Dave Wrixon

Brazil Needs a 'Real'ity Check

Seems to smack of the old Upstairs Downstairs thing with individual getting ideas above their station. Of course all the commoners can now read and write and the big houses have more less disappeared. Well at least, few can afford armies of servants this side of the pond.

BRIC Nations Attack the Dollar, But Status as Reserve Currency Is Secure, For Now

This is crap.

Anybody that esteems that China's net worth is represented by a paltry couple of Trillion in foreign reserves, even more so less than Trillion in US dollars, has understood nothing.

The buying power of all the BRIC nations would be greatly enhanced by the dollars demise, but nobody needs the kind of economic dislocation we had last year. However, the problems in the US have largely been hidden from its own citizens and much of the West, but it is obvious from the contraction of exports to US that the situation is much more dire than expected. As the truth emerges the dollar will gradually become virtually worthless. The truth will emerge in the form of collapsing corporate and government revenues. The statisticians will not be able to hide those.

Not Even Geithner Can Hold Up the Dollar

Makes more sense to buy foreign companies who earnings are substaintially based in other currencies.


On Jul 17 05:37 AM Moon Kil Woong wrote:

> It seems pretty clear to everyone that the Fed and Treasury are actually
> trying to deflate the dollar. Their only sorrow is that long term
> treasury rates and commodities are rising in tandem. If only they
> could violate economic law as easily as they can make money out of
> thin air all their problems would be solved.
>
> The good news is, corporations that get paid in other currencies
> make more when they disclose their earnings in dollar terms. Should
> we all jump for joy now and say Geithner and Bernake are geniuses?
> At the cost of 5% of your assets (providing you have any net equity),
> IBM and the likes get to declare a few percentage more profits.

China and Brazil to Ditch U.S. Dollar? Hardly

You can kick this around as much as you like, but the only reason that the dollar is still worth anything is that a lot of governments are reluctant to see their US investments written down. However, at some pont in time they will bite the bullet because the truth is that they stand to gain more than they would lose.