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alstry (35.03)

What A Day For USA.....Go Dollar Go!!!!!

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December 04, 2009 – Comments (16)

Dollar makes biggest rise since June on jobs data

Who coulda ever guess this one?????????????????????????????????????????????

New Jersey Losing $22,000 a Day With Swap For Bonds Never Sold

State Increases Taxes and Fees to Cover Budget Shortfalls

Update: Jefferson County - 18 Sheriffs 

Warren Hospital Closing Drug & Alcohol Center

Owens Inc Closes 2 Shawano Plants - 150 Jobs Lost

COLLAPSING TAX RECEPITS, MASSIVE BUDGET SHORTFALLS, RISING TAX RATES, LESS SERVICES......BUSINESSES SHUTTING DOWN AS ZOMBULATION SPREADS ACROSS THE NATION

GO DOLLAR GO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

16 Comments – Post Your Own

#1) On December 04, 2009 at 3:02 PM, jason2713 (< 20) wrote:

I'm lost Alstry.

Please enlighten me.  I know there are fluctuations with the dollar...I've been watching it fluctuate from $1.46EURO VS $1 to the worst around $1.51EURO vs $1USD.

You must have something we don't since you called it before it happened (I think).

Inside source?  Because I just bought some gold today.  I want to know if I should be dumping this or not because I'm down around 5-6% currently, as opposed to the 10% on some stocks.  Should I be dumping it or at least shedding exposure?

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#2) On December 04, 2009 at 3:06 PM, alstry (35.03) wrote:

Since Alstry began blogging....the primary allocation has been between the US dollar and some metals..........

and if you want to surf the upcoming tsunami.......have some fun.

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#3) On December 04, 2009 at 3:11 PM, alstry (35.03) wrote:

Health Care could get very sick after 1.01.10

ZymoGenetics - 52

MiddleBrook Pharmaceuticals - 145

Pfizer ( Pearl River Facility ) - 200

Abbott Laboratories - 80 Temp. Layoffs

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#4) On December 04, 2009 at 3:11 PM, jason2713 (< 20) wrote:

Yea, that makes sense...a lot of sense.

:(

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#5) On December 04, 2009 at 3:15 PM, alstry (35.03) wrote:

That allocation has outperformed the market by about 50% over the past few years.

It is just that I think the dollar will be taller and metals are a good hedge.

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#6) On December 04, 2009 at 3:16 PM, goldminingXpert (29.76) wrote:

Ding Ding Ding. Huge up day for dollars. Fans of global stability and fans of the US not imminently collapsing take heart. Gold bugs, you are out of luck. Maybe America collapses next week and you get rich?

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#7) On December 04, 2009 at 4:16 PM, FleaBagger (29.37) wrote:

State governments are now redundant, as The Federal Government now has unlimited authority over everyone. Their loss of revenue and function is inevitable as we transition from hegemony to nationalism.

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#8) On December 04, 2009 at 4:19 PM, alstry (35.03) wrote:

The loss of revenue is hitting practically every segment of the economy....except welfare, wall street bankers, and military.

Here are a few more confirming links from dailyjobcuts.com:

St. Louis Business Bankruptcies up 16% From Last Year

Stein Mart Inc November Sales Down almost 10%

Delmarva Power has won approval for a 1.1 percent rate increase in Maryland

Jobless Insurance Rate increase for Some ND Employers 

Kentucky Agriculture Takes a Hit from Recession

Washington DC - Metro Consider Service Cuts and Fee Increases

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#9) On December 04, 2009 at 4:21 PM, jason2713 (< 20) wrote:

The way I see it....the local govt's aroudn the nation are insolvent and will need a bailout of some kind...the fed gov't will have to give them money to keep the states going.  To do this...they will have to "print" more money.  This is a short term correction, although I'm still scared of a much larger correction.  I bought in when the gold correction was around $1150/ounce.  Lets hope I have the right idea.  I'm only short term on gold, and I think it has upside from here.  We are not out of the woods, there will be easy monitary policy going through the end of the year....into January.  Beyond January..its anyone's guess.. and I'm stepping out of the way at that point.

