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G-7 Abandons The Dollar
Forbes ^ | 10/5/2009 | Carl Gutierrez,

Posted on 10/05/2009 11:54:51 PM PDT by bruinbirdman

Greenback fell further after the G-7 would not come to the rescue.

The Group of Seven will let the dollar fall.

The heated climate before the Istanbul meeting led some to expect global policymakers to take a stand, but despite the strong tone, Andrew Wilkinson, senior market analyst at Interactive Brokers, said it was short on action. "It invites investors to test the dollar's lines of resistance in order to see what response, if any, might be forthcoming in the event of a further fall in the value of the dollar," Wilkinson said.

The dollar's loss of value over the past six months has been a cause for concern for the world's financial chief's, Wilkinson said, and reasonably so because the greenback's instability threatens financial markets and economies.

"Many currency traders were braced for some hint of intervention to prevail from this meeting," Wilkinson said, "especially given several verbal warnings or complaints from central bankers and politicians who had warned against dollar weakness."

The problem with intervention is that it would only be partially effective, especially if the U.S. isn't on board. The Treasury Department would never admit this, but for the time being it's in the country's interest to keep its currency low because it stimulates exports for the economy's manufacturing base and lowers the value of the debt that the Treasury is piling up.

The Australian dollar saw gains as the global economic outlook warms and speculation mounts that its central bank will raise rates this week. (See "Aussie ETF Spread Tastier Than Vegemite.") The Aussie wasn't alone though. As Wilkinson pointed out, the G-7 stance appeared to provide a green light for investors waiting to buy the dip in on commodity currencies.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS: abandondollar; currency; dollar; g7; globaleconomy; globalisteconomy; meercat; obamadojtroll; obamatroll
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To: bruinbirdman

Thw world wants to borrow our currency at near 0% interest and use it to to invest in various speculative ventures that will beat out the near 0% interest rate. This is called dollar carry trading and it will not help the dollar or America in the least. Fact is, it will build up foreign economies at our expense.


21 posted on 10/06/2009 12:57:43 AM PDT by RC one
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To: nickcarraway

How? Asking, not challenging.


22 posted on 10/06/2009 1:16:48 AM PDT by perez24 (Dirty deeds, done dirt cheap.)
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To: meercat
Do you mean Palin’s claim that we could be energy independent if we would allow more drilling in the states?

I think it's exactly the opposite of traitorous to be good stewards of our own resources.

23 posted on 10/06/2009 1:34:15 AM PDT by plsjr (<>< ... reality always gets the last vote.)
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To: bruinbirdman
Test all you want, government confabs have precisely nothing to do with any of it.
24 posted on 10/06/2009 2:08:47 AM PDT by JasonC
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To: DB
The dollar is not destroyed. It buys more this year than it did last year. Slander is cheap politics, but ignoring facts is just stupid. Half of the human race screaming that the dollar is worthless won't let any of them repay their dollar debts any cheaper. In case nobody noticed, everyone betting on real assets against dollars got their heads handed to them last year.
25 posted on 10/06/2009 2:10:53 AM PDT by JasonC
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To: OldArmy52

Zer0 is ruining our economy. A debased dollar means declining interest in the dollar as a stable currency.

The G-7 are not traitors. Apart from the constant Zer0 approval ratings this is the most important in terms of
confidence in our economic leadership. Zer0 gets a zero rating.


26 posted on 10/06/2009 2:11:25 AM PDT by ChiMark
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To: uncitizen

“Sorry for my reply .I can disagree in a lot more civil manner. I’m just like everyone else very frustrated .
A lot of us, myself included, have been popping off lately because what is happening to our country, so fast, and so unbelievable scares the cr@p out of us.

Every day, another piece of our country seems to be chipped away. Some days the chips are bigger than others. “

There have been many times in our history where the outcome of America was in doubt and Right prevailed!
I know what right is and what America is and should be and there isn’t commie alive that will take that from me.

