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The two countries used to use the US Dollar for trade between themselves, so you think its just a coincidence that this deal was made, shortly after the announcement of QE2, and the uproar that brought from the world?
Chinese Yuan
Russian Ruble
Euro
Seems the US Dollar is having problem with the Euro and Yuan.
At the height of the financial crises in October 2008 EUR/USD traded about 1,60 as of today the EUR/USD around 1.3350. When QE2 was announced last week the EUR/USD the dollar was round 1.37 EUR/USD.
What is driving the U.S. Dollar trade now is concern over the Irish fiscal situation and the recent attacks by North Korean on South Korean. This whole China-Russia no longer using U.S. Dollars has drawn a collective yawn in the currency markets.
So all this talk about the dollar collapsing is been totally overblown by people who clearly don't know what they are talking about. When the EUR/USD gets above 1.60 we've got a problem. We've got now is people who don't know a lot about currency markets getting scared based on media hype and conjecture.
At the height of the financial crises in October 2008 EUR/USD traded about 1,60 as of today the EUR/USD around 1.3350. When QE2 was announced last week the EUR/USD the dollar was round 1.37 EUR/USD.
What is driving the U.S. Dollar trade now is concern over the Irish fiscal situation and the recent attacks by North Korean on South Korean. This whole China-Russia no longer using U.S. Dollars has drawn a collective yawn in the currency markets.
So all this talk about the dollar collapsing is been totally overblown by people who clearly don't know what they are talking about. When the EUR/USD gets above 1.60 we've got a problem. We've got now is people who don't know a lot about currency markets getting scared based on media hype and conjecture.
Was I talking about the collapse of the dollar? A $13 trillion dollar debt and our high unemployment is not something I have made up or overblown. The US debt and runaway spending have made a lot of people nervous and more then a few times I have heard talk of losing the dollar as the world's currency.
At the height of the financial crises in October 2008 EUR/USD traded about 1,60 as of today the EUR/USD around 1.3350. When QE2 was announced last week the EUR/USD the dollar was round 1.37 EUR/USD.
What is driving the U.S. Dollar trade now is concern over the Irish fiscal situation and the recent attacks by North Korean on South Korean. This whole China-Russia no longer using U.S. Dollars has drawn a collective yawn in the currency markets.
So all this talk about the dollar collapsing is been totally overblown by people who clearly don't know what they are talking about. When the EUR/USD gets above 1.60 we've got a problem. We've got now is people who don't know a lot about currency markets getting scared based on media hype and conjecture.
You have no idea what you are talking. We have a dollar crisis. Just because the whole world is printing money, it doesn't meant we don't have a problem. If price of good is determine by the foreign exchange rate, then we don't have a problem. The one who printed or debasing the currency the most will be the big winner. But unfortunately, the world doesn't work that way, at least the producers wouldn't accept it.
If the there is $100 circulating in the world for all goods, then 1% of the goods will cost $1. When the money supply double to $200, then the cost for 1% of the goods will be double to $2 as well.
I assume some of you see this as some big problem. Russia and China have been experimenting with this for a decade, with some success, and has nothing to do with QE2. It intended for their commodities exchanging, like Oil thru the pipeline and all, kind of makes sense. Although there may be some global efforts toward getting away from the dollar, not very likely to happen anytime soon. How much longer the dollar remains the dominant trade currency, it pretty much up to us.
You have no idea what you are talking. We have a dollar crisis. Just because the whole world is printing money, it doesn't meant we don't have a problem. If price of good is determine by the foreign exchange rate, then we don't have a problem.
Thank you game over!
Look where our goods and services are coming from China, Viet Nam, Indonesia, India, Brazil, Canada, Saudi Arabia, Mexico etc. etc. etc.
We pay for those goods and service based on the foreign exchange rate. We export goods and services based on the foreign exchange rate.
People are scaring themselves worrying about these deficits. Yes they are a concerned by given the economic state we are in despite the whatever theories abound on the Conservative side of the argument the government NEEDS to spend money resuscitate economy. During the Great Depression, World War II and the first term of the Reagan Administration the United States has run historically high deficits. The time to address the deficit issue is AFTER an economic recovery is firmly in place.
Also it's much easier to control the money supply with quantitative easing than with virtually any other method.
Is this a result of the world starting to lose faith in the almighty US Dollar, because of our out of control deficit spending and continued monetizing the US debt?
Also it's much easier to control the money supply with quantitative easing than with virtually any other method.
This is one of the reason why you have no idea what you talking about. Look your statement. Quantitative easing is just a fancy name of printing money. What do you think it is? Some magical formula?
To do that, then they could manipulate anything they wish.
Gold would not be the real money, printed paper would be the media to tax when needed.
Just print more when needed.
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