Author Topic: Central banks shift reserves away from US (Read 2002 times)

Thrawn · « **Reply #30 on:** January 24, 2005, 11:43:46 PM »

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Originally posted by Mini D
Is this the first prediction of the colapse of the dollar thrawn... or is this just the first time you've actually paid attention to it.

When else has the US defaulted on it "current" account balance, and what was it's response to it. Here's a hint, why is the world on a fiat currency system?

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I mean... really... worse case is the U.S. dollar drops to near the same level as the Canadian dollar.

Why is that the worst you can think of?

Why is the Canadian dollar the value the furthest the USD can fall?

GRUNHERZ · « **Reply #31 on:** January 24, 2005, 11:45:21 PM »

So do you deny that this would cripple the USA while helping Europe?

SLO · « **Reply #32 on:** January 24, 2005, 11:54:35 PM »

Hmmm Euro's $$$ going up...

USD going down...

Grun grow up, basic math...nevermind your doomsday report about how everyone attacks the U.S.

its easy, y'all suck...

GRUNHERZ · « **Reply #33 on:** January 24, 2005, 11:58:40 PM »

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Originally posted by SLO
Hmmm Euro's $$$ going up...

USD going down...

Grun grow up, basic math...nevermind your doomsday report about how everyone attacks the U.S.

its easy, y'all suck...

So will the USD's fall and Euro's rise (both in value and worldwide use) cripple this country and help Europe?

patrone · « **Reply #34 on:** January 24, 2005, 11:59:56 PM »

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Originally posted by GRUNHERZ
So do you deny that this would cripple the USA while helping Europe?

its just a matter of time and Europe will follow, but before that, Canada will go down as well.

If the US can´t buy our goods, who is, china, russia, india?, I dont think so.

Toad · « **Reply #35 on:** January 25, 2005, 12:02:47 AM »

I've been practicing trading 130 grains of lead for 100 pounds of venison. It's working great.

Fourtunately, I have a large supply of lead and my venison herd continues to increase.

You guys better have some really great stuff to trade or else I'll only let you chew on the hides.

Mini D · « **Reply #36 on:** January 25, 2005, 12:05:18 AM »

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Originally posted by Thrawn
When else has the US defaulted on it "current" account balance, and what was it's response to it. Here's a hint, why is the world on a fiat currency system?

1) Never... though I'm sure you meant payment instead of account balance.
2) What is the flat currency system the world uses again?

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Why is the Canadian dollar the value the furthest the USD can fall?

Figure that one out for yourself bordermate.

This is kinda funny... an increase in the deficit is somehow translated into defaulting on loans. An eventual slow in the rate of increase from 66% down to 20% over the next few years is seen as the end of the U.S. dollar. The diversification of financances to where people are almost invelsting in the Euro with the same zeal as the U.S. dollar is seen as the end of our dollar.

Man... I love doomsday economics. It's funny to watch the same theories get rehashed... reviewed... panicked over... forgotten... rehashed.... reviewed... panicked over... and over... and over.

Rolex · « **Reply #37 on:** January 25, 2005, 01:05:26 AM »

Hey Mini D:

I'm not in the doomsayers court, btw. I could be convinced to salt this place a little though if I had the tinfoil hat franchise. A consumption-led market if there ever was one.

And to your rhetorical question: do you really think that I don't know how?

It was more of a cyclical issue though in 99 - the kind that normal diversification and redeployment of private investment is so good at remedying in the dynamic and resilient American economic gorilla. Government spending to the extent we see now certainly wasn't needed. One would have to search pretty hard to find an economist willing to say that the governments sound fiscal and monetary policies saved the nation from any economic calamity at the turn of the century.

Evidence in support is seen in the private sector going about its business fairly well despite some fuel cost and other pressures. The private sector has been doing its job. The jury is still out on this soft dollar experiment.

Maybe it'll work and maybe it won't. It's a risky bet because... well, you know all the reasons why.

Sundowner · « **Reply #38 on:** January 25, 2005, 05:08:42 AM »

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Originally posted by Mini D
LOL! try to buy a loaf of bread with gold some day. Gold is not currency. It is a commodity, however, and might be a good investment.

Anyways... you may want to re-read that article before predicting the collapse of the dollar.

Bread is not bought with gold. Bread is bought with junk silver .
Houses and other large items are bought with gold

Regards
Sun

Sundowner · « **Reply #39 on:** January 25, 2005, 05:16:08 AM »

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Central banks are shifting reserves away from the US and towards the eurozone in a move that looks set to deepen the Bush administration's difficulties in financing its ballooning current account deficit.....

Sounds like its time to move the 'ol 401k from domestic investments to Euro-Pacific.
"When the world gives you lemmons make lemmonade"

Sun

bunch · « **Reply #40 on:** January 25, 2005, 05:20:37 AM »

When are the hordes of euro tourists going to arrive? Their women really put out

lada · « **Reply #41 on:** January 25, 2005, 05:38:01 AM »

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Originally posted by Mini D
Is this the first prediction of the colapse of the dollar thrawn... or is this just the first time you've actually paid attention to it. I mean... really... worse case is the U.S. dollar drops to near the same level as the Canadian dollar.

Well problem is that there is one more currency, whitch doesnt fall. Dolar is loosing now, as it did before Iraqi War I.

However biggest diference is that people who trash it today will have no reason to convert back, coz dolar is not the only one powerfull currency on the market.

And there is one more reason, why traders abandon $$. Your political system is not stable, rate of $ change after every BS claimed by someone in administration. And nobody want to lose his money because somebody announced another BS, whitch made dolar weaker or stronger for a short time.

For example 6 years ago, whe my brother in law impoted gods from germany, he lost 2000€ while trucks were on the way, rate has change.
When it happened for 5. he simply stoped use that useless currency

lada · « **Reply #42 on:** January 25, 2005, 05:55:04 AM »

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Originally posted by bunch
When are the hordes of euro tourists going to arrive? Their women really put out

we are dangerous for you.... because we are young, educated, with work experience and w/o covenants = NO wanted coz we could take your jobs.

97% whitch had sutch condition didnt get evet tourist Visa last year.

But yeah... you can simply bribe clerk at immigration office and no problems at all.

edit: you can expect just german retiree

airguard · « **Reply #43 on:** January 25, 2005, 07:32:37 AM »

A "weak" $ is good news for me, my monthly AH cost is now 91,2 NOK a month instead of 118,1NOK (as for 1 year ago). (simplified argument)

I remember when I started in AH in the beginning of 2000, we had a $ that was almoust 8.92 vs the NOK and now it is 6.12 vs the NOK.
I paid 30 $ a month then and that costed me 267kr a month now it woulda costed me 183kr a month that is a huge diffrence.

that woulda saved me 1083kr a year = 169$ a year (aprox.)

Good news for end users in Europe, bad news for exporting industry in Europe.

airguard · « **Reply #44 on:** January 25, 2005, 07:53:42 AM »

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Originally posted by GRUNHERZ
So will the USD's fall and Euro's rise (both in value and worldwide use) cripple this country and help Europe?

Easy : It will cripple Europe and Help USA. Europe will stand helpless and see their Industry fall over, and USA will se a growing exporting to Europe.
Then again this is easy and simplified word, who knows whats gonna happen, I am a loving Engineer not a Economist.