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#10) On December 04, 2009 at 5:12 PM, Turfscape (40.96) wrote:

Hmmm....maybe THIS is why the dollar rose today? I mean, would you trust the Pounds in your pocket after reading that? Not me, my friend. Not me.

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#11) On December 04, 2009 at 5:20 PM, 1315623493 wrote:

America has to become a net exporter again, and to do that, our exports must be cheap to foreign buyers, and to that, we must devalue the dollar. Nuff said. Inflation is good.

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#12) On December 04, 2009 at 6:08 PM, hhasia (62.43) wrote:

US needs a strong dollar.

If the dollar deteriorates further look for Sovereign Countries to pull deposits out of the USA. We know the banks use the deposits as assets from which to leverage the real estate debacle. Then took Tax $ and Cheep Fed $. But a run from Sovereign nations who lose confidence in the dollar..... well the Fed would not be able to print fast enough. The Holiday Would be mandatory.  Have cash at home, cause the doors will be shut.  A mass exodus from foreign nations, not average joe depositor. This is what scares the Fed most. It would be... a death blow.

 The Fed needs to take QE out, to boost the dollar. The alternative is shut down if foreign nations lose faith.  The dollar rise, predictable.

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#13) On December 04, 2009 at 9:13 PM, 1315623493 wrote:

God, this strong dollar mantra amuses me. Then at the same time, those same people whine about how America's deficit this and that. Well buddy, if you want smaller deficits, America as a net exporter, and more capital in-flows into America, the dollar needs to be devalued. 

Additionally, sovereign countries bank through their central bank, not through the USA. Are you telling me the USA is the banker of the world? I'm assuming you mean countries will stop buying treasury bonds or US government debt. Well, I have no problem with that, as if you want the government to balance the budget, then the spigot needs to be turned off. What we don't want is the largest holders of US debt to all of a sudden sell all their holdings. But guess what, that's not going to happen.

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#14) On December 05, 2009 at 1:03 AM, hhasia (62.43) wrote:

Betapeg

Not sell debt, but Central banks cut the flow of credit to memberbanks operating in that country. It is not sold it is frozen. Or with a weak dollar funds are taken out of liquidity. Assets still there but liquidity zip. I do mean turning off the spigot.

On a side note: to reduce spending, privatize social security and medicare. Immediate cut for govt employees making over 100K gross, plus early retirement. Cut the fat out of government labour pool. And so these people will have a place to work, give tax incentives to the private firms hiring former govt workers. The savings to government from reduced labour would be greater than the value of the incentives, plus would add liquidity.  Setup RTC for assets, similar to savings and loan setup to lighten the balance sheets of Fed and banks. Let the banks get back to being banks. Do that, and the spigot will be turned on so folks can get back to work. By the way  Singapore, Hong Kong and other countries have privatized social security and it works. Because of the economic crisis, the govt added to each individual's private account in HK. The flip side of a tax cut.  The government monitors, but does not run the SS program. As well the Fed provided loans to Singapore.

Bite the hard pill, and end the accounting shell game.

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#15) On December 05, 2009 at 2:15 AM, 1315623493 wrote:

We all can agree that fiscal spending is a problem but a strong dollar isn't going to solve that. In fact, I believe a strong dollar spurred it in the first place. Gave a false sense of security to Reagan, Bush I, and Bush II.

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#16) On December 05, 2009 at 7:14 AM, hhasia (62.43) wrote:

The domestic focus of the US programs have sapped the international confidence. Should another Dubai happen but on a country wide basis, the assets that country had in the USA would be depleated in a heart beat. That country, being bankrupt, would reclaim them to settle their international payments leaving the USA banks depleated and in chaos. The Fed would not be quick enough. The threat is not internal as much as external.  A strong "house in order" with sound fiscal spending, the fox not left in charge of the hen house among other things would go along way. Do I think reason will prevail? I'm not clairvoyant, just sceptical that this chaos coming is not already contrived.  I also agree with Motley Fool, hold RMB.

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