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Fed's Williams: Unemployment above Target, Inflation below Target, QE3 "most effective tool"
http://www.calculatedriskblog.com/20...ulated+Risk%29
Fed's Williams: Unemployment above Target, Inflation below Target, QE3 "most effective tool"
http://www.calculatedriskblog.com/20...ulated+Risk%29
Hyperinflation!
Our currency may very well lose 97% of it's value over the next 100 years if we allow this to happen!
Roubini Warns a Crisis in 2013 Would Be Worse Than 2008
Nouriel Roubini, the dour seer who was early (too early in the minds of some) to warn of possible financial crisis prior to the Great Upheaval, has been more cautious in his calls since having ascended to official pundit status. Nevertheless, he’s been warning of a possible crisis in 2013 for some time and is not backing off from that call as the date approaches.
In this Bloomberg interview, Roubini describes why a meltdown next year would be even worse than what we saw in 2008. Notice how he ducks the question of safe havens. He also discusses the prospects for the Eurozone.
http://www.nakedcapitalism.com/2012/...=Google+Reader
Isn't that the normal rate?
WC was left at the pier.
Fed corruption at its finest
Good to see the hyperinflation crowd come to its senses...I've been saying this is bunk for years..perhaps this is the real reason why Winehole and R.G. have been taking a break from the forum...both were wildly speculative on inflation....
you guys are out of your minds..once russia and china take care of the petrodollar here pretty soon, we will see our currency lose a lot of value..
the one and only thing that keeps our dollar even somewhat strong is the fact that it's tied to oil and people have a demand for dollars to buy oil. that won't always be the case i'm sure. take oil away from the dollar and we're ed.
take care of the petrodollar
that's not what i'm saying at all stop trying to pull a fast one on me and looking like a in the process.
it's been proposed by a number of governments here lately (russia and china being the 2 biggest, but not the only ones) who have been proposing an alternative to the dollar as the world's reserve currency. i've seen suggestions of going back to a basket of currencies. the dollar won't have a monopoly on the world monetary system forever, no ing way. the day the petrodollar goes extinct is the day the dollar loses half of its value overnight.
ya'll really haven't heard of this?
http://money.cnn.com/2011/02/10/mark...llar/index.htm
It's pretty simple how currencies get their value actually, it's just supply and demand like any other product on the markets. Right now because of the dollar's status as the reserve currency and the fact that ALL oil is sold through dollars, there is an unnaturally high, manipulated demand for dollars which is the only thing keeping its value relatively high despite all the print and spend, deficit spending tactics. If the petrodollar were to go away, the dollar would lose a considerable amount of value almost overnight. And it's going to happen eventually.NEW YORK (CNNMoney) -- The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency.
The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.
SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs
While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.
Dominique Strauss-Kahn, managing director of the IMF, acknowledged there are some "technical hurdles" involved with SDRs, but he believes they could help correct global imbalances and shore up the global financial system.
"Over time, there may also be a role for the SDR to contribute to a more stable international monetary system," he said.
The goal is to have a reserve asset for central banks that better reflects the global economy since the dollar is vulnerable to swings in the domestic economy and changes in U.S. policy.
In addition to serving as a reserve currency, the IMF also proposed creating SDR-denominated bonds, which could reduce central banks' dependence on U.S. Treasuries. The Fund also suggested that certain assets, such as oil and gold, which are traded in U.S. dollars, could be priced using SDRs.
Oil prices usually go up when the dollar depreciates. Supporters say using SDRs to price oil on the global market could help prevent es in energy prices that often occur when the dollar weakens significantly.
The dollar alternatives
Fred Bergsten, director of the Peterson Ins ute for International Economics, said at a conference in Washington that IMF member nations should agree to create $2 trillion worth of SDRs over the next few years.
SDRs, he said, "will further diversify the system."
Dollar firms after starting 2011 weak
The dollar has been drifting lower so far this year as the global economy improves and investors regain their appe e for more risky assets such as stocks and commodities.
After rising above 81 in early January, the dollar index, which measures the U.S. currency against a basket of other international currencies, eased below 77 earlier this week.
However, the dollar was higher Thursday against the euro, pound and yen as disappointing corporate results weighed on stock prices following several days of gains on Wall Street. The rally in the commodities market also cooled, with the price of oil and metals backing off recent highs.
In addition, renewed concerns about the debt problems facing troubled European economies put pressure on the euro and supported the dollar. The yield on Portugal's benchmark bond rose to a record high Wednesday, and borrowing costs for Ireland, Spain and Greece remain elevated.
"The market is shedding risk, with equities and commodities weakening and the U.S. dollar broadly stronger" said Camilla Sutton, currency strategist at Scotia Capital.
Traders were also digesting comments from Federal Reserve chairman Ben Bernanke, who told Congress Wednesday that despite a strengthening economic recovery, the unemployment rate remains high while inflation is "still quite low."
Those remarks reaffirmed the view that "the Fed would be very slow to tighten policy given its dual mandate of price stability and employment," analysts at Sucden Financial wrote in a research report.
Bernanke also urged lawmakers to come up with a "credible plan" to bring down "unsustainable" federal budget deficits.
"We expect that the outlook for the U.S. fiscal position will weigh heavily on the U.S. dollar in the quarters ahead," said Sutton. In the near-term, however, she said "a strengthening growth profile" could help provide "a temporary period of dollar strength."
Just what we need another currency with no backing..that's not gonna happen...the dollar is strong because it is supported...ie do what we say or we'll take your away... by the US military...who will fight for the SDR?
Guess who largely runs the IMF and contributes the largest quota of SDRs...
http://www.imf.org/external/np/sec/memdir/members.aspx
It's just more funny money...
There's still high demand for US treasuries. The dollar should be ok while that demand is still there.
If you're trying to imply that the US dollar being one of about 10 currencies in an SDR would have the same effect as a total monopoly on world trade then you're out of your mind man
If the dollar ever loses that status without us starting world war 3 over it first, then we fuuuuuuuuuucked.
a low-priced dollar helps US exporters compete internationally and makes exporting US jobs to low-wage/low-regulation countries less attractive.
A strong dollar doesn't mean you have bigger .
"Because the government says it's worth this amount" is not actual support for a currency, B.... otherwise, the Fed would limit how much money they print because of it...
The US and Israel already have a contingency plan in the works. It's called War with Iran. or as the Pentagon and CNN will call it Operation Iranian Peace and Hopefulness
that war which is coming, will extend the reign of the petrodollar for a few more years. Just long enough for the banks and MIC to reap some good bonuses.
of course the american ppl will be ed regardless. the FED will make sure of that.
Because nothing says "thoughtful analysis and useful, objective commentary" like youtube videos and smileys.
GMAFB.
because nothing says "I have no evidence to dispute the facts presented" like GMAFB
Meh. You will run away and stop defending it, just like you did with that ed racebaiting thread about what we should be outraged at.
Not worth my time to bother with your yootoobs, kid, if you are just going to get all chicken anyways. Sorry.
Hyperinflation is always fiscally based. Always, every time, ever. Credit crises always pull towards deflation by definition.
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