The demise of the dollar

6.8SPC_DUMP · 10-05-2009, 20:48

Quote:

Originally Posted by The Reaper

Where is the upside for the Chinese in reducing the value of their dollar holdings, and increasing the cost of their products to their largest market, while they are having serious employment issues of their own?

Isn't this a better threat, for now, rather than an actual policy?

TR

They can trade in their dollar holdings for IMF SDR's (due to our unconstitutional IMF vote allowing it

) and by securing oil, gold, silver, copper and land - all of which makes their currency viable as a reserve currency (or large portion there of) - the importance of which cannot be overstated.

They want sales to their own citizens to be a heavily weighted aspect of their future economy. They are doing the same things that we did to be a superpower.

They are not looking at the US as their only road to prosperity through sales as it is the quality of our jobs and the respectability of our currency which was the platform for this in the 1st place...

Just my .000002 - hopefully someone "in the know" will PM you and CC me

olddoc · 10-06-2009, 07:27

Take a look at the gold and silver prices.

**The Reaper** · 10-06-2009, 07:34

Silver is up significantly since last week, but stocks are up as well.

TR

Sten · 10-06-2009, 09:36

History has taught me that that actions like this always have unintended consequences.

I hope that the Arab states and China are very happy together. I will be nothing but happy to see the day that none of our money or sons and daughters are going to the Mideast.

It is going to suck for many Americans as we get our country back into fighting trim, and that is exactly what something like this will do. The USA is not going to sink beneath the waves like Atlantis nor are we are going to split into 50 separate countries. We will be forced to remember how to do it for ourselves as we trim the fat.

We will survive this and emerge stronger and better for it. Many people have gone broke and more then a few have actually died betting against America I for one will never say we as a country can not do what it takes when the chips are down.

Paslode · 10-06-2009, 20:05

Dow Will Fall to 6,300 by Year End: Portfolio Manager

Posted By: JeeYeon Park | CNBC News Associate
CNBC.com
| 05 Oct 2009 | 06:29 PM ET

With the prospect of higher unemployment hanging over the markets, some experts expect a correction. So are they right? Michael Cuggino, president and portfolio manager at Permanent Portfolio Funds, and John Lekas, CEO and portfolio manager at Leader Capital, shared their insights. (See their recommendations, below.)

“I think we go below the double dip,” Lekas told CNBC. “By year-end, we drop below 6,300 on the Dow and by 2011, we’re at 4,200.”

Lekas said although Monday's ISM services index was “neutral,” the unemployment number was at 785,000 last month and that number is expected to worsen.

“So 26 to 27 million people who are out of work isn’t going to help the economy,” he said. “And until that number gets better, we will not see a recovery.”

Lekas told investors to sell equities, buy short-term fixed income, stay with high quality names and stay safe.

In the meantime, Cuggino said although there are risk factors and uncertainty in the markets, earnings are going to continue to improve.

“There’s also a tremendous amount of liquidity out there that will be used to prime economic growth going forward,” he said.

Cuggino recommended sticking with equities—“especially U.S. multinationals who take advantage of worldwide growth.” He also likes the financial services, biotechnology, pharmaceuticals and technology sectors.