THE US Dollar Thread (merged)

[zed]

Ruppert also makes a good point about the 9/11 insider trading. The trading you heard so much about in the month after attacks and then was dropped from the mass media. The Kean Commission omits any serious discussion of this very obvious line of inquiry.

Anyway, Ruppert documents how the level of trading in United and American Airlines in the days before 9/11 (and even the morning of 9/11) were far beyond normal levels. The government has released few actual records of the trading and one of the involved institutions (Deutsche Bank) ultimately has ties to the CIA. Considering the insane amount of surveillance of world financial markets, it is preposterous to think the US government could not figure out who profited from trades. Ruppert concludes that foreign intelligence agencies (who had advance warning of 9/11) probably were responsible for much of the trading and that pursuing that line of inquiry would simply reveal the obvious - that 9/11 was not a surprise attack to many at the highest levels of world power.

[Ferretlover]

link

From the 8 November the dollar will no longer be a valid currency in Cuba. Residents have until then to exchange their dollars for Pesos convertibles. There will be no penalty for owning dollars like there has been in the past.
"the population can maintain, without restrictions of no type, any amount of dollars or another freely convertible currency" However people who want to exchange dollars for PC's will pay a fine of 10%

Castro asked the Cubans that live on the outside to send money to their relatives in Cuba in other currencies, such as euro, the British pound, frank Swiss and Canadian dollars to avoid this fine.

The official reason is the new policy of the US towards Cuba but I think that the decline of the dollar also has to do with it. A lot of people were complaining that the dollar loses its value so quickly and I've met many Cubans which were expecting that the government would make a shift to the Euro soon.

A number of countries have abandoned the dollar recently (Iran, Turkey , Russia, Cuba). Considering that about half the printed dollar bills are floating around in foreign countries as a reserve currency this represents a significant move. If all those bills make their way back to the US it will lead to a tremendous depreciation of the dollar.

[sulayman]

A number of countries have abandoned the dollar recently (Iran, Turkey , Russia, Cuba). Considering that about half the printed dollar bills are floating around in foreign countries as a reserve currency this represents a significant move. If all those bills make their way back to the US it will lead to a tremendous depreciation of the dollar.

I never knew that Russia and Turkey had abondend the dollar. When did that happen?

I guess it would depreciate the dollar and weaken its value further. Would that count as a negative feedback loop?

[smiley]

I never knew that Russia and Turkey had abondend the dollar. When did that happen

?

Euro catches on in Russia

Russians are buying more euros than dollars for the first time since the new European currency became available, according to the central bank.
The swing may signal the weakening grip in Russia of the US currency which has dominated the economy here for most of the past decade.

It comes after a 15% fall of the dollar against the euro this year.

http://news.bbc.co.uk/2/hi/business/2264012.stm

Last year I went to Turkey and everything is in Euro's now (Rental cars, hotels etc), wheras it used to be in dollars just a few years back.

[sulayman]

I see, but in Turkey then it is a concious decision by the people rather than a Government enforced policy like in Cuba....right?

[Such]

I was in Belarus back in 2003... nobody uses dollars anymore.... its all euros there.

of course, Belarus's economy is about as large as ancient indian burial ground, so not much of an impact there...

but the percept of the dollar there has changed dramatically in recetn years... people know that the US economy is a cluster.

[frankthetank]

Turkey wants in the euro union real bad. That also plays in somehow.

[Grimnir]

Here's another question. If Ruppert is on to the BA's secret plan and in the process of exposing it to the public, why haven't they thrown him in Guantanamo Bay or something?

[bobcousins]

PLEASE...if you talk to anyone about Peak Oil, don't reveal you believe that the US government orchestrated 9/11. They will think you are insane.

I've never seen such a load of nonsense. There is a "proof" that the WTC towers were deliberately demolished. The author invokes physics, but clearly has no clue what he is talking about. As for all the other misinformation and coincidences...

[TheSupplyGuy]

I don't think the government orchestrated 9/11, but I do believe they let it happen, sorta like with Pearl Harbor.

[AnnaLivia]

stealing a quote from montequest's book: the unaware are unaware that they are unaware

ahem

a big tip o' the cap to the rest of you.

one teeny disagreement: the MOTIVE is omnipotent world wealth/power dominance through one-world government. looks to me like peak oil is going to be the omnipresent MEANS. (and ain't it getting meaner everyday!)

gee, and i had a bet that cell phones were gonna dance before we fed the starving. looks like i'll never get to collect.

[AnnaLivia]

may i just add...

no matter how long it takes, no matter what energy source whatever number of humans (left) are using, there are those who are determined to be in control of world wealth/power. and they'd cancel the whole game for everyone before they'd settle for losing.

if you choose not to look into this, you might oughta seek treatment for that gambling problem you've got.....

[Ferretlover]

After reading a few stories on the decline of the value of the dollar I've decided to ask for help in trying to understand it.

I have little understanding of economics and can't work out what is causing the dollars decline. If anyone out there can explain to me how reserve currencys work or how the US government letting the dollar fall will improve it's trade deficit I would really appreciate it.


Thanks

[Agren]

check out the Goff articles on FTW, he talks about some of these things there.



(yes, I do feel like a parrot, but the articles are really good )

[stu]

Thanks Agren.

Let me see if I understand this now. If all countries that trade in the dollar or have the dollar as their reserve currency decide to switch to Euros (Like Russia seems to be doing) then this will mean that there will be billions of dollar notes floating around in the economic system that are not being used. This means that because of the amount of dollars in circulation vastly outstrips the amount of goods and services offered by America this will impact on the value of the dollar and cause it to rise severely. Like in Germany pre-World War II when there was hyper inflation and people were spending thousands of marks for a loaf of bread.

[MonteQuest]

Stu,

Check out my post from another thread.

The dollar has been falling lately for these four reasons:

Large and growing current account deficit
Fed officials talking down the dollar
Spiraling oil costs hurting growth
Low interest rates / unattractive yields

http://www.peakoil.com/fortopic3105.html

See also:

Euro vs the Petro Dollar http://www.peakoil.com/fortopic1545.html

MQ

[MonteQuest]

See also Debt-based money explained

http://www.peakoil.com/fortopic1362.html+explained

[seb]

US$ is desintegrating : 1euro = 1.332$, 1$=102yens
This is going really fast now. No doubt there is lot's of speculation behind it but I guess this movement really follows the fundamentals. A guess for an upper bound for the euro? 1.4$? more?
ASPO suggested few months ago that crude oil is implicitely priced in euros and not in $ anymore. So do you expect that a big fall of the $ automatically puches up crude oil prices? Can anyone explain me the market mecanisms which would be behind this causality : low $ implies high crude?

Thank you

[Carrie]

I think low $ does = high price for crude. The lower the dollar falls, the more it will cost.
Just came across this article - looks like the Chinese have just cut a large portion of their U.S. Treasuries: Link
That could be significant for the U.S. dollar.

[smiley]

Just came across this article - looks like the Chinese have just cut a large portion of their U.S. Treasuries

.
Russia is doing so as well: Article
The gold market shows that the Arabs and Indians are buying gold for their dollars.
I don't think that the central banks will intervene anymore. Otherwise they would have done it yesterday. Thanksgiving day is the ideal day for an intervention because the US market is closed. Trading volumes are thin which means that you need relatively little leverage to alter an index.

There is still one big hurdle ahead, which is the 80 level for the dollar index (right now it is a t 82.3). Perhaps we'll see some intervention there, or a pullback. But if it breaks through that it will basically be a run for the exit. I don't even dare to speculate on how low the dollar can go then.