THE US DOLLAR - Strong Again? When, How, Why
- Thread starter Dudester
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Smartypants
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DA said:
It's not your opinion when you parrot just what insiders of the system wants you to believe. Your opinions are not based on facts, just delusional hope...
DA said:
Helicopter Ben that has promised to drop dollars from helicopters to get the economy going, hahahahahahaha
DA said:
Just another corrupt banker....
From Wikipedia:
http://en.wikipedia.org/wiki/Jean-Claude_Trichet
DA said:
He's a funny stuttering banker guy. He sure helped his friends at JPM with the Bear deal. Taking money from the american taxpayers and give to his friends at JPM, hahahahahaha Smart guy, helps friends and family.
DA said:
Just a socialist banker from the great place to hide money in banks Luxembourg, hehe
http://en.wikipedia.org/wiki/Jean-Claude_Juncker
DA said:
No need to argue, just look at the facts, numbers....
http://folk.uio.no/fredrin/super_bubbleb.GIF
http://folk.uio.no/fredrin/non_borrowed_reserves_April9.jpg
A reset of the banking system is about to happen. Think windows-blue-screen-of-death, hihihi
-s-
Smartypants
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"soulskier" said:
Linux will flurries in a global depression....
Hahaha, you are a funny guy smartypants and maybe you are right, but like you said if there is hope even if it is delusional I am willing to bet you a couple of cold beers that good old US of A will recover maybe not completely and maybe not soon but later for sure. Worst case scenario I will move to Norway and live of the government there, pretty nice I hear, Hahahahaha
Another great forum. Thanks to all you well informed folks out there - you really shed some light in an area I am foolishly uninformed. I have a question for someone though- it's about renting a temporary apt. here in BsAs. The rent is 650./mo. for a 1-br in Almagro and the way I calculate my payment in pesos is on google - I simply put in the dollar amt. and ask the arg. peso equivalent. The duena told me I needed to use a bank site to get the selling rate - what google gave me was 3.18 and what she came up with was 3.20 - not a huge difference (12 pesos in the end) but my question is this - is the renter expected to pay at the selling rate of dollars when paying in pesos? And if so, why? I know the answer is staring me in the face, but I can't get my head around it - thanks for any help on this topic.
There is no hard and fast rule regarding payments. Normally owners prefer payments in dollars or you can discuss what the exchange rate should be. Are you sure you want to live in that neighborhood? $650 is not cheep for that part of town.
http://online.wsj.com/article/SB121116548840902833.html
Soulskier, Monday was an interesting expedition in downtown. Lots of people buying $$ and making sure their $$ accounts are safe (can you say- withdrawing?)
People can say whatever they want about the $$ but the article about (see link) says a lot.
Good luck.
Soulskier, Monday was an interesting expedition in downtown. Lots of people buying $$ and making sure their $$ accounts are safe (can you say- withdrawing?)
People can say whatever they want about the $$ but the article about (see link) says a lot.
Good luck.
Soulskier, I am more than happy to...here it is.
Here is the body of the report...
Barely six years after Argentina committed the biggest sovereign-debt default in history and devalued its currency, locals and Wall Street investors are asking an unsettling question: Is it about to happen again?
The short answer appears to be: It doesn't have to happen, but it might. With nearly $50 billion of foreign reserves and one of Latin America's fastest growth rates, Argentina has an array of options to keep its currency stable and meet financing needs in the coming years.
Nonetheless, troubling signs of financial panic have appeared. Middle-class Argentines are rushing to cash out savings accounts to buy dollars, a sign they think the government is in big trouble and the currency will plunge. Wary that the rush for dollars would become a full-scale run on the banks, the central bank spent nearly $1 billion to defend the peso in the past two weeks.
The X-factor is Argentina's first family: President Cristina Fernández de Kirchner and her husband, Néstor Kirchner, the irascible former president who many believe still calls the shots. With the government's popularity in decline amid a 23% inflation rate and a failure to end a farmers strike, concerns are mounting over the long-term sustainability of the Kirchners' populist policies.
The government is playing down the risks. "The objective probability of a crisis similar to those of the past is, in the Argentina of today, virtually nil," Central Bank President Martin Redrado wrote in Sunday's La Nacion newspaper. A government spokesman declined to comment further.
Since taking power, the Kirchners have fixed supermarket and utility prices in a failed bid to stem inflation, while relying on a weak currency to spur growth. After antagonizing foreign lenders, the government relies heavily on credit from Venezuelan President Hugo Chávez to fund its spending gap.
Most recently, the government is embroiled in a nasty standoff with striking farmers who are angry about a plan to boost taxes on their exports.
The question is whether Mr. Kirchner, who remains popular here for thumbing his nose at the International Monetary Fund and stiffing foreign bondholders after the last default, will back policy compromises needed to resolve the farm strike, damp down inflation, shore up the budget and bolster confidence.
"[Mr. Kirchner] is trapped in this macho political model, where any step back is seen as a sign of weakness," said economist Martin Krause of the CIIMA think tank in Buenos Aires.
Complicating matters, the government must also contend with the still-painful memories of the 2001 financial crisis, when a desperate government froze deposits, wiping out the savings of many middle-class Argentines. As a result, Argentines today are conditioned to withdraw their money at the first sign of danger.
