Thread: WARNING.... U.S. Dollar Exchange Article of Interest

Sure has been an interesting economy to watch over the past year here in U.S. The dolllar actually rebounded a bit when the fed failed to cut rates as much as the market was expecting, so the battle continues, try to support the falling dollar, or defeat inflation, or perhaps let the chips fall where they may? lol

Happy Holiday Season to all, Mike

Originally Posted by Offshore-Wealth.com

Sure has been an interesting economy to watch over the past year here in U.S. Dolllar actually rebounded when fed failed to cut rates as market was expecting by 50 basis points, so the battle continues, support dollar, defeat inflation, or let the chips fall where they may? lol

Happy Holiday Season to all, Mike

[SIZE="2"]
Here is where they are falling...

" China Rising"
Dear Trader,

Last week I wrote "I have noticed a disturbing trend. Citigroup's stock had to be (temporarily) rescued by Saudi money. UBS needed a huge cash infusion from the government of Singapore and unnamed "middle East money." The FOMC was able to cajole the BOE, BOC, Swiss Bank and European Union to "inject liquidity" into the system for the benefit US banks. And now the Bank of America has warned of larger fourth-quarter losses than previously projected. Who will come to its rescue? Communist China ? Unfortunately, it seems like investment banks (especially in the US ) and the Federal Reserve, are going out with their hat in hand asking, 'Brother, can you spare a dime?'" What a prescient statement indeed! The communists have "come to the rescue" of a major US investment bank, but it wasn't Bank of America that needed the money, it was Morgan Stanley.

In the latest sign that the credit crunch is getting worse, Morgan Stanley admitted to an additional $5.7 billion of CDO-related assets, taking its total fourth-quarter loss to nearly $10 billion. I believe this will be the first quarter in Morgan Stanley's history that it will have a quarterly loss. WHAT? I thought this was an investment bank, ferchissakes, not a bond investor!

Morgan's CEO made the following statement this morning, "The results we announced today are embarrassing. This loss was the result of an error in judgment that occurred on one desk, in our Fixed Income area and also a failure to manage that risk appropriately." He also said he was turning down a bonus for 2007. How nice of him. After all, the entire CDO debacle, including the enormous risk undertaken, came straight from the CEO himself. The mere fact that he was even offered a bonus is offensive to shareholders.

What might also be offensive to current shareholders is the new investor mentioned earlier: the communist government of China . Today's $5-billion bail out, I'm sorry - investment, puts the communist control of Morgan Stanley at nearly 10.0%, which is the #2 investment bank in this country. The Chinese government will be paid a fixed annual rate of 9% and convert into Morgan Stanley common shares in 2010. The current shareholders, however, are only being paid 2%.

When I scanned the financial press after the pit closed, I couldn't find a single negative comment about the financial-love-coupling between the commies and Morgan Stanley. In fact, it was quite the opposite: most approve of the new arrangement. What do you think about this? Before you answer, think of it carefully.

My thoughts come down to this: How would these same supporters of this financial duo have reacted to the US government owning 10% of Morgan Stanley? The outcry from Wall Street would be deafening! So if you answered that it is "ok" like the so-called experts did, but US government ownership would be bad - why? Is it because the US government can't run much properly or profitably (think of the Post Office, IRS, FEMA, etc)? If that's true and you're for the CIC investment, then you must believe the Chinese government does things right. I suppose we shouldn't talk about Chinese communist sponsored slave labor or murder-for-medical-body-parts at its prison camps. Yeah, let's save that for a bed time story.

Apparently Warren Buffet was correct when he recently said in an interview, "Over time, if you keep shipping $2 billion a day out of the country, as we do, of assets, you put pressure on the dollar, and that's what's happening." He went on to say (loosely quoted), " America is for sale all across the globe."

We can hear it now, from the US to Europe to Japan, "Attention K-Mart shoppers, excuse me, foreign shoppers; we have a red tag sale on all mortgage insurance companies and a blue light special on all investment banks!" Boy, that mega-phone must be as big as the grand-canyon!

Larry Levin
President & Founder, Secrets of Traders
Just good reading...where is your stake in the ground?

Maceman

Exactly,

I cannot wait to hear the bluelight special in WalMart when the announce they accept foreign currency only. lol

Happy Holiday Season to all, Mike

Interesting Visual ion declining dollar,


Protecting Your "Benjamins"

By Byron King

Today is the 302nd birthday of Benjamin Franklin, author of the famous phrase, "A penny saved is a penny earned." If Franklin were alive today, he might have added a few words about protecting ones pennies from the ravages of inflation and reckless monetary policies. But since he cannot add these refinements, we will…after first paying our respects to this great American.

