Mr.G

U.S. Dollar: Best of the Worst?

yeah -in the short run commodities will continue to tank but as the injection of liquidity from the fed /treasury takes place plus all the money on the sidelines - plus central banks around the world printing out their own currency - yes inflation is right around the corner -the price of gold reflected that yesterday as both the dollar (increased against other currencies ) and gold increased at the same time -the fed 's policies as well as world banks is to dilute the problem with so much currency it becomes a more manageable problem being having so many dollars around will deflate the cost of the crises or credit derivatives but inflate the cost of assets

On Oct 07 02:36 PM andrew Abraham wrote:

> Members of MyInvestorsPlace.com have been chatting that they expect
> massive inflation...interestin... currently commodites are cratering..What
> do you think???

U.S. Dollar: Best of the Worst?

this isnt the 1930's where govts have to find more gold to back their dollars/currencies .They are all fiat currencies and can literally be printed out of thin air (there is an unlimited supply ) - all the CB's around the world are being forced to create money(even if it is only to buy dollars)- the dollar wont crash because evryone is creating new money at the same time- In the last 2 weeks alone (before the new 900 billion auction and the bailout)the govt has been printing at 200% increase -
why else would gold go up while the dollar does ? because there is a worldwide devaluation of currency and gold unlike other commodities has no real industrial demand and doesnt reflect future demand in this respect (majority of commodities are tanking due to the assumption there will be less economic activity in the future)but in fact is showing there will be future inflationary pressure due to the current creation of currencies..

Rescuing the U.S. Dollar

" As this crisis is one of bank confidence, the Federal rescue with its real relief for bank balance sheets, should succeed in restoring over time a functioning US market, if not in returning unbounded confidence. Banks will lend to each other and the normal round of electronic credit will gradually resume" -and the magic fairy will spread love all over the world and there will be peace- while Santa gives everyone money to buy new cars from GM and pay off their mortgages they cant afford and everbody will hold hands and sing "kumbaya " at the close of the bell on wall street in a month when the dow reaches a new high of 20,000-
dose of reality 700 billion doesnt begin to touch the problem and once again the Fed and Paulson have underestimated the "housing problem" as they like to call it -this bailout may not even buy time at this point

Euro Slumps to Five Month Low Against the Dollar

people trading fx are going to get hammered left and right as each economy in the world shows signs of deceleration or negative growth -with high expectations of or inflation itself . No currency will be able to dodge these bullets -the real question is looking at fundamentals who is going to get hit hardest and how long will central banks be forced to walk on coals of fire while inflation rises and growth is non existant ? This run back to the dollar is short-mid term. 12 weeks tops . The big picture suggests a run to gold as weakening buying power and economic malaise engulfs each central bank into positions of indecision. The current deflation of oil prices suggests stagflation worldwide as opposed to a strengthening dollar -the money will return to commodities (with the exception of oil) as hedge funds and investors realize all bets are off with an expansion of the credit crisis bleeding into every industry /country on a global scale -