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Dow Peaks as Dollar Sinks
Jin Lee / AP Photo
The Dow Jones Industrial Average hit a high for the year on Monday, while the U.S. dollar got a metaphorical vote of no confidence. The Dow's average shot up 200 points as countries pledged to increase federal spending and continue to stimulate the economy. However, the U.S. dollar was given the cold shoulder by the Group of 20 ministers, who couldn't promise any efforts to bolster it. The dollar subsequently fell to $1.50 against the euro. One currency strategist said that last week's decision by the Fed to not raise interest rates played into the lack of support, in addition to concern over America's bloating deficit.
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According to the talking heads, the rise in the market is due to the weak dollar. It's weak by the choice of the Treasury and the Fed, which are making it possible for the Kings of Wall Street to borrow money for free, and the large, global corporations to export more. Those companies who are not exporters are not doing all that well, and in the course of time the printing of money will result in inflation which will hurt the ordinary citizen but not Wall Street.
Banana Republic, anyone?
But, but, but, the Fed can't manipulate the stock market.
How much money has the Fed lent to the central banks of those G20 countries? $500 billion, give or take? If the dollar continues to tank, that $500 b will end up being only pocket change to its borrowers.
Audit the Fed. A sharp pain now, will prevent a lifetime of suffering.
or just get rid of the fed. but as that'll never happen unless ron paul gets elected to president, auditing is the second best solution.
The dollar is weak because of Obama's unprecedented deficit spending and the failure of his administration to make a real commitment to stop their deficit spending.
Plant: Obama's unprecedented deficit spending?
George W. Bush ran up $5 trillion in national debt (following in the footsteps of Reagan and George H. W. Bush, who combined to run up $4 trillion in debt).
I think this is quite adequate as a precedent, thank you.
By the way, the only president in the last 50 years to make a real commitment to stop deficit spending was Bill Clinton.
Hi AllenD2:
LIke many liberals, you are a mathematical illiterate. Bush43 was president from 2000-2008 and during his 8 years in office he presided over a $2.5 trillion increase in the public debt through 2008. Thats was terrible, but Bush has turned out to be a piker compared to Obama.
President Obama took office on Jan. 15th 2009, and immediately called for more spending---Obama signed the porkulus bill, housing relief, budget supplement bills, Afghanistan war bills etc. that exploded the budget. Obama's deficit in 2009 alone is almost two trillion dollars. President Obama's budget proposals, as currently published by the White House will add $4.9 trillion in additional public debt from the beginning of 2010 through 2016.
Obama's irresponsible spending and huge budget deficits are destroying the value of the dollar.
Hey Plant...
Why are you comparing money already spent versus money that is forecast to be spent?
Fact is, as of this moment, the GOP are the biggest spenders of all time... BY FAR.
Sorry, Plant, but Bush 43 actually had a $5 trillion increase in our national debt - doubling it. At least he didn't triple the national debt, as Ronald Reagan did.
Like many conservatives, you are factually illiterate.
bezvodka: A falling dollar is probably the best thing that could happen to the U.S. at this point.
It will make exports cheaper, stimulating demand. And it will make imports more expensive, forcing us to cut down, which will reduce our trade deficit with other countries.
Of course average Americans will be hurt by the higher cost of imports, but that's what we get for living beyond our means for so long.
No, actually it's not. Only a small percentage of our economy is based on exports. A cheap dollar brings foreign investors into the stock market, and makes our national debt cost less.
It's not just a higher cost of exports that will hurt Americans, it's run away inflation (too many dollars chasing too few services. High inflation not only causes higher prices in consumer goods, it makes loans and mortgages cost more.
Forget about what those investors on CNBC say. They are not economists, they are businessmen.
FatFreddy: Paul Krugman, who probably knows more about economics than you or I, says that inflation will not be a problem for quite a few years.
good news!!!! now retirement is in site. will be moving into cash as soon as the market makes a burp
It can't be overstated that there is a huge disconnect between Wall Street, and the people who BAILED OUT WALL STREET . . . those of Us on Main Street.
Nice to see Wall Street is living high on the hog while those of us who bailed you out are still living in the real world of a bad economy.
I hope there is NO Next time for a bailout . . .
and next time You are NOT "Too Big To Fail."