Early in his life, Benjamin Franklin spent a bitter period of time as an indentured servant. He became well acquainted with scarcity and privation in a colonial economy at the frontier of the British Empire. After gaining his freedom, Franklin went on to become a printer, editor and merchant. (At one point, Franklin had a government contract to print the paper currency of Pennsylvania.) Franklin was also a natural scientist, scholar, writer and inventor -- coming up with an array of things ranging from the lightning rod to the glass harmonica. It was Ben Franklin who came up with many social innovations that we take for granted, such as America's first lending library and the first volunteer fire department.

And Franklin was a politician, diplomat, philosopher, ambassador and Founding Father of the United States of America. It was Franklin who famously summed up the form of U.S. federal government – if not its ultimate fate – as he walked out of the proceedings of the Constitutional Convention of 1787. When asked what sort of government had been established, Franklin replied, "A republic, if you can keep it." More than two centuries after his death, Franklin is among the most revered and respected figures in American history.

Indeed, Franklin is among the best-known Americans throughout the world. Certainly, Franklin's intellect and accomplishments are the foundation of his fame. But one aspect of Franklin's ********* fame comes from the fact that his image is printed on the U.S. $100 bill. Thus, Ben Franklin is ubiquitous in international trade and commerce.



This monetary aspect of Franklin's fame is worth bearing in mind. Because it now takes about one of those $100 bills to purchase one of these barrels of oil.


And it takes nine of those $100 bills to purchase an ounce of gold.


Just a year ago, a "Benjamin" would buy nearly two barrels of oil, not one. And it took just a bit more than six Benjamins to buy that gold coin illustrated above. While we are thinking about it, how much food can you buy this year at the grocery store for the amount indicated on one Ben Franklin $100 bill? Less than you could last year, right? Simply put, the value of your U.S. currency is declining, while the costs for the things you buy are rising.

Originally Posted by Offshore-Wealth.com

Interesting Visual ion declining dollar,


Protecting Your "Benjamins"

By Byron King

Today is the 302nd birthday of Benjamin Franklin, author of the famous phrase, "A penny saved is a penny earned." If Franklin were alive today, he might have added a few words about protecting ones pennies from the ravages of inflation and reckless monetary policies. But since he cannot add these refinements, we will…after first paying our respects to this great American.

Early in his life, Benjamin Franklin spent a bitter period of time as an indentured servant. He became well acquainted with scarcity and privation in a colonial economy at the frontier of the British Empire. After gaining his freedom, Franklin went on to become a printer, editor and merchant. (At one point, Franklin had a government contract to print the paper currency of Pennsylvania.) Franklin was also a natural scientist, scholar, writer and inventor -- coming up with an array of things ranging from the lightning rod to the glass harmonica. It was Ben Franklin who came up with many social innovations that we take for granted, such as America's first lending library and the first volunteer fire department.

And Franklin was a politician, diplomat, philosopher, ambassador and Founding Father of the United States of America. It was Franklin who famously summed up the form of U.S. federal government – if not its ultimate fate – as he walked out of the proceedings of the Constitutional Convention of 1787. When asked what sort of government had been established, Franklin replied, "A republic, if you can keep it." More than two centuries after his death, Franklin is among the most revered and respected figures in American history.

Indeed, Franklin is among the best-known Americans throughout the world. Certainly, Franklin's intellect and accomplishments are the foundation of his fame. But one aspect of Franklin's ********* fame comes from the fact that his image is printed on the U.S. $100 bill. Thus, Ben Franklin is ubiquitous in international trade and commerce.



This monetary aspect of Franklin's fame is worth bearing in mind. Because it now takes about one of those $100 bills to purchase one of these barrels of oil.


And it takes nine of those $100 bills to purchase an ounce of gold.


Just a year ago, a "Benjamin" would buy nearly two barrels of oil, not one. And it took just a bit more than six Benjamins to buy that gold coin illustrated above. While we are thinking about it, how much food can you buy this year at the grocery store for the amount indicated on one Ben Franklin $100 bill? Less than you could last year, right? Simply put, the value of your U.S. currency is declining, while the costs for the things you buy are rising.

Good to see your still posting around here as this place is a ghost town. I find the article interesting and does shed some light , however I disagree with the statement "Just a year ago, a "Benjamin" would buy nearly two barrels of oil, not one." This price of 100 a barrel oil has been going on for more than one year as a matter of fact I think its been a few years back that oil was at $50 a barrel and not just last year. I may be wrong but think im right. Tank

World Nominal Oil Price Chronology: 1970-2006

Just quietly waiting for the IQD to revalue.
Hopefully soon.

Interesting,

With dollar hitting new lows, I suspect the dollar is about to go bust, even worse than I predicted over a year ago. I didn't want to see the dinar rise at the expense of the dollar, but thank goodness I put everything into dinar as I would hate to be sitting on all dollars with current trend. With Bernanke about to drop his drawers again, dollar is about to go bust.

Good luck to all, Mike

Thanks Mike for your advice. But, I think we need to invest money in Gold market and even in real estate market. So, that we can make good monet.

Looking forward to Dinar but still preffer Gold market