The reason for the dollar’s decline and gold’s rise was given in the front-page headline of today’s Financial Times. China launched a “new dig” at the dollar, it says. As near as we could tell, China merely stated the obvious…
July 13th, 2009 | Bill Bonner | 3 comments | ContinuedAll Posts Tagged With: "dollar"
Geithner’s Trip to China Was, At Best, a Draw
His goal was to bluff and bamboozle the world’s investors – notably China – into believing that the US had its finances under control. Once we’re out of this mess, he told China’s top man, we’re going straight.
June 5th, 2009 | Bill Bonner | 0 comments | Continued
Trends Make Investors Less Afraid of Risk
But on March 9, 2009, came a lull. Reluctantly, investors came out of their storm shelters. The skies lightened…the sun shined. Oil has gone up 53% since then. Stocks worldwide are up about 30%.
And now…people say “the worst is behind us.”
June 4th, 2009 | Bill Bonner | 4 comments | Continued
Investors Now Treating Bad News for the Dollar as Bad News
After last week’s thumping at the hand of all its major counterparts, the dollar is looking to me like Charles Atlas’ 98-pound weakling from the old comic book ads. Sand is getting kicked in its face from every bully on the beach.
May 29th, 2009 | Bill Jenkins | 8 comments | Continued
Dollar’s Demise Has Started a Chain Reaction in Currency and Commodity Markets
The Aussie dollar, for example, tacked on 4.5% against the greenback last week. The Aussie is now at a seven-month high against the USD. You could be tempted to say the “carry trade” is back on. That’s where investors borrow in Yen or U.S. dollars to buy higher yielding currencies like the Australian and New Zealand dollars. But we don’t think that’s the case. Why?
May 25th, 2009 | Dan Denning | 0 comments | Continued
Gold Headed Higher and the New Bubble in the US Treasury Market
It looks to us as though gold is headed to $1,000 again…maybe higher. This is not what we expected… Not yet anyway.
What we still expect is a broad, long rally in stock prices. We think the Dow might go back to 10,000 before it is over. This is the rebound we were waiting for.
The Greenback Dollar Decline
“We may now be entering the Asian century, dominated by a rising China and its currency,” Roubini contends. “This decline of the dollar might take more than a decade, but it could happen even sooner if we do not get our financial house in order.
May 21st, 2009 | Bill Bonner | 7 comments | Continued
The War On Capitalism Continues
Will the government’s War on Capitalism turn out better than their War on Terrorism? Or their War on Drugs? Or their War on Poverty?
May 8th, 2009 | Bill Bonner | 1 comment | Continued
The Dollar’s Last Days
Last week, a decimal point seemed to move to the left. A UN advisory panel had suggested that maybe it was time to figure it out a better way to run the world’s monetary system. Better, that is, than using the U.S. dollar as the reference currency for the whole world.
March 31st, 2009 | Bill Bonner | 6 comments | Continued
The United States: The Largest Ponzi Scheme in the World
The United States is now the largest Ponzi scheme in the world. The only way to pay off the old lenders is to bring in new ones – or run the printing press. That’s all lenders have to worry about – inflation. And for the moment, prices are going down. They’ll keep going down too – until they go up…
February 20th, 2009 | Bill Bonner | 6 comments | Continued
Obama’s Bailout: Too Little, Too Late?
The combination of falling earnings and falling P/Es does to stock prices approximately what the Romans did to Carthage in the third Punic War. That’s why we have our Crash Alert flag flying. Stock prices delenda est. Typically, depressions come with bear markets. And bear markets come with bounces and rallies. We expected an O! Bama! bounce after the election. We got one…but much less than we expected. Stocks only rallied about 15%…
February 19th, 2009 | Bill Bonner | 0 comments | Continued
China is Considering Ways to Diversify Out of the Dollar
Reports in the press this week say that China is considering ways to diversify out of the dollar. The Chinese are no fools. They see what is coming. And they know what it will do to them – the holders of the largest pile of dollars ever assembled. The Financial Times made it perfectly clear to them in a cartoon yesterday. It shows Barack Obama in front of a huge smoking trashcan filled with dollars. The president is pouring on gasoline…
February 16th, 2009 | Bill Bonner | 7 comments | Continued
Wall Street Bankers: The World’s Most Privileged Outcasts
Today we turn our attention to the world’s most privileged outcasts. “Once envied, Wall Street bankers are now mocked,” says a headline at the International Herald Tribune. So many people are getting on the bankers’ case; we’re beginning to feel sorry for them. After all, what did they do wrong? Well…
February 5th, 2009 | Bill Bonner | 1 comment | Continued
In Gono We Trust
We have it from our usually unreliable source in Washington that Gideon Gono, now head of the Zimbabwean central bank, has been called in to aid the Obama Administration. In secret talks, Gono has agreed to replace the out-going Ben Bernanke, who is said to be going to work as a helicopter pilot. Gono will take over the Fed. And a new bill has already been designed – our source was able to sneak out a copy of the new note – for 1 million U.S. dollars. That’s Gideon Gono’s picture on it…
February 4th, 2009 | Bill Bonner | 6 comments | Continued
Wall Street Gets the Boot
Yesterday, President Obama, seeing Wall Street on the mat, walked over and gave it the boot. The $18 billion in bonuses, paid out on to Wall Street honchos last year, were “shameful,” said he. It was the “height of irresponsibility” to take so much capital out of the system when it was losing money, he pointed out. Of course, he’s right. It was certainly irresponsible. And the Wall Street crowd deserves the boot, no doubt about it. But it’s a shame no one mentioned it in 2006 or 2007 – not even Mr. Obama – when the bonuses and the irresponsibility were even higher…
February 2nd, 2009 | Bill Bonner | 0 comments | Continued
