U.S. Dollar Markets Left to Runs Its Natural Course

October 6, 2009 by · Leave a Comment
Filed under: Currency News 

If gold’s jump to a new high during New York is any indication, it looks if the U.S. dollar is on a downward trend at the moment.  Don’t let that lull you into complacency either.  As we see, if we have a serious downturn, investors turn to the dollar as a safe-haven bet and that makes it rise rather quickly.

I would like to see the Yuan much higher so their exports are as attractive as they have been.  I don’t believe we do enough to give protection (yes I said it) to our native producers.  We are at double-digit unemployment so encouraging job creation in non-service areas of the economy is what is needed to get the income that is needed to support a middle-class and correct our massive trade imbalance.

Dow Jones, Istanbul – Big ideas failed to gain traction at the International Monetary Fund’s annual meeting, but that was because natural processes have already paved ahead.  IMF Managing-Director Dominique Strauss-Kahn’s proposal of making the IMF a global lender of last resort was politely downsized to a research project.

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Video: Rep. Mark Kirk says China may be purchasing $80 billion in gold bullion to increase reserves

July 12, 2009 by · Leave a Comment
Filed under: Videos 

Editor’s Note: Admittedly, Fox News is not my favorite news organization.  This video of an interview on Fox is pretty good and Republican Representative Mark Kirk from Illinois gives a pretty solid perspective of some of the debate that are happening in Washington and globally about the U.S. dollar and China as our largest creditor.   The omission that China is going to buy $80 billion in gold bullion says a lot about their inflation expectations in itself.  To put that into perspective, if you purchased that amount a current price ($920.00/oz.), that would equal 2,717 tonnes of gold bullion.  According to the World Gold Council, that would outstrip an entire years mining production for the entire globe.  If that is not some indication about our current situation and what is expected for inflation, than what else do we need?  Enjoy the video.

Video:

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George Soros sees no bottom for global financial “collapse”

February 22, 2009 by · 1 Comment
Filed under: Opinion 

If we are discussing the former financial system based on the previous amount of trust and confidence, Mr. Soros is correct.  There has been an excessive amount of debt built up in the system right now, while the engine that generated that income is falling apart.

Until we deal with those obligations, we are not going to stabilize the markets.  All impairments affects the market is some manner somewhere.  We broke an important technical support on Friday so it looks to be a choppy week.

News:

“Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.

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Willem Buiter warns of massive U.S. dollar collapse

January 7, 2009 by · Leave a Comment
Filed under: Opinion 

Americans must prepare themselves for a massive collapse in the dollar as investors around the world dump their US assets, a former Bank of England policymaker has warned.

The long-held assumption that US assets – particularly government bonds – are a safe haven will soon be overturned as investors lose their patience with the world’s biggest economy, according to Willem Buiter.

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