Econoparody: The Dollar and Its Diving Posted on November 23, 2010 by Yves Smith From the folks at Versus. Enjoy! Post navigation ← Links 11/23/10 Florida Kangaroo Foreclosure Courts: More Evidence of Favoritism Towards Banks → Subscribe to Post Comments 12 comments LJR November 23, 2010 at 12:24 pm Nicely done! abelenkpe November 23, 2010 at 12:40 pm Entertainment wise: B It went too long Besides, isn’t the dollar is up compared to it’s lows of about a year and a half ago? F. Beard November 23, 2010 at 1:02 pm A well managed (even fiat) currency can easily be better than gold but I would bet that fractional reserve lending with its attendant boom-bust cycle makes that impossible in anything longer than the short run. razzz November 23, 2010 at 1:43 pm Federal Reserve via the US Treasury has to cover deflation by printing of money as debt keeps showing up all the time. How much to cover near term debt by printing, 30 trillion? 60 trillion? More? No choice but to print as this banking system can’t function in a deflationary environment. Compounding interest just adds to the woes. The US dollar is valued against a basket of currencies (euro, yen, etc.) what happens when they all lose value together? Blurtman November 23, 2010 at 2:12 pm Precisely, Razzz. Everyone must do the limbo together. An approximately synchronized reset is in order. hermanas November 23, 2010 at 2:19 pm I guess I aught to fix my old wheel barrows. hermanas November 23, 2010 at 3:00 pm Nevermind, I forget it doesn’t trickle down anymore, it goes to offshore accounts and those damn black projects. razzz November 23, 2010 at 10:43 pm http://www.martinarmstrong.org/files/Show%20Me%20The%20Money%2010-15-2010.pdf Ted K November 24, 2010 at 1:08 am Unless I was very confused this morning the dollar rose quite a bit. Didn’t follow it all day long but I doubt if that pattern changed for today. I imagine Bernanke was doing a little jig in his office, because short-term it kind of throws it to the face of his critics. I thought today was one of the more interesting days with the hedge funds and mutual funds being hit with the insider trading and the Korean thing, and brushing up against the holiday, one of the more fascinating days. I hope the SEC gets these bastards good, I will love it, that includes BOTH hedge funds and mutuals. I don’t know, I’m relatively shy to predict inflation for anything farther down the road than a year, but I can’t help but think these people buying gold now are gonna get burned here, and by “burned” I mean singed ’til the skin turns black. My educated guess is the folks pimping gold and the smart money like Soros will be long gone while the many in the general public are left holding a bag of stuff they will deeply regret if they need that back in the short-term. I could be all wet of course….. we’ll see. Chris November 24, 2010 at 9:06 am Well Ted, methinks those hedge fund players are small potatoes compared to the big boys. I remember Goldman god a slap on the wrist. I think this is just a bone thrown to the American people. Delmoan November 25, 2010 at 1:18 am Count on the stupid europeans to shield, for a time, the dollar with their frankesteiniac Euro. nohomehere November 25, 2010 at 6:43 am Question! If true inflation is:to many dollars chasing to few goods, what is less dollars chasing less goods? Answer! contrived! What are black projects? Is that like HUD projects? Not! Oh! bunker cities!Question! Why don’t you here cries of alarm from the french press about the Pig’s until the dollar goes down? And then you here the dollar went up against the euro? Are the( BLACK PROJECTS ) actually the funding of asset purchases ( bailouts ) of foreign swine with US – IMF funding ? this seems to coinside with Ben’s technological know how being applied! And then there’s the question of feeding and cleaning out the pen ! Who’s Idea was this anyway? Comments are closed. Tip Jar Please Donate or Subscribe!