How much more beating can the USD take?

[ghemminger]

Forex - Dollar hits fresh daily lows after consumer confidence ...
[SIZE=-1]CNNMoney.com - 2 hours ago[/SIZE]
[SIZE=-1]LONDON, Mar. 25, 2008 (Thomson Financial delivered by Newstex) -- The dollar touched new daily lows against other major currencies after a key consumer confidence indicator in the US fell sharply.[/SIZE]
[SIZE=-1]Consumer confidence continues decline in March [SIZE=-1]Bizjournals.com[/SIZE][/SIZE]
[SIZE=-1]March consumer confidence down, outlook grim [SIZE=-1]MarketWatch[/SIZE][/SIZE]
[SIZE=-1]Reuters - Forbes - The Associated Press - BBC News[/SIZE]
[SIZE=-1]all 419 news articles »[/SIZE]

 

[menoname]

I thought everthing was OK now with the dollar. CNN was preaching the other day about the recession being over, even though they never said they were in one. I don't think the news channels know WTF is going on.

 

[Dr.3D]

It's good to see you are posting sources George.

 

[acptulsa]

It can take as much beating as they deem necessary. Compared to when it was invented, it is worth a fraction of a penny. Nonetheless, it has a long way to go to match where the franc, the peso, the wartime mark or the lira has been.

I used to take my money to the market in my pocket and bring the groceries home in a basket. Now I carry my money in a basket, and bring my groceries home in my pocket. Wish I could attribute it--who said that? Anyone?

 

[PatriotG]

It can take as much beating as they deem necessary. Compared to when it was invented, it is worth a fraction of a penny. Nonetheless, it has a long way to go to match where the franc, the peso, the wartime mark or the lira has been.

I used to take my money to the market in my pocket and bring the groceries home in a basket. Now I carry my money in a basket, and bring my groceries home in my pocket. Wish I could attribute it--who said that? Anyone?

I dont know but I love it....

 

[Banana]

+2.

I'll remember to tell that to my friends when we talk about inflation...

 

[acptulsa]

As I recall, the quote dates to the Civil War, and was used to describe CSA money. I'll see if I can find the name.

 

[acptulsa]

I used to take my money to the market in my pocket and bring the groceries home in a basket. Now I carry my money in a basket, and bring my groceries home in my pocket. Wish I could attribute it--who said that? Anyone?

It should have occurred to me that this quote was all but forgotten. Back in pre-neocon days they used to put it in history textbooks. I hope I can find the proper attribution. After New Mexico and South Dakota, I think I'll use it as my sig.

 

[Matthew P.]

I thought everthing was OK now with the dollar. CNN was preaching the other day about the recession being over, even though they never said they were in one. I don't think the news channels know WTF is going on.

An extended decline in general business activity, typically two consecutive quarters of falling real gross national product.

recession. Dictionary.com. The American Heritage® Dictionary of the English Language, Fourth Edition. Houghton Mifflin Company, 2004. http://dictionary.reference.com/browse/recession (accessed: March 26, 2008).

This is how you define a recession, for the economy anyway. There really is no need for speculation - it is a matter of time. What will the quarterly reports state? Two consecutive reports in the red and it's a recession!

 

[buffalokid777]

As long as the Fed keeps increasing money supply.....we can see the dollar go all the way to ZERO......

If they ever cut the money supply.....you'll see a real rebound, one based on fundamentals........instead of a rebound based on smoke and mirrors....

But right now it looks like they don't want to cut the money supply at the Fed.....the Fed appears at this time to be willing to accept pumping as much money is needed into the system to avoid deflation.....but it will come at the cost of inflation........and possibly hyperinflation depending on how much more the Fed inflates the money supply to avoid deflation......

Bernake's theories of the depression are FLAWED........

He feels the Fed didn't pump enough cash into the system....which caused a deflationary depression.......

His solution is to avoid that mistake by pumping more money into the system.....

His solution is exactly what happened in Weimar republic Germany......HYPERINFLATION.........except he is doing it for a different reason.....

Weimar republic Germany debased their currency to get away with paying less for their war reparations......

Bernake is doing it to avoid deflation of assets in the Federal Reserve banking system so they don't go negative on the balance sheet.......He is transferring the cost of the bad loans the federal reserve system made onto the public through inflation.....

He is betting that he can raise interest rates in time to save the solvency of the Federal Reserve banks on the backs of the public through inflation.......But the banks are over leveraged....just like much of the public.....

He is increasing the money supply at a rate we have NEVER seen before in the history of America.....

It doesn't look good......And i will be SHOCKED....if his FLAWED THEORIES ACTUALLY WORK........