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ODShowtime
11-08-2004, 01:44 PM
Dollar expected to fall amid China's rumoured selling

By Steve Johnson in London and Andrew Balls in Washington
Published: November 7 2004 19:43

The dollar could slide still further, in spite of hitting an all-time low against the euro last week in the wake of George W. Bush's re-election, currency traders have said.

The dollar sell-off has resumed amid fears among traders that Mr Bush's victory will bring four more years of widening US budget and current account deficits, heightened geopolitical risks and a policy of "benign neglect" of the dollar.

Many currency traders were taken aback on Friday when the greenback fell in spite of bullish data showing the US economy created 337,000 jobs in October.

"If this can't cause the dollar to strengthen you have to tell me what will. This is a big green light to sell the dollar," said David Bloom, currency analyst at HSBC, as the greenback fell to a nine-year low in trade-weighted terms.

The dollar's fall comes as the Federal Reserve is widely expected to raise US interest rates by a quarter point to 2 per cent when it meets on Wednesday and to signal that it will continue with a measured pace of rate increases.

Speculative traders in Chicago last week racked up the highest number of long-euro, short-dollar contracts on record. Options traders have reported brisk business in euro calls - contracts to buy the euro at a pre-determined rate.

However, the market has been rife with rumours that the latest wave of selling has been led by foreign governments seeking to cut their exposure to US assets.

India and Russia have reportedly been selling US assets, as well as petrodollar-rich Middle Eastern investors.

China, which has $515bn of reserves, was also said to be selling dollars and buying Asian currencies in readiness to switch the renminbi's dollar peg to a basket arrangement, something Chinese officials have increasingly hinted at. Any re-allocation could push the dollar sharply lower and Treasury yields markedly higher.

http://news.ft.com/cms/s/257979a6-30f4-11d9-a595-00000e2511c8.html

Man, I wish I could sell all my US interests right now. This place is going down the fucking toilet faster than GW can spend his political capital!

FORD
11-08-2004, 01:50 PM
Economic recovery MY ASS

diamond den™
11-08-2004, 02:25 PM
Originally posted by FORD
Economic recovery MY ASS

I said MONTHS ago the US is facing Ecconomic Ruin.......Turns out I was right

:rolleyes:

ODShowtime
11-08-2004, 02:37 PM
Originally posted by FORD
Economic recovery MY ASS

This is just the start dude. Once the rest of OPEC starts selling oil for Euros, we are really gonna be fucked. I haven't even learned all the ways we'll be fucked yet.

Nobody wants to do business with gw's Company. I wonder why? Probably because he ran all his other companies into the ground.


oh wait, this affects me too? SHIT!

diamond den™
11-08-2004, 02:43 PM
Originally posted by ODShowtime
This is just the start dude. Once the rest of OPEC starts selling oil for Euros, we are really gonna be fucked. I haven't even learned all the ways we'll be fucked yet.

Nobody wants to do business with gw's Company. I wonder why? Probably because he ran all his other companies into the ground.


oh wait, this affects me too? SHIT!

It is going to be like the Stock Market crash of 1929.

:(

ODShowtime
11-08-2004, 02:52 PM
I have a feeling China's stockpiling of dollars could be the beginning stages of an economic war to blindside us and knock us out of competition for the next 20 years or so. Just long enough for them to really get their foot in the door.

So what if my entire generation is reduce to fighting for scraps. We made sure that the US's morals were preserved.

you stupid fucking people

gw will NEVER see this one coming until it's too late

diamond den™
11-08-2004, 03:27 PM
Originally posted by ODShowtime
I have a feeling China's stockpiling of dollars could be the beginning stages of an economic war to blindside us and knock us out of competition for the next 20 years or so. Just long enough for them to really get their foot in the door.

So what if my entire generation is reduce to fighting for scraps. We made sure that the US's morals were preserved.

you stupid fucking people

gw will NEVER see this one coming until it's too late

1929(When MONEY disappeared)........That's what you are up against......

:(

Big Train
11-08-2004, 04:49 PM
Yea, let's not try to invent new industries or anything, let's introduce anti-competitive legislation making it harder for companies to do business.

Doomdayers need to fuckin relax a little. We are in a tough spot, but we (read: The American People) will figure it out.

It ain't all on GW's head. You talk to me about being a "fascist nazi", yet you want to make GW the Jew in every fucking scenario that comes up.

ODShowtime
11-08-2004, 05:04 PM
This specific article does not scare me, really. Commodities go up and down every day. We'll have to wait and see how it pans out.

Unfortunately I believe this is foreshadowing of things to come...

diamond den™
11-08-2004, 05:04 PM
Originally posted by Big Train
Yea, let's not try to invent new industries or anything, let's introduce anti-competitive legislation making it harder for companies to do business.

Doomdayers need to fuckin relax a little. We are in a tough spot, but we (read: The American People) will figure it out.

It ain't all on GW's head. You talk to me about being a "fascist nazi", yet you want to make GW the Jew in every fucking scenario that comes up.

It's going to end up being a re-run of 1929 Stock Market Crash.....

:(

ODShowtime
11-08-2004, 05:06 PM
What would really cause a crash is if all of a sudden all of the companies run like Enron by gw's buddies with huge accounting no no's all get exposed at once. That would really suck.

diamond den™
11-08-2004, 05:08 PM
Originally posted by ODShowtime
What would really cause a crash is if all of a sudden all of the companies run like Enron by gw's buddies with huge accounting no no's all get exposed at once. That would really suck.

That will probably happen soon too......

:(

ODShowtime
11-08-2004, 05:09 PM
you seem to be quite interested in this one. why is that den?

diamond den™
11-08-2004, 07:03 PM
Originally posted by ODShowtime
you seem to be quite interested in this one. why is that den?

I've known about this situation for about 2 years now......that's why....

:(

Nickdfresh
11-08-2004, 07:32 PM
This is the kind of thing happens when you let oil soaked assholes create your energy policy (or lack of it).

Nickdfresh
11-08-2004, 07:33 PM
Funny, but out of all the posts, only one conservative (BigBad) was brave enough to post on this thread.

Big Train
11-08-2004, 07:52 PM
As a conservative, fiscal policy is always of interest to me. This piece of the pie is certainly interesting and slightly upsetting, but it is also indicitive of inflationary pressures as well.

Nickdfresh
11-08-2004, 07:56 PM
And China's status as an emerging power, whether we like it or not.

ODShowtime
11-08-2004, 09:11 PM
china gives me the willies

http://beifan.com/023newyr/23bei-hotlobbyman.jpg