Dollar value rises fast; foreign countries hold off on spending

[D-Mack]

Mary Jordan and Karla Adam The Washington Post


LONDON – The value of the U.S. dollar has soared with unheard-of speed against many currencies in recent weeks, but the global financial crisis has altered the usual effects of such a spike.

Normally a rising dollar means more Americans traveling abroad and foreign countries exporting more goods and services to the United States. But few analysts expect to see that happening anytime soon, even though the dollar has gained about 25 percent against the euro and the British pound since early August.

As Americans face recession and rising joblessness, fewer are tempted to take overseas vacations or buy more imported goods.

"In an ideal world, the soaring dollar sounds wonderful" for British exports, "but quite frankly no one is buying anything from anyone," said Howard Wheeldon, senior strategist at BGC Partners in London.

....

"The rise of the exchange rate is temporary, like a momentary recovery of consciousness just before death," said He Fan, an international finance researcher at the Chinese Academy of Social Sciences.


...

http://www.dallasnews.com/sharedcont...1.4a51721.html

Not very optimistic this Chinese guy.....



also

The Shipping News Suggests World Economy Is Toast: Mark Gilbert

[metalman]

Re: Dollar value rises fast; foreign countries hold off on spending

Mary Jordan and Karla Adam The Washington Post


LONDON – The value of the U.S. dollar has soared with unheard-of speed against many currencies in recent weeks, but the global financial crisis has altered the usual effects of such a spike.

Normally a rising dollar means more Americans traveling abroad and foreign countries exporting more goods and services to the United States. But few analysts expect to see that happening anytime soon, even though the dollar has gained about 25 percent against the euro and the British pound since early August.

As Americans face recession and rising joblessness, fewer are tempted to take overseas vacations or buy more imported goods.

"In an ideal world, the soaring dollar sounds wonderful" for British exports, "but quite frankly no one is buying anything from anyone," said Howard Wheeldon, senior strategist at BGC Partners in London.

....

"The rise of the exchange rate is temporary, like a momentary recovery of consciousness just before death," said He Fan, an international finance researcher at the Chinese Academy of Social Sciences.


...

http://www.dallasnews.com/sharedcont...1.4a51721.html

Not very optimistic this Chinese guy.....

that's too kind. it's the central nervous system shooting random signals up the spine of the dead global monetary system. one last twitch.

[D-Mack]

Re: Dollar value rises fast; foreign countries hold off on spending

Investors shun Greek debt as shipping crisis deepens

Freight rates for shipping are crashing at the fastest pace ever recorded as banks shut off credit lines to the industry, precipitating a sudden crunch in world trade.


By Ambrose Evans-Pritchard and Rowena Mason


The Baltic Dry Index measuring rates for coal, iron ore, and grains, and other dry goods plummeted below 1000 yesterday, down 92pc since peaking in June.


The daily rental rates for Capesize big ships have dropped $234,000 to $7,340 in weeks, leaving operators stuck with heavy losses on long leases. Empty ships are now crowding Singapore and other global ports.

....

http://www.telegraph.co.uk/finance/c...s-deepens.html

[kingcopper]

Re: Dollar value rises fast; foreign countries hold off on spending

Investors shun Greek debt as shipping crisis deepens

Freight rates for shipping are crashing at the fastest pace ever recorded as banks shut off credit lines to the industry, precipitating a sudden crunch in world trade.


By Ambrose Evans-Pritchard and Rowena Mason


The Baltic Dry Index measuring rates for coal, iron ore, and grains, and other dry goods plummeted below 1000 yesterday, down 92pc since peaking in June.


The daily rental rates for Capesize big ships have dropped $234,000 to $7,340 in weeks, leaving operators stuck with heavy losses on long leases. Empty ships are now crowding Singapore and other global ports.

....

http://www.telegraph.co.uk/finance/c...s-deepens.html

Here you go. The world hath not the savings to bail us out this time. We'll just have to print it;)