ll defer to Federal Reserve Chairman Ben Bernanke, The Wall Street Journal reports. “I’ll leave that up to the Fed chairman to pronounce whether it’s officially over or not,” Obama told CNN. “What’s absolutely clear is that the financial markets are working again.” moneynews.newsmax.com

To: Real Man who wrote (23056)	9/25/2009 7:31:39 AM
From: DebtBomb	Respond to of 71475

Marc Faber Says Stocks Have Likely Peaked for 2009 (Update3) By Patrick Rial and Paul Gordon Sept. 25 (Bloomberg) -- Stocks may have already peaked for this year and might drop 20 percent amid renewed deflation fears, said Marc Faber, the publisher of the Gloom, Boom & Doom report. The dollar is likely to rebound from an “oversold” position, which will be negative for equities, Faber said in an interview with Bloomberg Television on the sidelines of CLSA Ltd.’s annual investor conference in Hong Kong. “I wouldn’t be surprised if we’d seen the peak of the market for this year because the economic news isn’t going to improve very much,” Faber, 63, said. “The correction in the market has been overdue for quite some time.” The investor predicted on March 9 in a Bloomberg interview that equities would rally because of government stimulus measures. The Standard & Poor’s 500 Index dropped to a 12-year low that day and has since climbed 55 percent. The MSCI World Index rallied 63 percent in that time. The S&P reached a high for 2009 of 1,071.66 on Sept. 22, and has since slipped 2 percent amid concerns the rally had outpaced prospects for a recovery in earnings and economic growth. France, Germany and Japan are among economies that have emerged from recession. The Bank of Japan upgraded its assessment of the economy on Sept. 17 though said it remained concerned about the strength of the recovery. Federal Reserve Chairman Ben S. Bernanke said on Sept. 15 that the U.S. recession is “very likely” over, while warning that growth may not be strong enough to quickly reduce unemployment. Credit Crisis In a presentation to investors at the CLSA forum after the interview, Faber reiterated his bearish outlook for Western economies because fiscal and monetary stimulus efforts have only delayed a coming crisis instead of averting it. The global credit crunch, worsened by the collapse of Lehman Brothers Holdings Inc. a year ago, has caused more than $1.6 trillion of writedowns and losses at the world’s biggest financial institutions. The MSCI World Index slumped by a record 43 percent in 2008. “You cannot postpone the hour of truth forever,” said the Swiss national, who now lives in Thailand. “The next stage is for total breakdown of the financial system and for an economic and financial crisis that will bankrupt governments.” The investor predicted in the interview with Bloomberg that gold “should correct” in tandem with equities. Gold futures rose above $1,000 an ounce for the first time in seven months on Sept. 11. ‘False Breakout’ “We probably had a false breakout on the upside,” he said. “I wouldn’t be surprised to see a little bit more of a correction down to maybe $920 per ounce.” Faber had recommended investors buy gold since the start of an eight-year rally and maintained that he isn’t going to sell his holdings of the metal despite his prediction for prices to fall. Faber expects the dollar to rally as concerns about deflation prompt risk-averse investors to repatriate funds back to the U.S. The Dollar Index has slumped 8.4 percent in the past six months amid speculation investors are using borrowed dollars to fund asset purchases in other countries. The dollar is ultimately a “doomed currency,” as is the British pound, he said, because high debt levels in both countries will lead to inflation as central banks monetize debt. Asian countries, which have low levels of leverage, should continue to grow in spite of any economic decline in the U.S. and the U.K., he said. U.K. consumer debt as a proportion of the country’s gross domestic product exceeded 100 percent at the end of the second quarter, while the U.S. was more than 90 percent, according to CLSA data. China, India, Indonesia and the Philippines had less than 20 percent. “On any setback in Asian shares, you should gradually accumulate,” he said. bloomberg.com

To: Real Man who wrote (23056)	9/25/2009 7:33:51 AM
From: DebtBomb	Read Replies (1) \| Respond to of 71475

G20 stimulus pledge helps stocks, hurts dollar By Kevin Plumberg Kevin Plumberg Fri Sep 25, 2:40 am ET HONG KONG (Reuters) – Financial and consumer-related shares rose in Asia and the U.S. dollar turned lower on Friday as G20 leaders pledged in a draft statement to keep some stimulus supports in place until a recovery is clearer. Major European shares were expected to open higher, according to financial bookmakers, following the draft statements that were obtained by Reuters. U.S. stock futures reversed early losses and rose 0.3 percent. Japan's Nikkei share average (.N225) led declining equity markets in Asia, falling 2.5 percent. Bank shares dropped after Nomura Holdings (8604.T) said it would raise in an equity offering up to $5.6 billion, what one broker pointed out was 24 times its average daily turnover. Banks in Japan also received a blow from financial services minister Shizuka Kamei who expressed interest in introducing a moratorium on the repayment of the principal on mortgages and bank loans to help small and midsize businesses. "Worries about the moratorium idea and the news about Nomura's financing are weighing down on the financial sector," Junichi Misawa, senior fund manager at STB Asset Management in Tokyo said. The MSCI index of Asia Pacific shares outside Japan (.MIAPJ0000PUS) was largely unchanged, not far from a 13-month high hit on Wednesday. The consumer discretionary sector was a clear favorite among investors in the wake of the draft G20 statements to promote more balanced current accounts. A Thomson Reuters index of regional shares (.TRXFLDAXPU) was also nearly unchanged. WORLD INDEX DOWN The MSCI all-country world index (.MIWD00000PUS) is down 1.7 percent so far this week, on track for the biggest weekly decline since the week of July 12. The index is up 25 percent year-to-date, but the likelihood that economic news will continue to deliver positive surprises and trigger more buying was smaller. "Our trading stance remains 'pro-risk,' reflecting our view that this pullback -- like those before it -- will likely be temporary," said Dominic Wilson, director of global macro and markets research with Goldman Sachs, in a note. "But industrial news is undershooting a bit lately relative to high expectations and it is less clear what will take the market higher in the very near-term." Despite an eight-week streak of outflows from safe haven money market funds being broken, equity funds took in $5.42 billion in the week to September 23, with emerging market equity funds having their biggest week of inflows since early June, fund tracker EPFR Global said in a note. In currency markets, the dollar was down against most major currencies. The euro was up 0.1 percent to $1.4685 after climbing to the highest in a year above $1.48 on Wednesday. Sterling continued to be an open target after Bank of England's Mervyn King said on Thursday that a weak currency was helping the domestic economy. After dropping 1.8 percent on Thursday, the pound fell a further 0.4 percent to $1.5991. The Australian dollar, which has maintained a tight relationship with global equity markets, rose 0.3 percent to US$0.8682 U.S. Treasuries were steady after a rush out of equities on Thursday weighed on yields. Japanese government bonds gained after the overnight Treasuries rally, with the December 10-year JGB future up 0.22 point after earlier hitting the highest since September 15. U.S. crude futures recovered after tumbling over 4 percent to an eight-week low the previous day when weak U.S. home sales increased fears about the pace of economic recovery in the world's top oil consumer nation. U.S. crude for November delivery was up 0.7 percent at $66.33 a barrel, after settling down $3.08 on Thursday, when the housing data added to demand worries following a report earlier in the week of a large build in oil stockpiles. news.yahoo.com