US dollar crashing

[FairAndUnbiased]

This article may be a stupid one...

Since last year Dollar has appreciated for a long time.
Dow Jones still in high line while others down many.
The whole world money slowly return to US, it is a fact.

Someone laugh at China holding so many US Treasury bonds and dollar.
But since europe crisis, the only major assets appreciation just these two.


I just invest in stock and futures market, and see US futures and stock market every night,

The major companies of US profit making reach a new high, such as Apple....google.....
Obama really did well in the last two years.

It's just a relative growth against other equally indebted consumer currencies. What's important is the ratio of the USD to currency of manufacturing economies like Yen, RMB and Won, and it's down on all 3. Dow Jones is propped up by silent QE3 which is going on 24/7 except they're keeping it quiet.

You're wrong actually. Oil is up too. The only hard assets are oil and gold since both have a very high price floor now. Gold has grown continuously since 2005 and even now only has minor fluctuations. Despite its volatility, gold has maintained its purchasing power in terms of petroleum. And really, petroleum is one of the main reasons why any country bothers with USD reserves. That is why we are spending USDs at a time of record petroleum prices to boost our SPR, because it will all pay off later.

-All the Chinese clapping over the Fall of the US.i say let it fall. Out with the $$ itll crank down our debt dramatically.

But keep in mind CHina is the bigest buyer of AMerican debt ie it is indirectly returning all the money racked up over a decade of unbalanced trade.
AMerica is the bigest buyer of Chinese products with over 80% going towars the EU and the US. the EU is going down and so will the US?

Who do u think goes down next? with 150+%debt to GDP RR..china is next in line.

China requested a streamlined process of buying American debt and the wish was granted just last week.

Talk about people rejoicing on there own grave. Ignorance is bliss iguess.

List of the largest trading partners of the People's Republic of China - Wikipedia, the free encyclopedia

670 billion to US/EU.

http://en.wikipedia.org/wiki/Economy_of_the_People's_Republic_of_China

1.897 trillion in exports total.

670 billion / 1897 billion (1.897 trillion in 2011) =/= 80% lmao.

 

[faithfulguy]

Your statement would've been true if the inflation rate in the US was around 10% but that is not so. Last time I checked the rates, currencies like Indian , pakistani rupee was continuously depreciating against the US dollar. The USD stays strong, no matter what turmoil engulfs the world.

This is true against currencies such as Indian rupee. But against Canadian dollar and Euro, US currency is falling.

We have a two party system that spends as if there is no tomorrow. And with most of population relying on the government for hand out. Its time for real change with a president like Ron Paul

 

[Chinese-Dragon]

Peter Schiff is the guy who predicted the Credit Crunch. However, he has a serious obsession with America collapsing in the immediate future, which I don't think is likely to happen.

The most likely thing, is that America will continue to muddle along, albeit at a much reduced growth rate.

 

[Abhishek_]

Its time for real change with a president like Ron Paul

it's time to get updated, he was never a credible candidate to begin with.

 

[FairAndUnbiased]

Peter Schiff is the guy who predicted the Credit Crunch. However, he has a serious obsession with America collapsing in the immediate future, which I don't think is likely to happen.

The most likely thing, is that America will continue to muddle along, albeit at a much reduced growth rate.

I trust him because he actually has a background in math and economics, and graduated from UC Berkeley, which you can't pay to get into unlike Colombia.

Peter Schiff - Wikipedia, the free encyclopedia

I'm amazed this guy would affiliate with Republicans. I mean, I know that the one party (Republicrats) two factions system over there is real, but why not Democrats, since his ideology fits with their mask better?

 

[Hyde]

Do you not understand that the drops you are talking about are these currencies in relation to each other. I am saying they are all falling some faster than others.

I agree with S-19 (King Solomon) post because dollar is actually doing well since last couple of months. It has been appreciated strongly not only against the Euro but almost every currency in the world. The economic data released in the USA is also positive and the unemployment rate and other factors are also very satisfactory.

