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THE Dollar Will NOT Crash!
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acer51
User ID: 624823
 United States
10/19/2009 8:39 PM
Report abusive post | THE Dollar Will NOT Crash!
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Back to Business as Usual
The Dollar Will Not Crash
By MIKE WHITNEY
The dollar is not going to crash. There may be grumblings in foreign capitals and "secret meetings" between finance ministers but, for now, the dollar appears to be safe.
Foreign countries don't trade in dollars because they like America. They do it because they have no choice. If they want oil, they need dollars; it's as simple as that.
It's great to talk about a "basket of currencies" replacing the dollar, but that's still a work-in-progress. It might happen, or it might not; no one really knows. What's clear, is that we still live in dollar-centric world where paper claims on wealth are arbitrarily increased at will by a handful of unelected officials at the Federal Reserve. It's a process which relies more on Gutenberg than moral authority.
There's no sign that the dollar is about to lose its position as the world's reserve currency. For that to happen, central banks would have to start unloading US Treasuries, which they are not. Despite record government spending and mushrooming deficits, there is still a strong appetite for US debt. Treasury data show that foreigners purchased $28.6 billion more in US assets in August than they did in June. The flows are not enough to offset downward pressure on the dollar, but that could change in the months ahead. As capital flows increase, dangerous imbalances will reemerge, and the prospect of another financial calamity will become more likely. The Fed is rebuilding the system that just blew up using the same blueprint as before.
World leaders and central bankers mutter about Fed policies, but do nothing. There's been no resistance to the secrecy, the bailouts or the money printing. The bottom line is that the people in power really don't want change. They just want to make speeches and blame America. It's all just empty posturing.
The financial crisis hasn't hurt the dollar a bit. The dollar isn't getting weaker because people are dumping it, but because Fed chief Bernanke is managing its value downward to increase exports and reduce the true cost of household and financial sector debt. What doomsayers are calling a "crash" is really just part of the Fed's plan.
The rest of the world should have chucked the present system more than a year ago when Lehman Bros. collapsed. But they didn't, because they were afraid to face their own future without holding onto Uncle Sam's hand. If they really wanted to stand on their own two feet, they'd pile their Treasuries and greenbacks in a heap and set them ablaze. That's what freedom looks like.
The reserve currency system sucks. It creates a de facto international currency which elevates one country above all others giving it special access to credit and implicit control over the global economic system. It inevitably leads to exploitation, abuse of power and systemic instability.
The dollar should have been crushed when the opportunity presented itself. Now, the the window has closed and it's back to business as usual.
Mike Whitney lives in Washington state. He can be reached at fergiewhitney@msn.com. |
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Anonymous Coward
User ID: 771233
United States
10/19/2009 8:44 PM | | Re: THE Dollar Will NOT Crash! | Quote |
at least there is one guy on the opposite side of the "short the dollar" bet. I mean, we really need at least somebody taking the other side in order to sell to someone. |
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jackaugh
User ID: 773453
 Canada
10/19/2009 8:45 PM | | Re: THE Dollar Will NOT Crash! | Quote |
at least there is one guy on the opposite side of the "short the dollar" bet. I mean, we really need at least somebody taking the other side in order to sell to someone. Quoting: Anonymous Coward 771233
Time will tell
The Coming Depression
[link to www.thecomingdepression.net] |
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Freethinker
User ID: 798114
United States
10/19/2009 8:51 PM
 | | Re: THE Dollar Will NOT Crash! | Quote |
they'd pile their Treasuries and greenbacks in a heap and set them ablaze. That's what freedom looks like.
you think it can't happen?
and it does no harm to the beauty of the sunset to understand the mysteries of the sun
americanbullfrog@gmail.com |
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Anonymous Coward
User ID: 789715
 Argentina
10/19/2009 8:52 PM | | Re: THE Dollar Will NOT Crash! | Quote |
nothing more stupid
just watch the dollar index |
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Anonymous Coward
User ID: 794625
United States
10/19/2009 8:56 PM | | Re: THE Dollar Will NOT Crash! | Quote |
Anyone who just read this is dumber for it. Propagnada machine is rolling. Please tell Obama hi when you see him. |
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acer51
User ID: 624823
United States
10/19/2009 9:01 PM
| | Re: THE Dollar Will NOT Crash! | Quote |
Anyone who just read this is dumber for it. Propagnada machine is rolling. Please tell Obama hi when you see him. Quoting: Anonymous Coward 794625
Hey just passing it on. One should look at things from as many directions as possible to be fully informed.
