How likely is Collapse of US $

[CA renter]

PS,

I think we are in for a world of hurt in the next few years, and we will not likely see the U.S. as the premier nation after all is said and done.

OTOH, I’ve long thought that letting the USD slide has been the plan all along — so that we can compete with third-world labor markets. It’s our only way out, though it will be very, very painful.

At some point, we have to start actually making things instead of being the middleman in the world’s financial transactions.

It has been, and will be, very interesting to watch how all this plays out.

I wish everyone the very best and hope we can all manage to get through it all safely. The sooner we get this over with, the better.

[CA renter]

PS,

I think we are in for a world of hurt in the next few years, and we will not likely see the U.S. as the premier nation after all is said and done.

OTOH, I’ve long thought that letting the USD slide has been the plan all along — so that we can compete with third-world labor markets. It’s our only way out, though it will be very, very painful.

At some point, we have to start actually making things instead of being the middleman in the world’s financial transactions.

It has been, and will be, very interesting to watch how all this plays out.

I wish everyone the very best and hope we can all manage to get through it all safely. The sooner we get this over with, the better.

[TheBreeze]

I think this guy’s a little late to the party. The DOW has already lost almost 2,000 points in a little over a month. If he had said this a month ago, I would consider him a genious.

That said, I wouldn’t be surprised to learn that 6,000 U.S. banks are technically insolvent right now. If all banks marked everything on their books to market tomorrow, 6,000 insolvent banks may look like a drop in the bucket.

In any event, I hope the Fed gets out of the way and lets whatever is going to happen happen. I’d like to see a nice whoosh down that wipes out some major players. We have too much ‘capacity’ in the ‘financial industry’ and that needs to go away. The sooner it happens, the better in my opinion.

Oh, and there was some dude on here a while back predicting DOW 8,000 and I mocked him. At this rate, we’ll be there pretty soon. 🙂

[TheBreeze]

I think this guy’s a little late to the party. The DOW has already lost almost 2,000 points in a little over a month. If he had said this a month ago, I would consider him a genious.

That said, I wouldn’t be surprised to learn that 6,000 U.S. banks are technically insolvent right now. If all banks marked everything on their books to market tomorrow, 6,000 insolvent banks may look like a drop in the bucket.

In any event, I hope the Fed gets out of the way and lets whatever is going to happen happen. I’d like to see a nice whoosh down that wipes out some major players. We have too much ‘capacity’ in the ‘financial industry’ and that needs to go away. The sooner it happens, the better in my opinion.

Oh, and there was some dude on here a while back predicting DOW 8,000 and I mocked him. At this rate, we’ll be there pretty soon. 🙂

[TheBreeze]

I think this guy’s a little late to the party. The DOW has already lost almost 2,000 points in a little over a month. If he had said this a month ago, I would consider him a genious.

That said, I wouldn’t be surprised to learn that 6,000 U.S. banks are technically insolvent right now. If all banks marked everything on their books to market tomorrow, 6,000 insolvent banks may look like a drop in the bucket.

In any event, I hope the Fed gets out of the way and lets whatever is going to happen happen. I’d like to see a nice whoosh down that wipes out some major players. We have too much ‘capacity’ in the ‘financial industry’ and that needs to go away. The sooner it happens, the better in my opinion.

Oh, and there was some dude on here a while back predicting DOW 8,000 and I mocked him. At this rate, we’ll be there pretty soon. 🙂

[TheBreeze]

I think this guy’s a little late to the party. The DOW has already lost almost 2,000 points in a little over a month. If he had said this a month ago, I would consider him a genious.

That said, I wouldn’t be surprised to learn that 6,000 U.S. banks are technically insolvent right now. If all banks marked everything on their books to market tomorrow, 6,000 insolvent banks may look like a drop in the bucket.

