Posts Tagged ‘dollar’

There’s a good piece on Seeking Alpha today on the prospects for global commodity appreciation if and when the Chinese Yuan starts appreciation vs. the US dollar.

At the same time, there’s also a sentiment of unease about inflation given the amount of new currency created in the wake of the financial crisis but it puzzles some that this hasn’t kicked in yet. Also from Seeking Alpha:

Logic dictates that we should all be gearing up for inflation, now, but the data does not lie and I can pull the most aggressive data I want and it shows ultra low inflation rates, which is scary, frankly. With the massive printing and monetization of debt that we have seen over the past 2 years, we should see some inflationary pressure, somewhere, but nothing.

There’s already an obvious relation between the two ideas, but we might have to rely on Kedrosky to hammer the point. In order to keep the Yuan stable, China has been buying greater and greater amounts of US Dollars over the years.


Ergo: the biggest reason why inflation hasn’t hit, is because all the new dollars are in China.

Ergo: if the Yuan appreciates, dollar drops, inflation hits, interest rates rise,

recession worsens??

Wait, I thought the Yuan thing was supposed to be a good thing?

“Sent from my BlackBerry® wireless handheld”

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Watch this video if you would want to understand how the ‘gold standard’ was replaced by the U.S. dollar. U.S. dollars are not anymore backed by gold. The U.S. can theoretically print as much dollars it wants which will of course cause inflation by lowering the value of the dollar.

This video I got from youtube is biased towards returning the gold standard. See for yourself if you agree.

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Is it really time to get out of the U.S. dollar?

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Remember the guy who was right on the housing bubble? The guy who predicted this crisis as far as two years ago. Until recently he was basically correct on just about everything except two things. He claimed gold would rise and the dollar will crash. Both had not happened until now. 

Here he is again, really excited that his last two predictions may really come true. If this guy is right, the United States economy is in deep trouble to say the very least.

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Ron Paul on the Dollar

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The financial bailout has been disapproved just recently, contrary to what the article which I have included will say. When a better one finally does get approved (assuming any bailout will be approved), it’s best to check out this article for the events which may occur.


* See financial disclaimer at the end of this article…

1. The financial bailout will be approved

Lawmakers are privately being warned that if they do not pass this bill, the entire global financial system will collapse. Publicly, they only say we “might have a recession,” but behind closed doors, they realize the whole system is at stake. That’s why a bailout bill will ultimately be approved.

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