I don't know what to believe about it.
By the way isn't it all propaganda. They are either selling FEAR or selling HOPE, depends on which one you are buying.
Last Edited by acer51 on 10/19/2009 at 9:03 PM |
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GlassPearls 
GlassPearls
User ID: 613866
United States
10/19/2009 9:22 PM
 | | Re: THE Dollar Will NOT Crash! | Quote |
Any article about the USD that does not mention the SDR or its new carry trade status is indicative of an author that either is out of touch, or who is trying to spin reality for some reason not disclosed to the reader (talking their book?)
Oil will be settled in direct currency deals (bypassing the USD altogether), or settled in SDRs. It's a myth to think you still need to purchase oil in dollars.
With that said, it is possible the dollar will not outright crash and instead we'll see a slower yet relentless devaluation over time. |
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Anonymous Coward
User ID: 559949
 Australia
10/19/2009 9:26 PM | | Re: THE Dollar Will NOT Crash! | Quote |
The dollar is already crashing.
It's being hammered by other major currencies
The IMF and UN are talking about REPLACING it with another reserve currency (or basket of)
Many nations have already DUMPED it
That it will hit rock bottom is a foregone conclusion. |
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Anonymous Coward
User ID: 791835
Canada
10/19/2009 9:30 PM | | Re: THE Dollar Will NOT Crash! | Quote |
Good point. People buy the dollar in hope, but they buy gold in fear.
Anyway, gold has a way to go to hit 1980 highs, currency speculation is the only good game going these days.
you want to make money by shorting the dollar, go ahead. I'm convinced it's a squeeze play short term.
'In the immediate future, he said the dollar looked oversold and was cheap on a purchasing power parity basis. Mr Scott predicted it could rally if markets consolidated and risk aversion increased slightly.
Unwinding quantitative easing could cause problems, he added. He said a pick-up in bank lending could result in higher inflation as quantitative easing money moves into the economy, prompting a bond sell-off and resentment amongst US dollar asset holders.
"It is, perhaps, surprising the bond market has not priced in this risk to some extent because bond yields have been falling in the last two months, from already low levels, while risk appetite has soared."'
[link to www.ftadviser.com] |
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Anonymous Coward
User ID: 797775
 Anonymous Proxy
10/19/2009 9:34 PM | | Re: THE Dollar Will NOT Crash! | Quote |
Here's the Link
[link to www.counterpunch.org]
The dollar is staged for a giant comeback. It's been completely oversold.
Buy gold or dig a ditch |
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Anonymous Coward
User ID: 798165
United States
10/19/2009 9:37 PM | | Re: THE Dollar Will NOT Crash! | Quote |
Here comes $.74 |
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Anonymous Coward
User ID: 797775
Anonymous Proxy
10/19/2009 9:41 PM | |
Anonymous Coward
User ID: 497757
United States
10/19/2009 9:52 PM | | Re: THE Dollar Will NOT Crash! | Quote |
Somebody must have paid off Whitney.
The Federal Reserve Dollar will crash and be replaced by a pm backed Treasury Dollar.
Maybe that's what he's talking about, a strong Treasury Dollar in the long run. |
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acer51
User ID: 624823
United States
10/19/2009 10:08 PM
| | Re: THE Dollar Will NOT Crash! | Quote |
Somebody must have paid off Whitney.
The Federal Reserve Dollar will crash and be replaced by a pm backed Treasury Dollar.
Maybe that's what he's talking about, a strong Treasury Dollar in the long run. Quoting: Anonymous Coward 497757
I would love to see the Fed crash, to hell with the FRN!!
Honest money is the only way to limit corruption. |
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Anonymous Coward
User ID: 797825
 United Kingdom
10/19/2009 10:11 PM | | Re: THE Dollar Will NOT Crash! | Quote |
America pays for things in Dollars, but no other country wants anything America sells. The only reason it has not collapsed it the petrodollar.
No other country wants anything America has to sell, therefore no country wants dollars, therefore the dollar will collapse. |
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mothra
User ID: 779743
United States
10/19/2009 10:34 PM | | Re: THE Dollar Will NOT Crash! | Quote |
Suck it Whitney you turncoat sellout. |
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GlassPearls
GlassPearls
User ID: 613866
United States
10/19/2009 10:46 PM
| | Re: THE Dollar Will NOT Crash! | Quote |
America pays for things in Dollars, but no other country wants anything America sells. The only reason it has not collapsed it the petrodollar.
