This should kick the dollar up a bit next week

[Arraya]

Xboxboy does make good points

IMO, We are deflating now, just like during the 30s. I think this is observable if you tally up inflationary forces verse deflationary forces it makes a net contraction. The Fed, at this point, can only print money to inflate because normal channels are clogged up. Banks balance sheets will be impaired for years to come and the economy is not producing any new consumers which can take out debt to inflate. Deflation abounds.

I actually agree with Denninger on the degree.

I am quickly running out of possible scenarios to prevent a severe deflationary depression from taking place. By “severe” I mean 20%+ U3 unemployment, GDP contraction of at least 25%, and a possible loss of federal funding capacity leading to the immediate destruction of Medicare, Medicaid and Social Security, a 50% reduction of defense spending and near-complete-elimination of all other Federal Programs due to a “sudden stop” in the ability to fund Treasury issuance. Yes, it could get that bad, and it could happen a lot faster than you think.

Normally, this would be bullish for the USD. Though, if you follow the effects of that kind of deflation out to the national and international level i.e paying back national debts, perception of the dollar, printing to make up shortfalls, etc… What happens?

Then again, I don’t look at things from an investment standpoint anymore. More of a social cohesion and international conflict standpoint. If my precious metals or dollars dramatically reduce in value, I’m emotionally prepared

It’s the age of uncertainty, that’s for sure…

[bsrsharma]

Dollar Reaches Breaking Point as Banks Shift Reserves

Oct. 12 (Bloomberg) — Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades.

Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.

http://bloomberg.com/apps/news?pid=20601087&sid=aA6_py_71g_o

[bsrsharma]

Dollar Reaches Breaking Point as Banks Shift Reserves

Oct. 12 (Bloomberg) — Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades.

Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.

http://bloomberg.com/apps/news?pid=20601087&sid=aA6_py_71g_o

[bsrsharma]

Dollar Reaches Breaking Point as Banks Shift Reserves

Oct. 12 (Bloomberg) — Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades.

Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.

http://bloomberg.com/apps/news?pid=20601087&sid=aA6_py_71g_o

[bsrsharma]

Dollar Reaches Breaking Point as Banks Shift Reserves

Oct. 12 (Bloomberg) — Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades.

Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.

http://bloomberg.com/apps/news?pid=20601087&sid=aA6_py_71g_o

[bsrsharma]

Dollar Reaches Breaking Point as Banks Shift Reserves

Oct. 12 (Bloomberg) — Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades.

Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.

http://bloomberg.com/apps/news?pid=20601087&sid=aA6_py_71g_o

[bsrsharma]

Dollar facing ‘power-shift’: analysts

The dollar’s position as the world’s leading reserve currency faces increased pressure as the financial crisis allows emerging economies greater influence on the world stage, analysts said.

http://www.breitbart.com/article.php?id=CNG.ee8e6856c300b312ea0f64a4522381ca.481&show_article=1

[bsrsharma]

Dollar facing ‘power-shift’: analysts

The dollar’s position as the world’s leading reserve currency faces increased pressure as the financial crisis allows emerging economies greater influence on the world stage, analysts said.

http://www.breitbart.com/article.php?id=CNG.ee8e6856c300b312ea0f64a4522381ca.481&show_article=1

[bsrsharma]

Dollar facing ‘power-shift’: analysts

The dollar’s position as the world’s leading reserve currency faces increased pressure as the financial crisis allows emerging economies greater influence on the world stage, analysts said.

http://www.breitbart.com/article.php?id=CNG.ee8e6856c300b312ea0f64a4522381ca.481&show_article=1

[bsrsharma]

Dollar facing ‘power-shift’: analysts

The dollar’s position as the world’s leading reserve currency faces increased pressure as the financial crisis allows emerging economies greater influence on the world stage, analysts said.

http://www.breitbart.com/article.php?id=CNG.ee8e6856c300b312ea0f64a4522381ca.481&show_article=1

[bsrsharma]

Dollar facing ‘power-shift’: analysts

The dollar’s position as the world’s leading reserve currency faces increased pressure as the financial crisis allows emerging economies greater influence on the world stage, analysts said.

http://www.breitbart.com/article.php?id=CNG.ee8e6856c300b312ea0f64a4522381ca.481&show_article=1

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