virilio

How Bad Is the Dollar's Fall?

"Last time rates were near 1-2% lenders gave out money like it was nothing, if rates go back down near those levels it will be very interesting to follow where that cheap money goes"

borrowed for next to nothing to short YEN EUR GBP CAN CHF on their red-days. Like the low-interest CHF was borrowed & converted to short USD against EUR, so low-interest USD could be borrowed & converted to short YEN against EUR.

How Bad Is the Dollar's Fall?

"When the bush presidency ends the dollar will stage a celebration rally" vs "When the Bush presidency ends it very much depends on who succeeds him".

nothing is ever sure. They might as well throw dice as the dice are more predictable.

Could be under Clinton/Obama it is uncovered war was far more expensive than stated & USD keeps going down for several years. Could be under McCain it is not uncovered and people just assume this & USD keeps going down for several years. Could start going up too. Will global currency reserves go below 50% on the USD? Unlikely. If so I'd expect proportional devaluation of USD, and correct for it by estimating shifting distribution in my currency basket.

"so funny-money debt can be repaid with funny-money. " yep.

"if central banks ALL inflate their currencies thus lowering their values, how can we measure any value." IMHO relative to one another via shifting global currency reserve ratios

"Huge "off the books" funding for Iraq and Afghanistan" yep.

"If you wanna protect, just buy another currency." yep. or currency basket at ratio like central bank global reserves such as 60% USD, 30% EUR, 5%GBP, 5%CHF.

"The US Dollar needs to get back on the Gold standard" gee, why not just peg it to the price of a barrel of crude? *sigh*