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Oh Dear!
Thursday, September 20, 2007
The U.S. Dollar is looking rather sickly this morning as Bloomberg reports that Saudi Arabia is considering dropping its currency's link to the dollar.
It appears that the maxim "too big to fail" as it applies to the dollar is now being tested as the impact of further Fed rate cuts is pondered overseas.
It also appears that the maxim "good as gold" is as true as ever as the yellow metal looks better and better amid all the troubles with paper money.
Chart watchers must surely realize that the price of gold is once again in un-charted territory. That is, uncharted for the last 27 years.
Do you remember where the gold price went when, back in 2005, technical soothsayers had to look back more than ten years for comparable prices?
Oh Dear!
7 comments:
There's more from Ambrose Evans-Pritchard: Fears of dollar collapse as Saudis take fright
Ambrose - what a name!
well the asians will keep their currencies weak - they have to keep exporting - they haven't figured out how to grow economically without doing that.
anon 850am is an idiot and doesn't know shXX about economies in Asia.
Well we're about to find out who's right Anon 9:06am because if they don't devalue along with the dollar, their export economies are going to move to Mississippi.
We'll have to bring manufacturing home anyway with oil at $100 a barrel - transport costs will get too high to continue bringing Chinese crap here.
It's full of lead and pesticides anyway. ;^)
Except Americans can't make shit anymore, 23% functional adult illiteracy, fattest people on the planet, most superstitious people in the industrialized world, most drugged, most violent, most TV lobotomized . . . our lazy stupid asses deserver what we have coming!
Matthew,
Asian economies don't need US consumption as much as you have been led to believe. Even if so, they would have to decouple eventually.
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