How the dollar is sinking

CaptHenway

Look at this 30-day chart of the Dollar, the Euro and Gold. Gold is actually cheaper by a few Euros, but up almost $64.

linky

Edited to add: Oops. Follow that linky, then click on the "30 DAY" box at the top.

Mesquite

I'm not real sure I trust those charts. If you look at the 30 day chart you see one set of numbers. If you look at the 60 day chart you see a different set of values. Either there is something wrong with that presentation, or I'm not understanding what it is that is being shown.

gsa1fan

Yen up ~ dollar down? Japan, nuke disaster raised to Chernobyl level? What am I missing???

streeter

I find it nothing short of amazing that the Euro is gaining strength against the Dollar.

Portugal, with a 22% high school graduation rate, is helping the Euro to gain against the buck?? Doesn't make sense to me. Too many European countries are in financial trouble and have inverted financial structures to allow themselves to not be able to pull themselves out w/o outside help. This Euro strength may be an indication of how weak the Dollar is but I do not believe the Euro is that strong.


I think I'd be betting on the dollar right now against the euro. $1.445 --12APRIL2011.

pf70collector

If Germany collapses- watch out. They seem to be backing all of the EU right now.

percyb

<< <i>I find it nothing short of amazing that the Euro is gaining strength against the Dollar.

Portugal, with a 22% high school graduation rate, is helping the Euro to gain against the buck?? Doesn't make sense to me. Too many European countries are in financial trouble and have inverted financial structures to allow themselves to not be able to pull themselves out w/o outside help. This Euro strength may be an indication of how weak the Dollar is but I do not believe the Euro is that strong.


I think I'd be betting on the dollar right now against the euro. $1.445 --12APRIL2011. >>



I think it's the austerity measures that Germany will be insisting upon that lends strength to the Euro.
The US $ is the worst currency in the world, by the way.

streeter

<<If Germany collapses- watch out. They seem to be backing all of the EU right now. >>

Wait til Hans and Siegreid get tired of working 60 hours a week to bail out P/I/G/S. If the EURO survives a few more years it would be a near miracle.

<<The US $ is the worst currency in the world, by the way.>>

It is being devalued to bring investment into this country. The Canadians and the Austrailians( whom my company services) are secretly in the rubber room with their hands on their hips laughing uncontollably at how cheap American goods are right now.
I have always marveled at how Benjamins get the job done here and around the world. Ever try to pass a hundred Euro note in Mexico? Try to use Sterling, Reals, rubles or Yuan just about anywhere(with very few exceptions) and you'll get a laugh.
If you started today, and beat hard on the dollar for 10 years --and the dollar never had a rally---maybe another currency could make significant inroads as the money of choice. You pick the currency. Even then --I don't see it happening. America has a policy of so much 'soft diplomacy' that given a choice....no other currency carries the goodwill of the almighty BUCK.

Every recession I can remember, a lot of people predict the sky is falling for the Buck. It may get weaker in the near term, however, it's far from dead.

percyb

<< <i><<If Germany collapses- watch out. They seem to be backing all of the EU right now. >>

Wait til Hans and Siegreid get tired of working 60 hours a week to bail out P/I/G/S. If the EURO survives a few more years it would be a near miracle.

<<The US $ is the worst currency in the world, by the way.>>

It is being devalued to bring investment into this country. It may get weaker in the near term, however, it's far from dead. >>


I appreciate your post, but it's
never a good thing to devalue currency. You're forgetting what happens to the cost of imports. The $ is ded...d e d...ded.

Baley

I appreciate your post, but it's
never a good thing to devalue currency. You're forgetting what happens to the cost of imports. The $ is ded...d e d...ded.

Apparently not, sometimes it is, no he isn't, and no it's not.

streeter

mercypercy,

<< but it's
never a good thing to devalue currency. You're forgetting what happens to the cost of imports. The $ is ded...d e d...ded. >>

Think about the logical conclusion of your statement. In this case it is a terrific solution to the problem of America being uncompetitive with the rest of the world and the worlds cheaper labor rate.

yes, imports will be priced higher. Not a bad thing to rebalance our trade fiasco. You don't solve problems overnight---but you have got to change direction in order to get on the right road. The age of cheap imports is rapidly drawing to a close and now we will get to see what things actually cost. For some who have changed their lifestyle by capitalizing on cheap imports, those people are going to be shocked in the next 12 months and beyond.

