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alstry (35.02)

Dollar Collapsing!!!!!

Recs

10

February 03, 2009 – Comments (6)

Feb. 3 (Bloomberg) -- The euro traded near an eight-week low against the dollar before a report that may show European producer prices fell for a fifth month, giving the region’s central bank more room to cut interest rates.

JAPAN IS THE PLACE TO GO....

Jan. 30 (Bloomberg) — Japan headed for its worst postwar recession as factory production slumped an unprecedented 9.6 percent, NECCorp. said it will cut more than 20,000 workers and Hitachi Ltd. forecast a record loss. The December drop in output eclipsed the previous record of 8.5 percent set only a month earlier, the Trade Ministry said today in Tokyo. 
  ….
 “Japan’s economy is falling off a cliff,” said Junko Nishioka, an economist at RBS Securities Japan Ltd. in Tokyo. “There’s really nothing out there to drive growth.”
 

MAYBE RUSSIA......

The Kremlin’s rule is beginning to look much shakier than at any time since Vladimir Putin came to power, after a series of protests in cities across its vast landmass this weekend by Russians disgruntled about the economy. And as the country starts to feel the effects of the global credit crunch, there are also signs of a growing rift between Prime Minister Putin, and his hand-picked successor as President, Dmitry Medvedev.

CHINA IS THE GROWTH ENGINE

Bankruptcies, unemployment and social unrest are spreading more widely in China than officially reported, according to independent research that paints an ominous picture for the world economy.
 
The research was conducted for The Sunday Times over the last two months in three provinces vital to Chinese trade – Guangdong, Zhejiang and Jiangsu. It found that the global economic crisis has scythed through exports and set off dozens of protests that are never mentioned by the state media. 

BALTICS ARE BETTER

The old Baltic trading city had seen nothing like it since the happy days of kicking out the Russians and overthrowing communism two decades ago. More than 10,000 people converged on the 13th-century cathedral to show the Latvian government what they thought of its efforts at containing the economic crisis. The peaceful protest morphed into a late-night rampage as a minority headed for the parliament, battled with riot police and trashed parts of the old city. The following day there were similar scenes in Vilnius, the Lithuanian capital next door.

TEA ANYONE?

“I wouldn’t invest any more money in Great Britain,” says American investor Jim Rogers. And economist Willem Buiter, a former consultant to the Bank of England, warns of the “risk that Great Britain will become a second Iceland.”

If the dollar is collapsing, what the heck is happening to the other currencies of the world?

6 Comments – Post Your Own

#1) On February 03, 2009 at 3:08 AM, DaretothREdux (40.20) wrote:

It's the same---old----song...

Yet how has Gold held up?

Fiat currency is what sucks, not just the USD but all Fiat currencies.

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#2) On February 03, 2009 at 3:21 AM, alstry (35.02) wrote:

The real question is why is gold trading at the same level it did 30 years ago with all this distress going on????

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#3) On February 03, 2009 at 3:25 AM, DaretothREdux (40.20) wrote:

900>800

And I would argue that 30 years ago Gold was in a bubble. It's not now, since we have seen a lot of inflation since that time.

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#4) On February 03, 2009 at 3:39 AM, kaskoosek (59.72) wrote:

alstry

Some times what you write is very dishonest and misleading.

"why is gold trading at the same level it did 30 years ago with all this distress going on"

I will not even try to answer this question.

I am pretty sure that the price of my house now is much higher than it was in the 60s, 70s or 80s. All fiat currencies are crap, stop deluding yourself. Inflation (ie devaluation) is going to sweep us sooner or later.

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#5) On February 03, 2009 at 4:46 AM, OldEnglish (27.98) wrote:

The race to devalue has begun. Watching Geitner trying to bully the Chinese into appreciating the Yuan was a joke. He immediately back peddled and tried to pin it on Obama. "Oh, I didn't say that. The President did."  Way to toss him under the bus Tim.  Maybe he forgot Obama isn't a currency trader and relies on his (Geitner's) advise as former head of the New York Reserve. What a bi@#$ move.

The dollar has a dismal future but let's face it, so do most currencies.  With the exception of the Swiss Franc, very few look attractive. Gold, however, is overvalued at the present.

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#6) On February 03, 2009 at 5:20 AM, oversea (< 20) wrote:

Alstry, do you ever have a sunny day? I'm beginning to enjoy your posts because their pessimism is so granted that I think they are simply funny.

I bought NDG when it was traded at 0,80 and AUY at 4,50. Did anibody do the same? In my bank the idiot in charge adviced me against buying them, fortunately I did not pay any heed to him. 

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