We all have to come to the realization that for America to win we must fight! We have to put everything on the line and be willing to lose all to preserve The America we love. It may come down to removing the government by force to kill the corruption that it is.

Finally, The founding fathers knew that the Republic could not survive if the people were not upright. The system was designed for a religous and moral people. Without God we are doomed, pray for United States of America!


27 posted on 10/06/2009 2:13:29 AM PDT by timetostand
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To: meercat
And Palin is a traitor ,imo for wanting it to happen .

Palin...? A traitor? Palin is a civilian. She was a governor who believes in energy independence.

You need to go back to democraticunderground, kos, or wherever the hell you came from.

28 posted on 10/06/2009 2:20:14 AM PDT by Cobra64
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To: DB; meercat

meercat is a dizzy lib troll.


29 posted on 10/06/2009 2:21:01 AM PDT by Cobra64
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To: plsjr; meercat

He’s a troll. Signed up 3 weeks ago.


30 posted on 10/06/2009 2:22:44 AM PDT by Cobra64
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To: meercat
Hey Meerkat,

I'm with you and not to worry.


31 posted on 10/06/2009 2:24:36 AM PDT by jws3sticks (Sarah Palin forever!)
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To: JasonC

BS.

The dollar has lost at least 13% just this year against virtually all the other world currencies except those pegged to the dollar and continues to decline.

Yes many things are cheaper because the demand for for them has crashed. It takes time for our buying power to decline as old inventory has to be replaced with more expensive replacements coming from overseas, be it raw materials through to finished products.

Ultimately printing endless dollars doesn’t make them more valuable. It makes them less so.


32 posted on 10/06/2009 2:26:13 AM PDT by DB
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To: Cobra64

For whatever its worth, he/she said they made a mistake with Palin.


33 posted on 10/06/2009 2:27:52 AM PDT by DB
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To: jws3sticks

The usa has served it’s purpose and now is no longer necessary for the NWO (one world govt) gang...they will let it collapse. The truly rich in the USA have already shifted there wealth off shore...welcome to the NWO.


34 posted on 10/06/2009 2:32:50 AM PDT by usshadley (It's time to choose..the empire or the republic? You can't have both. Time is running out.)
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To: meercat

spel chk is our friend, learn to use it..


35 posted on 10/06/2009 2:38:16 AM PDT by Las Vegas Dave (To anger a Conservative, tell him a lie. To anger a Liberal, tell him the truth.)
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Comment #36 Removed by Moderator

To: bruinbirdman
Way to go, Odumbo. Maybe you should spend a couple of trillion more nonexistent dollars.
37 posted on 10/06/2009 2:55:46 AM PDT by meyer (Do not go gentle into that good night - Rage, rage against the dying of the light.)
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To: bruinbirdman

The White House issued a statement this morning. Reader’s Digest version: “Bush’s Fault!”


38 posted on 10/06/2009 3:07:25 AM PDT by Lonesome in Massachussets (Don't tell 0bama what comes after a trillion.)
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To: dalereed

How considerate of you. While, grammar, punctuation and spelling are for lesser of mortals, people will have an easier time understanding you and pay more attention to what you have to say if they don’t have to struggle with your spelling, punctuation and syntax. Just saying, ya know?


39 posted on 10/06/2009 3:12:39 AM PDT by Lonesome in Massachussets (Don't tell 0bama what comes after a trillion.)
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To: Lonesome in Massachussets

I think it’s more the case of immaturity. It is more mature to let harmless errors pass that people make, whether it be speling, gramer, or whatever. It’s also disrespectful. If you are not smart enough to overlook or interpret you need to check into a lib forum. My kids were always correcting folks, and finally I declared war on that at my house and told them to grow up, and let he without any imperfections cast the first stone. I think they teach them this at school, so they can be certain everyone in the room knows they are smarter than others. Buncha lib elitists.


40 posted on 10/06/2009 3:28:39 AM PDT by momincombatboots (The last experience of the sinner is the horrible enslavement of the freedom he desired. -C.S. Lewis)
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