All Posts Tagged With: "united states dollar"
The Dollar’s Decline
Jennifer McClelland | RSS | Thu, Oct 15 2009 | 0 Comments
Over the past few weeks, the United States dollar has really taken a dive and the newest news that has been coming out definitely doesn’t help the prospects of the greenback.
The newest news is that the Canadian dollar will be equal to the value of the U.S. dollar and will actually begin to overtake it in the next few months.
The dollar fell to the lowest it has been in the past year while other currencies were increasing. The US dollar fell to 1.4962 per 1 Euro this morning in London. It was $1.4925 in New York during trading yesterday. The dollar even fell to the lowest it has traded in Swiss francs since July 2008.
“Negative dollar sentiment as a result of ongoing risk appetite is still very much in place,” said Ray Attrill, global research director at Forecast Ltd. in Sydney. “Anticipation of good results in the financial sector has been one of the factors driving U.S. stocks.”
The dollar fell against 14 of its 16 major counterparts as the Federal Reserve is expected to report U.S. industrial output rose 0.2 percent in September after gaining 0.8 percent in August, according to the median estimate of 75 economists in a Bloomberg News survey. The data is due tomorrow.
According to Daisuke Uno from Sumitomo Mitsui, from Japan’s third largest bank, “The U.S. economy will deteriorate into 2011 as the effects of excess consumption and the financial bubble linger. The dollar’s fall won’t stop until there is a change to the global currency system.”
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Tags: united states dollar, excess consumption, currency system
Who has their hand in Robert Fisk’s pocket?
Jennifer McClelland | RSS | Thu, Oct 08 2009 | 0 Comments
Earlier this week there were reports coming out that Arab oil sheiks, the Russians, and the Chinese were all conspiring to stop using the United States dollar to set the value of a barrel of oil. Of course, if this were to really happen it would really hurt the value of a dollar across the globe.
Remember last week when I talked about what happens when someone give a false story to the press? That’s what is going on this week and it’s causing a serious decline in the value of a dollar and a serious increase in the cost of gold.
Even though someone as high up as the Saudi central bank head and U.S. officials have tried to bunk the rumors, the dollar has definitely taken a hit this week.
The website drudgereport.com quickly amplified the impact of the story with a headline atop the site: ARAB STATES LAUNCH SECRET MOVES WITH CHINA, RUSSIA, FRANCE TO STOP USING DOLLAR FOR OIL TRADING …
“You read that story, and you do two things: You sell the hell out of dollars and you buy gold,” said Les Alperstein, president of the financial research firm Washington Analysis. “The story has a lot of credibility, with some caveats.”
So, the fall of the dollar could be the key as to why the price of gold is now at record highs. At $1,050 a try ounce, investors are selling the dollar and buying gold just as Les Alperstein said.
No one knows who exactly leaked the fake information to the press. Many are thinking it had something to do with gold traders. Of course, your suspicions typically turn to the source who stands to make the most from the information, however false it may be.
Prior to the recession, the value of the dollar would not be as damaged by an article such as this one. However, with how poor our economy is doing and also how watered down the value of our dollar has become, it is quite the hit to the value of the greenback.
Robert Fisk wrote the original article and he listed very vague sources in his article. No one has been able to locate the exact sources and even people and administration from the banks he claimed gave him the information in the article have said that the story is completely false.
So, who’s got their hand in Robert Fisk’s pocket?
Related posts:A Fake Press Release Boosted IMAX’s Stock Price, hmm.
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Tags: arab oil, value of a dollar, united states dollar
