Weak Dollar Getting Pummeled

[Sinistrous]

Link to article

Weak Dollar Getting Pummeled
Thu Mar 10, 2005 11:26 AM ET

By Jamie McGeever

NEW YORK (Reuters) - The dollar weakened on Thursday against most currencies on concerns over global central bank reserve diversification, a widening U.S. trade deficit and tumbling bond prices.

"We're just in a general dollar downtrend right now," said Sophia Drossos, currency strategist at Morgan Stanley in New York.

Having slumped to multi-month lows against its major counterparts on Wednesday, the dollar suffered another blow on Thursday after Japanese Prime Minister Junichiro Koizumi told parliament that, generally speaking, diversity in foreign exchange reserves was a good thing.

The Ministry of Finance, which manages the world's largest foreign reserve holding of $840.6 billion, quickly clarified that it has no plans to shift funds out of the dollars.

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Korea, then China, now Japan are diversifying their foreign currency holdings. And bush wants to borrow two TRILLION dollars to finance his destruction of Social Security???

[Yavin4]

1. Oh Look! Michael Jackson Was Late For Court!!

Ignore the falling dollar articles.

[Daisey Mae]

4. You got it...Michael Jackson is a distraction.....

We got to hide all sorts of bad news from the sheeple.......

[radfringe]

20. and he showed up in his pajamas!!

breaking news -- MJ in PJ's! get everyone on this NOW!! (could be important...ya think?)

[RedEarth]

5. OMG.......where's Scott?????

I haven't heard anything about Scott for hours....all that's on the news is Michael, Michael......I want to know about Scott Peterson, damit!!!!!

Falling dollar....what's that?

[chicagojoe]

2. Because he's a Fucking Moron!!!!!!

[Toots]

3. Instead of the twenties style "run on the bank"

This might be more akin to the stock market. A stock starts to take some hits and pretty soon it becomes panic selling. When the dollar gets down to being worth thirty cents would be the time to buy. A Democrat will probably be in office by then

[info being]

7. I've been saying this for months...you guys are wrong on that

Stock prices will go up on a weak dollar. There will be no "real" gains, just inflated prices. To an investor in Europe, for example, investing in US stocks in Euros, the price might decline...but it dollars it will rise...just to adjust.

Same thing we real estate. Prices INFLATE with a weak currency. Mark my words.

[fertilizeonarbusto]

24. Which means our paychecks are toilet paper n/t

[info being]

25. Exactly.

[LynnTheDem]

6. "There are no Americans in Baghdad. None. We have them on the run."

"We're just in a general dollar downtrend right now"

[Sinistrous]

9. I loved that "downtrend" line.

Are we supposed to believe that the recent actions of the major holders of US debt have nothing to do with it?

[LynnTheDem]

10. Very useful...

American Homeless Rising

"We're just in a general home downtrend right now"

Troop Deaths in Iraq Keep Increasing

"We're just in a general body downtrend right now"

[PROGRESSIVE1]

14. "Morgan-Stanley" or "moneyWhoregan-Stealy"?

They are just trying to deflect attention from their "man" :eyes: Bush.

:eyes:

[Rainscents]

8. Bubble is getting ready to BURST!

[info being]

11. Only this time the bubble is the US economic system...

which, of course, is about as sustainable over the long term as the USSR was.

Buy gold or GLD or Euros if you have any substantial wealth.

[pacifictiger]

16. remember that

when the US economy crashed, it took the world with it
... a la 1930's style.

[info being]

21. But I mean unsustainable in a "life-sustaining" sense

So this time around, a US economic collapse might actually save the world.

[katinmn]

12. In some twisted way this must help Wall Street.

[Tempest]

13. Here comes higher interest rate hikes

The price of U.S. Treasuries have fallen steeply this week, pushing the yield on the 10-year note up to 4.57 percent (US10YT=RR: Quote, Profile, Research), its highest level since July last year.


Greenspan is going to have no choice but to increase the frequency and size of future interest rates.

[Robert Oak]

15. Economic collapse, just in time, Senate is voting on bankruptcy bill n/t

[NewJeffCT]

17. stop saying $2 trillion for Social Security

$2 trillion is only the initial borrowing amount - transitional costs. The actual amount is closer to $15 trillion according to Paul Krugman.

[gratuitous]

18. It's just a dollar downtrend

Nothing to get too excited about. Of course, if there's a general dollar downtrend in 20 or 30 years from now, when the amount of your private social security account payout is being determined, well, that will be just too bad, won't it? You won't mind getting paid in 2005 value dollars to buy goods priced in 2035, will you? That's why we all gave Bush a man date, you know!

[XemaSab]

19. Ve haff a girlie currency!!!

n/t

[Barkley]

22. "tumbling bond prices" should boost the dollar

Since bond prices and interest rates are inversely related interest rates should rise when bond prices tumble.

Higher rates should attract people into purchasing dollar denominated assets, which boost the demand for, and hence the value of, the dollar.

[shantipriya]

23. Slumping Dollar

The dollar is falling and our congress has time to discuss the 'steroid 'scandal in baseball!!!
What a shining example of democracy at work!