US Dollar: I've fallen down & I can't get up

[yyD70S]

It's highly likely that the local currency would breach the historical high against the U.S. counterpart set in December 1995... but my guess is that it will settle at around current levels (1.40) at around the end-of-the-year.

This is election year in the States; both the FED and the administration are doing all they could to prevent the "S-word" from happening (or has it already happened)... all these (good news) would filter into the market towards the second half of the year.

At least, that's what I hope.

 

[garou12]

It's highly likely that the local currency would breach the historical high against the U.S. counterpart set in December 1995... but my guess is that it will settle at around current levels (1.40) at around the end-of-the-year.

This is election year in the States; both the FED and the administration are doing all they could to prevent the "S-word" from happening (or has it already happened)... all these (good news) would filter into the market towards the second half of the year.

At least, that's what I hope.

haha the fed can try but it won't stop bush from pissing away the country's fortunes. They dun want to admit it but basically the foreign powers own America thanks to Bush's efforts and their constant need to borrow money from everywhere to pay for a war in iraq amongst other things.

 

[yyD70S]

That's true. The U.S. won't make that alone.

The rest of the central banks has (and will) chip in the second quarter.

They better; my money's in it.

 

[garou12]

That's true. The U.S. won't make that alone.

The rest of the central banks has (and will) chip in the second quarter.

They better; my money's in it.

US central bank cannot do anything but influence how much it costs to borrow. period.

 

[sloth]

What do I estimate....no need to estimate, just buy

I bought some stuff from the US yesterday..... very happy

 

[relaxxjaxx]

Today's intra-day low 1.3955... wanna guess how low it gets tomorrow? Hahaz

 

[nikkie]

haha the fed can try but it won't stop bush from pissing away the country's fortunes. They dun want to admit it but basically the foreign powers own America thanks to Bush's efforts and their constant need to borrow money from everywhere to pay for a war in iraq amongst other things.

the US borrowed in their own currency,
nothing to stop them from printing enough to cover debts.
but no creditor would want to see that, right?
i must say the US is good, damn good.
holding the world hostage with their problem using their money.

 

[garou12]

the US borrowed in their own currency,
nothing to stop them from printing enough to cover debts.
but no creditor would want to see that, right?
i must say the US is good, damn good.
holding the world hostage with their problem using their money.

sorry man. increasing the amount of your money in circulation by printing more doesn't make its value go up. It devalues it even more plus pushes inflation up. If they do that that means they really wanna kill their own economy.

 

[nikkie]

sorry man. increasing the amount of your money in circulation by printing more doesn't make its value go up. It devalues it even more plus pushes inflation up. If they do that that means they really wanna kill their own economy.

precisely,
what harm comes to the US with a devalued dollar? none.

they r self sufficient in their staples n major commodities r all traded in US.

think about it,
if u r US n u owe a bank SGD so many times ur earnings,
wouldn't the bank be present u a letter of demand by now.
but if u borrowed,
say in GAROU12 dollars,
would the bank press u hard to return?

 

[garou12]

precisely,
what harm comes to the US with a devalued dollar? none.

they r self sufficient in their staples n major commodities r all traded in US.

think about it,
if u r US n u owe a bank SGD so many times ur earnings,
wouldn't the bank be present u a letter of demand by now.
but if u borrowed,
say in GAROU12 dollars,
would the bank press u hard to return?

what harm comes from a devalued dollar? u seriously asking? u think what just coz they have their own staples they dun export import goods and services is it? wow from your answer i would like to see you do what they did. You think this A long pte is it?

 

[mcn]

You think this A long pte is it?[/QUOTE]

u can tell me about this A long pte is it

 

[wildstallion]

the US borrowed in their own currency,
nothing to stop them from printing enough to cover debts.
but no creditor would want to see that, right?
i must say the US is good, damn good.
holding the world hostage with their problem using their money.

precisely,
what harm comes to the US with a devalued dollar? none.

they r self sufficient in their staples n major commodities r all traded in US.

think about it,
if u r US n u owe a bank SGD so many times ur earnings,
wouldn't the bank be present u a letter of demand by now.
but if u borrowed,
say in GAROU12 dollars,
would the bank press u hard to return?

Your joking right? If the Dollar continues to devalue America's currency will be worthless. This will have a huge effect on their GDP and a little thing called a recession will probably occur (which isnt a particulairly good thing). If they cant fix that then they may go into economic depression, although this is unlikely to happen again.

Basically its a very big deal, which is why its getting so much news coverage. America is not self sufficient anymore, it owes too many people money!

 

[garou12]

You think this A long pte is it?[/QUOTE]

u can tell me about this A long pte is it

u never see the movie? :bsmilie: i typo the term meant Ah long pte.

 

[NorthernLights]

I sold my Canon camera body and lenses (some people talk about the camera as if it is an appreciating asset for investment) as I am shooting much much less nowadays to buy a cheaper digicam (see my signature).

I use the proceeds to purchase USD at current levels and buy Unit Trusts denominated in USD - esp gold unit trusts that move in opposite directions to the USD to hedge agaonst the falling dollar and catching the appreciation in the future. One can consider buying US stocks with the USD to catch the appreciation in stock prices in the longer term and recovery of USD.

 

[Watcher]

At the time of this post, the rate is 1.3917... Man, there is no more support for it. Even MAS can't hold back the tide. If Bernanke follows through with the rates cuts... 1.38 in 4-6 weeks time.

 

[yyD70S]

MAS won't hold back the tide...

While the SGD neer in near the top end of the band, there's still some room for the local currency to strengthen (against the U.S. dollar especially) on a trade-weighted basis.

So, yes... 1.3800 soon.

 

[Watcher]

Ha ha now below 1.39, at 1.389 to be exact...

 

[jonathan_wong]

The bad US dollar is affecting the US based company very very badly.

One major plant is pulling out of Singapore. This is already in the time table.

While the bad US dollar might allow us some shopping spree for the moment, it will hit Singapore pretty badly very soon. Especially in the second part of the year.

 

[garou12]

The bad US dollar is affecting the US based company very very badly.

One major plant is pulling out of Singapore. This is already in the time table.

While the bad US dollar might allow us some shopping spree for the moment, it will hit Singapore pretty badly very soon. Especially in the second part of the year.

which plant?

 

[bousozoku]

haha the fed can try but it won't stop bush from pissing away the country's fortunes. They dun want to admit it but basically the foreign powers own America thanks to Bush's efforts and their constant need to borrow money from everywhere to pay for a war in iraq amongst other things.

That's for certain.

It hasn't been this bad for a while since President Reagan devalued the dollar in 1985. I was in Japan that week and it had fallen from 239 yen a few weeks earlier to 214 the day I left. It reached a low of about 85 and only recently returned to just over 121 (Decenber 2007?) before falling again.

Of course, it's supposed to be better for manufactured goods made in the U.S.A., but most all of the manufacturing has been gone for a while, along with many other jobs. It's amazing how the country has changed since George W. took his place in the White House. It's like the 1970s again.