It’s also possible that the Fed thinks a weak dollar will reduce America’s trade deficit, boost its export competitiveness, and lead to higher employment. We think this is a pipe dream. And we’re not talking about a lead pipe. We’re talking William Blake-style opium.
November 5th, 2009 | Dan Denning | 3 comments | ContinuedAll Posts Tagged With: "Euro"
US Dollar is Getting Trashed
“In other words, leveraged speculators are borrowing US dollars in the short-term money markets at near-zero rates to buy bonds in higher- yielding currencies like the Australian dollar or the euro.
September 29th, 2009 | Bill Bonner | 7 comments | Continued
US Dollar Declining as China’s Currency Rises
“We may now be entering the Asian century, dominated by a rising China and its currency. This decline of the dollar might take more than a decade, but it could happen even sooner…
September 23rd, 2009 | Bill Bonner | 5 comments | Continued
HSBC Reveals Days of the Dollar are Numbered
“Crucially, China and rising Asia have reached the point where they can no longer keep holding down their currencies to boost exports because this is causing mayhem to their own economies, stoking asset bubbles.
September 23rd, 2009 | Bill Bonner | 10 comments | Continued
The More Money in a Financial System the Less Each Unit is Worth
For the last 10 years, the money supply in the United States has expanded at roughly twice the rate of GDP growth. And the Fed doubled its balance sheet in just the last 18 months.
September 8th, 2009 | Bill Bonner | 1 comment | Continued
The Achilles’ Heel of the Entire World Financial System
The moral of this story is that you have to go all the way. If you want your baby to be invulnerable, put him all the way under the water…even the heels. Or, maybe there’s another point: that there’s always some place where you’re vulnerable.
August 24th, 2009 | Bill Bonner | 4 comments | Continued
USA Follows the Same Downward Slide As GM
The experts say the company is going broke. “Chapter 11 looms,” says a Bloomberg report. Investors sold the stock down to $1.15 – a price GM hasn’t seen in more than 70 years. At that price you can buy the whole company for $700 million.
May 14th, 2009 | Bill Bonner | 0 comments | Continued
Gold and the Euro Just Hooked Up Together Again
“Gold and the Euro just hooked up together again. But for how long depends on central-bank policy…”
March 23rd, 2009 | Adrian Ash | 0 comments | Continued
Whiskey & Gunpowder
For the present, there is hardly anyone who is an immediate advocate of joining the euro, though there are plenty of europhiles who would expect Britain to join the euro at some future date. At the same time, the euro has become more attractive to the weaker European currencies which are outside the Eurozone…
February 26th, 2009 | William Rees-Mogg | 4 comments | Continued
Curtain of Debt Divides Europe
It’s looking more and more like the euro crash will come before the dollar crash. Or maybe they’ll crash together. Gordon Brown hinted at something bigger and better than just a few major world currencies. He pointed out that nothing anyone’s done has really worked yet. So obviously, more will have to be done…
February 23rd, 2009 | Dan Denning | 3 comments | Continued
An Irish Bond Bomb
More people are beginning to see States in a different light. Rather than seeing states as the (most of the time) democratically elected representatives of the people, people see something much more feudal. They see a set of elites who achieve and maintain their position by looking out for the economic interests of a small group of elites, including themselves…
February 19th, 2009 | Dan Denning | 3 comments | Continued
The Anniversary of the “Esperanto Money”
We remember when it came out. The “Esperanto Money,” we called it, referring to the ersatz language that never quite caught on. The dollar is bad enough; at least it is supported by the full faith and credit of the United States of America, for whatever that is worth.
June 3rd, 2008 | Bill Bonner | 1 comment | Continued
An International Currency Not Just on Paper
Once it was clear that Britain’s global position was fatally compromised by its poor finances, it took all of five years for the dollar to become the preferred international currency. It can happen fast when people have a real alternative.
April 14th, 2008 | Dan Denning | 3 comments | Continued
Euro Hits Fresh All-Time Highs Versus the Dollar
The Euro hit fresh all-time highs versus the Dollar already this month – and we’re only one trading day in. So might US investors want to switch out of gold bullion ahead of Easter this year and move into the single currency instead? After all, the Euro still pays 4.0% interest per year – a feat that dumb gold could never promise or achieve – and with Eurozone inflation holding at a record 3.2% year-on-year in February, the European Central Bank (ECB) is clearly in no mood to start slashing rates now.
March 4th, 2008 | Adrian Ash | 0 comments | Continued
