Magox Posted June 10, 2009 Share Posted June 10, 2009 I see this as significant. We all know that the Federal Reserve is flooding the markets with dollars, which obviously has a negative impact on the dollar. Here is an interesting development in regards to dollar demand, or should I say lack of. http://www.bloomberg.com/apps/news?pid=206...id=a_znw8oxnBzs Here's a snippet: Russia and Brazil, seeking to reduce their dependence on the dollar, announced plans to buy $20 billion of bonds from the International Monetary Fund and diversify foreign-currency reserves. Russia’s central bank said it may cut investments in U.S. Treasuries, currently valued at as much as $140 billion, a week after China said it may reduce reliance on the dollar and American bonds. Brazil’s Finance Minister Guido Mantega said his country will purchase $10 billion of debt sold by the IMF, China will buy $50 billion and India may announce similar funding. I think this is a very unfortunate development for the fate of the US dollar. The Obama administration/Treasury is going to have to signal to the market and to our foreign debt holders that we are going to make a serious attempt at some sort of fiscal restraint to reduce our debt. Obviously when Obama says that our deficit will be cut in half, our trading partners don't believe him. Link to comment Share on other sites More sharing options...
IDBillzFan Posted June 10, 2009 Share Posted June 10, 2009 I think this is a very unfortunate development for the fate of the US dollar. The Obama administration/Treasury is going to have to signal to the market and to our foreign debt holders that we are going to make a serious attempt at some sort of fiscal restraint to reduce our debt. He already said we're moving toward PAYGO. Problem solved. Stand by for unicorn distribution program activation. Link to comment Share on other sites More sharing options...
Chef Jim Posted June 10, 2009 Share Posted June 10, 2009 He already said we're moving toward PAYGO. Problem solved. Stand by for unicorn distribution program activation. I think he mispoke and meant this. Link to comment Share on other sites More sharing options...
ACor58 Posted June 10, 2009 Share Posted June 10, 2009 Obviously when Obama says that our deficit will be cut in half, our trading partners don't believe him. Our whole system is broken. Until we set term limits in congress and prevent our politicians from accepting bribres...er....campaign contributions, the government will never be able to reign in spending. Link to comment Share on other sites More sharing options...
KD in CA Posted June 10, 2009 Share Posted June 10, 2009 Our whole system is broken. Until we set term limits in congress and prevent our politicians from accepting bribres...er....campaign contributions, the government will never be able to reign in spending. Bingo. The corruption in our system is so obvious as to be laughable. My proposal: President -- Extend term to 7 years, maintain 10 year cap. Senate -- Maintain six year term, limit of one term. House -- Extended term to four years, limit of one term. And people wonder why a bunch of guys with lifetime appointments to the Senate are not affecting "change". Link to comment Share on other sites More sharing options...
John Adams Posted June 10, 2009 Share Posted June 10, 2009 Our whole system is broken. Until we set term limits in congress and prevent our politicians from accepting bribres...er....campaign contributions, the government will never be able to reign in spending. There are term limits. Voters can choose someone else in just about every election. Why should we govern people's ability to hurt themselves? (I know, we do it all the time. I'm just saying, do we need to do it again? I know, yes, we probably do.) Link to comment Share on other sites More sharing options...
Taro T Posted June 10, 2009 Share Posted June 10, 2009 Bingo. The corruption in our system is so obvious as to be laughable. My proposal: President -- Extend term to 7 years, maintain 10 year cap. Senate -- Maintain six year term, limit of one term. House -- Extended term to four years, limit of one term. And people wonder why a bunch of guys with lifetime appointments to the Senate are not affecting "change". If term limits are enacted, what sort of restrictions would you put (if any) on staffers? If the 2nd year Senator is relying on a 30 year insider running his office, I'm not too certain that the staffer is working for the Senator and not the other way round. Link to comment Share on other sites More sharing options...
ACor58 Posted June 10, 2009 Share Posted June 10, 2009 There are term limits. Voters can choose someone else in just about every election. Why should we govern people's ability to hurt themselves? (I know, we do it all the time. I'm just saying, do we need to do it again? I know, yes, we probably do.) Why have a term limit on president then? The truth is that our lawmakers should not be full time employees of the federal government. Congress is a part time job and they should be paid as such. They will never change nor will they spend responsibly because it isn't there money - it is ours. They act as they are elite yet most do not hold the qualifiactions for private sector employment. Link to comment Share on other sites More sharing options...
TPS Posted June 10, 2009 Share Posted June 10, 2009 I see this as significant. We all know that the Federal Reserve is flooding the markets with dollars, which obviously has a negative impact on the dollar. Here is an interesting development in regards to dollar demand, or should I say lack of. http://www.bloomberg.com/apps/news?pid=206...id=a_znw8oxnBzs Here's a snippet: Russia and Brazil, seeking to reduce their dependence on the dollar, announced plans to buy $20 billion of bonds from the International Monetary Fund and diversify foreign-currency reserves. Russia’s central bank said it may cut investments in U.S. Treasuries, currently valued at as much as $140 billion, a week after China said it may reduce reliance on the dollar and American bonds. Brazil’s Finance Minister Guido Mantega said his country will purchase $10 billion of debt sold by the IMF, China will buy $50 billion and India may announce similar funding. I think this is a very unfortunate development for the fate of the US dollar. The Obama administration/Treasury is going to have to signal to the market and to our foreign debt holders that we are going to make a serious attempt at some sort of fiscal restraint to reduce our debt. Obviously when Obama says that our deficit will be cut in half, our trading partners don't believe him. The dollar's descent began 7-8 years ago. The recent "flight to safety" was just that. The crisis will only hasten its end as reserve currency, but it will still take quite some time as there is no alternative. Link to comment Share on other sites More sharing options...
John Adams Posted June 10, 2009 Share Posted June 10, 2009 Why have a term limit on president then? The truth is that our lawmakers should not be full time employees of the federal government. Congress is a part time job and they should be paid as such. They will never change nor will they spend responsibly because it isn't there money - it is ours. They act as they are elite yet most do not hold the qualifiactions for private sector employment. I like the philosophy of what you say it's in our power to control terms. Link to comment Share on other sites More sharing options...
Magox Posted June 10, 2009 Author Share Posted June 10, 2009 The dollar's descent began 7-8 years ago. The recent "flight to safety" was just that. The crisis will only hasten its end as reserve currency, but it will still take quite some time as there is no alternative. Yup, right at about the time of China's rise and the beginning of the commodity boom. Coincidence? Thank god we have some keynesian scholars at the helm. Helicopter Ben to the rescue Link to comment Share on other sites More sharing options...
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