Dollar's Dramatic fall

[missile]

Now that our dollar has gone back to pre 2007 levels and is making its way to it's lowest value ever against the American dollar,will the manufacturers stop crying about not being able to sell thir exports to the USA because of the high dollar? Of course they won't! The new cries stem from the fact that the USA just isn't buying anything much at the moment, except for some war munitions and such.

 

[coldstream]

This is only the start, of something much scarier.

Well the World's financial system is in such bad shape, that the only way to alleviate it is to put the whole system in bankruptcy, under the trusteeship of respective national Central Banks. They will have to re-order and re-organize the absolute detritus of worthless paper floating (swaps, puts..all forms of arbitrage in promissary notes that have no expectation of being exercized in financial meltdown) around now, of which toxic mortgage derivatives are only the smaller part, the larger part being the derivatives of currency trading that now account for many times, perhaps a 100 times, the world's economic production to which they have nominal claim.

When that starts to collapse, and it will, then the we can expect hyper inflation, a complete collapse of banking and credit facility, and global chaos. It might be next ot impossible to trade currencies at any rate. The only solution is to re-establish the Bretton Woods agreement, locking in currency exchanges within narrow margins by government fiat, de-facto nationalization of the banking systems and credit facilities, and declaring null and void ALL Free Trade agreements.. which will allow national governments to manage a rebuilding of industry and agriculture on a national basis at its most essential basis, and allowing it to protect its the value of its currencies. In its current format our currencies are worthless in a real sense, and once that becomes apparent a global panic and collapse will ensue.

Paulson the ring master of this charade in Washington is a diehard Wall Street Free Marketeer and Monetarist. He is staving off collapse with the tools that created the crisis in the first place. His primary aim is to save the value of investments, an impossible task in the collapse of the productive, physical economies and currencies. The 'bail-out' has no chance of working. We need a new breed on National Treasury Secretaries, not committed to the mistakes of the past. None of Paulson's cronies have an inkling of how massive the problem is, they are throwing snowballs at a raging dragon. Frankly some to the current gang belong in jail.

 

[tracy]

I've been waiting for this moment for years!!! My only debt is Canadian and since my income is in American dollars, this will work out better for me.

 

[coldstream]

I've been waiting for this moment for years!!! My only debt is Canadian and since my income is in American dollars, this will work out better for me.

Nothing can be predicted in this market. The entire world currency system, after almost 40 years of free trade in currencies and development of a gargantuan bubble of currency derivatives is so unstable that it could collapse at any time, leading to hyper inflation, industrial and agricultural collapse. Like the Canadian Dollar, the U.S. without dramatic government action, which has not even been considered yet by the imcompetant sad sacks who govern us, will be virtually worthless. We are looking at something in the order of the Weimar Republic now, but global, and without the fundamental industrial infrastructure, thanks to Free Trade, with which no rebuild. There are no safe harbours here.

 

[darkbeaver]

Collapse is the plan, that much is certain, you couldn't do this if you hadn't planned it well in advance.

 

[Kreskin]

The stability of the US dollar through this period is a testament to the world working to keep it propped up. Why would it want a strong US dollar? Because it matters to everyone. Do you think China's economy wouldn't collapse with a devalued US dollar?

 

[darkbeaver]

The stability of the US dollar through this period is a testament to the world working to keep it propped up. Why would it want a strong US dollar? Because it matters to everyone. Do you think China's economy wouldn't collapse with a devalued US dollar?

"Everyone" is a sweeping generalization Kreskin. Everyone includes bankers bilkers and those on the take, actually most of the planets inhabitants would gladly watch the dollar reduced to nothing. A collapseing economy is not in this case the worst scenario, it's continuation is. Get used to it, things are about to take even more of a radical shift, a shift to global war and a shift to socialism ala the Chavez type, the planet can't afford capitalists anymore and most deciedly can't and won't afford American hegemony. You're riding a dead whale Kreskin. China in company with most of the eurasian block is well positioned to recover from economic downturns we in the west however are not, we have stripped our industrial base in favour of service and finance and we have stuffed our already stuffed elites, there is a price for stupidity man and it ain't cheap.
PS Capitalists saving capitalists and their banks and other institutions while doing virtually nothing for the commoners is nothing to be proud of.It's just more of the same old ****.