Inflation + lower dollar value means... what?....20-30% rise on WalMarts goods? Maybe the slack can be filled with some American merchandise for a change. I see the devaluation of the dollar as a two pronged sword. No doubt it is going to bloody a lot of people...including me. But my business has also strengthened from offshore money right now. There is so much foreign money buying things in this country...and those AMERICANS are spending that money and that it is making a difference(slightly) from where I sit. BTW, offshore money is buying goods and services besides real estate. When Japan was on their buying spree, it was mostly high end real estate that was either foreclosed upon or resold back to the REIT's for 50cents.

I.E. --look at how fleabay is starting to anticipate things by how they are altering their requirements for selling overseas. They recognize it. Look at the port in L.A. and see that not as many containers being returned overseas have scrap in them as has been true for years.

Percy, I'm just looking at it from my perspective of business in L.A. I'm seeing money coming in, taking advantage of opportunities and AMERICANS who are in the game paying bills and becoming more liquid because of this inflow of dollars and finding other opportunities to go after. For a couple of years it was stagnant. I'm not just reading charts when I experience this, it's happening.

We are still a long way off from a solid economy. Five years of this, with increased energy efficiency, more responsible social expenditures and increased productivity and we may see the light at the end of the tunnel. But not before.
Thank you for your time.

Justacommeman

did you mean stinking or sinking Capt?

Stinkfest contestants

Dollar
Euro
Pound Sterling

and the winner by unaminious decision ....................


















The Dollar.

Could it change in the future? sure. MJ

derryb

currencies around the civilized world are being purposely devalued by central banks to delay/avoid default. At the moment it's a race to be the lowest. I think this will not end so well for those unable to apply the brakes when necessary.

Really just another name for default, only a slower process.

Bear

DerryB, you are correct. However, It may be the lesser evil

over other corrective measures. What else would you recommend

to avoid utter chaos and buy time for more appropriate corrective

measures?

derryb

<< <i>DerryB, you are correct. However, It may be the lesser evil over other corrective measures. What else would you recommend to avoid utter chaos and buy time for more appropriate corrective measures? >>


The ultimate corrective measure would have been "no corrrective measure" and let the markets fix themselves when we had the chance (No bailouts). It is the best "more appropriate measure." Let losers eat their losses. Any further intervention only digs the hole deeper making it harder to climb out later. The only time being bought by corrective measures (intervention) is the further transfer of wealth from the middle class to the upper upper class who share a little bit of it with the lowest class. This keeps the chaos from boiling over. What do you think would happen if all the free stuff (food, money, cell phones, health care) was removed from the equation? You would have half the population of this country fighting in the streets. The need for intervention was not an accident. It fully served and continues to serve its designers who don't mind paying off a growing majority of leeches with pennies on the dollar.

If I had to narrow things down to the best CURRENT corrective measure, I would abolish the FED, enforce banking law and regulation, institue flat tax rate on every dollar spent (BY ANYONE) and outlaw all lobbyists (especially those representing Wall St.). Who needs middle men? I'd rather those that want my money to show their faces.

Bear

I agree totally with your plan.

CaptHenway

<< <i>did you mean stinking or sinking Capt?

Stinkfest contestants

Dollar
Euro
Pound Sterling

and the winner by unaminious decision ....................



The Dollar.

Could it change in the future? sure. MJ >>



DOLLARS?

WE AIN' GOT NO DOLLARS!!

I DON' GOT TO SHOW YOU ANY STINKIN' DOLLARS!!!!!"

jmski52

The ultimate corrective measure would have been "no corrrective measure" and let the markets fix themselves when we had the chance (No bailouts). It is the best "more appropriate measure." Let losers eat their losses. Any further intervention only digs the hole deeper making it harder to climb out later. The only time being bought by corrective measures (intervention) is the further transfer of wealth from the middle class to the upper upper class who share a little bit of it with the lowest class. This keeps the chaos from boiling over. What do you think would happen if all the free stuff (food, money, cell phones, health care) was removed from the equation? You would have half the population of this country fighting in the streets. The need for intervention was not an accident. It fully served and continues to serve its designers who don't mind paying off a growing majority of leeches with pennies on the dollar.

If I had to narrow things down to the best CURRENT corrective measure, I would abolish the FED, enforce banking law and regulation, institue flat tax rate on every dollar spent (BY ANYONE) and outlaw all lobbyists (especially those representing Wall St.). Who needs middle men? I'd rather those that want my money to show their faces.

Great Post.

Mesquite

I knew it! The Captn is really Eli Wallach.

CaptHenway

<< <i>I knew it! The Captn is really Eli Wallach. >>



Eli Wallach was in "The Good, The Bad and The Ugly."

Gold hat was in "Treasure of the Sierra Madre." Much earlier movie.