"There is no confidence in the Argentine financial system, period," said Ernesto Bodenheimer, 59 years old, an activist who led an organization of bank-account holders seeking access to savings frozen during the last crisis. "The slightest noise and you get your money out."
And lately, noise is everywhere. After the resignation of the economy minister last month, a sense of déjà vu took hold in Buenos Aires. The normal chitchat about soccer at weekend grill-outs suddenly became debates over whether another deposit freeze was imminent.
A decision by farmers in Argentina -- the world's second-biggest source of corn and fourth-biggest source of soy -- to deprive the government of tax revenue by refusing to export their products added to the tension. Even a May 7 volcano eruption in neighboring Chile was seen as a bad omen, since its ash cloud delayed flights carrying cargoes of dollar bills to Buenos Aires exchanges seeking to meet the spike in demand for hard currency.
There are other obstacles to restoring confidence. Many economists believe Argentina's published inflation and other data are inaccurate. And given the government's track record, some observers believe the government may weaken the currency again in order to boost growth and stem a slide in popularity -- a plan that would risk spurring even faster inflation.
"We suspect that the authorities are under some pressure to engineer a devaluation of the peso in an attempt to protect local industries from import competition," Morgan Stanley economist Daniel Volberg said in a research note. "This would of course be a high risk move."
While locals buy dollars, Wall Street investors who own Argentine debt are trying to calculate what will happen next. Though Argentina's debt load is rising, the country should be able to make payments at least through 2010, analysts say. However, the government may have to borrow from central-bank reserves and workers' retirement savings to do so. What is impossible to know is whether the government is willing to take these steps.
Here is the body of the report...
Barely six years after Argentina committed the biggest sovereign-debt default in history and devalued its currency, locals and Wall Street investors are asking an unsettling question: Is it about to happen again?
The short answer appears to be: It doesn't have to happen, but it might. With nearly $50 billion of foreign reserves and one of Latin America's fastest growth rates, Argentina has an array of options to keep its currency stable and meet financing needs in the coming years.
Nonetheless, troubling signs of financial panic have appeared. Middle-class Argentines are rushing to cash out savings accounts to buy dollars, a sign they think the government is in big trouble and the currency will plunge. Wary that the rush for dollars would become a full-scale run on the banks, the central bank spent nearly $1 billion to defend the peso in the past two weeks.
The X-factor is Argentina's first family: President Cristina Fernández de Kirchner and her husband, Néstor Kirchner, the irascible former president who many believe still calls the shots. With the government's popularity in decline amid a 23% inflation rate and a failure to end a farmers strike, concerns are mounting over the long-term sustainability of the Kirchners' populist policies.
The government is playing down the risks. "The objective probability of a crisis similar to those of the past is, in the Argentina of today, virtually nil," Central Bank President Martin Redrado wrote in Sunday's La Nacion newspaper. A government spokesman declined to comment further.
Since taking power, the Kirchners have fixed supermarket and utility prices in a failed bid to stem inflation, while relying on a weak currency to spur growth. After antagonizing foreign lenders, the government relies heavily on credit from Venezuelan President Hugo Chávez to fund its spending gap.
Most recently, the government is embroiled in a nasty standoff with striking farmers who are angry about a plan to boost taxes on their exports.
The question is whether Mr. Kirchner, who remains popular here for thumbing his nose at the International Monetary Fund and stiffing foreign bondholders after the last default, will back policy compromises needed to resolve the farm strike, damp down inflation, shore up the budget and bolster confidence.
"[Mr. Kirchner] is trapped in this macho political model, where any step back is seen as a sign of weakness," said economist Martin Krause of the CIIMA think tank in Buenos Aires.
Complicating matters, the government must also contend with the still-painful memories of the 2001 financial crisis, when a desperate government froze deposits, wiping out the savings of many middle-class Argentines. As a result, Argentines today are conditioned to withdraw their money at the first sign of danger.
"There is no confidence in the Argentine financial system, period," said Ernesto Bodenheimer, 59 years old, an activist who led an organization of bank-account holders seeking access to savings frozen during the last crisis. "The slightest noise and you get your money out."
And lately, noise is everywhere. After the resignation of the economy minister last month, a sense of déjà vu took hold in Buenos Aires. The normal chitchat about soccer at weekend grill-outs suddenly became debates over whether another deposit freeze was imminent.
A decision by farmers in Argentina -- the world's second-biggest source of corn and fourth-biggest source of soy -- to deprive the government of tax revenue by refusing to export their products added to the tension. Even a May 7 volcano eruption in neighboring Chile was seen as a bad omen, since its ash cloud delayed flights carrying cargoes of dollar bills to Buenos Aires exchanges seeking to meet the spike in demand for hard currency.
There are other obstacles to restoring confidence. Many economists believe Argentina's published inflation and other data are inaccurate. And given the government's track record, some observers believe the government may weaken the currency again in order to boost growth and stem a slide in popularity -- a plan that would risk spurring even faster inflation.
"We suspect that the authorities are under some pressure to engineer a devaluation of the peso in an attempt to protect local industries from import competition," Morgan Stanley economist Daniel Volberg said in a research note. "This would of course be a high risk move."
While locals buy dollars, Wall Street investors who own Argentine debt are trying to calculate what will happen next. Though Argentina's debt load is rising, the country should be able to make payments at least through 2010, analysts say. However, the government may have to borrow from central-bank reserves and workers' retirement savings to do so. What is impossible to know is whether the government is willing to take these steps.
