Dollar Falls To 14-Year Low VS Yen, Touching 86.51

AP ^ | 11-25-2009 | MALCOLM FOSTER

[blam]

Dollar Falls To 14-Year Low VS Yen, Touching 86.51

By MALCOLM FOSTER, Associated Press

TOKYO – The dollar tumbled to 14-year low against the Japanese yen Thursday after indications U.S. interest rates will remain low and that the Federal Reserve isn't overly concerned about the dollar's slide.

The dollar sank to 86.51 yen in Tokyo trading, the lowest since July 1995.

Analysts said some investors were selling the dollar to buy gold, which surged to another record Thursday.

Finance Minister Hirohisa Fujii said Japan "will take appropriate steps if foreign exchange rates move abnormally."

A strong yen is generally seen as bad for Japan's economy because it erodes overseas income for the country's big auto and electronics exporters.

Panasonic Corp. President Fumio Ohtsubo described the yen's appreciation as "very severe" to reporters, saying it was an added blow given the already weak state of the economy.

The dollar has also been falling against the 16-nation euro, which rose to a 15-month high Wednesday. It eased to $1.5114 on Thursday from $1.5132 late Wednesday.

[snip]

[groanup]

Which means that July of 1995 should have been the end of the world.

[blam]

Gold Hits Record Highs Above $1,190 An Ounce

Wed Nov 25, 2009 3:38pm EST

(UPDATE 1-US Mint to suspend American Eagle gold 1-oz coins)

(Reuters) - U.S. gold futures rose to record highs above $1,190 an ounce on Wednesday, boosted by a sharply lower dollar and news that the International Monetary Fund sold 10 tonnes of gold to Sri Lanka. U.S. December gold futures GCZ9 were up $23.80, or 2 percent, at $1,189.60 an ounce at 3:35 p.m. EST (2035 GMT) on

[snip]

[GATOR NAVY]

I was living in Japan in 1995. Glad I was getting COLA, it was rough living off base getting paid in dollars.

[mamelukesabre]

eh?

Anyone in military should be putting money away like crazy. Housing, food, travel, health care...all free if you take advantage of it.

But if you choose to venture into the non-military world it will cost you.

[UAConservative]

The Bank of Japan is making the right move to resist political pressure to use monetary policy to correct the deflation cycle. The reason that the Japanese in deflation is because they are not printing money at warp speed compared to the US (Translation: the US is causing their inflation due to the yen's peg to the dollar).

I'm concerned that Japan will start printing money to hedge deflation because once deflation ends, hyperinflation begins.

[Paige]

If the dollar goes below .75, we'll crash and pandemonium will break out. This is exactly what these Cloward Piven believers want to take place. Then they will use this as an excuse to take over everything.

These people are serious about destroying our way of life and now we've allowed them to basically control every branch of government.

[wafflehouse]

and that the Federal Reserve isn't overly concerned about the dollar's slide.

of course they had to ask the Fed to quit stomping on the dollar long enough for them to make that statement

[EnglishOnly]

“These people are serious about destroying our way of life and now we’ve allowed them to basically control every branch of government.”

WE???

No only the idiots that wanted “Change”.
That’s all their going to have left in their pockets......very soon.
Chump Change!

Depression days are just around the corner!

[Paige]

Yes, “WE”.

[Soul of the South]

There are consequences to the policies of the last 30 years in which millions have been removed from the tax rolls. As a result 50% of the population pays no taxes yet can vote to steal the resources of the other 50%. The election of 2008 reflected the desires of the 50% who do not contribute to the maintenance and preservation of society. We are at the tipping point if not beyond.

Unfortunately, Republicans have been been participants in this situation. The Bush tax cuts moved 10 million low income taxpayers from paying taxes to paying zero taxes. The Earned Income Tax Credit started in the Ford Administration, was expanded under Reagan and George HW Bush. It was also expanded under George W Bush. The EITC gives payment to people who file but do not pay income taxes.

People who have the vote and can vote to take money from their neighbors will act in their own self interest. Allowing 50% of the voting population to shirk its financial responsibility to pay for government only accelerates the movement to socialism. If the poor paid only a nominal amount of taxes, even 5 to 10% of income, they would think differently about voting for politicians promoting tax increases and big spending programs.

[soupbone1]

Easier said than done. Not every base overseas has government housing so if you live on the economy the exchange rate kills you when paying rent and utilities. Cola increases take forever to catchup and then quickly are lowered on the hint of dollar rebound. I was in Italy during the 80’s and 90’s and the junior enlisted were selling gas coupons, smokes, and booze on the black market to survive.

[soupbone1]

Easier said than done. Not every base overseas has government housing so if you live on the economy the exchange rate kills you when paying rent and utilities. Cola increases take forever to catchup and then quickly are lowered on the hint of dollar rebound. I was in Italy during the 80’s and 90’s and the junior enlisted were selling gas coupons, smokes, and booze on the black market to survive.

[SunkenCiv]

...after indications U.S. interest rates will remain low and that the Federal Reserve isn't overly concerned about the dollar's slide.