Records highs in GOLD is not emphasized enough.

[los yankees]

Dollar falls, sending gold to record high


2 hrs 14 mins ago

LONDON (AFP) - The dollar fell on Monday as China accused the United States of increasing protectionism and following unexpectedly strong Japanese economic growth figures, pushing gold prices to a record high point.

US President Barack Obama is in China for a three-day mission aimed at convincing Beijing that Washington is its partner, not its rival.

As the dollar dropped against the euro and yen, gold struck an all-time peak of 1,133.20 dollars an ounce.

In late morning trading here, the euro climbed to 1.4969 dollars from 1.4918 dollars late in New York on Friday.

Against the Japanese currency, the dollar fell to 89.42 yen from 89.66 yen late on Friday.

"Far better than expected Japanese third-quarter GDP data...spurred risk appetite," said Jane Foley, an analyst for online trading firm Forex.com.

"This pushed the euro close to 1.50 dollars in early European hours."

Japan's gross domestic product (GDP) grew 1.2 percent in the third quarter of 2009 from the previous quarter -- the fastest pace in two-and-a-half years and much better than expected, the government reported.

The euro also gained as higher commodity prices, driven by hopes of a global economic recovery, spurred investor risk appetite, market watchers said.

"Gains in gold prices lifted demand for currencies of commodities-exporting nations like the Aussie against the US dollar," Osao Iizuka, chief foreign exchange trader at the Sumitomo Trust and Banking Co, told Dow Jones Newswires.

"Then the selling of the US dollar spread across other currencies, causing the euro to gain ground," he said.

Comments from a Chinese commerce ministry spokesman accusing the US of protectionism earned a quick rebuttal from senior US officials speaking in Beijing, who said a trade war was in neither country's best interests.

"We used to see that the United States was an innovation-driven US. But what we are seeing now is an increasingly protective US," commerce ministry spokesman Yao Jian told reporters at a regular monthly briefing.

"It is necessary to create for enterprises a stable and predictable environment, including (stable) economic and foreign exchange policies, to help the global economy grow steadily and China's exports recover," he said.

Yao added that the United States had "continued" to let the dollar drop "to improve its competitiveness" while pressing for the yuan's appreciation.

"It is detrimental to the global recovery and is unfair for (the US) to require other (currencies) to rise while allowing the dollar to keep slumping," Yao told reporters.

But US Commerce Secretary Gary Locke said Washington was not at fault.

"The United States is not engaged in increased protectionism," Locke told a luncheon in Beijing.

Obama is expected to raise trade tensions with his counterpart Hu Jintao and also urge China to reconsider the value of the yuan, which has been effectively pegged to the dollar since July 2008 and is deemed by Washington as being kept artificially low to boost Chinese exports.

In London on Monday, the euro was changing hands at 1.4969 dollars against 1.4918 dollars late on Friday, at 133.85 yen (133.57), 0.8966 pounds (0.8937) and 1.5096 Swiss francs (1.5093).

The dollar stood at 89.42 yen (89.66) and 1.0085 Swiss francs (1.0117).

The pound was at 1.6695 dollars (1.6693).

On the London Bullion Market, the price of gold jumped to 1,131.70 dollars an ounce from 1,104 dollars an ounce late on Friday.

Government issued fiat money lets the treasurey of this country spend money like no tomorrow. It artificially raiseswages and prices and artificially lowers interest rates. The federal government knows that fiat money inflation can be carried out as long as the masses inthis country do not know what is going on. Our current government is overwhelming our system with paper fiat out of nowhere consequently destroying thepurchasing power of everyone because with the diminishing value of the dollar, the prices will rise (like with the current rising in the price of gas andfood). It will take more money to buy what we regularly but because the value continues to drop. With the bailouts and corporate welfare the federal governmenthas artificially "bottomed out" the market.

At this point, whether we like it or not China is the worlds super power with credit to their "free-er" market and disastreous Free Trade agreementsthanks to Clinton and Bush administrations which have allowed low quality and cheap products intergrated into our markets (i.e. Chinese drywall and other toxicproducts) and also while having no regard for China's lack of human rights. China sees that we are vulnerable and will not listen to the currentadministraions' plea to lower the value of their currency, they dont have to, they own us at this point. That's why China's central bank governoris continuing at every chance to push for a global currency to replace the dollar and reminding the world that our dollar is the main cause of financial crisissince Pres. Nixon ended the Bretton Woods system (the Gold Standard) with those agreements establishing the IMF and World Bank which regulate and set rules forthe monetary system.

