World economy talk

[uls]

ano akala nila sa stock market and commodities rally?

based on fundamentals?

[uls]

EUR/USD 1.5053

USD/JPY 87.50

[tidus1203]

Yep USD got massacred yesterday...

Swiss Franc below parity now stronger than USD at 0.9960

JPY now stronger than the previous strongest point last year during the collapse of Lehman...

Gold again making more records!

When will the Fed say enough is enough and start raising rates? Bernanke is too stupid to figure it out! The economy is already out of the CRITICAL STAGE. Sure its not as healthy as we want it to be but its already out of intensive care and thus those ICU like interest rates should be lifted!!!

[uls]

but the Fed won't be raising rates anytime soon

from the FOMC statement Nov. 4, 2009

http://www.federalreserve.gov/newsev.../20091104a.htm

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

so the asset reflation trade continues

[uls]

Gold Spot

Russia, Sri Lanka announce gold purchases
Commodity Online - ‎2 hours ago‎
"It will get the gold if its bid is successful and at the price it has offered." The central banks of Russia and Sri Lanka have also announced separate ...

Sri Lanka Buys 10 Metric Tons of Gold
Wall Street Journal - ‎5 hours ago‎
WASHINGTON—The International Monetary Fund said Wednesday that it has sold 10 metric tons of gold to Sri Lanka, the third customer to acquire a portion of ...

[uls]

Usd/jpy 86.77

eur/usd 1.5113

[tidus1203]

NICE!!! Target price ko to get out sa Yen is 85.60, if it hits that I am cashing in without regrets...

Swiss Franc hold muna ako for now, since medyo naka link yan sa Euro and I see more upsides for these two!

[uls]

it's Thanksgiving tomorrow in the Land of the Mighty Dollar

[uls]

Dubai FAIL

Dubai World Seeks Debt Standstill
http://online.wsj.com/article/SB1000...620655942.html

DUBAI -- This debt-laden city-state said Wednesday it would restructure its largest corporate entity, Dubai World, a conglomerate spanning real-estate and ports, and announced a six-month standstill on the company's debt.

The surprise move quickly sapped investor confidence in Dubai's ability to pay down its large debt load, sending up the price of insuring against a default sharply. It also represents the most significant fall-out so far in the city-state's year-long economic crisis, triggered by a collapse in its once-booming real-estate sector late last year.

Dubai shock after debt standstill call
http://www.ft.com/cms/s/0/46b4065c-d...nclick_check=1

Dubai has shocked investors by asking for a debt standstill at Dubai World, the government’s flagship holding company that has developed some of the world’s most extravagant real estate projects.

The move raised the spectre of default in the Middle East’s trading hub just as early signs of economic recovery have emerged. During the boom, Dubai rode the wave of easy credit generating phenomenal economic growth but was badly hit by the global credit crisis.

Dubai’s surprise move angered some investors who had been reassured by local officials for months that the city would meet all obligations on its $80bn (£48bn) of gross debt in spite of recession and a real estate crash.

[tidus1203]

Pullback today for all currencies against the USD except the almighty YEN. Pero may kutob ako hangang 85++ na lang ito kasi pagkatapos nyan intervention risk gets very very high...

[tidus1203]

Another interesting weekend ahead for the US economy. Today is Thanksgiving Thursday so that means tomorrow is the so-called "Black Friday" meaning retailers will give their best deals and traditionally it is the start of the holiday shopping season. Let's see how US consumers react to Black Friday. Will they be thrifty or will they charge the hell out of their credit cards? Will be interesting to economy watchers...

[uls]

yep

the USD index almost hit 74 flat then bounced back up a bit



all major currencies pull back except the JPY

gold back below $1,190

[tidus1203]

While the US is on vacation, European stocks got slammed yesterday probably because of those Dubai debt concerns...

FTSE 100, DAX, and CAC40 all fell more than 3% each.

In the currency front the USD has gained against all the other currencies except the Yen. Safe haven plays in the works again, of course none can be more safer than Gold and that is also up!

[Monseratto]

Alan Blinder vs. Peter Schiff: When Will the Dollar Lose Its Reserve Status?

The almighty dollar ain't what it used to be.

The decline of the dollar was one of the topics of debate Sunday night when St. Louis Fed President Jim Bullard and former Federal Reserve Vice Chairman Alan Blinder faced off against longtime gold bug and dollar bear Peter Schiff at a panel hosted by Princeton's Business Today.

