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View Full Version : The US dollar is amazing!!!



mark2112gum
26th September 2008, 13:37
Not amazing in a good way either. At this point, shouldn't it be much lower then it is??? There are many countries in the western world that have a much stronger economy, not to mention the current US situation, yet the yankee buck seems to trade in the green 2 out of 3 days, at the time I'm writing this, it's up at 77 cents. I just don't get it!, can anyone enlighten me???

Kelly
26th September 2008, 14:46
I've been wondering about exactly the same thing for weeks now, and I don't get it either!

In the face of all the news, and for crying out loud, even CHINA saying they are no longer going to invest in the dollar, you'd think the USD would be dropping like a bomb. But nope. It's in the green!

So what gives? Where is the good news? What has changed?

I've even wondered if they weren't reporting numbers that were just made up.

Oh, but they wouldn't dare lie to us, would they?

donm
26th September 2008, 14:59
I think we are simply seeing that investors are so scared they are willing to buy the US buck as a 'safe haven.' They just don't want to have their money in banks - who can blame them? Certainly, folks on these pages would suggest gold as a better 'safe haven' but the average American knows nothing about gold - but they will soon.

nuslvrkwen
26th September 2008, 15:03
This dollar's strength I've been marvelling at since January of this year. It was considered a strong dollar back when it was anything over 65 cents. Now it's up to 77 cents. This means China, Asia, and any other country saying they won't buy dollars is lying. And the wrangling over this bailout is actually giving the sense the stupid thing is WORTH something.

It's still window dressing. We're all seeing hourly reports about the dire straits of things, yet 'investors' keep right on buying PAPER. Back in April/May the dollar was strong at 60 cents it jumped up to 72 cents when we experienced the spot price pullback in late June... Every indicator experienced investors use to decide when to buy more metal, or more stock has been incorrect, or the trend it's following isn't what we need to know now.

Kelly
26th September 2008, 15:06
I think we are simply seeing that investors are so scared they are willing to buy the US buck as a 'safe haven.' They just don't want to have their money in banks - who can blame them?

So you are saying when people pull their money out of the banks because they don't trust the economy; this results in a stronger dollar?

I must have missed something... :confused:


Certainly, folks on these pages would suggest gold as a better 'safe haven' but the average American knows nothing about gold - but they will soon.

Actually, most of the folks on this forum would be more likely to reccommend physical silver.

Kelly
26th September 2008, 15:19
Hey Newslverqwen, you seem to know a lot about banking, so maybe you know the answer to this. WHAT is the value of the dollar pegged to? Or maybe WHEN is a more appropriate question. Like right now it is worth 79.96 cents - but against what? What year are they saying the dollar was worth $1? I've tried to find the answer to this online, but so far have come up empty handed. Do you know?

Thanks,
Kelly

nuslvrkwen
26th September 2008, 15:22
And to add to the confusion; there are some investors who like metals, but they are used to buying metal STOCKs. Most of us are physical holders of gold and silver bullion.

I'm trying to work on PR and info letters to send to mine owners, and law makers regarding illegal short trading. People are still using short trading and can determine times to buy electronically traded silver/silver futures. donm watches when those signals to buy happen. But there's connection with what's happening with the market now, and futures' trading. Even day trading in commodity futures on a small scale.

The confusion is that some people really don't get that futures trading is responsible for the overselling and massive leveraging causing the volitility in the markets. ARE there traders on this forum actively buying PM stocks now? Even mining stocks? Knowing what we all know about the liqidity of the market WHY would you buy them now? Because the price is low?

Goldragon always talks about the time to safely buy ETFs but there's always such a short window why would buying that way seem more cost effective compared to just buying bullion?

main1event
26th September 2008, 15:47
As I've mentioned credit is actually a bet against the dollar. What happens when you lose your job and cant find work? You sell your stuff to get dollars. This is the first stage of a recession or depression. When everyone finishes liquidating their assets it is only then that the dollar collapses. We've all heard the expression that cash is king. Thats exactly what it is right now.