 

[renarene]

we shoulda seen it commin....

 

[isiahil]

I swear when it comes to pure economics NT has to be the most ignorant place on earth. all I'm a say is a weak dollar is very good for the US at thispoint. The world is not going to end. And if you don't have any clue about financial markets you shouldn't be typing about it.

 

[thunderchunk69]

Originally Posted by isiahil

excuse my ignorance but isn't economics only "theory"?

 

[lazy b]

Originally Posted by isiahil

I swear when it comes to pure economics NT has to be the most ignorant place on earth. all I'm a say is a weak dollar is very good for the US at this point. The world is not going to end. And if you don't have any clue about financial markets you shouldn't be typing about it.

Ok, CEO of Goldman, what do you know? Please enlighten me.

 

[primavera vills]

Originally Posted by isiahil

I swear when it comes to pure economics NT has to be the most ignorant place on earth. all I'm a say is a weak dollar is very good for the US at this point. The world is not going to end. And if you don't have any clue about financial markets you shouldn't be typing about it.

Prepare for an onslaught of replies.

 

[isiahil]

Originally Posted by Lazy B

Originally Posted by isiahil

I swear when it comes to pure economics NT has to be the most ignorant place on earth. all I'm a say is a weak dollar is very good for the US at this point. The world is not going to end. And if you don't have any clue about financial markets you shouldn't be typing about it.

Ok, CEO of Goldman, what do you know? Please enlighten me.

I know the OP has no clue what he is talking about. I know that NT continually has post on economics and the financial markets that make no sense.

 

[kanyewestjayz4life]

Yea they giving dude 60 percent for their gold. I wish i would of copped some gold earlier.

 

[daytona 5000]

Originally Posted by isiahil

Originally Posted by Lazy B

Originally Posted by isiahil

I swear when it comes to pure economics NT has to be the most ignorant place on earth. all I'm a say is a weak dollar is very good for the US at this point. The world is not going to end. And if you don't have any clue about financial markets you shouldn't be typing about it.

Ok, CEO of Goldman, what do you know? Please enlighten me.

I know the OP has no clue what he is talking about. I know that NT continually has post on economics and the financial markets that make no sense.

how is a weak dollar good for the US, though?

 

[rl treyce]

uh oh

 

[Gill Baka Esq. LLC.]

saw this the other day, makes me wish I bought couple ounces months ago when it was at $8_ _ something.

Whatever it's nothing big to me now.

 

[biggie62]

Originally Posted by DAYTONA 5000

Originally Posted by isiahil

Originally Posted by Lazy B

Originally Posted by isiahil

I swear when it comes to pure economics NT has to be the most ignorant place on earth. all I'm a say is a weak dollar is very good for the US at this point. The world is not going to end. And if you don't have any clue about financial markets you shouldn't be typing about it.

Ok, CEO of Goldman, what do you know? Please enlighten me.

I know the OP has no clue what he is talking about. I know that NT continually has post on economics and the financial markets that make no sense.

how is a weak dollar good for the US, though?

Very simple. Our products become cheaper for other countries to buy. Like Europe, China, and other places that have money to spend. Thus weclose our trading deficit by doing so. It should also help by developing more blue collar jobs for people since they will be needed to produce products. There were a few articles in the NYTimes about a few small company owners which are expanding very rapidly due to the demand for their products in Europespecifically.

Now will most of you Gucci wearing people hate this? Sure because clothes and trips overseas will be more expensive. But it is actually better for thecountry. Many economists will also tell you that the strength of the dollar in the 90s was all falsely inflated as well. And it was bad for us as a nation, asit turned us away from manufacturing, thus limiting the amount of jobs for the common person.

 

[lazyj10]

Ok, I understand the theory that our exports become cheaper therefore exports rise which help...

Also, with currency fluctuation some companies will indeed profit on the year with a weak dollar come full year reporting time.