In any event, I hope the Fed gets out of the way and lets whatever is going to happen happen. I’d like to see a nice whoosh down that wipes out some major players. We have too much ‘capacity’ in the ‘financial industry’ and that needs to go away. The sooner it happens, the better in my opinion.

Oh, and there was some dude on here a while back predicting DOW 8,000 and I mocked him. At this rate, we’ll be there pretty soon. 🙂

[TheBreeze]

I think this guy’s a little late to the party. The DOW has already lost almost 2,000 points in a little over a month. If he had said this a month ago, I would consider him a genious.

That said, I wouldn’t be surprised to learn that 6,000 U.S. banks are technically insolvent right now. If all banks marked everything on their books to market tomorrow, 6,000 insolvent banks may look like a drop in the bucket.

In any event, I hope the Fed gets out of the way and lets whatever is going to happen happen. I’d like to see a nice whoosh down that wipes out some major players. We have too much ‘capacity’ in the ‘financial industry’ and that needs to go away. The sooner it happens, the better in my opinion.

Oh, and there was some dude on here a while back predicting DOW 8,000 and I mocked him. At this rate, we’ll be there pretty soon. 🙂

[bsrsharma]

Could Count Maurice Lippens be right? This is by Lawrence Summers:

What we can do in this dangerous moment

It is quite possible that we are now at the most dangerous moment since the American financial crisis began last August. Staggering increases in the prices of oil and other commodities have brought American consumer confidence to new lows and raised serious concerns about inflation, thereby limiting the capacity of monetary policy to respond to a financial sector which – judging by equity values – is at its weakest point since the crisis began. With housing values still falling and growing evidence that problems are spreading to the construction and consumer credit sectors, there is a possibility that a faltering economy damages the financial system, which weakens the economy further….

http://www.ft.com/cms/s/0/916e6012-45fa-11dd-9009-0000779fd2ac.html?nclick_check=1

[bsrsharma]

Could Count Maurice Lippens be right? This is by Lawrence Summers:

What we can do in this dangerous moment

It is quite possible that we are now at the most dangerous moment since the American financial crisis began last August. Staggering increases in the prices of oil and other commodities have brought American consumer confidence to new lows and raised serious concerns about inflation, thereby limiting the capacity of monetary policy to respond to a financial sector which – judging by equity values – is at its weakest point since the crisis began. With housing values still falling and growing evidence that problems are spreading to the construction and consumer credit sectors, there is a possibility that a faltering economy damages the financial system, which weakens the economy further….

http://www.ft.com/cms/s/0/916e6012-45fa-11dd-9009-0000779fd2ac.html?nclick_check=1

[bsrsharma]

Could Count Maurice Lippens be right? This is by Lawrence Summers:

What we can do in this dangerous moment

It is quite possible that we are now at the most dangerous moment since the American financial crisis began last August. Staggering increases in the prices of oil and other commodities have brought American consumer confidence to new lows and raised serious concerns about inflation, thereby limiting the capacity of monetary policy to respond to a financial sector which – judging by equity values – is at its weakest point since the crisis began. With housing values still falling and growing evidence that problems are spreading to the construction and consumer credit sectors, there is a possibility that a faltering economy damages the financial system, which weakens the economy further….

http://www.ft.com/cms/s/0/916e6012-45fa-11dd-9009-0000779fd2ac.html?nclick_check=1

[bsrsharma]

Could Count Maurice Lippens be right? This is by Lawrence Summers:

What we can do in this dangerous moment

It is quite possible that we are now at the most dangerous moment since the American financial crisis began last August. Staggering increases in the prices of oil and other commodities have brought American consumer confidence to new lows and raised serious concerns about inflation, thereby limiting the capacity of monetary policy to respond to a financial sector which – judging by equity values – is at its weakest point since the crisis began. With housing values still falling and growing evidence that problems are spreading to the construction and consumer credit sectors, there is a possibility that a faltering economy damages the financial system, which weakens the economy further….

