The Dollar: All parabolic rises end in near death experiences

[Chomsky]

U.S. dollar is in a parabolic rise, just as price of oil recently experienced. All parabolic rises end in near death experiences. Saudi's ratcheting up oil production just slightly, crushed oil prices. Fed's actions are similar, and will do the same to the dollar. Dollar's recent rise was due to a shortage of dollars in financial system as lenders and investors have been unwilling to lend dollars to anyone. Federal Reserve is remedying that shortage with massive asset purchases, and a now expanding U.S. money supply. The dollar's parabolic rise will implode, and Gold will begin Wave V.

http://financialsense.com/editorials...2008/1020.html

[phirang]

Re: The Dollar: All parabolic rises end in near death experiences

Really? That is interesting... especially now that GSE paper is literally a treasury, what incentive is there to hold dead metal when you can get x%...

[Tulpen]

Re: The Dollar: All parabolic rises end in near death experiences

Saudi's ratcheting up oil production just slightly, crushed oil prices.

I disagree with this strongly.

Oil production was increased and oil prices were crushed but I disagree that one was caused by the other.

[Guest]

Re: The Dollar: All parabolic rises end in near death experiences

Gots to be kidding. This "treasury-like GSE paper" is a promissory note built on the capacity of the American worker to continue paying an uncompromised dividend to the bearer. With all the other obligations being piled on this hapless worker for the next 30 years, their payout stream is forecast to be as good as gold? Sure looks compromised to me. You can lead a horse to water ... etc.

Really? That is interesting... especially now that GSE paper is literally a treasury, what incentive is there to hold dead metal when you can get x%...

[xela]

Re: The Dollar: All parabolic rises end in near death experiences

Really? That is interesting... especially now that GSE paper is literally a treasury, what incentive is there to hold dead metal when you can get x%...

The possibility (certainty?) that the US may experience a depression and its currency is doomed?
Really how long can the US endure more $-strength or really rather the rest of the world before they just say no to letting a bankrupt nation buy up everthing for funny money.

[chris49]

Re: The Dollar: All parabolic rises end in near death experiences

GSE's were like treasuries...that was an hour ago...now they are not...Lockhart clarifies again! Market confidence is sure to improve now.:eek:

[jimmygu3]

Re: The Dollar: All parabolic rises end in near death experiences

Really? That is interesting... especially now that GSE paper is literally a treasury, what incentive is there to hold dead metal when you can get x%...

Or a better question, when a government is massively injecting fiat currency into a stalled economy, why would you hold only GSE paper paying 3% interest when you can hold hard assets?

[Guest]

Re: The Dollar: All parabolic rises end in near death experiences

Jimmygu3 - The answer should be obvious to the "financially literate", right? We know of course that the GSE paper is a superior class of asset, because the hard assets don't pay any dividend, and worse yet, some of them actually cost you money to store! :eek: :rolleyes:

Or a better question, when a government is massively injecting fiat currency into a stalled economy, why would you hold only GSE paper paying 3% interest when you can hold hard assets?

[nathanhulick]

Re: The Dollar: All parabolic rises end in near death experiences

I think you guys missed his sarcasm.