They want to save the dollar, but they can't.

They can just buy some more time, paying for it with hyperinflation.

http://www.boston.com/news/world/europe/ar..._20b_in_dollars

FRANKFURT, Germany—In a trans-Atlantic effort aimed at staving off a run on the dollar in Europe, the U.S. Federal Reserve Bank moved Wednesday to lend billions to European central banks so they can provide local financial institutions with the dollars they need.

This is the real thing.

This is very relevant and a another move towards the end-game.

Any run on the dollar = run on the pound. These currencies have the same underlying problems. The UK sub-prime will exploding in the coming months and will make the US subprime look almost tame. In the US there are pockets of sub-prime; as apposed to the UK which is ALL SUB-PRIME. I mean come on, a 3 bed victorian house in Devon for 350K, where the local wages are 16K / year.

An economics lesson please?

1) Either the Fed are lending billions to European central banks so that the European central banks can give it back again to local etc etc

Or 2) The Fed are lending billions to European central banks because their (European) local financial institutions need dollars. Why do they need it?

It's all so Cooganesque.


I have just been given a 1 litre bottle of Jameson's. I can make perfect sense of that !


God/The Tao/? is simplicity ...... Man is (mindless) complexity.

If you don't like this thread then please go forth and multiply.

Failing that, perhaps go and take part in an anecdotal thread about caravans or garden sheds or something you are more up to speed on. I know, talk about Sarah Beeny and her bra size. Or maybe the latest trends in repairing rising damp.

Tool.

Fear not Whoops, I'm insurmountable

......... although I've never been subjected to an extended economic model, so there could be some future vulnerability there because I don't think I would notice

Thxs for your concern

The solution stated in the article (the IMF Special Drawing Rights) is not a solution at all. It didn't work in the 1970s, it won't work now.

This is the real thing, and they know it. Protect yourselves.

http://www.ft.com/cms/s/0/2037dd2a-a789-11...?nclick_check=1
How to solve the problem of the dollar
By Fred Bergsten
Published: December 11 2007 02:00 | Last updated: December 11 2007 02:00

The world economy faces an acute policy dilemma that, if mishandled, could bring on the mother of all monetary crises. Many dollar holders, including central banks and sovereign wealth funds as well as private investors, clearly want to diversify into other currencies. Since foreign dollar holdings total at least $20,000bn, even a modest realisation of these desires could produce a free fall of the US currency and huge disruptions to markets and the world economy. Fears of such an outcome have risen sharply in both official circles and the markets.

I bailed out of any currency long, long ago. I only touch the paper I borrow to buy gold and my margin is so low it would take gold below $250 to wipe me out.

This is the real thing. 100% correct, guaranteed.

Or perhaps, just perhaps, we could all be strong enough to welcome dissenting views? Perhaps?

blah blah blah


join the dollar thread, you never know you might learn something

Before you ask, I moved your thread.

very intellectual reply - NOT!!

Come on my old friend - are you in denial about the dollar?

Carry on trolling. As for abuse you got about 1%. Keep off threads you have no interest in and/or do not understand. Keep to threads suiting your intellectual level and we will all be happy.

QUOTE (vicmac64 @ Dec 13 2007, 08:29 AM)
This sounds right - CGNAO, just noting how some mods are intent on limiting what is said about the world currency collapses by a very sizeable no of contributors.. It seems to me that the whole HPC thing has moved on to its next logical stage which is the underlying problem which is feeding the whole HP boom and bust scenario.. But it would seem that some of the mods don't quite understand that the site needs to move with it or it will become irrelevant. I had noted that one of your threads regarding the dollar was moved for no apparent reason this morning by C the T.

For what its worth unreasonable censure of what CGNAO posts will ultimately see a good number leave this site.... including myself.

Not for no reason are CGNAO's posts the among most eagerly awaited on this site..

What other sites are there that cater for this type of intelligent discussion - I would like to see what is out there - do you have any suggestions? Maybe there is an opening for one if HPC is determined to chase away the intelligent posters....




Not only do the 'mods' not understand the seriousness of the situation, and the relevance and importance of this thread and other macro-economic and currency/otc derivatives/central banks etc threads, it seems to me they go ***out of their way*** to make things extremely difficult for cgnao.

They simply cannot or will not grok the relevance of the current dynamic currency/derivatives implosion to the HPC situation as it morphs and plays out in response to said dynamic.

This is total ingrained idiocy by the mods and it is plain to see every day here at HPC.

They ALLOW idiotic and abusive trolls to infest all cgnao's threads without censure - indeed, some of the mods are obviously trolls THEMSELVES! I.e C the tramp - clueless generally and promoted above his pay rate.