I cant say how long this will last perhaps 1 year or 2 but eventually the dollar will cave in. In that time silver and gold might consolidate and many people will give up on the metals. When that happens Silver and gold will take off.

Back in the 70's after Silvers initial move it retraced much of that move in a 4 year period before it took off towards 50. We just have to sit tight and be patient, keep buying, and stay out of debt.

Kelly
26th September 2008, 15:56
What happens when you lose your job and cant find work? You sell your stuff to get dollars.

Yeh, but the dollar isn't based on every day people holding garage sales down the street. If "cash is king" right now, it would be because businesses are selling their assets in order to cover their costs (or debt) because nobody is lending any more money right now.

main1event
26th September 2008, 16:05
Yeh, but the dollar isn't based on every day people holding garage sales down the street. If "cash is king" right now, it would be because businesses are selling their assets in order to cover their costs (or debt) because nobody is lending any more money right now.

Right, and how do you pay your debt, cash, the good old USD. Kelly all the gloom and doom has you only thinking 1 way. Where is that objective view?

The US has a negative savings rate. That means the Average American does not have any cash they are living off of credit. If you want to pay your bills you use Cash. Lets face it we may have to wait several years before the dollar moves into a downtrend. I'm prepared to wait for as long as it takes.

I must admit I made a mistake and sold my cash for Silver coinage a bit to early but when you make mistakes like that you have to be willing to accept them. Silvers day will shine, and I continually recommend we all buy Silver, it could go down to $8.00 an ounce but eventually its gonna go.

Kelly
26th September 2008, 17:14
Kelly all the gloom and doom has you only thinking 1 way. Where is that objective view?


Main1event, this is about the umpteenth time you have had the audacity to tell me how I think. I can think for myself, clearly express my point of view, and if it happens to differ from yours, I do not appreciate being told I am "not objective." Your attitude comes off as misogynistic and patronizing. I don’t mind a good debate, in fact, I enjoy one, but I'd appreciate if you'd cut the crap.

What you define as a "doom and gloom" attitude comes from many, many years of studying the history of the Federal Reserve Banking system and what they have done to our constitution and the freedom of this country, not to mention the fact that history proves the Federal Reserve Bankers have purposefully engineered every recession and depression this country has ever experienced.

I fully realize that you are among those who are delighted to think you might make a buck off the present economic system, love trading paper, etc. and if that is your thing, then so be it.

But it is not my thing, and believe it or not, that was a conscious decision on my part. I do not personally choose to support an economic system that is run by crooks and thieves.

You may love that system; I do not, and if you look around, you'll see that I am not alone in my estimation of this economy and the banking system.

So perhaps it is you who is not objective?

JaySpizzy
26th September 2008, 18:36
Right, and how do you pay your debt, cash, the good old USD. Kelly all the gloom and doom has you only thinking 1 way. Where is that objective view?

The US has a negative savings rate. That means the Average American does not have any cash they are living off of credit. If you want to pay your bills you use Cash. Lets face it we may have to wait several years before the dollar moves into a downtrend. I'm prepared to wait for as long as it takes.

I must admit I made a mistake and sold my cash for Silver coinage a bit to early but when you make mistakes like that you have to be willing to accept them. Silvers day will shine, and I continually recommend we all buy Silver, it could go down to $8.00 an ounce but eventually its gonna go.

Greenback greenback,
I'm no fan
Sell the buck
While you still can,

nuslvrkwen
26th September 2008, 19:09
Hey Newslverqwen, you seem to know a lot about banking, so maybe you know the answer to this. WHAT is the value of the dollar pegged to? Or maybe WHEN is a more appropriate question. Like right now it is worth 79.96 cents - but against what? What year are they saying the dollar was worth $1? I've tried to find the answer to this online, but so far have come up empty handed. Do you know?

