Dollar Collapse Update: “Obama Demands Pay in Euros!”

by Mike WhitneyThe “dollar debate” on the Internet has been ferocious and emotionally-charged, but sadly lacking in logic. To oppose the “dollar will crash” theorists is like arguing a woman’s right to choose with the fist-waving throng assembled outside an abortion clinic. The results are equally disappointing. To say that “minds are already made up and the issue is settled”, is an understatement. For many, the dollar’s transition from the world’s reserve currency to a Wiemar era Deutschemar

Dollar hits 14-month low against the euro

Currency tops psychologically significant $1.50 mark last done in Aug. 2008The euro broke through $1.50 against the dollar for the first time in 14 months Wednesday as a recovering stock market further sapped the U.S. currency’s appeal as a safe-haven investment.The dollar’s slide came despite recent supportive comments from Treasury Secretary Timothy Geithner and senior European finance officials, who are growing increasingly anxious about the euro’s appreciation. A stronger euro makes European

Dollar Trouble

The dollar is not going to crash. In fact, many economists believe that the dollar will rally when the Fed ends its quantitative easing program (QE) sometime in early 2010. The Fed is on track to buy nearly $2 trillion dollars of mortgage-backed securities, US Treasuries and agency debt. In other words, the Fed is printing money and pumping it into the housing market to keep the market from collapsing. This keeps interest rates low, but it also weakens the dollar. When the program ends, long-ter

World stocks up as tanking dollar boosts oil, gold

LONDON – World stock markets rallied Wednesday after an upbeat earnings statement from Intel Corp., the world's largest chipmaker, and China's economy showed more signs of a recovery. Meanwhile, oil prices rose to a year high while the dollar slid to a 14-month low against the euro amid the rising appetite for risk. In Europe, the FTSE 100 index of leading British shares was up 89.57 points, or 1.7 percent, at 5,243.72 while Germany's DAX jumped 109.05 points, or 1.9 percent, to 5,823.36.

A Flawed Theory on How to Manage an Economy During a Recession

Quick! Get more sour cream and butter for the fat guy, stat! And bring some guacamole and extra cheese too! Nothing broke in the world economy over night. The Aussie market is at a 12-month high. The dollar is marching on the greenback with parity (and beyond) the ultimate objective. But we're going to put all the bullishness from the fake balance sheet recovery aside for a moment and talk about bad medicine. Your editor spent last night in a discussion with a querulous and drunk Aussie ov

Oil Gains Despite Dollar’s Climb – NIMBRUNG.NET

Washington Post Oil Gains Despite Dollar's Climb Wall Street Journal By CLAIRE RANGEL NEW YORK -- Crude oil was marginally higher Friday despite a stronger US dollar that followed comments from US Federal Reserve Chairman Ben Bernanke on a prospective rise in US interest rates. The market had traded lower until the New ... NYMEX-Crude up on demand hopes after dollar weighs Reuters Crude oil futures turn higher, along with stocks MarketWatch Energy agency predicts big jump in oil demand Purchasin

Five Assets for Hedging Against Dollar Inflation or Deflation

As the stock markets continue to recover (assuming it has not done yet), the talk of inflation is coming back in the news. Our government has pumped in so much of printed money in the system that there is a concern that US economy will experience inflationary times. There is no denying that inflation will take away chunk of our real returns from overall investing returns. Many of the well known economists and investors (including Warren Buffett) have expressed concerns about in

When People Fear Inflation or a Falling Dollar They Find Refuge in Gold

Uh oh...maybe it will be a Red October after all... Two important things happened yesterday, both of which cast a crimson light on things. First, the Dow dropped again; it has only gone up one of the last 7 days. It went down 203 points. Could be nothing. Could be something big...the beginning of the long awaited 'next leg down' for the bear market...the opening day of a bloody Red October. Charts of oil, commodities, copper, the dollar, and Treasury bonds tell us the same story. The greed

Review: The Little Book of Main Street Money

Every other Sunday, The Simple Dollar reviews a personal finance book. This is the eighth book in the “Little Books” series on investment topics, and I’ve reviewed all of the previous ones ( … of Bull Moves in Bear Markets , … of Common Sense Investing , … of Value Investing , … That Beats the Market , … That Builds Wealth , … That Makes You Rich , and … That Saves Your Assets – all links to my earlier reviews of these titles). For the most part, each one provides solid coverage

The Dollar Left Behind

It was just a short twenty two hours on two planes rides, one from Paris to Singapore and the second from Singapore to Melbourne. But somewhere between Wednesday night and Friday morning, it appears that the world decided to go slightly bonkers. Not completely insane, mind you. Just a little punch drunk, the way your editor feels at the moment after switching so many time zones. But we're going to push on before we start slurring our speech and see what in the world is worth noticing as we clo

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