If the thread title was "Euro" crashing I would have said may be yes but dollar is no where close to crashing in fact it is among the very few currencies willing to stay strong against any battle and remain a champion in the long run

lol, The same person who wrote this (Peter Schiff) rejects gold as an investment...

This guy is an idiot...

If that is true then I must say he needs to see the doctor very soon. There is no secret that Gold has been dropping since last couple of months and has dropped to about 1530 dollars from the peak of 1920 per ounce. But it is equally true that Gold is going to remain the safest investment for the long time. Dollar is a good alternative to gold but surely is not as safe as gold.

 

[Chinese Century]

-All the Chinese clapping over the Fall of the US.i say let it fall. Out with the $$ itll crank down our debt dramatically.

But keep in mind CHina is the bigest buyer of AMerican debt ie it is indirectly returning all the money racked up over a decade of unbalanced trade.
AMerica is the bigest buyer of Chinese products with over 80% going towars the EU and the US. the EU is going down and so will the US?

Who do u think goes down next? with 150+%debt to GDP RR..china is next in line.

China requested a streamlined process of buying American debt and the wish was granted just last week.

Talk about people rejoicing on there own grave. Ignorance is bliss iguess.

another 81'er commenting on something they know nothing about.

out of total chinese exports, both the EU and US buy a combined 38% total. 20% to EU and 18% to US.

MOD EDIT

 

[Hyde]

Nope if anyone is ignorant it is you. In the last 6 months China has done swaps with several countries. They and the world are moving away gently and slowly (exactly because they would hurt themselves as well if they did it overnight) from the US dollar

Currency swap and barter trading are two good options but the implementation of either option is a very slow procedure. It might take decades for China to completely reduce her dependency from the dollar and that means 'may be' US dollar will crash after I am an old man and not any time soon...

 

[FairAndUnbiased]

I agree with S-19 (King Solomon) post because dollar is actually doing well since last couple of months. It has been appreciated strongly not only against the Euro but almost every currency in the world. The economic data released in the USA is also positive and the unemployment rate and other factors are also very satisfactory.

If the thread title was "Euro" crashing I would have said may be yes but dollar is no where close to crashing in fact it is among the very few currencies willing to stay strong against any battle and remain a champion in the long run


If that is true then I must say he needs to see the doctor very soon. There is no secret that Gold has been dropping since last couple of months and has dropped to about 1530 dollars from the peak of 1920 per ounce. But it is equally true that Gold is going to remain the safest investment for the long time. Dollar is a good alternative to gold but surely is not as safe as gold.

Peter Schiff graduated from the University of California at Berkeley with a dual major in finance and accounting, and is a wall street veteran for over 20 years. Just in case we have a misunderstanding, UC Berkeley is a global top tier school at the level of Harvard. However I disagree with him about gold.

You do realize that their numbers are nearly totally fictional with little basis in reality, right? Just search up Dr. Chris Martenson on Youtube and how that country calculates their GDP differently from everyone else. Just a hint: by owning a house, your ownership is counted as GDP, and all the rent you "didn't pay" is also counted as GDP.

 

[kewell333]

It's just a relative growth against other equally indebted consumer currencies. What's important is the ratio of the USD to currency of manufacturing economies like Yen, RMB and Won, and it's down on all 3. Dow Jones is propped up by silent QE3 which is going on 24/7 except they're keeping it quiet.

You're wrong actually. Oil is up too. The only hard assets are oil and gold since both have a very high price floor now. Gold has grown continuously since 2005 and even now only has minor fluctuations. Despite its volatility, gold has maintained its purchasing power in terms of petroleum. And really, petroleum is one of the main reasons why any country bothers with USD reserves. That is why we are spending USDs at a time of record petroleum prices to boost our SPR, because it will all pay off later.



List of the largest trading partners of the People's Republic of China - Wikipedia, the free encyclopedia

670 billion to US/EU.

Economy of the People's Republic of China - Wikipedia, the free encyclopedia

1.897 trillion in exports total.

670 billion / 1897 billion (1.897 trillion in 2011) =/= 80% lmao.

