US dollar is getting pounded

Malibook said:

Foreigners holding US cash, stocks, bonds, and treasuries may start unloading creating even more pressue on the US dollar.

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Substitute the word 'ARE' for the word 'MAY' and your statement is 100% correct. This has already begun to happen and will continue for sometime to come. I would be holding a minimal amount in US$ denominated assets and focus on the C$ and the Euro as well as having 15 - 20% of a portfolio in gold mining shares such as Newmont, Kinross, Agnico Eagle, etc. All these companies have production costs that are well below the current price of gold so every increase in that price falls right to the bottom line. Gold was up $5 yesterday on the VPs comments on the weekend and wants to go higher. It won't happen all at once and it will be volitile along the way but, I believe it will break up through $350 by the fall and may test $400. If that happens a stock like Kinross could trade at $10...!

FINE WINE

YAWN....

Do you have even the slightest idea of what you are talking about? The Canadian dollar hasn't even recovered to May 2001 levels and you're screaming the bottom is falling out of the market? US interest rates are holding due to low inflation, partially offset by a higher than average unemployment rate of slightly more than 6%. The U.S. economy has operated on deficits almost historically for the past several decades. This is nothing new. Stocks overvalued...again nothing new. What you might want to do is throw away your outdated notion of traditional valuation as applied to todays DOW. That DOW is comprised of a lot of tech stocks that are governed by different rules. The balanced budget of a couple of years ago was an aberration caused by the "exuberant" state of the economy. The deficit was introduced by an increase in defense spending to a level of around 360-370 billion..that would be about 3 times the entire Canadian national budget.

So if they suggest a rebound in the Canadian dollar, where is the economy that will outperform the US with the same safety level? If you can identify that, then that is where I'd look for the action. Japan has been and will be out of the running for a long while. And I just checked the sky and it is still there, although the earth has been a little shakey here in California lately.


EBS

I invested all of my money in the 'sock under the bed' market. So far it seems to be holding fairly strong, although it's accumulating dust bunnies at a rather alarming rate.

Morgan

Actually, if what i read is correct, the american peso is overvalued.

There are many in the US who would like to see the dollar come down a wee bit because US exports are too expensive.

A 70 cent canadian dollar is a very real possibility, and i say possibility, not certainty.

The other consideration is that in any economic recovery, commodity prices will rise, and with that the canadian peso.

Of all the G-7 nations, Canada's economy is the strongest (believe it or not) we are still running a budget surplus thanks to mr. paul martin. Last week, the globe and mail reported that our surplus has even suprised most, and we are actually creating jobs while the americans are still shedding jobs.

The really really bad news is yes, interest rates are on their way up, however, most agree that you will probably see a point added gradually to the prime rate.

Frankly, i don't like that one bit. Why pour any water on the fire as far as i am concerned.

They did that in 91 and again in 2000 and look what happened.

The other thing to consider with the us economy is that greenspan hates deficits. Under daddy bush, he consistantly raised interest rates to stop the gov't from running deficits. Drove ole george sr. bananas, but there was nothing that the old man could do about it.

Deficits are not to be underestimated. By spending like drunken sailors, the gov't drives up the demand for money and fuels inflation. Higher demand for borrowed money and higher inflation drives up the interest rates. The higher the interest rates, the slower the economy.

If canada did not have a deficit, we could save approx. 28 cents of every tax dollar.

That is incredible.

W bush has driven his country into deficit to fight the war on terrorism with mainly new military toys rather than intelligence.

I can understand his position, but to me it seems like politicing for re-election. The americans will like an president who buys new military toys. Mom and pop can get their heads around buying a new aircraft carrier, they can see that. But doing what it takes to fight terrorism with increased intelligence, well, mom and pop can't SEE that.

The money w has marked for new war toys could be far better spent to fight terrorism. But you wouldn't get to thrill the voting public.

Lastly, there is a herd mentality when it comes to investing. When people start perceiving the us dollar as weakening, they get the hell out.

Personally, i would love to see a Canadian dollar rise back to about 90 cents, then we should adopt a single N.A. currency, because the us peso is for sure the bench mark currency of the world and that isn't going to change until china surpasses the us in the next 20 years as the leading global economey.

Yes kids, the sun is setting on the american empire.

GOLD!

I LOVE to say I told you so!!!!

I told everyone on this board to buy Kinross at $1.57. All I heard was a bunch of crap about overpaid CEOs!!

Well, it hit $3.80+ today. Small-cap oils like KCH and PEY are also making me money.

The US dollar will ALWAYS be the world reserve currency because it's the largest economy in the world, BUT the US currency has appreciated a TON against all other currencies in the world and there WILL be a correction. It won't be a disaster, but it wouldn't hurt the prudent investor to diversify.

The biggest thing weighing down Canadian stocks is Canadian
lack of self esteem. People that got hosed on Nortel bought into a fairy tale, but there are many real success stories in Canada.

We tend to see the Canadian buck's low value as some kind of punishment for our so-called lack of productivity. The truth is the CDN dollar has held up very well against the run-up in the US dollar.

GOLD OIL GAS is where it's at.

Hope the CDN dollar stays low until I can exchange my "SP allowance" next week!

Of all the G-7 nations, Canada's economy is the strongest (believe it or not

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are we not classed G-8 now??

Touche! BTW, is it still a good time to buy gold/oil/gas stocks now? Or will tech continue to rise? I'm just a clueless newbie investor...

Re: YAWN....