 

[DavidB]

The Canadian dollar went up three cents this past long weekend, so it is not all bad news.
I don't think it will crash as badly as the American dollar (when that happens). We are no longer running a deficit, we haven't printed up as much paper money as the US, we don't have an expensive war in Iraq to fund, and Canadians are more conservative than Americans (i.e. - we don't buy on borrowed money as much). However, we have a lot of fat to cut--big, expensive programs and too many taxes.

 

[darkbeaver]

We''ll see.

 

[Kreskin]

"Everyone" is a sweeping generalization Kreskin. Everyone includes bankers bilkers and those on the take, actually most of the planets inhabitants would gladly watch the dollar reduced to nothing. A collapseing economy is not in this case the worst scenario, it's continuation is. Get used to it, things are about to take even more of a radical shift, a shift to global war and a shift to socialism ala the Chavez type, the planet can't afford capitalists anymore and most deciedly can't and won't afford American hegemony. You're riding a dead whale Kreskin. China in company with most of the eurasian block is well positioned to recover from economic downturns we in the west however are not, we have stripped our industrial base in favour of service and finance and we have stuffed our already stuffed elites, there is a price for stupidity man and it ain't cheap.
PS Capitalists saving capitalists and their banks and other institutions while doing virtually nothing for the commoners is nothing to be proud of.It's just more of the same old ****.

China relies on the American consumer. It relies on providing cheaper labor. They won't weather anything without both of them.

 

[coldstream]

The wild swings in the stock market, commodities (especially oil) and currencies, at unprecedented levels of volatility attests to the fundamental instability of the currency derivatives market now, a classic economic bubble of unprecedented proportions, which is desparately searching for some place to store value. It will be futile since the currency itself is degraded to the point that it can no longer be relied upon to assess worth. This is not a rational process, it is one governed by fear, and a herd mentality, which means it is unpredictable and will inevitably collapse. The entire world financial system is bankrupt, it is a husk without internal structure... a complete collapse, hyper inflation, freezing of all credit and banking facilities will probably happen within the next 6 months, but it could happen by year end.

 

[EagleSmack]

What was just an interesting side affect was dropping oil prices. When oil prices drop just the mere threat of cutting production by OPEC causes the oil prices to climb. When OPEC said they were cutting production last week it did not raise an eyebrow on the stock exchange floors across the world. Basically the buyers said...and according to the article I read...

"Cut production...nobody is buying oil anyways."

 

[JustAnAmerican]

He is staving off collapse with the tools that created the crisis in the first place.

Since you've seemingly been endowed with an all-encompassing crystal ball... I'd be very interested to hear you expound further on that statement.

 

[darkbeaver]

Now that our dollar has gone back to pre 2007 levels and is making its way to it's lowest value ever against the American dollar,will the manufacturers stop crying about not being able to sell thir exports to the USA because of the high dollar? Of course they won't! The new cries stem from the fact that the USA just isn't buying anything much at the moment, except for some war munitions and such.

Surprize, we're number six for arms manufacture. If Harper could help the munitions manufacturers with some bailout type help we could keep on working the conflict biz eh.

 

[darkbeaver]

China relies on the American consumer. It relies on providing cheaper labor. They won't weather anything without both of them.

Well Kreskin, what you gotta ask yersef is who of da too can adapt faster and more efficiently to an economic crisis that threatens both? Uncle Sams been a net drain on the old ball Kreskin, sucking up 25% of the planets GDP year after year extracted by the mutual expediancies of a trigger happy military and thieving economic terrorism cult. The new liberalisms experiment with globalization is dead. It was a murderous failure, and that's being generous considering the piles of bodies and displaced survivors. Your fond reminisance for the near past is cute.Why cling to the past Kreskin, join the socialist revolution in your neigbourhood. Become a people person.:lol:;-)