The dollar fell the most since September against the currencies of its six biggest trading partners after Chinese officials signaled plans to diversify the nation’s $1.43 trillion of foreign exchange reserves.
The dollar fell against all 16 of the most-active currencies, declining to the weakest versus the Canadian dollar since the end of a fixed exchange rate in 1950, a 26-year low against the pound and a 23-year low versus the Australian dollar. The New York Board of Trade’s dollar index dropped to 75.21 today, the lowest since the gauge started in March 1973.
“Further weakening of the dollar is very likely,” said Teis Knuthsen, the Copenhagen-based head of foreign-exchange, fixed-income and derivative research at Danske Bank A/S, the Nordic region’s second-biggest lender. China may “diversify out of dollar holdings.”
The kicker quote from China:
“We will favor stronger currencies over weaker ones, and will readjust accordingly,” Cheng Siwei, vice chairman of China’s National People’s Congress, told a conference in Beijing. The dollar is “losing its status as the world currency,” Xu Jian, a central bank vice director, said at the same meeting.
found by Mark McCullough
You missed my point, Awake. Completely.
You claimed that the Saudis were somehow benefitting from the falling US Dollar – that couldn’t be further from the truth.
Eventually, China’s currency will have to be revalued upward.. that will enable them to buy more oil and anything else they need… while the US will have to pay through the nose for it.
Olympics? ha!
Cheaper dollars mean that we can pay our debt at a lower cost.
Exactly!!!! .01 on the ‘dollar’ !!!
Start up the presses!!!
“Funny that the most obvious harbinger of American economic doom was not mentioned in the article: Gisele Bundchen is bailing on the dollar. Oh NOES!!!”
Thats not the most obvious harbinger, how about the latest rap videos that flash wads of cash… and they are Euros!!
http://youtube.com/watch?v=wiuNd5SoU8E
They are not just printing money to pay for the war, the fed is also creating money to bail out banks hurt by the housing crunch.
Worth reading, unless you want to keep your head in the sand (or already have it buried somewhere else):
“The next president will have to deal with yet another crippling legacy of George W. Bush: the economy. A Nobel laureate, Joseph E. Stiglitz, sees a generation-long struggle to recoup.”
http://www.vanityfair.com/politics/features/2007/12/bush200712
I have this theory that a company succeeds or fails, mostly, by the CEO ability to manage same! this would apply to USA and Bush administration. history will not treat this Republican, administration ,
House and Senate positively. it may be viewed as the start of the decline of American importance. history repeats the past! I am not
too optimistic of Chineese leadership, as inevitable as it may be!
See what happens when you let the Dalai Lama come to visit?
While the dollar is obviously in a bad way, the economy as a whole isn’t in bad shape. An unemployment rate of 4.7% is hardly a “crippling legacy”.
39,
If only the figures were based on employable citizens, not just those looking for work. Many institutional poor dropped out of the labor force long ago, or never entered.
Our economy is in trouble, no matter how you slice it. Bush is currently in charge, no matter who came before him. What policies of his are addressing our looming financial issues?
#36 – “The next president will have to deal with yet another crippling legacy of George W. Bush: the economy. A Nobel laureate, Joseph E. Stiglitz, sees a generation-long struggle to recoup.”
And just in time… now that I’m nearing the end of my generation long struggle to keep my damn head barely above water….
42. I’m with you there, work all your friggin life, finally starting to see light at the end of the tunell , and BHAM! your kicked right back into the hole. I’m pissed.
Ummm… how exactly were you “kicked right back in the hole”, Mark?
43. I have no intention of explaining my financial situation on a blog Frank, but thanks for the concern.
43. On second thought, without revealing too much I will just give 2 reasons. real estate, and the job market. And no, I did not get caught with my pants down in the sub prime. You will have to guess the rest.
Frank,
You post some reasonable numbers and that is to your credit. So many mighty nimrod conservatives just make the crap up. The unfortunate part is your numbers are meant to paint a rosier picture than is deserved. Not your fault but I will mention them.
The “Public Debt” is the money owed by the Federal, State, and Municipal government. That is an easy number to trace. The harder number, and the true accounting, is the Total Debt. That includes all the private debt as well as public debt. The things like how much Exxon owes the Saudi Arabia Oil Company or how much Wal-Mart owes all those Chinese banks that financed all those plastic pieces of fake shit. When you start adding all that up, the total debt grows quite a bit.
NOTE. Some countries insist all foreign financial transactions he handles by their National Bank. That way the government keeps a handle on it’s money.
The unemployment rate is very phony. It uses the standard that if someone worked 12 hours in one week they are fully employed. Those who are not registered at a government run employment center are not counted. Also missed are those who have just given up and gone back to school, become a “domestic” partner, or retired early.
Nuke the zipper heads if they dump the dollar
George “Herbert Hoover” Bush Dollars becoming OFFICIALY ***WORTHLESS*** !!! Hell of a Job, Georgie !!! We will soon need WHEELBARROWS FULL OF WORTHLESS BUSH DOLLARS to buy a loaf of bread !!!
Well, since the tax rates aren’t adjusted for inflation and wages will rise with hyper inflation, the gov’t will end up getting much more of the REAL income as taxes.
I just love reading the original argument pols made to the US people as to why implementing income tax wouldn’t be felt by anyone who was not VERY wealthy. LOL! The gov’t NEEDS inflation to get income tax increases without having to vote for them…