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Central Banks Buy More Euros/Yen Than Dollars Now

Discussion in 'Political Discussion' started by maverick4, Oct 13, 2009.

  1. maverick4

    maverick4 Banned

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    Not anything new on this forum, except that it's now for real, not just educated guesses. Central banks around the world aren't parking their savings into US assets anymore. RIP dollar as reserve currency.

    The good news is, we likely won't be able to maintain our 950+ military bases and multiple military campaigns around the world anymore...


    Dollar loses reserve status to yen & euro

    Obama Dollar Retreats Most Against Commodities in Wealth Shift - Bloomberg.com

    The Great Debate Debate Archive Dollar faces long journey downward | The Great Debate |
    Last edited: Oct 13, 2009
  2. Holy Diver

    Holy Diver Rookie

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  3. Wolfpack

    Wolfpack Banned

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    I think it may be a bit premature to bury the U.S. dollar. It is obviously very weak right now and people are running away from it, but these things are cyclical. The dollar will bounce back and be the "popular" currency again.
  4. ljuneau

    ljuneau Rookie

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    I have my doubts, not with the US currency printing presses running overtime. There are way too many dollars floating around now. Subsequently, our dollars are becoming less and less valuable. The only way out I see is for the Feds to jack up interest rates to above Carter-year levels (say Round 2 to housing bubble?) I don't see any country ever trusting in the dollar during our lifetimes.
  5. maverick4

    maverick4 Banned

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    It's not just because we are over-printing dollars like monopoly money.

    It's also because the rest of the world doesn't want dollars anymore, the demand has dropped off a cliff.

    The Fed has been pretty clever in disguising and hiding this information as much as it could, going back to the mid-2000's when it stopped publishing M3 data.

    Nixon managed to set up a nice little scam for us in the 70's when he got the Arabs to agree to sell oil in dollars, creating artificial world demand for our currency.

    It looks like the charade is about the end. Most banks bought dollars over the past 12 months to protect assets, but there is no longer a need to buy dollars anymore. It's a bad investment, pure and simple.
    Last edited: Oct 13, 2009
  6. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    Everyone the US debt will be monetized by the government and that we will see extreme inflation, no one wants to buy into that.
  7. ljuneau

    ljuneau Rookie

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    Come on, Mav. Why don't you think they want our dollars? It's because we are debasing our currency via creating magic dollars out of thin air. I pointed out the problem, you just pointed out the affect.
  8. PatriotsReign

    PatriotsReign Rookie

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    Keep in mind that all the bailouts and Tarp didn't "add to the money supply" since all it did was pay down debt. If the banks recieved $800MM to pay down debt (mortgages), then the money supply remains exactly the same....no changes. If you owed $100,000 in debt and I gave you the money to pay them off, you still have zero assets. The American Recovery and Reinvestment Act of 2009 has and will add to the money supply.

    I just wanted to point out that not all gov't bailouts result in the devaluation of the dollar.

    In hindsight, we may have been better off NOT bailing out so many....some things are better off done the old fashioned way.
  9. maverick4

    maverick4 Banned

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    Please link where you ever pointed out anything.

    I've been here for several years now, I hardly recall your username in any of these discussions.
  10. Run DMC

    Run DMC Rookie

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    Like people trust the Euro or yen when push comes to shove? All central bankers are printing like crazy right now. I think the dollar trade is a pure momentum trade just like gold. People need to chillax. If we go under, the whole world is going with us. Paper money is and always was a con game. Best to have diversified assets.
  11. maverick4

    maverick4 Banned

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    I can agree with you that the Euro's strength is at best temporarily strong for the next 5 years. The union is too weak. However, if the Yuan were to ever open up and become freely traded, I don't see what would ever stop it from becoming the dominant currency.
  12. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey

    Temporarily this causes trade problems as American goods become more attractive. Obama's people are letting it happen but they won't let it go for too long. Could be good in the short term perhaps?
  13. sdaniels7114

    sdaniels7114 Rookie

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    The major difference between the Dollar and the Yen is that the Yen has been taking this same pounding for well over a decade now.

    All you Chicken Littles out there remember how things were right before Japan's economy went in the toilet right? How all of you were claiming that Japan was gonna buy the entire USA, lock, stock and barrel?

    How many times are we supposed to buy the doomsday scenario?
  14. Run DMC

    Run DMC Rookie

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    China will never do this because it will immediately inhibit their ability to sell us cheap crap. Don't worry, be happy.
  15. Real World

    Real World Moderator Staff Member

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    MMav, people don't want dollars cuz the market is flooded with them. The dollar is worthless right now, or headed that way real fast. If the US were to right it's ship somewhat, people would start buying up dollars in a flash. No investor passes up on making money, because they don't want to. Investors move to different commodities, or currency, when there's too much risk, or no prophit to be made.

    PR, TARP & the bailouts may not add to the money supply in a literal sense, by way of a suitcase filled with $800 billion being handed out in an office somewhere, but it does devalue the dollar.

    Mossed, you're right. This is all about momentum, and China has too much at stake in the US, to destroy us. At least right now they do.
  16. maverick4

    maverick4 Banned

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    Not sure I completely agree with this. It is a MYTH (similar to the health care myth and any other myth the US propaganda machine puts up) that China is completely dependent on US exports for its own economy.

    I saw data presented last Spring by a Bain MD, showing how China was the first nation on the planet out of the global recession, and that its US exports are less than a fourth of its total GDP. China sells to everyone on the planet, and their domestic economy is picking up the slack and is growing as well.

    The only thing keeping China from tanking our economy isn't the need to sell to us, it's more because they own trillions of treasuries and don't want to get burned on a dying dollar.
  17. Run DMC

    Run DMC Rookie

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    Chinese central bank is printing more money than ours is. This is a fact you can research. You think our gubmint is full of lying thieves? We are bush league compared to those a-holes.
  18. PatriotsReign

    PatriotsReign Rookie

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    BINGO!!!!! WE HAVE A WINNER! HELLO? ANYONE OUT THERE?:eek:

    I'm surprised you didn't know America is the only country that lies and has theives as politicians. Mossed, didn't you know America is the worst? c'mon now....
    Last edited: Oct 14, 2009
  19. Run DMC

    Run DMC Rookie

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    America is the best of the worst! Or the worst of the best? :eek:
  20. PatriotsReign

    PatriotsReign Rookie

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    I'd say both are true!....I think:confused:

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