Thanks,
Kelly

I'm no expert Kelly. Just worked banking systems (IT) for 8 1/2 years. Went to school got a cert in Networking/Telecom. Started with Wells Fargo. Worked on it's merger with First Interstate Bank. Worked for PG&E Systems Admin for about 3 months (upgrading software for geothermal power in Geyserville, while sitting in the Tower here in SF) then got stuck working for BOFA for 5 years till Nations did an old style take over of its' online banking platform. NEVER worked in a branch! That's why I understand most of this because it has to do with contractural compliance. But to answer your question, the reason YOU haven't been able to locate this answer: the dollar is pegged to NOTHING, NADA, BUPKUS, THE AIR. Those pennies every day the dollar fluctuates are supposedly like the AGREED UPON SPOT PRICE. Who's doing all the offering and agreeing to price? THE SAME BANK THAT JUST BOUGHT WAMU AND BEAR STEARNS.

This is why I LOVE learning all the history about the Constitution and international central banks/investment banks. But the reality is:TODAY's business deals ain't any where NEAR as straight forward as in the days of old. Everything is connected. You are a business owner Kelly, and I was too. Today's banking practices don't even look like the way banks were run just 20 years ago! Back after the depression there was the drive to attach paper to gold, or try to use the gold standard. All that REALLYy did was devalue gold! What would gold and silver bullion values look like today if that had never happened? The dollar was never backed by anything but silver when the country first began. Silver was accepted all over the world, due to piracy! In fact, our first silver dollars were the Mexican coins!

main1event
26th September 2008, 19:51
Main1event, this is about the umpteenth time you have had the audacity to tell me how I think.

Of course I dont make assumptions on the way you think, you're one sided. If you cant stand the system, why complain about it, run for office or move to another wonderful place perhaps eden.

Yes, I'm trying to make a buck off the system. You seem to want answers, the question was posed why the dollar isnt tanking, I believe I supplied those answers. You just dont seem to like the answers.

I seem to make you extremely angry, I will not respond further to any of your posts.

mark2112gum
26th September 2008, 20:01
Like right now it is worth 79.96 cents - but against what? What year are they saying the dollar was worth $1? I've tried to find the answer to this online, but so far have come up empty handed. Do you know?

Thanks,
Kelly

Good Point Kelly, against what? it used to be backed be silver, but that was stopped decades ago (I think in the Nixon years). Personally, I think the 'magic of the US dollar' has something to do with 'fairy dust' and 'chanting'.

donm
26th September 2008, 20:44
So you are saying when people pull their money out of the banks because they don't trust the economy; this results in a stronger dollar?

I must have missed something... :confused:.

What I was saying is that investors did not want thier money in the banks, so they bought US treasuries - which yes - does strengthen the dollar - short term.

Kelly
27th September 2008, 08:49
What I was saying is that investors did not want thier money in the banks, so they bought US treasuries - which yes - does strengthen the dollar - short term.

Okay, now we are getting somewhere. But the next question is WHO is pulling their money out of the banks and buying US treasuries? For years now, the biggest buyer of US treasuries has been China, and they, along with just about every other country in the world have pulled the plug on that one.

As far as I can tell from the headlines, it would be a rare foreign country indeed that is investing in US bonds, treasuries, or anything else pegged to the dollar. The whole world has been watching bank after bank go under which is a clear signal to all that our economy is on the skids.

The headlines this week said, "China no longer investing in the US dollar" that means that China is no longer buying US treasuries, so the logical outcome of that is that we would have seen a significant drop in the value of the dollar, and that simply didn't happen.

So is it the scared average American with several thousand in the bank who is now pulling their money out of the banks and investing it into treasuries? Because if that is the case, then the only thing that is keeping the dollar afloat today are the headlines of banks going belly up!

Let me see if I've got this right…

We have a controlled media that has long been bought out by the bankers who own the Fed. The foreign investors are gone, so the banksters order the press to make bank closures front page news to the frightened public, who in turn pulls their money out of the banks and buys treasuries and that is what is keeping the dollar afloat…

In other words, it's the bank closures that are creating the illusion that the dollar is still strong by manipulating the fear factor to the American public?

