Comments on: How Far Has the Dollar Climbed? And Why? http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/ Mutual Funds, Investing, Retirement, Economy, Personal Finance Thu, 11 Mar 2010 17:53:32 +0000 http://wordpress.org/?v=2.3.1 By: W.D. http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-3989 W.D. Thu, 03 Dec 2009 05:06:49 +0000 http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-3989 The fall of the U.S. dollar will not continue unchecked. It is inevitable that it's descent will stop and it will rise again. Probably as early as the FQ of next year. There are just too many countries that would lose out and the World Leaders know this even if they are loathe to admit it. Global competition for exports will become fierce and foreign currency manipulation is inevitable. Gold is no real alternative; especially now that China has expressed no interest in 'sitting in' on this, Gold's latest Global poker game. Their really is no alternative to the U.S. Dollar for pricing commodities on the horizon. Perhaps the Bric nations will change this someday (think decades!) but not until China has completed a seismic shift in both it's economic policy AND it's political ideology. It is still too much mired in the 'Cold War' mentality to be anything close to this type of world leadership now. Regardless of what they say other countries already know this and that is why they are still buying U.S. Debt. The fall of the U.S. dollar will not continue unchecked. It is inevitable that it’s descent will stop and it will rise again. Probably as early as the FQ of next year. There are just too many countries that would lose out and the World Leaders know this even if they are loathe to admit it. Global competition for exports will become fierce and foreign currency manipulation is inevitable. Gold is no real alternative; especially now that China has expressed no interest in ’sitting in’ on this, Gold’s latest Global poker game. Their really is no alternative to the U.S. Dollar for pricing commodities on the horizon. Perhaps the Bric nations will change this someday (think decades!) but not until China has completed a seismic shift in both it’s economic policy AND it’s political ideology. It is still too much mired in the ‘Cold War’ mentality to be anything close to this type of world leadership now. Regardless of what they say other countries already know this and that is why they are still buying U.S. Debt.

]]> By: SCR3@M ' N DMAN http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-3301 SCR3@M ' N DMAN Thu, 13 Aug 2009 17:13:06 +0000 http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-3301 Yes the USA is in Debt.. But, it's only money not resources ! The dollar is in no demise ! Infact i feel ! We are aiming for the top ! This country has amazing concepts and skilled workers ! 550 million people . if they all gave up over 100.000 $ before they die .... which we all will ! Debt paid !! :) Yes the USA is in Debt.. But, it’s only money not resources ! The dollar is in no demise ! Infact i feel ! We are aiming for the top ! This country has amazing concepts and skilled workers ! 550 million people . if they all gave up over 100.000 $ before they die …. which we all will ! Debt paid !! :)

]]> By: MK http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-2888 MK Sat, 30 May 2009 22:13:42 +0000 http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-2888 <strong>MK...</strong> I would have to disagree ,but Long Term Investments for the Future is definately a good read...... MK…

I would have to disagree ,but Long Term Investments for the Future is definately a good read……

