US Dollar Climbing?

[Soi biker]

 

I totally agree. One of my currencies now is

the Bazilian Real its done well, but I am wondering if I should pull out.

[Soi biker]

 

OK, you stick with your Econ 101 boys, who didn't see this coming and still don't, even when

getting hit in the head with that clueless stick.

I'll keep doing what I'm doing because I'm still

ahead of the game. I'll wear that tin foil hat

with pride. Your a fan of QE keep in mind that it

is nothing more than kicking the can down the road

and making things worse in the end.

 

Protect yourself from the coming inflation.

 

 

 

[Dexi]

Whats the best way...gold maybe ?just keeps going no sign of a slump yet....

[LizardKing]

What freakin' inflation? Dude, you need to understand what you are talking about. I sure hope you are not actually employed in the financial services sector. God help your customers if you are.

 

Aside from the fact we've pulled $5 TRILLION worth of value out of the economy and have not replaced it with anything close to that number, we've hit the zero bounds in interest rates, to the point where recently the U.S. Treasury was selling T-bills at *NEGATIVE* interest rates. Yes, people actually paid $120 for $100 worth of T-bills!

 

And once you hit the zero bounds, you leave the realm of Chicago-school monetarism and enter the realm of Depression-style Keynesianism, where printing money simply results in the money disappearing under mattresses rather than circulating because it'll be worth more in the future -- thus why institutional investors are willing to pay $120 for $100 worth of T-bills: they are expecting $100 in the future to be worth more than $120 today (i.e., they're expecting deflation). And the only reason they're buying T-bills is because they don't have enough room under their mattresses.

 

Why do you think companies are sitting on huge cash positions (or even buying back their own stock) and not hiring?

[The_Munchmaster]

I totally agree. One of my currencies now is the Bazilian Real its done well, but I am wondering if I should pull out.

If you've made a big deposit then you should probably pull out.

[Hugh_Hoy]

Why do you think companies are sitting on huge cash positions (or even buying back their own stock) and not hiring?

 

I'm not sure about foreign corps., but U.S. companies are not investing their cash for other reasons (such as a very uncertain economy and a very uncomfortable feeling toward the way the current U.S. administration wants to head.) Very few companies are planning on adding new hires for 2011; very few are planning any kind of investment in new manufacturing facilities.

 

As for inflation, I can see it coming...mostly driven by increases in energy prices...and that is without a cap and tax that Obama would LOVE to collect. A low dollar makes energy (oil) more expensive; more expensive energy makes for inflation. More and more government spending of money it doesn't have, makes the dollar worth less. Of course, it is virtually worthless now as evidenced by loan rates that are lower than anytime in your life.

 

Just checked: my gold just went up another 12 bucks today !!! So far, a 4+% increase in less than a month. I'm not holding my breath that such an increase will project to 48%+ over the next 12 months, but I guess I can always hope. LOL.

 

Gotta go and fondle my Golden Eagles...later. (Oh, you still billing in Euros? 555555555)

 

HH

 

 

[exit2dos]

I love my Maple Leafs and I'm not even Canadian. Love my Baht, too. When the EU falls apart they'll be flocking to the good old American Green Back. Accepted everywhere.

[LizardKing]

Boy, you never leave the party line and think for yourself, do ya?

 

Uncertainty my ass. Dow at ~7k when Bush left. Now gonna be 12k by year end. Q3 2010 was the most profitable on record for US companies (mine included). The uncertainty excuse is simply bullshit. But it gets the GOP off the hook as the proles then don't look too hard at all the incentives BushCo laid in there to ship jobs overseas.

 

I bill in USD. Never did EUR, save for one company that wanted it (and now they are back to USD).

[Hugh_Hoy]

Bush, Bush, Bush. As Ronnie would say, "there you go again". Clinton had more to do with fucking up U.S. industry than Bush had an opportunity to do. Check this out, pal: http://www.ontheissues.org/Celeb/Bill_Clinton_Free_Trade.htm

 

Historic profits? LOL. While a few companies may be able to tout that, I've noticed a lot more that have gone out of biz, down-sized, or merged. Sure, when you lay off millions of people, a large part of your overhead will get chopped off too. But that doesn't necessarily result in huge profits. Tell that to the auto and construction industries. Tell that to retailers who've had to close doors from coast to coast.

 

My mistake about you billing in Euros. "After further review", it was SD who claimed he'd switched from billing in USD's to Euros. Please accept my apologies. 555555555555

 

HH

[Flashermac]

The US$ is slightly over 30 baht today. That's sort of an improvement.