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jesusfreakinco (28.32)

Ambrose Evans-Pritchard - USD is done, gone, ...



September 24, 2009 – Comments (5) | RELATED TICKERS: FED , CRO.DL2 , OKS

The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC.

"The dollar looks awfully like sterling after the First World War," said David Bloom, the bank's currency chief.

A monetary policy of near zero rates – further juiced by quantitative easing – is completely incompatible with circumstances in most of Asia, the Middle East, Latin America, and Africa. Divorce is inevitable. The US is expected to hold rates near zero through 2010 to tackle its own crisis. 

The Fed's super-loose policy is turning the dollar into the key funding currency for the next phase of the global "carry trade", taking over the role of Japan during its period of emergency stimulus."

Our government has sold us down the road.

SSCI here we come


5 Comments – Post Your Own

#1) On September 24, 2009 at 9:44 AM, jesusfreakinco (28.32) wrote:

New world currency order starts to unfold

"Now, though, this privileged, inherited status of the paper dollar is under threat from the falling relative economic size of the US and its cyclical influence and the scale of the excesses that very privilege has allowed.

Today, after almost 25 years of deficits, the US is the world’s largest debtor with little chance of shrinking that debt without significant further real depreciation of its currency."

JFC - How is this influencing your trading / investing strategy?

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#2) On September 24, 2009 at 11:22 AM, portefeuille (98.32) wrote:

Dollar in 'Serious Trouble:' Strategist

Airtime: Fri. Sept. 11 2009 | :00:0 09 ET
"The dollar looks like it's in serious trouble and I think that will only intensify. And I think this is a seminal moment for emerging market currencies," David Bloom from HSBC said Friday. He called the dollar "a relic of history" and said "we have to break away into a new world."

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#3) On September 24, 2009 at 11:29 AM, portefeuille (98.32) wrote:

What A Recovery Looks Like in a QE World

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#4) On September 24, 2009 at 11:34 AM, jesusfreakinco (28.32) wrote:

Port -

Excellent video. Hadn't seen that before.  A repost of this video would be timely given the Fed's continuation of QE.

In summary, he says, governments are in control of the market.  The impact of QE will have significant 'other' implications TBD.  We live in interesting times.  Economically speaking, I wish I wasn't living in the US.  It is going to suck for quite some time.


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#5) On September 24, 2009 at 11:47 AM, russiangambit (28.97) wrote:

Yes, great video. So, once FED started purchasing Treasuries, they have to continue otherwise the itnerest rates will go up and we are back to square 1. Actually we are back to square -1 because we will be not only back into recession, but also with higher debt and higher interest rates. These are the long term concequences of massive intervention with borrowed money which nobody wants to talk about because it is just too painful to contemplate so people simply ignore it.

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