No other country wants anything America has to sell, therefore no country wants dollars, therefore the dollar will collapse. Quoting: Anonymous Coward 797825
There was $1.8T in exports in 2008. Might want to check your facts before you show your ignorance. |
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SYLPH
User ID: 783756
 Indonesia
10/19/2009 10:59 PM | | Re: THE Dollar Will NOT Crash! | Quote |
All countries that lend money to US will fear to death (or at least hard to sleep) when dollar devalue, this is because their paper asset in USD is sinking. Understand that 70% circulating money in this world is in dollar, almost everything (especially in trading & asset) is valued in dollar.
Here is the logic. For example, you lend people 1 ounce of gold (value $1000) for 1 year. But when it is pay back time, the 1 ounce gold is $800. Can you sleep?
To keep their asset in the same value, other country will also devalue their currency. It is only matter of time before it happen.
They also wish to keep selling cheap product to US. No country want to grow their economy by bubble (credit and consumer spending) but they want to grow it by exporting goods.
We don't know when the dollar will gain it's value. The dollar sinking is only about Chinese Yuan carry trade (not Japanese Yen). It is about time that trader will suddenly change the Yuan to Dollar. When this happen, dollar will up again.
[link to www.financialsense.com] |
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Anonymous Coward
User ID: 684462
United States
10/19/2009 11:03 PM | | Re: THE Dollar Will NOT Crash! | Quote |
 |
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DNAprototype
User ID: 650992
United States
10/19/2009 11:03 PM
 | | Re: THE Dollar Will NOT Crash! | Quote |
All fiat currencies eventually end up worth zero.
Dollar lasted much longer than most.
DNA |
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SYLPH
User ID: 783756
Indonesia
10/19/2009 11:05 PM | | Re: THE Dollar Will NOT Crash! | Quote |
America pays for things in Dollars, but no other country wants anything America sells. The only reason it has not collapsed it the petrodollar.
No other country wants anything America has to sell, therefore no country wants dollars, therefore the dollar will collapse. Quoting: Anonymous Coward 797825
Other country do not want anything America sells because it is too expensive. But they are damn sure that they like US Dollar more than their own currency. Got it? Because you can use USD in all country in the world to "barter". Most country only value dollar or euro as international currency. Other than that, they do not accept. |
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Anonymous Coward
User ID: 798103
United States
10/19/2009 11:07 PM | | Re: THE Dollar Will NOT Crash! | Quote |
Back to Business as Usual
The Dollar Will Not Crash
By MIKE WHITNEY
The dollar is not going to crash. There may be grumblings in foreign capitals and "secret meetings" between finance ministers but, for now, the dollar appears to be safe.
Foreign countries don't trade in dollars because they like America. They do it because they have no choice. If they want oil, they need dollars; it's as simple as that.
It's great to talk about a "basket of currencies" replacing the dollar, but that's still a work-in-progress. It might happen, or it might not; no one really knows. What's clear, is that we still live in dollar-centric world where paper claims on wealth are arbitrarily increased at will by a handful of unelected officials at the Federal Reserve. It's a process which relies more on Gutenberg than moral authority.
There's no sign that the dollar is about to lose its position as the world's reserve currency. For that to happen, central banks would have to start unloading US Treasuries, which they are not. Despite record government spending and mushrooming deficits, there is still a strong appetite for US debt. Treasury data show that foreigners purchased $28.6 billion more in US assets in August than they did in June. The flows are not enough to offset downward pressure on the dollar, but that could change in the months ahead. As capital flows increase, dangerous imbalances will reemerge, and the prospect of another financial calamity will become more likely. The Fed is rebuilding the system that just blew up using the same blueprint as before.
World leaders and central bankers mutter about Fed policies, but do nothing. There's been no resistance to the secrecy, the bailouts or the money printing. The bottom line is that the people in power really don't want change. They just want to make speeches and blame America. It's all just empty posturing.
The financial crisis hasn't hurt the dollar a bit. The dollar isn't getting weaker because people are dumping it, but because Fed chief Bernanke is managing its value downward to increase exports and reduce the true cost of household and financial sector debt. What doomsayers are calling a "crash" is really just part of the Fed's plan.