However, hasn't manufacturing (general) fallen over the years? Also, can't/won't other countries be able to produce a comparable product at lessercost (partially because of our own tax system) therefore undercutting our exports?

I'm in no way agreeing/disagreeing with anyone other than asking questions.

 

[los yankees]

Originally Posted by Lazy B

Originally Posted by isiahil

I swear when it comes to pure economics NT has to be the most ignorant place on earth. all I'm a say is a weak dollar is very good for the US at this point. The world is not going to end. And if you don't have any clue about financial markets you shouldn't be typing about it.

Ok, CEO of Goldman, what do you know? Please enlighten me.

He must of forgot that the United States is the leader in importation and consumers are buying things at higher prices and then reducing the real income ofAmericans, then he must of forgot that inflation increases the costs of imports. Also, we will be seeing countries not investing in the US anymore. He'sassuming that with a weaker dollar that we can cut our trade deficits, but it wont since a large portion our trade deficit is because of oil importationdenomitated in US currency and another big portion is to China, which is controlling the worth of their own currency. He's thinking like this, as aninvestor he's looking at multinational companies getting a boost from foreign earnings being translated into US currency, but is a short term thing, notlong term.

To what Biggie62 was saying is the business leaders are going to discountr prices for near term bumps, but no real long term profitability. We are trying toincrease exports while lowering the prices and quality of American products.

Foreign investors are slashing US holdings and securities and have been for some time. A lower value of the dollar shows the lack of confidence of the world inus. The spokesperson in the article said it himself, we arent being innovative anymore, we arent producing.

 

[lazy b]

Originally Posted by Biggie62

Originally Posted by DAYTONA 5000

Originally Posted by isiahil

Originally Posted by Lazy B

Originally Posted by isiahil

I swear when it comes to pure economics NT has to be the most ignorant place on earth. all I'm a say is a weak dollar is very good for the US at this point. The world is not going to end. And if you don't have any clue about financial markets you shouldn't be typing about it.

Ok, CEO of Goldman, what do you know? Please enlighten me.

I know the OP has no clue what he is talking about. I know that NT continually has post on economics and the financial markets that make no sense.

how is a weak dollar good for the US, though?

Very simple. Our products become cheaper for other countries to buy. Like Europe, China, and other places that have money to spend. Thus we close our trading deficit by doing so. It should also help by developing more blue collar jobs for people since they will be needed to produce products. There were a few articles in the NYTimes about a few small company owners which are expanding very rapidly due to the demand for their products in Europe specifically.

Now will most of you Gucci wearing people hate this? Sure because clothes and trips overseas will be more expensive. But it is actually better for the country. Many economists will also tell you that the strength of the dollar in the 90s was all falsely inflated as well. And it was bad for us as a nation, as it turned us away from manufacturing, thus limiting the amount of jobs for the common person.

While you bring this up, do you think that China is currently doing the same in an attempt to make themselves come off as stronger than theyreally are? I mean they only recently ended their fixed currency system after years of international pressure.

 

[josebronx]

so to cop an ounce or not?

 

[biggie62]

Originally Posted by Lazy B

Originally Posted by Biggie62

Originally Posted by DAYTONA 5000

Originally Posted by isiahil

Originally Posted by Lazy B

Originally Posted by isiahil

I swear when it comes to pure economics NT has to be the most ignorant place on earth. all I'm a say is a weak dollar is very good for the US at this point. The world is not going to end. And if you don't have any clue about financial markets you shouldn't be typing about it.

Ok, CEO of Goldman, what do you know? Please enlighten me.

I know the OP has no clue what he is talking about. I know that NT continually has post on economics and the financial markets that make no sense.

how is a weak dollar good for the US, though?

Very simple. Our products become cheaper for other countries to buy. Like Europe, China, and other places that have money to spend. Thus we close our trading deficit by doing so. It should also help by developing more blue collar jobs for people since they will be needed to produce products. There were a few articles in the NYTimes about a few small company owners which are expanding very rapidly due to the demand for their products in Europe specifically.