You want to buy...but need someone to sell you.

We bought gold in world market slowly for a long time... And we have 1000 ton gold today.....but it only worth $40 billion.

What about our other $3 trillion foreigh exchange reserve? What about our 100 trillionRMB($16 trillion) goverment assets?

And US has 8000 tons gold... if we buy gold in world market obiously, the price of gold will sharp up quickly.....And US will happy to see it...

And oil...we have bought any oil assets that we can bought ... But these two way can't solve the huge amount money we have...

The only way is invest in global finance market, and it is good way invest in US. If US ecomomic been stong, we will also benefit from it , and if US down ....we just grow up..

 

[Chinese-Dragon]

out of total chinese exports, both the EU and US buy a combined 38% total. 20% to EU and 18% to US.

That's right. Hey, check this out as well.

This chart is from the most recent issue of the Economist.

In 2011, "net exports" contributed almost NOTHING to China's economic growth. (Which was 9.2% that year).

Investment contributed around 50%, and consumption contributed much of the rest.

So almost all of our growth is coming from internal consumption + internal investment. If the world crashes again, like it did in 2008, we will ride it out again... just like we did last time.

 

[FairAndUnbiased]

You want to buy...but need someone to sell you.

We bought gold in world market slowly for a long time... And we have 1000 ton gold today.....but it only worth $40 billion.

What about our other $3 trillion foreigh exchange reserve? What about our 100 trillionRMB($16 trillion) goverment assets?

And US has 8000 tons gold... if we buy gold in world market obiously, the price of gold will sharp up quickly.....And US will happy to see it...

And oil...we have bought any oil assets that we can bought ... But these two way can't solve the huge amount money we have...

The only way is invest in global finance market, and it is good way invest in US. If US ecomomic been stong, we will also benefit from it , and if US down ....we just grow up..

It doesn't matter how much the reserves of the US go up. They're so deep in the hole that no amount of increased reserves can save them. Meanwhile, we are subsidizing the US by buying their bonds. Yes, it is true they are inflating themselves as well, but they will export some of that inflation to us.

Also remember that dollar assets are depreciating at 5% a year due to inflation against oil and gold, while interest on the bonds is nearly zero. I don't care how good their economy is and how it's "wise to invest in them" when they pay a pittance on interest that doesn't even match depreciation, and the government sees that too. That's why we've been quietly dumping Tbonds, because the interest doesn't even catch up with inflation. The data shows that our holding of US debt has steadily decreased for over a year.

Most of our government assets are tied up in physical capital or in domestic RMB, it is just the 3 trillion foreign exchange that needs work. What should be done is transforming some of those assets into Euros and buying European physical assets while they're cheap, as well as any patents and tech transfer that we do not have. US is a closed market, EU is an open market for us. I know because in the materials processing field, most of China's high level equipment that cannot be made domestically is from EU and Japan, since You Es bans sales of equipment up to 2 generations behind (they only allow 90 nm to be shipped while current standard is 22 nm).

 

[shuttler]

. DJIA- historical since 1900
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NASDQ since 1986
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Gold-historical since 1980
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US 30 yr T Bond.since 1978
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USD crashing? Wall street is absorbing the world's money in USD! It is the world's no 1 reserve currency. The Arabs transact their commodities in USD. I dont see it crashing anytime soon!

 

[FairAndUnbiased]

USD crashing? Wall street is absorbing the world's money in USD! It is the world's no 1 reserve currency. The Arabs transact their commodities in USD. I dont see it crashing anytime soon!

That's the important part. Nothing else matters. Ever thought about WHY that currency was a reserve currency? Don't believe the BS, we know the truth: oil. If the Arabs run out or if the world moves to new energy sources guess what happens.

 

[Chinese-Dragon]

That's the important part. Nothing else matters. Ever thought about WHY that currency was a reserve currency? Don't believe the BS, we know the truth: oil. If the Arabs run out or if the world moves to new energy sources guess what happens.

That would be the best thing that could happen to the world, in a VERY long time.