Lord Acton

Power tends to corrupt mods; absolute power corrupts mods absolutely

I don't really care for the bitching... but WTF's going on today?!.. Dollar making massive gains against GBP and EUR.


Edited to add: Ah, that'll be huge US inflation then...

http://www.bloomberg.com/apps/news?pid=206...;refer=currency

Dollar Gains Most Since May 2005 Versus Euro as Inflation Rises
By Min Zeng

Dec. 14 (Bloomberg) -- The dollar strengthened the most against the euro since May 2005 after government reports showed U.S. consumer prices and industrial production increased more than forecast last month.

The U.S. dollar gained against 15 out of the 16 most- actively traded currencies today as accelerating inflation prompts futures traders to reduce bets on how much the Federal Reserve will cut borrowing costs next year. The U.S. currency has risen 1.3 percent against the euro over the past five days, the biggest weekly increase since August.

``The fundamental picture started to move in the dollar's favor,'' said Michael Malpede, a senior currency analyst in Chicago at MF Global Ltd., the world's largest broker of exchange-traded futures and options contacts. ``Inflation is picking up, making it difficult for the Fed to aggressively cut interest rates.''

Against the euro, the dollar rose 1.36 percent to $1.4437 at 10:25 a.m. in New York, from $1.4633 yesterday. It strengthened to 113.12 yen from 112.21. The euro fell to 163.30 yen from 164.21. The pound weakened to $2.0206 from $2.0414 yesterday. The Swiss franc declined to 1.1536 per dollar from 1.1412.

Currencies in Australia, South Africa and Brazil dropped against the yen as rising inflation dampened the outlook for global growth, pushing investors to pare holdings of higher- yielding assets funded by loans in Japan. U.S. stocks declined, signaling a drop in risk appetite among investors.

A decline in oil and gold also reduced the appeal of financial assets in these commodities-exporting nations.

Rand, Aussie, Real

The rand and the Australian dollar led declines among the 16 major currencies against the yen, losing 1.4 percent. The real fell 0.6 percent.

The dollar's gain this week pared its loss this year to 8.7 percent. The Fed's three interest-rate cuts since September have dimmed the allure of U.S. financial assets. The euro rose to a record high of $1.4967 on Nov. 23.

The U.S. Dollar Index traded on ICE Futures in New York rose 1 percent to 77.283. It earlier touched 77.313, the highest since Oct. 25. The gauge has rebounded from 74.484 on Nov. 23, the weakest since it started trading in 1973. The dollar will strengthen to $1.43 per euro by the end of the month, according to Malpede.

The dollar advanced 1.2 percent against the yen this week, heading for a third weekly gain, as stronger-than-forecast growth in U.S. retail sales and industrial production allayed concern that credit-market turmoil and a housing slump will curb economic growth.

The dollar has increased 2.2 percent against the South African rand, 1.6 percent versus the Australian currency and 0.6 percent versus the New Zealand dollar over the same period.

$1.4650 Level

The U.S. currency gain against the euro accelerated earlier after breaching a key resistance level at $1.4650, said Toshi Honda, a currency strategist in London at Mizuho Corporate Bank Ltd. A break above a resistance level may lead to new highs, according to technical analysis that uses price charts to forecast currency movements.

``The move approaching $1.50 was too rapid, irrational,'' Honda said. ``It was driven by fear of a U.S. economic meltdown, but I don't think the fear is going to be materialized. The overall sentiment is positive for the dollar.''

He predicted euro-dollar will end the year below $1.40.

Fed Plan

The dollar was helped this week by a coordinated plan led by the Fed to alleviate the credit crunch and the U.S. central bank's third cut in interest rates this year to avert a recession in the world's largest economy.

Interest-rate futures on the Chicago Board of Trade show traders have reduced bets on Fed rate cuts. The chances the Fed will lower its benchmark rate by a half-percentage point to 3.75 percent in the next three months are 39 percent, from 61 percent a week ago.

U.S. consumer prices increased 0.8 percent last month after a 0.3 percent gain in October. The median forecast in a Bloomberg News survey was 0.6 percent.

``The data suggested the Fed probably will be less aggressive to cut rates from now on,'' said Hidetoshi Yanagihara, senior currency trader at Mizuho Corporate Bank in New York. ``This will take some of the heat off the dollar. The dollar is getting a short-term boost.''

The U.S. currency will reach $1.45 per euro by the end of March and $1.40 by the end of 2008, according to the median forecast of 44 economists in a Bloomberg survey.