Now will most of you Gucci wearing people hate this? Sure because clothes and trips overseas will be more expensive. But it is actually better for the country. Many economists will also tell you that the strength of the dollar in the 90s was all falsely inflated as well. And it was bad for us as a nation, as it turned us away from manufacturing, thus limiting the amount of jobs for the common person.

While you bring this up, do you think that China is currently doing the same in an attempt to make themselves come off as stronger than they really are? I mean they only recently ended their fixed currency system after years of international pressure.

China's currency is far from being balanced out. They still need to increase the value of their currency by a good amount. However, they arereluctant to do so because they want the Chinese population to spend money on their own products. And not on imported American and European products likeconsumers typically want to spend on. It's smart on their part for more expansion.

 

[donpoppa]

Originally Posted by JoseBronx

so to cop an ounce or not?

thats what i wanna know

 

[kix4kix]

Having a "weak" dollar is rarely good, and this case is no different, since when is the global economy having less competition a good thing?

 

[kherrylobrien]

Biggie62 has made a very good point...

 

[reigndrop]

Originally Posted by Biggie62

Originally Posted by DAYTONA 5000

Originally Posted by isiahil

Originally Posted by Lazy B

Originally Posted by isiahil

I swear when it comes to pure economics NT has to be the most ignorant place on earth. all I'm a say is a weak dollar is very good for the US at this point. The world is not going to end. And if you don't have any clue about financial markets you shouldn't be typing about it.

Ok, CEO of Goldman, what do you know? Please enlighten me.

I know the OP has no clue what he is talking about. I know that NT continually has post on economics and the financial markets that make no sense.

how is a weak dollar good for the US, though?

Very simple. Our products become cheaper for other countries to buy. Like Europe, China, and other places that have money to spend. Thus we close our trading deficit by doing so. It should also help by developing more blue collar jobs for people since they will be needed to produce products. There were a few articles in the NYTimes about a few small company owners which are expanding very rapidly due to the demand for their products in Europe specifically.

Now will most of you Gucci wearing people hate this? Sure because clothes and trips overseas will be more expensive. But it is actually better for the country. Many economists will also tell you that the strength of the dollar in the 90s was all falsely inflated as well. And it was bad for us as a nation, as it turned us away from manufacturing, thus limiting the amount of jobs for the common person.

Last I checked on Friday, our trade deficit GREW, when the trade data was released. Your whole entire point has been voided.

 

[reigndrop]

Originally Posted by donpoppa

Originally Posted by JoseBronx

so to cop an ounce or not?

thats what i wanna know

I'm against my firms head economist, don't buy gold now. It's awfully crowded.

 

[biggie62]

Originally Posted by reigndrop

Originally Posted by Biggie62

Originally Posted by DAYTONA 5000

Originally Posted by isiahil

Originally Posted by Lazy B

Originally Posted by isiahil

I swear when it comes to pure economics NT has to be the most ignorant place on earth. all I'm a say is a weak dollar is very good for the US at this point. The world is not going to end. And if you don't have any clue about financial markets you shouldn't be typing about it.

Ok, CEO of Goldman, what do you know? Please enlighten me.

I know the OP has no clue what he is talking about. I know that NT continually has post on economics and the financial markets that make no sense.

how is a weak dollar good for the US, though?

Very simple. Our products become cheaper for other countries to buy. Like Europe, China, and other places that have money to spend. Thus we close our trading deficit by doing so. It should also help by developing more blue collar jobs for people since they will be needed to produce products. There were a few articles in the NYTimes about a few small company owners which are expanding very rapidly due to the demand for their products in Europe specifically.

Now will most of you Gucci wearing people hate this? Sure because clothes and trips overseas will be more expensive. But it is actually better for the country. Many economists will also tell you that the strength of the dollar in the 90s was all falsely inflated as well. And it was bad for us as a nation, as it turned us away from manufacturing, thus limiting the amount of jobs for the common person.

Last I checked on Friday, our trade deficit GREW, when the trade data was released. Your whole entire point has been voided.

We'll see as the dollar continues to diminish in value. My point is far from voided. You can't base it off one year of data. Give it another 1-3years and then we have data that has balanced itself out. As loans are being given out to entrepreneurs, because of the course of the last year it wasn't,we'll have more accurate data.