"They" got to devalue .....NOW!

[Mega]

I suspect they had a meeting with China, not sure what was on the table....lots of "Trades".....both Eco & Geo-political. With their agreement (they will give them 30% of Iraq or something)....its coming.

Mike

[Mega]

Re: "They" got to devalue .....NOW!

Ben is a study of the great depresion, Yes?........Ok we know they let inflation go during that time........they will again.

Mike

[touchring]

Re: "They" got to devalue .....NOW!

I suspect they had a meeting with China, not sure what was on the table....lots of "Trades".....both Eco & Geo-political. With their agreement (they will give them 30% of Iraq or something)....its coming.

Mike

that's a good deal, 30% with zero casualties.

[aaron]

Re: "They" got to devalue .....NOW!

China wants Taiwan above anything else. Any leader that makes that happen, especially without war, will be remembered much like Lincoln in the United States. In fact, as long as it can "save face", I suspect the Chinese are willing to give up A LOT for this prize, including buying "quality" U.S. treasuries for the foreseeable future.

[goadam1]

Re: "They" got to devalue .....NOW!

I've been saying we will "sell" them Taiwan for years. Seems only fair.

[touchring]

Re: "They" got to devalue .....NOW!

I've been saying we will "sell" them Taiwan for years. Seems only fair.

china is not going to take taiwan by military means. it will be an economic blockade.

[sunskyfan]

Re: "They" got to devalue .....NOW!

Taiwan and North Korea are the long term quid pro quo. They will deal with North Korea when Taiwan is settled.

[atlantafox]

Re: "They" got to devalue .....NOW!

Ben is a study of the great depresion, Yes?........Ok we know they let inflation go during that time........they will again.

Mike

True enough. The question is timing.

Bernanke will not rock the boat, until he is reappointed as Chairman in Jan 2010. The Administration will not rock the boat, until after the 2010 mid-term elections.

If it happens, my guess it will meet this timetable.

[ricket]

Re: "They" got to devalue .....NOW!

I suspect they had a meeting with China, not sure what was on the table....lots of "Trades".....both Eco & Geo-political. With their agreement (they will give them 30% of Iraq or something)....its coming.

Mike

"News"
Link to a news story by a credible source plus member commentary. News stories posted here by iTulip Select Subscribers will be moved to the Select area

Please follow the rules man! Youve been around a long time here on iTulip and you contribute alot. But your posts need to be categorized in the appropriate section or you defeat the whole purpose of the site. This isnt a running commentary on what you think or hope or demand to happen.

If you dont post a link to a news story, it's not news!

[bart]

Re: "They" got to devalue .....NOW!

I suspect they had a meeting with China, not sure what was on the table....lots of "Trades".....both Eco & Geo-political. With their agreement (they will give them 30% of Iraq or something)....its coming.

Mike

Turbo short the dollar yet?

[Jim Nickerson]

Re: "They" got to devalue .....NOW!

Turbo short the dollar yet?

bart, the below if from David Rosenberg back on July 17th.

• In addition to knowing it is going to be an election year in 2010, we also know that we have a President who has, step by step, been taking feathers out of FDR’s cap in dealing with this modern day depression. The one item that has yet to be utilized is U.S. dollar depreciation, and if memory serves us correctly, FDR snuffed out the worst part of the Great Depression when he unilaterally devalued the dollar to gold in 1933 by 40% (and fixing the price of gold at $35/oz). We’re not sure that President Obama is going to re-price the dollar price of gold. Then again, can anything be ruled out? But we are sure that as the unemployment rate makes new highs and increasingly poses a political hurdle in a mid-term election year, that it would make perfect sense, for a country that always operates in its best interest — even if it may not be in everyone’s best interest — to sanction a U.S. dollar devaluation as a means to stimulate the domestic economy.

Perhaps everyone here other than I fully comprehend what mechanism(s) could/would be used if those in power decided to "sanction a US dollar devaluation as a means to stimulate the domestic economy," but I don't have the foggiest idea as to how it would actually take place.

You being one of many charts and generally fewer words, it is possible for you to put up an explanation in words of how the government could/would bring it about? I'd appreciate it.

[rj1]

Re: "They" got to devalue .....NOW!

Taiwan and North Korea are the long term quid pro quo. They will deal with North Korea when Taiwan is settled.

Don't think North Korea will last that long.

[medved]

Re: "They" got to devalue .....NOW!

I've been saying we will "sell" them Taiwan for years. Seems only fair.

Very likely. In a similar exchange we will sell Ukraine to Russia.

[bart]

Re: "They" got to devalue .....NOW!

...
Perhaps everyone here other than I fully comprehend what mechanism(s) could/would be used if those in power decided to "sanction a US dollar devaluation as a means to stimulate the domestic economy," but I don't have the foggiest idea as to how it would actually take place.

You being one of many charts and generally fewer words, it is possible for you to put up an explanation in words of how the government could/would bring it about? I'd appreciate it.

The problem is that there are many ways it could come about and I'm hesitant to enumerate all that I can think of for fear that it might give them ideas or that I might freak out some folk... but they all start out with a truly awful crisis in the US and world financial system.

It would also not be directly caused by some action of the US, and I mean that in the sense that blame would initially not fall on US politicians or banksters.

But here are some, in no particular order. I'm sure others could add to the list.

• A default on Treasuries, in the sense of a failed auction or auctions.
• A problem in China or Japan or other large Treasury holder, causing them to need to redeem large amounts of Treasuries.
• A 9/11 like event, not necessarily in the US.
• A sudden loss in confidence in the dollar or banks by US citizens, resulting in bank runs and similar.
• A currency attack by speculators, ala Soros and the Bank of England (not likely on the dollar but possible as an effect of an attack on another major currency).
• The biggest issue in my opinion is that no significant world currency is coming even vaguely close to gaining value... and in plain English, what I'm saying is that it could easily be a worldwide devaluation with the dollar being devalued more than average while other currencies gain their place in the SDR or an SDR like currency that has gold as part of it "backing".

I have little doubt that there are plans and "suggestions" already in place for many different scenarios, ready for submission or action at the right time.

[thousandmilemargin]

Re: "They" got to devalue .....NOW!

"Perhaps everyone here other than I fully comprehend what mechanism(s) could/would be used if those in power decided to "sanction a US dollar devaluation as a means to stimulate the domestic economy," but I don't have the foggiest idea as to how it would actually take place."

I always thought this was simple. Just keep running progressively larger federal deficits, and have the Fed print up X trillion dollars to buy bonds to monetize the deficit. Keep doing this until the market marks down the value of the currency to the desired level.
Then release a statement saying that you think the current level of the dollar is about right, and commit to stabilising the currency by gradually reducing the deficit.

There are a lot of things that can go wrong with the stabilisation phase, but getting people to sell off the dollar doesn't strike me as the hard part. Just borrow and print til the markets get the picture.

Since the "running up deficits" part is already in the bag, it is really just a matter of the Fed making regular anouncements about upcoming QE activities. How many times does the Fed need to anounce that it is going to print a trillion and buy bonds AGAIN? I think that if this becomes a monthly occurance,you'll see a pretty significant move in the dollar.