OPEC Abandons Dollar

Moneynews/Newmax ^ | 12/11/06 | Newmax & AntiMullah

[Paul Ross]

It's more likely to accomplish their demise

They are obviously not shaking in their boots.

[Brilliant]

The fool rushes in.

[Woodman]

50 bucks is chump change from any central bank. We routinely move 200 to 300 bucks for a client without moving the market more than about 3 hundredths of a percent. In fact, the 14 guys I worked with use to move somewhere between 1.2 and 1.4 billion dollars a day in spot Deutchemarks alone.

[Woodman]

For what it's worth, 5 hundredths of a percent is a about what a trade like that might move the market under normal circumstances.

[Woodman]

Sorry, I meant thousandths, not hundredths.

[FARS]

This was the original article for you to read.

http://noiri.blogspot.com/2006/05/oil-story-revisited.html

[skateman]

We're doooooooooooooooooooooooomed.

[Woodman]

First, the economic "news" in that article is about 99.9% opinion instead of fact. Second, the "big move" described is a stock market move, not a dollar move. Third, the stock market goes up and down that much all of the time. I could sneeze in Paul Volker's face at the same time a market move happens and attribute it to my actions. Fourth, the discussion about derivatives is so far of base it's not worth pulling apart. The actual problem with LTCB was lack of oversight and huge exposure, not actually trillions of dollars held in a bad position.

[Deo et Patria]

Reducing their dollar holdings from 67% to 65% is now "abandoning" the dollar?

We're doomed! /sarc

[Paul Ross]

Reducing their dollar holdings from 67% to 65% is now "abandoning" the dollar?

An avalanche starts small. We used to have a huge manufacturing surplus to counterbalance the oil-import-driven deficits. The "free" traders have been asleep at the wheel...one they should never have been given.

We're doomed! /sarc

You would do well to remember TR's sage observation on such smugness:

"Optimism is a good characteristic, but if carried to an excess, it becomes foolishness. We are prone to speak of the resources of this country as inexhaustible; this is not so."
--Theodore Roosevelt

Will you come here and admit you're wrong if this trend continues and becomes undeniably damaging?

Somehow, I doubt it. The 'feel-good' spin control is already out-dated, yet you and the RINOs persist. Nobody is buying it anymore. I don't know why the Fed even bothers. Trying to prevent a panic won't actually prevent it.

The effectual thing to do would be to reverse the bad economic fundamentals

. Do something, rather than trying to stymie the correctives needed, beclouding the public mind with propaganda and spin, and continued denial of the increasingly undeniable realities, to wit:

The inordinate and unsustainable trade deficit.
The unsustainable loss of industry, and hollowing out thereto.
The unsustainable increase in Federal Deficit spending...dratically increasing domestic entitlements...while continuing the Defense Holiday.
The unsustainable wacko-ecologist's freeze on our own new domestic oil exploration and production.

After 9-11, W could have easily declared a state of national emergency and OVER-RIDDEN all the Congressional limits on new oil & gas exploration/production. Using his full powers to revoke the barriers to ANWR and Offshore. But he didn't even act like there was a problem. He treated it as a business-as-usual civilian political matter, and easy-come-easy-go political loss. He refused to go to the mat...to do the right thing when balked over ANWR. And he didn't try on Offshore oil, after California and Florida "Republicans" objected. Even though we had nominal 'control' of the Congress...the tail clearly is wagging the dog.

He pre-emptively caved in to a handful of RINO Governors and Senators beholden to the Sierra Club lobby instead. Last I checked, we didn't get any votes from their ilk... so now things have gone merrily along with the day of reckoning merely post-poned (and the scope of our predicament made gravely worse).

So you tell us... why these incredibly naive capitulations to the RATs and their forces?

[fso301]

France considers double digit unemployment and 0 GDP normal behavior for their economy these days.

Not to mention the daily "youth" protests.