Why is it that the US and the UK are so "gung ho" for war in Iraq and Afghanistan ???
The UK is Bankrupt and owned by the Bank of England which is really a Private Rothschild Bank.
The US is headed for Bankruptcy and is more or less owned by the Federal Reserve Bank which is also a Private Banking concern with 15 Directors all of whom are Jews.
Is there a connection here with the "War on Islam" ??????
http://tinyurl.com/yh89xps
.
Housebird, I checked out your link, and have to admit that there seems to be a nugget of truth there, somewhere. But, since I lack knowledge of the creation of the Federal Reserve System, I could not locate this truth.
In their essay on the ownership of the Federal Reserve Bank, they also assert that the Great Depression was intentionally caused by the Fed, but..., but, then they really blow all credibility by asserting that the European Bankers were behind the Fed's intentional tanking of the economy and subsequent depression in order to recover gold, which was somehow stolen from Germany following WWII.
Don't you see the flaw? When FDR eliminated the gold standard, WWII had not yet occurred, therefore there had been no gold stolen from Germany, no motive for European bankers to try these types of shenanigans. That could only have been possible if the European Bankers in 1933 were able to see into the future to 1945, when the alleged theft would take place.
My guess is that that particular website has a private axe or two to grind, and should be looked at with a certain amount of skepticism.
Housebird:
There is no "war on Islam." Only looney leftists and Islamic terrorists believe that stale propaganda.
And those who agreed with W when he declared that we were on a "crusade"...
And, Americans can't feed there familys and can't get a "JOB" President Obama your "SIR" promised you would go after NAFTA and bring "JOBS" back to American familys, Bill Clinton and the rest of his secret society friends have hurt America with there New Global Order from deregulation that started with Reagan continued on with Bush41 and signed by Bubba (Bill) can you see the pattern from these secret soceity tyrants ......!
The judas attitude of the adminastration is symbolized in a article written by Bill Clintons very close friend,Deputy Secretary of State. Strobe Talbott titled, The Bith of the Global Nation ,Talbott strongly attacked American National Sovereignty stating,National as we know it will be obsolete: All states will recognize a single Global Authority. 7/20/92 Time magazine, America we have been under attack by our own leadership and there secret society agenda ,They are in both partys and we need to recognize them and ask anybody who wants to be in our government from here on out are they involved in any type of secret society if they are DO NOT VOTE FOR THEM they will continue to destroy America as we know it,The last 8years have been a witness to there destructive power and selfish ambitions of there New Global Order people will continue to die and our troops will continue to die and fight in there false wars like Iraq..........! America stand up and start asking questions to those who wish to be elected officals ,Evangelics do not be misled any longer by those in the Re-publican party who claim to be someone there "NOT" They are false teachers and leaders jesus the christ warned us about before his return.........! open your spiritual eyes to see and your spirituals ears to hear.......!
and as always, the zeitgeisters and tinfoil hat community must make at least one appearance.......
We've turned the US Dollar into the North American Peso. Well Done! George Patton
That's what happens after Americans live on plastic for 30 years, George.
Thank Reagan, Bush 41, and Bush 43, who ran up $9 trillion in national debt.
Actually the budget deficit is a mere spit in the ocean compared to the entitlement deficit now being added to by the Democrats. I am not sure I understand the logic of arguing for a democratic agenda that will run up the deficit by $9 trillion in four years by arguing that the Republcians (of course with no help from the Democrats) ran up the same dollar figure of a deficit in 30 years. Is that the best that you can do?
You prgressives make Glen beck look like a model of equilinity.
go f*** yourself
please don't take the bait, my nutritious friend. You can think it as loud as you want, but we should not give credence to their fears of us...
Social services are a MUCH better investment than the war industry and corporate welfare.
did you mean equanimity?
if you lose money in the stock market
YOU DESERVE IT
stocks have no legal obligation to ever pay you back, the only reason you invest is because you are too greedy to accept the lower returns of bonds which carry a legal obligation to pay you.
There are always trade offs to be made. Stocks, bonds, and preferred stock each have their pros and cons.
laughorcryagain: And if the company issuing bonds goes broke, you lose your money too.
There are no guarantees in this life!
Thank you.
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