EUARTE

No Good News on the Horizon for the Dollar

The dollar is cow droppings but it just smells less than the rest. Gold is odorless. Oil ugly but needed. China a dangerous friend but, for now, likes cow droppings.

Buffett Finally Admits the Dollar Is Doomed

Buffett claims to hording R$s. If true he may suffer massive losses. The Brasilian economy is based on exports. China right now is a major source of exports. However, China is near the end of it's needs. It has been hording minerals and other commodies from Brasil. It does not need more for some time. There exporting to EU and USA has tanked. They have dumped USD in Brasil to buy these commodies. To my point. The R$ owes it's strength to it's backing by USD's and other currencies but the USD is the heavy there. If the USD continues to fall the value of the R$ will take a sudden trip south. Mr. Buffett will lose big.

Friday FX View: Debate Continues to Rage Over U.S. Recovery Rally for Dollar

It is not possible to support a stronger dollar by endless printing of more dollars. Eco 101.


On Aug 15 03:45 AM Dave Wrixon wrote:

> The US Government does not want a weaker dollar. They are doing everything
> in their power to manipulate the markets to keep the dollar strong.
>
>
> Why? Well, simply because a collapsing currency will force higher
> interest rates, and they cannot afford to finance higher interest
> rates on US Government debt. The US economy is based on Everything
> for Northing Market Manipulation, that will continue as long as Obama
> draws breath.

Asia: The Next Big Bubble

The effect of a China bubble burst is enormous. Brasil, for instance, has become to rely on China as a buyer of their resources. The United States and the EU are not buying much now and won't for a while. Even then they can not match the huge purchases by China. This could cause a dangerous crisis for the Real. The Real is over valued because of these Chinese purchases and the carry trade. The Real will lose it's value by a great margin.

Wednesday FX View: A Tad of Risk Aversion Boosts Dollar

The unemployment figures are lower for three reasons.
One is that employers have done massive house cleaning and the remainder, for the moment, are deemed necessary.
Two, the manner in which the federal government reports unemployed is politically flawed in favor of underreporting.
Three is that less happens during the summer. Wait to see a rise in September.

The Dollar's Continued Decline: Unintended Consequences

The Fed lost it's way a long time ago. We can thank Greenspan a lot for this. He was a self-serving political act. He had Greenspan in mind and his long time Federal Reserve employment. His name may be mud now but, in fact, he got away with it. Kind of like his wife's dishonest reporting.

Ben is totally out of his depth and also has no guts to do what the Fed is supposed to do.

One solution is to rethink the Federal Reserve. It no longer serves a purpose. It has become a tool of the president in power.

Dollar Watch: Race to Debase?

Let us get past this. The US government is debasing it's currency. It is purposeful and immoral. Bad currencies take down the economy after some trade advantage.

Daily Currency Forecast: Don't Bet on the Dollar's Demise

Then why has the US$ suffered a 26% decline against the R$??

This Recovery Is Not Sustainable

The fading stimulus bill? Effective? What planet is this from? The Stimulus Law has had very little effect and will have little effect. It was a pork Law and has failed.

As for unemployment we know, even from good times, that the government(s) have always under reported the numbers. This has been and is political. The real numbers are not know but I think an educated guess is around 12%. The government's formula counts those they want and then leaves off those it wants to avoid.

Dollar Strength Across the Board

Every one leaves out the R$. It is from an emerging country...yes. Nonetheless, it has a powerful economy and is a player in the internationsl financial and trading markets. Right now the US$ has lost 26% against the R$. Yet no comments??

Warning Signs from Brazil

Gad! HasEnglish left the financial pundits? What specifically is the probable R$ aganist the US$? In English por favor!

Iceland and the Wonders of Competitive Currency Devaluation

Look we may have to take the devaluation route. The USD is getting worth less and less. Certainly devaluation has morality on it's side. Debasing of the currency is par but really cheating buyers and thus really wrong. Nonetheless, I am a realist and know that the moral route will not be taken. We will just wait for the USD to take a free fall...and it will. Thus the market place will do devaluation for us....and far more painfully.

As for the Asians retaliating against us that is phoey. What can they really do? Stop buying our useless paper? Start selling our paper? Makes no difference. We will be in the tank anyways.

Is the U.S. Dollar the Fed's Next Weapon?

The United States is a dishonest and immoral debtor. I realize that this in not unknow in other countries. Nonetheless, dishonest is dishonest.

When Will the Fed Raise Interest Rates?

The column has a very theological sound. Only through suffering can we better our economy. Putting off the suffering only increases it. Hopefully we will only suffer Purgatory although some will rightfully suffer hell.

The Future of Brazilian Markets: A Private Equity Perspective

Another factor in Brasil is inflation. The government has lowered interest rates saying that inflation is low. Visit any supermarket and view the weekly rise in prices. There is higher inflation that the government is not catching or is ignoring.

The continued depression in the US and EU will effect Brasil over the long run. Brasil is counting on exports. China is decreasing it's pruchases and obviously so has US and EU.

The strength of the R$ against the U$ hurts the exporters. Brasil will have to weaken it's currency. This can be accomplished by lower the official interest rates even more. They have to do something about the carry trade. A tax on flows of carry trade money in and out would help.

Brasil always has to be watched carefully. It has made enormous positve moves over the last 15 years. However, there is still a 3rd world mentality there. Corruption at all levels is a way of life. You can not do business with the government or even the private sector without bribes. I do not mean small bribes.

After Lula what will happen. With all is left wing talk he allowed the capitalist system to work it's way to prosperity. Lula will soon leave office. There is no one out there with his vision and common sense. If one of the old type hacks gets in the game is over.