Stacy Summary: Poor @Mike/Liverpool. Like I said in one of our podcasts, all currencies are falling, it’s just the dollar is falling so much faster.
Brazil, South Korea and Russia are losing the battle among developing nations to reduce gains in their currencies and keep exports competitive as the demand for their financial assets, driven by the slumping dollar, is proving more than central banks can handle.
Tags: brazil · central banks · dollar · korea · russia19 Comments
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first. boooooyaaaaa!!
But seriously, don’t worry the US Dollar will rally and crush the market into next year. Max himself says once the bankers get their bonuses this year from selling financial products and then once they are collected they will engineer the next leg down.
“Much of the greenback’s decline stems from investors borrowing funds in the U.S., where the target benchmark interest rate is between zero and 0.25 percent. They then invest the proceeds in countries with higher rates and faster growing economies.”
Bloomberg cites the carry trade as the indicative factor in the dollar decline. Ignores sdr-manipulations.
John Williams Hyperinflationary Great Depression within a year or so
This guy decooks the government books..BRILLIANT
2008 gov deficit stat 5 trillion, he calculates 9 trillion
2nd guest 19 minutes in
http://www.netcastdaily.com/broadcast/fsn2009-1114-1.mp3
I see the dollar rising against the Yen and the Euro in the next 6 months. The bank of Japan will not allow the Dollar to fall below 85 on Yen. The CEO’s of Sony, Toyota and Honda called a sub 90 dollar very painfull for them. The dollar will be devauled big time in the years to come but we could still have a short term rally.
gold is a darling of the hedge-fund carry trade
“Obama: Asia ‘is where we can export more’” …?????????
http://www.cnn.com/2009/WORLD/asiapcf/11/13/obama.asia/index.html
Is he thinking about Guns? and Dollars ? Both bring death to Asian Society.
Seems to me this article gives a clear indication of the U.S. dollar’s paradoxical stability in the face of its massive indebtedness.
The rest of the planet NEEDS U.S. dollars: for one, because the U.S. is the largest single consumer of the worlds products; and two, U.S. dominance of the global financial institutions, (IMF, World Bank) and its military is able to force nations to keep using the dollar as reserve currency.
So other countries want the dollar to remain stable relative to their domestic currencies, (otherwise the value of their exports drop causing domestic unrest); and when the FED invents trillions out of thin air, gives it to Goldman or J.P. (much of which they invest abroad) those nations are obligated to accept those dollars; and, because there’s little else to do with them, they use ‘em to buy more Treasury bonds.
(Three-quarters of all the dollars in the world are outside the U.S.)
The bankers have us by the balls.
It can’t last forever, it’s true. The system must eventually collapse; but they have a plan for that too, (problem-crisis-solution).
I really dig Max’s principled opposition to these parasites; but I think it should be pretty clear by now that he (amongst others) has been “crying wolf” when it comes to the “immanent collapse” of the dollar.
my two cents.
They never say who these “investors” are. Who is paid to borrow money for 0%? Not me. Pretty sure you have to be a hotshot like JPM or GS or in some way connected to the Fed-system. Why do they make it sound like anybody could participate in the carry-trade?
Casino Gulag.
Obama in Asia … hmmmm … maybe, juuust maybe
this trip is all about currency/trade stability. The DX is
about to break 75, then 72 should be tested very
shortly thereafter.
Should be wary of manipulated US dollar proping
this week in the markets. We will see. What is Asias
main gripe with the DX?
Interesting NewsMix here …
News, Links of the Day, Ukrainian Plague, Economic Crisis, Coming Third World War, Swine Flu
New York Times finally carries a story on the nightmare in the Ukraine ~ link ~
Doctors learned why Ukrainians dying ~ link ~
Vaccinations: Federal Health Agencies Continue to Deceive Americas ~ link ~
Wayne Madsen – video – Neocon President of Ukraine trying to take political advantage of Ukrainian Plague infecting over one million there ~ link
Khan: China supplied weapon-grade uranium and warhead plans for the first two Pakistani nuclear bombs ~ link
Obama bows before the Emperor of Japan ~ link ~
Ancient Scottish title (Baron) for sale at 50,000 UK Pounds ~ link ~
Brazil firmly in Illumunati grip ~ link
Searching for the Ark of the Covenant ~ link
http://europebusines.blogspot.com/
NYT – Fragile Care Worsened Swine Flu in Ukraine
By ELLEN BARRY
Published: November 13, 2009
LVIV, Ukraine — When patients began arriving in Vyacheslav Bonder’s intensive care unit two weeks ago, their lungs so saturated with blood that they could barely gasp, the only thing he could compare it to was a field hospital in wartime. As soon as he hooked one patient up to a ventilator, a second and third would appear in the doorway.
So.. the MSM has finally mentioned the Ukraine !
Schiff says Korea has officially given up, it stopped buying dollars and will let its currency appreciate..