E_B_Samaritano said:

Do you have even the slightest idea of what you are talking about? The Canadian dollar hasn't even recovered to May 2001 levels and you're screaming the bottom is falling out of the market?

So if they suggest a rebound in the Canadian dollar, where is the economy that will outperform the US with the same safety level?
EBS

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The US economy is backwards while the Canuck economy it's the BEST and HIGHEST of the G-8 gang.

LOL eat your heart out El Buen Samaritano, boy is fun to read old posts and see how people stick their foot in their mouths!

It is also funny to see how half wits who are otherwise imposters have a habit of talking loud and saying nothing. The apparent plummet of the dollar is a well managed activity down south of the border. The dollar devaluation in many senses is a good thing for our export market. Somebody mention trade deficit surpluses? The day we don't have massive trade surpluses will be the day a lot of assholes pucker in the rest of the world, not to mention those North of our border.

Here's a simple excercise that even a halfwit like you can understand. Let's let the loonie trade on par with the USD. How long do you think it will take before Canada looks like Argentina?

Now go back in your hole before I report you to Canada Immigration...or should I dare say you're an imposter who is a native Canuck, posturing as a deranged alien. Only part of its true..you are truly deranged. As an alien, I understand you have multiple buttholes. It's in evidence that you blow out of at least one of them when you post to this board. Any time you think you want to launch an ad homenim this way, I'll be glad to cut you a fourth.

EBS

Some would believe the dollar is sliding to bolster the econmy. That is to say when the dollar is low the EURO and YEN is high making US god more attractive. BUT since the CLITHEAD administration moved US manufactuing off shore this is a misconseption. Now let's us look at the rational behind raising the EURO and YEN. Once these are higer the off shore manufacturing will be less attractive, as quality will begin to matter. In the past 100 units made at 40% with a 22% failure rate was profitable. This is no longer true as the gap narrows.

Yes US manufactuing is more expencesive BUT with a lowered failure rate and and even economy they become the VALUE added production.

papasmerf said:

Yes US manufactuing is more expencesive BUT with a lowered failure rate and and even economy they become the VALUE added production.

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\

Alien is , of course , a total twit and his comments on world economics are just further proof . The above comments by Papasmerf are equally silly . The most obvious example would be automobiles where most evidence would suggest that the failure rate of US made cars is higher and their reputation for quality is only slowly recovering from a pathetic level in the 80's and 90's . Clinton didn't move manufacturing offshore . The simple fact is that higher quality and lower manufacturing costs , once unencumbered by protectionist tarrifs , caused American companies to choose to manufacture offshore as well as making imports of foreign goods more attractive .

Two opposite examples of nationalism clouding judgement .

For those cheering a higher Canadian dollar watch the employment rate in Canada plummet as companies that were competitive because of the low dollar are suddenly out of business .

Have a nice day .

Why dont people take trians any More???????


Becaure they are slow and pollte the environment. Besides that they are costly compared to modern transports

US manufactuing moved trawards the 50 cent to a dollar mark per hour in payroll. There was a preceived value in it. this value is thwarted by a weaker US dollar.

Papasmerf,

I believe your dogma and too much fun at the pub on Friday night is truly distorting your ability to reason rationally. But then knowing that you voted for Bush, and would support the man even if you caught him with his dick in Cheney's mouth.

Clinton had nothing to do with moving jobs offshore. You forget, the Democratic administration is decidedly pro union. And please don't tell me about NAFTA. NAFTA decidedly improved the economies of every participating country. Under his administration, we experienced the lowest unemployment rate in decades. The collapse of the high paying blue collar sector is a phenomenon that has been going on for at least 25 years. The steel industry got hit reapeatedly by foreign competition..albeit some was due to unfair dumping of Japanese steel on the market. The auto industry got the shit kicked out of them by a highly productive and modernized Japanese manufacturing sector anchored by superior robotics that significantly reduced labor and increased quality. We copied the Japanese and threatened them with sanctions if they didn't start producing cars in the US. My old man was GM buyer, and my first two cars were GM out of habit. Haven't owned a US made vehicle in 20 years..and proud of it..LOL.

Now I'm sick and tired of Repugnicans constantly blaiming the failures of this administration on a President who is no longer in office. Let's for the sake of argument, assume that the real economic problems came under the Cllinton administration when the repubnican controlled congress refused to accept any of the Clinton administrations legislation that would have mandated corporate accountablity and put more teeth into the SEC..i.e. it would have prevented fiascos like Enron, and the thousands of other Enrons that have lead to a massive loss of wealth and will mean a subsequent decline of standard of living in the US, until and unless we take drastic measures to controll the growth of the deficit. IF I were President and had to make recommendations as to how to fix the problem i.e. provide a more short term boost in the economy to kickstart a recovery, what is the absolutely most asanine thing I could do...even if it is a fundemental dogma of being stuck with a hard right agenda?

Answer: Do and propose exactly the things that Bubba is doing right now.

Question 2: Who is the most unlikely ally of the US right now and what could they do to guarantee that Bozo doesn't get another four years to demonstrate his ineptitude in handling the domestic agenda?

Answer: Any country in the Middle East that wants to make life miserable for the occupying US Forces there. You see, after a while, even the Bush robotic idiots won't be able to defend why Americans are dying for oil.

EBS

NAFTA diid improve the economy in all but the US

I did not Vote for BUSH (sorry)

As for the WTO???????????
Bout as useful as your theories.