Tuesday, July 14, 2009

Dollar Down… So Why is the Euro Falling Too?

Yesterday’s stock rally pushed the dollar index down half a point, to 80 even. The Treasury’s announcement of the biggest budget deficit in the history of fiat money didn’t help the greenback, either.

That puts the pound up a few cents from last week’s low, to $1.63. The Canadian dollar has gotten a nice bump too, from 86 cents Friday to just under 88 cents as we write. At 92, the yen is holding on to its newfound strength.

But in spite of the dollar’s marginal weakness, the euro is no better off. In fact, since peaking around $1.43 in early June, the multination currency has been slowly trending down. This morning, it’s at $1.39. (more)

Budget deficit tops $1 trillion for first time

WASHINGTON — The federal deficit has topped $1 trillion for the first time ever and could grow to nearly $2 trillion by this fall, intensifying fears about higher interest rates, inflation and the strength of the dollar.

The deficit has been widened by the huge sum the government has spent to ease the recession, combined with a sharp decline in tax revenues. The cost of wars in Iraq and Afghanistan also is a major factor.

The soaring deficit is making Chinese and other foreign buyers of U.S. debt nervous, which could make them reluctant lenders down the road. It could also force the Treasury Department to pay higher interest rates to make U.S. debt attractive longer-term. (more)


The World Bank - IMF is owned and controlled by NM Rothschild and 30 to 40 of the wealthiest people in the world. For over 150 years they have planned to take the world over through money. The former chief economist of the World Bank, Joe Stiglitz, was fired recently. He pointed out to top executives that every country the IMF/World Bank got involved in ended up with a crashed economy, a destroyed government, and sometimes in flames with riots. Jim Wolfensen, the president of the World Bank would not comment on his dismissal.

Before Joe Stiglitz was fired he took a large stack of secret documents out of the World Bank. These secret documents from the World Bank and the International Monetary Fund reveal that the IMF required nations: (more)

The Truth Behind the G8 Meeting

No doubt you’ve heard about last week’s G-8 Meeting in L’Aquila, Italy. And no doubt you’re hearing a lot of sound bites from the G-8 and the media about the U.S. dollar being a very hot topic at the meeting.

To be sure, the dollar is the central topic on most leaders’ minds right now. After all …

arrow The TRUTH ... The United States is now the most indebted civilization in the history of the world and ground zero for the financial crisis. (more)

Switch away from dollar could bankrupt US economy - Celente

Housing Update - How Far To The Bottom?

My previous update was was on December 1 ,2008 in a post with the same name as this one Housing Update - How Far To The Bottom?

I just added the Summer 2009 arrow. Housing prices are now one notch closer to their final destination. The US Timeline scale is compressed. At the current pace, housing will bottom in about 7 years vs. 14 years in Japan.

Comparison to Case-Shiller

Inquiring minds may wish to compare the shape of the above chart to June 209 Case Shiller Release (April Data). (more)