Soylent green is kebab?
http://news.bbc.co.uk/2/hi/europe/8360569.stm
Note to all:
everyone’s liabilities are in dollars.
their so-called assets are in non-dollars
Thus, it behooves everyone to see the cost of their liabilities fall & the value of their assets rise.
That is why the dollar is falling & all non-dollars assets are rising.
In order to effect this trade everyone Must be short the dollar(their debt/liabilities are in dollars)….which creates a potential massive dollar bid amidst a “market” which has seen trillions of dollars destroyed(existing dollar shortage to serve future claims(liabilities) in the last two years worldwide.Non-dollars assets will eventually have to be sold to meet this dollar claim obligations.
Additionally, the two biggest exporters in the world are China & the US. Obviously, for export reasons(especially China)…the dollar must be kept very low. Otherwise, the dollar export market will collapse. This feature of the dollar-trade is MUCH,MUCH under-appreciated(but not by the Koreans, Japanese, Brazilians et. al.)…who are currently buying dollar-denominated assets(treasuries) like crazee to both offset the “export” issue and to well well-prepared to meet upcoming intense dollar-demand issues in an increasing enviroment of dollar destruction//shortage.
the main ENFORCER of this TRADE is Gold. A rally in gold allows for both; dollar liabilities to”get-in” profitably//cheaply…and for non-dollar longs to exit profitably….easing the OVERALL Dollar Shortage created by both the trillions in dollar losses & the upcoming trillions in dollar claims moving forward like a Monster Pac-Man for the remaining//shrinking pool of dollar assets.
Sorry, Mam. Uhm, uhmmmm. Your son died defending his country from those awful terrorists.
Yes.
Right.
Secondly, I just learned the second largest copper mine in the world is in KABUL — but CHINA has already gotten dibs on it… however… guess whose military is in charge of protecting it? And guess who’s funding part of that protection? A surprise….
Read snips here and see the link to the Economist article below.
—————————–
A recent Economist report pointed out that at Aynak, just south of Kabul, there is a huge copper mine, the second biggest source of copper in the world, and two years ago the Chinese invested $3.5 billion in it.
Several miles of sandbags and chain-link fence now surround the mine. Row upon row of neat prefabricated dormitories house several hundred Chinese. When production starts, from 2011, the Chinese owners get half the output and a multi-billion-dollar return on their investment.
[...]
THe SCO (Shanghai Co-operation Organisation (SCO, which includes Russia and Central Asian members) recently received a letter from the Taliban.(the “Islamic Emirate of Afghanistan”) It asked for SCO help in driving the American infidels out of Afghanistan
After all, the SCO is really all about natural resources – if they don’t cooperate, the water wars of the later 21st century will be something to behold. And the Chinese know damn well that the Americans are a better bet to keep their investment safe than the Taliban. So I assume the Islamic Emirate of Afghanistan got a dusty answer, if it got one at all.
[...]
The Afghan police force guarding the mine is funded by the Japanese. (who knew?!) Security in the wider area is provided by the US Army. The Chinese don’t pay a single yuan…
“Some 1,500 Afghan police guard the site, subsidized by the Japanese.
The American army’s Tenth Mountain Division patrols the area.”
As America wobbles over its Afghanistan commitments, Robert Kaplan, an American journalist, puts it thus in the New York Times: “The problem is that while America is sacrificing its blood and treasure, the Chinese will reap the benefits. The whole direction of America’s military and diplomatic effort is toward an exit strategy, whereas the Chinese hope to stay and profit.”
In Afghanistan China grumbles but lets America guard its economic interests.
THE ECONOMIST REPORT:
http://www.economist.com/world/asia/disp….e=hptextfeature
Addenda: for example.
If the Yuan is allowed to float….it will be so that dollar shorts in China(fdi) can cover cheaply & non-dollar longs can “escape” richly.
This trade will indicate the end of the Asian “export model” of the last 50-60 yrs….which is very co-incidental with the end of the baby-boomer(post WW2) consumption model in the ‘developed countries.”
Asians having to sell to other Asians will create one hell of a cat-fight…stay tuned.
Mr Buffet, considers himself “Lucky and wired right for
a market economy that paid off like crazy”
and he is “hoping” that the market goes
down, but he has NO idea what the stock
marks is going to do.
http://www.youtube.com/watch?v=XM7cFz50hnw&feature=player_embedded
Carbon Taxes …
Seems that the elite know that inflow of taxes
to their kingdom is evaporating. A new game
is being created to ensure the well does not
get low. We surfs MUST put up a glorious fight,
or they will lead us to the slaughter.
Any one want another tax? .. to go with the slide in
fiscal resources.
Would it be fair to say that everybody is trying to devalue their currency as much as possible so as to preserve their export market, but the only real thing standing in the way of that actually being effective is China’s decision to peg their currency to the greenback? In other words, the end result is that every nation will have a currency in line with a severely undervalued (non floating) Chinese Yuan? (and likely, with all of us having a similar standard of living as the chinese peasant slaves?)