US Dollar

Ever Wonder How Money Was Created? (If you guessed the Fed or the Mint, you're wrong)

This is by far the most interesting thing I've seen this year. It finally explains the black magic behind our banking system which almost no one understands. If you want to understand the world we live in and who pulls the strings and why, you'd better take a look! Also will show you how scary this whole subprime mess really is. Until we all watch this video we won't be able to fix the problems of the world.




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World Abandoning US Dollar as Standard for International Trade

Good compendium of countries that are dumping the dollar. Unfortunately this is only the first salvo.

Excerpt:

The foreign exchange markets are not solely about exchange rates. They are about values, smooth flowing of international trade, about trust and reliability. The sight of the $ falling over a long period of time, with bounces and recoveries that don't change the downward trend is far more than simply a drop in value!The $ is steadily weakening, but more than a drop in the $' international value is happening here. The loss of confidence is in the $ is accelerating each time it slips one or more percent on a persistent basis, with small short recoveries being seen in the midst of this decline. How important is this loss of confidence? Critical for it precedes policies, which long-term will lessen the role of the $ to one of the world's top 5 currencies.Growing surplus holders don't want to dump the $ for fear of losing value in the remaining ones in their portfolio, but don't think that a dumping of the $ is what it will take to remove it from the position of principal global currency. All realize that it is the knowledge of the declining value of the $ that will bring on a major toppling of that currency. So it is a choice of a steady ‘controlled' fall or a steep decline to disaster. To get perspective on the global scene what is the thinking out there?


Read the Full Article Here




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How China Could Crash The US Dollar on a Whim

...Not to say they want to. It wouldn't do them much good. But it should be common by knowledge by now that they easily could. This article is the most comprehensive I've read on the topic.

Excerpt:

China has several economic “weapons” at its disposal for countering the US, ranging from the manipulation of its currency to the diversification of its burgeoning stock of forex reserves. It also has several less blunt options to choose from, such as enabling Chinese companies to compete more directly and effectively with US companies, and opposing the US in securing a domestic energy supply. On all of these fronts, the US is essentially being held hostage, since it has become so dependent on China as the world’s factory. Ultimately, it seems unlikely that China will deliberately butt heads with the US unless it is first provoked, but America should nonetheless be on its guard, since its economy hangs in the balance.




Read the Full Article Here


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Useful Index

This is a useful index which tracks the dollar against many other currencies. It's called DX7 and it's probably the best way to gague the real strength or weakness of the dollar:



DXU7



See An Up-to-Date Chart Here



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US Heads for Recession as Foreign Investors Rush for the Exit from US Dollar Holdings

Another cheery article about the US financial outlook

Excerpt:

The days of the dollar as the world's “reserve currency” may be drawing to a close. In August, foreign central banks and governments dumped a whopping 3.8% of their holdings of US debt. Rising unemployment and the ongoing housing slump have triggered fears of a recession sending wary foreign investors running for the exits. China, Japan and Taiwan have been leading the sell off which has caused the steepest decline since 1992.


Read the Full Article Here


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US Dollar Vulnerable to Interest Rate Cut, China Dumping US Bonds

I did mention I sold all my stocks and took the dollars and moved them into Czech crowns last month. I would recommend anyone else to do the same. I wish I had done it 7 years ago. I would have more than doubled my money.

Excerpt:

Speculators, investors, and central bankers have figured out that the US government and the Bernanke Fed will not protect the dollar - not when millions of Americans are having trouble making their mortgage payments. The US money supply is increasing - nearly five times faster than GDP growth. And now, fearing a Japan-style deflation, the Fed is likely to cut rates later this month.The Chinese have one of the largest dollar piles in the world.“Is China quietly dumping US Treasuries?” asks Ambrose Evans-Pritchard in the English press.“A sharp drop in foreign holdings of US Treasury bonds over the last five weeks has raised concerns that China is quietly withdrawing its funds from the United States, leaving the dollar increasingly vulnerable.”


Read the Full Article Here

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