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

To: Real Man who wrote (23545)	10/16/2009 6:37:32 PM
From: ayn rand	Read Replies (1) \| Respond to of 71475

From Steve Forbes, Editor-in-Chief of Forbes magazine, in his "Fact and Comment" column in the special October 19th "Forbes 400" issue: "The White House is continuing the Bush Administration's disastrous weak-dollar policy. Federal Reserve Chairman Ben Bernanke is as blind on this as are Treasury Chief Timothy Geithner and White House economic czar Larry Summers. Even Bill Clinton knew that, for political reasons, a feeble greenback is political poison. Yet the lessons of the Jimmy Carter years are lost on this crowd. Rule of law? With GM, Chrysler and home mortgages, the Administration is trashing it Argentina-style. Regarding trade, Barack Obama is on his way to becoming maybe the worst White House occupant since Herbert Hoover. The magnitude of Obama's transgressions with Mexican trucking and Chinese tires are, in a narrow way, small. But they signal to the world that the U.S. is abandoning its 60-year tradition of free-trade leadership. The result will be lethal: everyone for himself--something the world hasn't experienced since the 1930s. Americans are sensing that something is profoundly wrong in all of this, particularly with regard to the weak dollar. Occasionally I speak at motivational events that are attended by thousands of people, and these people respond resoundingly to the call for a strong greenback. You don't have to grasp the basics of entrepreneurial capitalism to understand that most of what the Obama Administration has undertaken will do more harm than good. The clich? that it's always darkest before the dawn is true. So hold on. Just as happened under Reagan, a bright, new day is beckoning. But this time entrepreneurs and others will have to take on an additional task--making sure that more people learn about the basics of our free-enterprise system." . . . and from Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on October 12th: "When will the US stop BS-ing the rest of the world to the effect that 'The US wants a strong dollar.' Of course, what the US really wants is a slowly weakening dollar to help our exports. But despite Washington's phoney protestations, 'quantitative easing' continues to pump record amounts of liquidity into the system, and there isn't the slightest hint that the Bernanke-Geithner team is ready to cut back on their liquidity program ('whatever it takes'). You have to wonder whether our creditors are taking the ridiculous 'strong dollar' mouthings of the US seriously. I would think all this official BS would annoy the hell out of our creditors (who are seriously worried about the dollar). Ah well, as far as Washington is concerned, it's 'keep the printing the money,' and keep the BS flowing. Last week the central banks of Japan, Thailand, Hong Kong and Singapore created more junk money with which to buy dollars -- this in an effort to keep the dollar stronger against their own currencies. A strong dollar creates a problem for those who want to sell their merchandise to the US. Ultimately, it all ends with more liquidity and potential further monetary inflation across the globe. The desperate Asian efforts to slow the dollar's descent may work for a few days or so, but the basic direction of the dollar is toward the lower depths. The dollar's trend is not lost on gold. Over the last six months, the dollar has lost 15% of its value. In all, it hasn't been an easy time for the anti-gold 'dollar-bugs.'" -monex

To: Real Man who wrote (23545)	10/17/2009 12:57:39 AM
From: maceng2	1 Recommendation Read Replies (1) \| Respond to of 71475

This time the manufacturing will be wiped out Yes, I entirely agree with your point. Perhaps I forgot to to emphasise in my post that the will to exist by manufacturing was a primary driver in a nations economy. Government and business do have entwined interests, and Japan is a good example in the last 60 years of it's history. I am not an expert or student of Japan's history but I do know there has been a constant national policy supportive of manufacturing since 1946. If manufacturing is not going to be a primary force in the economy, it's needs to be decided at national government level what is, because the citizens still need employment. The USA' s (inlude UK's) politicians are going to get the message eventually. Politicians wages come from tax receipts. No jobs = no taxes = no politicians wages or graft, and a very troublesome and unhappy set of citizens. Once they figure that out, the recovery will be underway. Competition on a global scale is good, but a supposedly democratic national government that has been overrun by international corporate special interest is a system that is programmed to fail imho.