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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (125510)	10/28/2012 4:47:45 PM
From: LLCF	Read Replies (1) \| Respond to of 149317

<The dollar has been range bound for 10 years...........and its up from its low in 2008:> Your chart shows the dollar has lost about 1/3 of it's value against that basket in the last 10 years. And yes, it's "bounced" from the panic lows of '08. The important term here is "basket"... ie. you're comparing the dollar to other currencies... which is nice, but doesn't deal with the issue if those countries are watching our currency and adjusting. If you must look at another currency, a "hard currency" like the Swiss Franc is better: forecast-chart.com We won't even discuss the issue of retired people jumping into the stock market because the Fed has essentially taken their income and given it to companies to speculate with. And what is more to the point, actually, since we're talking about price levels is to look at commodity charts. I suppose one could argue they've all topped... but with Bernanke's policies, one could easily imagine that that is a pipe dream. <And yet that has not happened {higher prices} during the past 4 years. Why?> HUH!??? Have you looked at commodity charts??? Here is corn: futuresbuzz.com I'll save you the work, they all look pretty much the same. :)) nowandfutures.com <<As for China's unit costs going up, that's China's problem. If those costs go up dramatically, there are new producer nations ready to take her place.>> All producers prices are reflected in the market... if cost of production goes up in China then a new higher price level will be found.... period. If costs go up in China (they ARE, big time), then the cost of the goods we import from them goes up... this is pretty simple stuff. If there is some secret local with a billion people making a dollar a day ready to step in, let us know for sure. <Why would they move out of the dollar> Ask them. But I presume it would have something to do with Bernenke's policy of zero rates??? Kinda obvious isn't it? Do you want to hold money where you get a return.... or not? <one of the most stable currencies in one of the most stable nations in the world?> HUH!??? See your chart above. Also read the news about the alarm in China over US monitary policy. This is well chronicled. Zero rates and increased money supply IS a devaluation, are you arguing differently?? The fact that other countries are also priniting money to attempt to keep selling goods in the US means inflation will become a BIGGER problem, not a smaller one... everywhere. <When do you expect the dollar to hit a new low?> Against what?? Corn? Wheat? Last month... Gold? What, last year? OIL?? Last year or so??? DAK