Thursday, September 10, 2009

US Dollar Breakdown

The Dollar is breaking down folks - it has recently fallen below key support levels as UN proposes new global currency.

UN wants new global currency to replace dollar

Forbes: The Dollar collapses

Daily Chart

Weekly Chart


Willy2 said...

One should take into account that the USDX is for, say 70 to 80%, a "Europe vs. USA game". Both the US and Europe aren't in "the best of financial shapes", so I am looking at the USD/Yen and the speculators index called EUR/Yen for clues which way the liquidity is going.

There's another voice called Robert Prechter who thinks the USD could (temporarily ??) go up in the next marketcorrection. In the next two years.

But I agree: The FED is printing money like there's no tomorrow and that's not good for the USD in the long.

The Real Deal said...

Look get real.

Dollar goes down because the Fed is printing so much of it. Toilet paper to keep the US economy from busting into a real depression.

But so much fake dollars screw the foreign holders. So they are dumping, because they don't want to be screwed second time.

But behind it is the lack of confidence in the entire US financial system. One full year after the banking blow up, the biggest financial-political corruption the world has ever seen, absolutely nothing was done to fix and to account. The mafia has bought the the whole show.

Americans continue to delude themselves about this or that domestically. They continue to miss the only thing that matter: America owes $6 trillion dollars to foreigners, who must continue to lend $50B per month to keep the country from going into default. And these foreigners had enough. They are getting out. The reckoning is NOW, not long term.

BxCapricorn said...

In the video, they said, "it could take decades..." so why are we worried about it now?

Max Kieser hates the dollar, and always has. To say that we're not competitive ignores the fact that China cannot manufacturer a car that passes International Safety standards, Toyota makes more cars in the US than in Japan, and every invention on Planet Earth, comes out of the USA. Those inventions then get stolen through backward-engineering, and disrespect for patent law, by Asian countries.

That video is typical, half-researched, Euro-centric crap.

The Real Deal said...

US continue to make a great deal of stuffs. But:

- Productions (wealth creation) have been far below needed to sustain the huge consumption (wealth removal). The difference is reflected in the trillions of growing debt.

- Every thing US makes, foreigners can make. And I mean everything. From the lowest to the highest tech. Including advanced military and aerospace gear. Trouble is foreigners can make most of them at a lower cost.

- US invented most of the world inventions for decades. But that declined severely as of 2 decades ago. There were no major inventions that have created great wealth since 2000. US has been living on past glory, fat dumb and happy, for 20 years.

As to stolen, yes China stole movies and some software. Much of which have stopped. But have you noticed that 95% of the fancy consumer electronics that saturated US society were invented and produced by Japan and S Korea?