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Plunging dollar will set world markets reeling
Guardian Ulimited ^ | December 3, 2006 | Heather Stewart

Posted on 12/04/2006 8:24:00 AM PST by GodGunsGuts

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To: GodGunsGuts

Look, where would you invest your profits, France or the USA, Burma or the USA, Japan or the USA, Belgium or the USA, Germany or the USA, Argentina or the USA etc? You see, there's 2 alternatives to parking $$. There's gold or the USA. Without the USA economy, there's nothing in the world for gold to buy. Think about it.


21 posted on 12/04/2006 9:15:08 AM PST by globalwhiplash (so sad)
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To: BMC1

Baloney. Most of the underlying reasons for the weakness of the dollar are directly attributable to policies or policy failures of the last five years -- including massive growth in Federal spending, unfunded off-budget appropriations (military expenditures for the campaigns in Iraq and Afghanistan) that mask the real size of our budget deficit, a historic expansion of Federal entitlements (the Medicare prescription drug plan) that further undermines the solvency of the Federal government, etc.


22 posted on 12/04/2006 9:18:44 AM PST by Alberta's Child (Can money pay for all the days I lived awake but half asleep?)
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To: capitalist229

You speak as if your assets are under $5.00.


23 posted on 12/04/2006 9:20:38 AM PST by B4Ranch (Illegal immigration Control and US Border Security - The jobs George W. Bush refuses to do.)
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To: TheBattman
Over production of printed money

Is this a pre-electronic term? Seems like there is a lot more electronic money than printed money these days.

24 posted on 12/04/2006 9:20:58 AM PST by RightWhale (RTRA DLQS GSCW)
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To: Mi-kha-el
Multinational companies can use currency exchange within the different countries they operate. It really doesn't have anything to do with imports/exports or even selling and manufacturing. It's a function of an astute corporate treasury department.

A 'weak dollar' hurts the US government, not business.

25 posted on 12/04/2006 9:28:11 AM PST by DaveMSmith ("Heaven is the only basis for our continued existence".)
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To: NaughtiusMaximus
WE'RE DOOMED AND WE'RE ALL GOING TO DIE!

Wasn't there an old story about a Chinese broker telling his MBA daughter that if the plunging dollar was setting the markets reeling and there was nothing you could do about it to just relax and enjoy it?

26 posted on 12/04/2006 9:39:56 AM PST by expat_panama
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To: NaughtiusMaximus

Unfortunately for that prospect stocks are up today. My own portfolio just hit an historic high.


27 posted on 12/04/2006 10:05:18 AM PST by muawiyah
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To: RightWhale
The real production of real money (as it is understood these days) seems to have been almost totally privatized.

Recent analysts have found that Wal-Mart, by itself, has a greater impact on the value of the dollar than the Federal Reserve Board (for example). Toss in some other "big box stores", and the impact of financial software on personal financing opportunities and I don't see where government plays all that important a part anymore. Maybe we can dispense with them at some point ~ rather like was done in Medieval Iceland.

28 posted on 12/04/2006 10:08:30 AM PST by muawiyah
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To: muawiyah

That is interesting, so to speak. So, the institutions that lend money, or finance purchases are in a sense creating money.


29 posted on 12/04/2006 10:10:59 AM PST by RightWhale (RTRA DLQS GSCW)
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To: goodnesswins
So....what do they care? We're just war mongers anyway....

hahahahaha, ditto. Thanks for the laugh. :-)

30 posted on 12/04/2006 10:15:50 AM PST by processing please hold
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To: muawiyah
My own portfolio just hit an historic high.

Me too.  This "doomed" stuff is neat!

31 posted on 12/04/2006 1:02:05 PM PST by expat_panama
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To: B4Ranch
You speak as if your assets are under $5.00.

Good guess. Since 2001, hard assets have been a good hedge against the dollar which has depreciated over 35%.

Get into hard assets before the bottom really drops out.


BUMP

32 posted on 12/05/2006 5:23:53 AM PST by capitalist229 (Get Democrats out of our pockets and Republicans out of our bedrooms.)
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To: DaveMSmith

Wait until China brings back their box of dollars. They might get tired of holding on to weakening currency and may want to get something better.
That would be the bad day.

Oh wait, there are others involved. What would happen to business, government, us, if everyone tured bucks back and demanded gold, silver, or something like your shirt?
I am just curious.


33 posted on 12/30/2006 2:21:22 AM PST by litleguy
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