http://www.ft.com/cms/s/0/916e6012-45fa-11dd-9009-0000779fd2ac.html?nclick_check=1

[bsrsharma]

Could Count Maurice Lippens be right? This is by Lawrence Summers:

What we can do in this dangerous moment

It is quite possible that we are now at the most dangerous moment since the American financial crisis began last August. Staggering increases in the prices of oil and other commodities have brought American consumer confidence to new lows and raised serious concerns about inflation, thereby limiting the capacity of monetary policy to respond to a financial sector which – judging by equity values – is at its weakest point since the crisis began. With housing values still falling and growing evidence that problems are spreading to the construction and consumer credit sectors, there is a possibility that a faltering economy damages the financial system, which weakens the economy further….

http://www.ft.com/cms/s/0/916e6012-45fa-11dd-9009-0000779fd2ac.html?nclick_check=1

[34f3f3f]

The last few months the dollar has gained a little over some currencies and been relatively stable. Keeping the dollar weak is helping a little, but it probably is not a long term option. One theory is that the so-called ‘petrodollar’ has created an ‘oil standard’, creating a link between oil prices and the dollar value. As relevant is that US manufacturing has declined, and is being replaced by financial services, a volatile industry that can cause problems for economies, as we are now seeing. I would hope that once the housing woes have blown over, and the economy has a chance to recover, problems like a weak dollar and deficits can be tackled. I don’t think the dollar will collapse unless China and Japan divest themselves of US treasury debt, which judging by the amount, is probably not going to be doing anyone any favors. But then who knows? The problem is what would you replace the dollar with? Perhaps the answer lies in the future and the export of state capitalism from the Far East.

Foreign owned companies is nothing new really. A weak dollar has seen a feeding frenzy, and access is easier in the US than some other countries, but some would argue the US has been equally aquisative in the past. Problems exist where foreign management engage in cost cutting exercises.

[34f3f3f]

The last few months the dollar has gained a little over some currencies and been relatively stable. Keeping the dollar weak is helping a little, but it probably is not a long term option. One theory is that the so-called ‘petrodollar’ has created an ‘oil standard’, creating a link between oil prices and the dollar value. As relevant is that US manufacturing has declined, and is being replaced by financial services, a volatile industry that can cause problems for economies, as we are now seeing. I would hope that once the housing woes have blown over, and the economy has a chance to recover, problems like a weak dollar and deficits can be tackled. I don’t think the dollar will collapse unless China and Japan divest themselves of US treasury debt, which judging by the amount, is probably not going to be doing anyone any favors. But then who knows? The problem is what would you replace the dollar with? Perhaps the answer lies in the future and the export of state capitalism from the Far East.

Foreign owned companies is nothing new really. A weak dollar has seen a feeding frenzy, and access is easier in the US than some other countries, but some would argue the US has been equally aquisative in the past. Problems exist where foreign management engage in cost cutting exercises.

[34f3f3f]

The last few months the dollar has gained a little over some currencies and been relatively stable. Keeping the dollar weak is helping a little, but it probably is not a long term option. One theory is that the so-called ‘petrodollar’ has created an ‘oil standard’, creating a link between oil prices and the dollar value. As relevant is that US manufacturing has declined, and is being replaced by financial services, a volatile industry that can cause problems for economies, as we are now seeing. I would hope that once the housing woes have blown over, and the economy has a chance to recover, problems like a weak dollar and deficits can be tackled. I don’t think the dollar will collapse unless China and Japan divest themselves of US treasury debt, which judging by the amount, is probably not going to be doing anyone any favors. But then who knows? The problem is what would you replace the dollar with? Perhaps the answer lies in the future and the export of state capitalism from the Far East.

Foreign owned companies is nothing new really. A weak dollar has seen a feeding frenzy, and access is easier in the US than some other countries, but some would argue the US has been equally aquisative in the past. Problems exist where foreign management engage in cost cutting exercises.

[Author]

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