For about 82 cents from my account, I would get one Euro.
Posted on 08/14/2008 12:13:40 AM PDT by TigerLikesRooster
US dollar rallies as extent of worldwide recession becomes clearer
By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 10:13pm BST 08/08/2008
The psychology of global markets has shifted hugely over recent days as it becomes clear that Europe, Australasia and parts of Asia are sliding into recession.
The US dollar has launched its best rally in half a decade, reflecting a recognition that half the world is in even worse shape than the US. In fact, America is the only G7 country to eke out modest growth this summer.
The US dollar index - currencies watched closely by traders - smashed through resistance yesterday in the biggest one-day move since the long dollar slide began seven years ago.
advertisement"This was highly significant. Perceptions have changed," said Ian Stannard, currency strategist at BNP Paribas.
The greenback gained three cents to $1.5050 against the euro, with big moves against other currencies.
(Excerpt) Read more at telegraph.co.uk ...
Ping!
Ambrose has been yelling day after day that the dollar was about to collapse and a depression was imminent...
On the other hand, the likely sequence of events then and now would be:
In the end, there would be no decoupling.
LOL. The US dollar is rallying, not because the US economy and financial structure is good, healthy and strong, but because it looks better in comparison to everyone else’s!
It’s not exactly the best news I’ve ever heard...
Rallying is not collapsing, regardless of the cause.
Coupled with the credit crunch (less economic growth all around) and "Green" energy policy (fuel deprivation for the American economic engine) we may have a temporary respite, but face a dismal future unless we can overcome the former two major issues sooner than later.
Since prospects for a conservative policy that promote growth is unlikely in the near future, I'm not very hopeful.
America has the ability and resources to overcome this. I just don't believe firmly that there's a majority that has either the will or intellect to do so.
If 9% pelosi has her way, her and her minions will strangle our nation to death.
We’ve been hearing this for two weeks, but it is not being reflected in the exchange rate here in China.
Today $1.00 USD buys 6.86093 RMB Yuan, 15% less than 20 months ago.
Interestly, however, in April this year, I was able to get more Hong Kong Dollars for a buck than I could 15 years ago. Very strange.
Don’t worry the printing presses are still working...
The US$ rally was set into motion on August 4, by the movement of huge sums of money into short term US Treasury Bonds. The money for the bond purchases was funneled through Swiss and Eastern European institutions. We’re talking $50 Billion. It appears, though no smoking gun, that the funds that set off the US$ rally, was big Russian money. Russian money from connected insiders that knew in advance of the Russian invasion of Georgia. As it came to pass, the Russian invasion caused the Ruble to crash and Russian stock markets to do a swan dive.
All the Russian money pouring into the US$ set off a buying/short covering $ panic. Institutional/hedge fund black box trading algorithms are programmed to do the following when the dollar moves up: Sell Oil, Sell Gold and Commodities, Buy US equities.
The mass movement of Russian money into the $, combined with program trading is THE reason that gold and oil sold off on the news of the Russian invasion, a geopolitical event that normally would have had the opposite effect on oil and gold.
conservative policy that promote growth
liberal policy = demote growth
Ambrose Evans-Pritchard, International Doom & Gloom Ed.
Wow AEP, where did the Swami let you down...I thought you said we are all going to die...friggin’ frauds all!
For about 82 cents from my account, I would get one Euro.
Thanks for your elucidating post. Your views were presaged by a close friend of mine last evening. He also thinks the Russians are up to something more sinister than the mere taming of Georgia.
It is clear by now that Putin's goal is to destroy U.S..
And they’ve learned from their own experience- you can destroy a nation without firing a shot. Reagan proved it.
He is following a play book written by Kruschev and refined by Gorbychev. I still remember Mr. K's appearance at the UN where he beat on the table with his shoe. He said simply, 'We will bury you.' A very sinister message delivered symbolically and verbally.
Putin is a masterful chess player. Condi Rice better review her classical Russkie literature. With an emphasis on the convoluted double cross, triple dealing and backstabbing.
The mainstream media are going frantic worrying about how Obama can win this election. Look for another visit by terrorists in the coming days. Just before the election as those corrupt little shiekhs (Arabic: شيخ) follow Moscow's biding. Oil is being used as a terror weapon. We need to wake up.
The Georgian war formed part of an unscrupulous play on the stock market? Allowing rich Russians to get richer at the expense of their countrymen?
I find that very easy to believe.
No more of this "The Georgians started it" nonsense
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