Bullard, who doesn't often discuss the dollar, does have hope for the greenback. When the world was in full panic mode last year, Bullard notes the dollar actually gained value in a "flight to safety" trade, even though the Fed was flooding the market with supply.

While that may be true for now, Blinder "can imagine the Chinese currency being the dominant reserve currency in the world in 30, 40, 50 years from now."

Peter Schiff, in predictable fashion, says the dollar's day of reckoning is coming much sooner than they think, citing artificially low interest rates and America's rising debt obligations.

Interesting reader comment:

Dollar is going into hyperinflation very soon.You can't owe 140 Trillion Dollars of debt and only have 153 million americans to pick up the bill without the currency being debased. We each owe $915,000.00 dollars as of right now. technically...the United States is bankrupt.......................................... .................................................. .................................................. .................................................. . National Debt 12.028 Trillion Dollars.....US Government Bank Bailouts 11.199 Trillion Dolars.....Social Security Liability 14.008 Trillion Dollars.....Prescription Drug Liability 18.534 Trillion Dollars.....Medicare Liability 73.705 Trillion Dollars.....Obama's Health Care Plan for All 10.000 Trillion Dollars. .................................................. .................................................. .................................................. ............................... Look at (www.usdebtclock.org) The figures are on the website for anyone to view. The United States currency will soon be worthless. No one will want it once the fed starts to shave zero's off of the One Hundred Dollar Bill.Most of the Governments debt is hidden off of the books. They only talk about the National Debt, while ignoring the other 93 percent of the United States Governments Debt. It's rather ironic and pathetic.

[tidus1203]

Interesting point from adam1mc regarding the Fed audit proposed by Rep. Ron Paul and the FRN (Federal Reserve Notes)

The value of the dollar has declined 90% + since the FED took control of currency. It's preposterous to think that people still have faith in their abilities.

In 1900, a 1oz Gold coin cost $33 and would buy a really nice suit.

In 1964, 1 silver U.S. quarter ($0.25) would buy a gallon of gasoline.

In 2009, a 1oz Gold coin will STILL buy a really nice suit, AND 1 silver pre-64 U.S. quarter will STILL buy a gallon of gas.

The difference is, it now takes 1165.20 'Federal Reserve Notes'(FRN's) to buy that 1oz Gold Coin & it takes about 3.00 FRN's to buy 1 pre-64 U.S. quarter.

Why is it that when using 'real' money, i.e. Gold and Silver, prices for goods seem quite stable? Why does it now take so many more FRN's to buy the goods that once could be purchased for just a few FRN's when our money was backed by gold and silver?


The FED has failed at their task to keep prices stable, to protect against inflations and depressions and they have failed in their goal of bailing out the economy. Instead, they have made everything worse.

http://www.cnbc.com/id/34126788

[tidus1203]

Just about 2 minutes ago I got out on all my positions in the JPY. Got out at 85.35... Bahala na, I really think masyado nang overextended itong JPY...

[uls]

Good morning

flight to safety

JPY, USD, up against all major currencies

USD/JPY 85.97 (H 86.43 L 84.80)

[tidus1203]

Hahaha grabe nagulat nga ako eh umabot pa ng 84 handle yung JPY... Grabe talaga what a morning! Nasa bahay pa nga ako eh when that happened... Anyway sayonara na ako sa Yen, maybe some other time again it was a nice ride down to 85.35!

[uls]

amazing

the guy was right

this thing i posted yesterday ---



"The rates on your screen Friday morning will be meaningfully different than the ones your are looking at today. It's the turkey factor."

---

Fujii Is ‘Very Closely’ Watching Yen’s Gain to 14-Year High
http://www.bloomberg.com/apps/news?p...d=ach6gDnGZCLw

“If currencies make abnormal movements, we may need to take appropriate action,” Fujii told reporters in Tokyo today. “Now we’re at the stage where we need to closely monitor movements in currency markets.”

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Fujii Says Will Contact U.S., Europe on Currencies If Needed
http://www.bloomberg.com/apps/news?p...UYreUm2o&pos=2

Nov. 27 (Bloomberg) -- Japanese Finance Minister Hirohisa Fujii said he will contact authorities in the U.S. and Europe about currencies if necessary. He was speaking to reporters in Tokyo today.

[tidus1203]

Now let's see if Japan will really walk the talk. But then again, the US will probably not cooperate with any intervention as the reality is the US IS HAPPY of the current USD predicament! They might say they support a "STRONG DOLLAR POLICY" but only imbeciles can't see through that smoke screen of a lie!