The rest of the world should have chucked the present system more than a year ago when Lehman Bros. collapsed. But they didn't, because they were afraid to face their own future without holding onto Uncle Sam's hand. If they really wanted to stand on their own two feet, they'd pile their Treasuries and greenbacks in a heap and set them ablaze. That's what freedom looks like.
The reserve currency system sucks. It creates a de facto international currency which elevates one country above all others giving it special access to credit and implicit control over the global economic system. It inevitably leads to exploitation, abuse of power and systemic instability.
The dollar should have been crushed when the opportunity presented itself. Now, the the window has closed and it's back to business as usual.
Mike Whitney lives in Washington state. He can be reached at fergiewhitney@msn.com. Quoting: acer51
Yes it will and is.Checked gold spot lately.Like a roket to venus.  |
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Anonymous Coward
User ID: 744051
United States
10/19/2009 11:10 PM | | Re: THE Dollar Will NOT Crash! | Quote |
link? |
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Anonymous Coward
User ID: 716921
United States
10/19/2009 11:19 PM | | Re: THE Dollar Will NOT Crash! | Quote |
The dollar is already crashing.
It's being hammered by other major currencies
The IMF and UN are talking about REPLACING it with another reserve currency (or basket of)
Many nations have already DUMPED it
That it will hit rock bottom is a foregone conclusion. Quoting: Anonymous Coward 559949
WHEN you spend more than you make and you can not borrow more its called Bankrupt... but when you rob Peter to pay Paul its called a Ponzie Scheme... But when you print money and enslave your people it is called the UNITED STATES OF AMERICA... and Congress is doing this all for our own good, because they are smart and we are FRIGGEN STUPID.. Now give me some free health care and all will be good....
Oh Obama could you turn the water on in California we still need food you fool... Green House gas and we are killing all the almond trees... go figure... |
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Anonymous Coward
User ID: 783101
United States
10/19/2009 11:19 PM | | Re: THE Dollar Will NOT Crash! | Quote |
Wow.... $ Index is 75.18... look out below! |
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GlassPearls
GlassPearls
User ID: 613866
United States
10/19/2009 11:25 PM
| | Re: THE Dollar Will NOT Crash! | Quote |
All countries that lend money to US will fear to death (or at least hard to sleep) when dollar devalue, this is because their paper asset in USD is sinking. Understand that 70% circulating money in this world is in dollar, almost everything (especially in trading & asset) is valued in dollar.
Here is the logic. For example, you lend people 1 ounce of gold (value $1000) for 1 year. But when it is pay back time, the 1 ounce gold is $800. Can you sleep?
To keep their asset in the same value, other country will also devalue their currency. It is only matter of time before it happen.
They also wish to keep selling cheap product to US. No country want to grow their economy by bubble (credit and consumer spending) but they want to grow it by exporting goods.
We don't know when the dollar will gain it's value. The dollar sinking is only about Chinese Yuan carry trade (not Japanese Yen). It is about time that trader will suddenly change the Yuan to Dollar. When this happen, dollar will up again.
[ link to www.financialsense.com]
I do wonder if you read the article you linked to? It's not dollar bullish. It's about the new carry trade being the USD. The U.S. dollar is the newly designated weaker currency.
The carry trade was the Yen. Globalists so wanted to make the Yuan the new one. That didn't work out as they planned. |
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mothra
User ID: 779743
United States
10/19/2009 11:28 PM | | Re: THE Dollar Will NOT Crash! | Quote |
Feel free to short the dollar with impunity. I wish I could write a credit default swap guaranteeing that the yield on short and medium term treasuries will never again exceed 5%. I would bet my life savings on it. |
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Day of the Dollar
User ID: 626460
United States
10/20/2009 9:35 AM | | Re: THE Dollar Will NOT Crash! | Quote |
Hey this gives us something to watch. Don't think it will really happen. The dollar is so embedded in the world, nobody can pull the trigger to destroy it. TPTB know this.
This was their insurance. The dollar will go up and down but will remain. IMHO! |
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Anonymous Coward
User ID: 626460
United States
10/20/2009 10:39 AM | | Re: THE Dollar Will NOT Crash! | Quote |
 |
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JDub
User ID: 741538
United States
10/20/2009 10:44 AM | | Re: THE Dollar Will NOT Crash! | Quote |
Love the wishful thinking but sadly the dollar will crash and a whole lot more crap will come falling down after it. |
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