This REALLY looks like a house of cards to me.

Kelly
27th September 2008, 08:58
Quote:
Originally Posted by Kelly
Like right now it is worth 79.96 cents - but against what? What year are they saying the dollar was worth $1? I've tried to find the answer to this online, but so far have come up empty handed. Do you know?

Thanks,
Kelly

Good Point Kelly, against what? it used to be backed be silver, but that was stopped decades ago (I think in the Nixon years). Personally, I think the 'magic of the US dollar' has something to do with 'fairy dust' and 'chanting'.


I would just be happy to learn which year the dollar was supposed to be the dollar. They can't be pegging it to the year the Federal Reserve took over, because the dollar acutally buys about 25 times less today than it did in 1913.

If the inflation records are even vaguely reliable, then they must have determined the dollar was a dollar about the time that Bush came into office.

But still, I have never ever seen that published anywhere and I've really looked for that information.

Actually, now that I think about it, counting in the rigged annual inflation factor of about 7%, they could have only determined the value of the dollar less than four years ago.

(By the way, I meant to say the dollar is valued at 76.96 rather than 79.96. )

Round Town
27th September 2008, 12:54
I think the commercial and investment banks may be shorting in the forex, just like they are on the comex. they are using the funds the fed is fronting them in this term auction facility thing. it's the only money they have coming in right now.

I also think it was the reason the fed did the 180B dollar currency swap with the Euro central bank, bank of england etc so they could cover the banks naked short positions, which are now "illegal".

Bob, 4 bits short.
The view from my pile, yours may be different.

Kelly
27th September 2008, 13:05
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I think the commercial and investment banks may be shorting in the forex, just like they are on the comex. they are using the funds the fed is fronting them in this term auction facility thing. it's the only money they have coming in right now.


Yep. It sure does look that way to me too. I've been thinking that ever since the bailouts started.

I've also been wondering if they aren't planning to use some of that 700bn to go right on shorting PMs.

Hey Bob, have you written your letter to the SEC yet and complained to them about it? Gripe your head off to them. Write your congresspeople too and demand a full scale investigation and also demand that it be transparent to the public.

Just pitch a fit!!!

Round Town
27th September 2008, 14:52
No, I have not considered it. I think I know what they are doing. As long as I know the truth they cannot lie to me. They cannot hurt me as I have no paper positions in the market. As for the spot price of PMs, they don't seem to matter in the real physical market.

I have no debt except for a small mortgage on my home, when they are done shooting it all to hell, I'll sell off a little PMs and pay it off in cheaper currency of the day.

I have kind of taken a position of silent disdain, even though I'm hear hollering about it. It keeps me off the streets and out of jail.

Bob, sharing the truth as I see it
The view from my pile, yours may be different.

Aksura
28th September 2008, 12:07
... But to answer your question, the reason YOU haven't been able to locate this answer: the dollar is pegged to NOTHING, NADA, BUPKUS, THE AIR. Those pennies every day the dollar fluctuates are supposedly like the AGREED UPON SPOT PRICE. Who's doing all the offering and agreeing to price? THE SAME BANK THAT JUST BOUGHT WAMU AND BEAR STEARNS.

Althought the dollar is pegged to nothing, but the index is.

The US Dollar Index, a measure of the value of the greenback relative to a basket of six foreign currencies, by an article from Luke Burgess, Editor of Gold World

mark2112gum
28th September 2008, 23:01
Althought the dollar is pegged to nothing, but the index is.

The US Dollar Index, a measure of the value of the greenback relative to a basket of six foreign currencies, by an article from Luke Burgess, Editor of Gold World

Thanks for that info Aksura. But now there's this big US bailout, that's 700 billion dollars that the US is going to print, this surely will effect its value, and also the value of PM's.