]]> By: Brent http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-2417 Brent Sat, 14 Feb 2009 05:22:39 +0000 http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-2417 Or the U.S. dollar grew stronger because the credit markets around the world dried up. People had loans coming due and could not get the banks to extend their credit. The banks simply stopped lending. So the loads had to be paid off and the only way to do that is for the lendee to sell gold which is quite liquid and this drove the price of the gold down (temporarily). The would also sell other valuables like their vacation homes, their second car, jewelry to pay off the loans. If the loans were drawn on a U.S. bank, then the currency would have to be converted into U.S. $, there by increasing the demand for U.S.$. This was the short squeeze that drove the U.S.$ higher. But this is only temporary. With the U.S. spending another trillion dollars on the bailout, and billions more to bailout the automotive companies, the U.S. dollar will fall. The U.S. government is also selling 2 year treasury bills instead of 30 year bonds, and these bills will come due quite soon. The only way the government can pay for these redemptions is to print more money. The U.S. is in debt to the tune of $2 trillion dollars to foreign countries and it is unlikely they will buy up another $2.25 trillion in U.S. debt, especially since their financial institutions need bailing out too. China in December had declared they are no longer buying U.S. debt and it is doubtful that other foreign countries will continue to lend the U.S. money. The only solution is to default on the loans, or print trillions of dollars. I'm afraid it will be the latter. The U.S. doesn't have the money to pay off the interest on their debt, so printing money is their only way out. This of course will devalue the currency quite rapidly causing gold and other commodities to sky rocket. The U.S. is out of money, up to their eye-balls in debt, and spending like there is no tomorrow. They are broke, and $10 trillion dollars in debt. The only direction the U.S. dollar is going to go in 2009 is DOWN! Brent Or the U.S. dollar grew stronger because the credit markets around the world dried up. People had loans coming due and could not get the banks to extend their credit. The banks simply stopped lending. So the loads had to be paid off and the only way to do that is for the lendee to sell gold which is quite liquid and this drove the price of the gold down (temporarily). The would also sell other valuables like their vacation homes, their second car, jewelry to pay off the loans. If the loans were drawn on a U.S. bank, then the currency would have to be converted into U.S. $, there by increasing the demand for U.S.$. This was the short squeeze that drove the U.S.$ higher. But this is only temporary. With the U.S. spending another trillion dollars on the bailout, and billions more to bailout the automotive companies, the U.S. dollar will fall. The U.S. government is also selling 2 year treasury bills instead of 30 year bonds, and these bills will come due quite soon. The only way the government can pay for these redemptions is to print more money. The U.S. is in debt to the tune of $2 trillion dollars to foreign countries and it is unlikely they will buy up another $2.25 trillion in U.S. debt, especially since their financial institutions need bailing out too. China in December had declared they are no longer buying U.S. debt and it is doubtful that other foreign countries will continue to lend the U.S. money. The only solution is to default on the loans, or print trillions of dollars. I’m afraid it will be the latter. The U.S. doesn’t have the money to pay off the interest on their debt, so printing money is their only way out. This of course will devalue the currency quite rapidly causing gold and other commodities to sky rocket. The U.S. is out of money, up to their eye-balls in debt, and spending like there is no tomorrow. They are broke, and $10 trillion dollars in debt. The only direction the U.S. dollar is going to go in 2009 is DOWN!

Brent

]]> By: Kurt Brouwer http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-1796 Kurt Brouwer Tue, 11 Nov 2008 23:47:36 +0000 http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-1796 Michael--good point. Obviously, it depends on who bought Treasuries and why they bought them. In the long run, it doesn't matter what foreign investors buy (Treasuries or other U.S. investments). Any non-U.S. investor would have to convert his or her currency into dollar in order to purchase U.S. investments. We have seen foreign demand for real estate in Miami going up. Same with NYC real estate. And, no doubt the 40% off sale in U.S. stocks is attracting foreign buyers. Also, U.S. investors who are dumping foreign stock or bond funds and bringing those assets back home would stimulate demand for the dollar. Michael–good point. Obviously, it depends on who bought Treasuries and why they bought them. In the long run, it doesn’t matter what foreign investors buy (Treasuries or other U.S. investments). Any non-U.S. investor would have to convert his or her currency into dollar in order to purchase U.S. investments. We have seen foreign demand for real estate in Miami going up. Same with NYC real estate. And, no doubt the 40% off sale in U.S. stocks is attracting foreign buyers. Also, U.S. investors who are dumping foreign stock or bond funds and bringing those assets back home would stimulate demand for the dollar.

]]> By: Michael Goodfellow http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-1795 Michael Goodfellow Tue, 11 Nov 2008 21:51:54 +0000 http://www.fundmasteryblog.com/2008/11/10/how-far-has-the-dollar-climbed-and-why/#comment-1795 How much demand for dollars have we created ourselves by selling $800 billion in treasuries over the last two months? Purchasers of those treasuries have to find dollars to buy them with. This would seem to drive up the dollar. How much demand for dollars have we created ourselves by selling $800 billion in treasuries over the last two months? Purchasers of those treasuries have to find dollars to buy them with. This would seem to drive up the dollar.

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