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Pillar of the Community
United States
4008 Posts |
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Like anchoring a wall to the leaning tower of Pisa. Yep... and on the side toward which the tower is leaning. |
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Pillar of the Community
United States
3670 Posts |
Something is a stir (perhaps rotten iin the state of Denmark), as since you posted this about fifteen hours back, G & S have taken a nose dive free fall, and the line is headed strait towards this guy  , wonder what gives? Edited by Silverhawk74
09/07/2011 12:40 am
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Pillar of the Community
United States
1143 Posts |
The Swiss either peg their currency as they have or their exports become so uncompetitive that they lose both industry and jobs going forward. I believe their government made 30+ Bil today so I'm not crying for them just yet. So where is wealth running to today...well the U.S. dollar seen as the best of the worst at the moment. That drove down pm's today. Longer term is a tough call.
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Valued Member
United States
302 Posts |
On a daily line chart gold has broken through to the downside going below the minor uptrend line of the last 2 weeks. While at the same time failing to close above the previous high close. This smells like negativity to me, but too early to tell how negative.
Can't look at a normal bar chart yet, so don't know how gold looks on it.
Silver looks weak, but it has not dropped through anything significant yet.
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Pillar of the Community
United States
3670 Posts |
Well the fall has continued to close to the low 1800's and silver is back around 41 an some change....
An you say this is probably due to the dollar gaining some strength?
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Pillar of the Community
United States
4008 Posts |
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Longer term is a tough call. Longer term, none of the dollar's basic fundamentals have changed one bit and it is just as diluted as it was last week. Maybe the question is, "What will the Fed do now... print more money or pull money out of circulation?". When you have answered that, you will know what to do.  |
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Valued Member
United States
302 Posts |
Any strength the dollar gains is only temporary. It won't last.
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Pillar of the Community
United States
4008 Posts |
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Any strength the dollar gains is only temporary. It won't last. I agree. There would have to be a MAJOR US government policy shift on the dollar for there to be any REAL strength returned to this currency. This could happen but it seems very unlikely without a change of administration. |
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Pillar of the Community
 United States
830 Posts |
This is a very impressive bounce in the US$, as far as I can tell it hasn't been this high since last March. It looks like it is hitting some resistance here though. This might be about it on the up side.
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Pillar of the Community
United States
4008 Posts |
It would be a lot more impressive, Thunder, if there were improvements in US dollar fundamentals that justified this rise. This reminds me of those scenes in movies where someone asks for a volunteer and all but 1 person takes a step backwards, leaving the 1 person appearing to be volunteering. If all other fiat currencies drop that could make the dollar appear to be rising. We see the same kind of thing in the various stock markets. People will cheer when the US stock market rises in dollar terms while they completely ignore the fact that the US stock market is falling in terms of gold.
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Pillar of the Community
Australia
2830 Posts |
as an outside observer, in Australia, I find it interesting that the Aussie dollar has varied between USD 0.50 and USD 1.10 over the last decade. During that time, I have visited Indonesia a half dozen times. Formerly, the Indonesian Rupiah was very volatile, but those days, it seems to me, are now gone. The Rup (as Aussies call it) has only varied bewtween 7,500 and 8,800 to the Aussie dollar. Which means that it has gone up, compared to the greenback, over the same time.
Why ? I think that there are two factors: the decline of the greenback, discussed above, is one. The other is a new strength in the Indonesian economy, which coincides with the term of their current president. Underlying that, the president has made a concerted effort to eliminate corruption.
In 1998, the then-leader of P.R.China, Jiang Zemin, had a crackdown on corruption. It is interesting to see how their economy has advanced since then.
It seems that the only thing holding up the greenback is its status as World Reserve Currency. The Chinese have so many dollars that it must be unappealling to allow them to be devalued. Once that passes, it will go into freefall. The interesting question is: what will replace it ? The Euro ? Gold ? Yuan ?
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Valued Member
United States
302 Posts |
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The interesting question is: what will replace it ? The Euro ? Gold ? Yuan ? If the Euro recovers (and it might), then I would think the Euro would. If the Euro fails, then whatever German money surfaces will probably be it since Germany has one of the strongest economies in the world. The German economy is almost single-handedly propping up all of the other European economies combined. I doubt that the governments would allow gold to become the defacto standard - They lose too much power that way. |
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Pillar of the Community
United States
4008 Posts |
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It seems that the only thing holding up the greenback is its status as World Reserve Currency. That is one of it remaining virtues. Unfortunately for the US dollar, creditor nations around the world are getting tired of being paid for their goods in shrinking dollars. They are putting pressure on other nations to seek out or create a new WRC. At some point, I am thinking that they will succeed. Quote:
The Chinese have so many dollars that it must be unappealling to allow them to be devalued. There is an old saying in banking that goes like this: "If you owe the bank $100,000, they own you. If you owe the bank a billion dollars, you own them!". When you owe someone so much money that they cannot afford for you not to pay it back, you have some serious leverage on them. China is VERY interested in diversifying out of US dollars and who can blame them for that? They are spending a lot of dollars these days to buy real assets, such as mines, farmland, oil fields, and other income and raw materials producing properties. I would guess that they have made a significant investment in Australia in such assets and they probably used US dollars to make those purchases. Quote:
The interesting question is: what will replace it ? The Euro ? Gold ? Yuan ? I don't think that the currency of any one single country will ever be the WRC again. People are quickly learning that they do not want their financial futures in the hands of and at the whims of any single country. I expect that a trade currency of some kind will develop. It might be a basket of several currencies or it might be either backed or partly backed by commodities of some kind. A basket of commodities from around the world would likely make sense... wheat, oil, lumber, gold, silver, cotton, sugar, beef, soybeans, rubber, edible oils, etc. |
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Valued Member
United States
302 Posts |
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I would guess that they {the Chinese} have made a significant investment in Australia You are absolutely correct. One of the largest mining operations in Australia is Chinese owned and in Northern Western Australia. They own the mines, the railroads to the ports, and the port facilities. When they advertise for workers, one of the requirements is ability to speak Mandarin Chinese. Australia is fast becoming a Chinese colony according to people I know there. |
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Pillar of the Community
United States
4008 Posts |
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Australia is fast becoming a Chinese colony according to people I know there. Well, don't feel too special about that. This is going on all around the world. It's just so messy to conquer the world with military power when economic power can do a better and MUCH tidier job of it.  Quote:
When they advertise for workers, one of the requirements is ability to speak Mandarin Chinese. Yeah, like anyone but a Chinese actually speaks Mandarin. It is a VERY difficult language to learn. I have heard that it takes about 8-10 years to become fluent in Chinese but only about 2 years to become fluent in most other languages. I don't care how good a job they offer, I', NOT learning Chinese!  |
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Posted 09/06/2011 5:10 pm
