Comments on: Japanese defend dollar’s status while China tears it down http://www.creditwritedowns.com/2009/07/japanese-defend-dollars-status-while-china-tears-it-down.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/07/japanese-defend-dollars-status-while-china-tears-it-down.html#comment-56691 Edward Harrison Sun, 05 Jul 2009 01:31:00 +0000 http://www.creditwritedowns.com/2009/07/japanese-defend-dollars-status-while-china-tears-it-down.html#comment-56691 that does make a lot of sense. The Chinese posturing, however, seems to be infighting between central bank and foreign ministry. Who wins could be a real wild card in this debate. The dollar is not going to collapse against sterling or the euro, that's for sure. Sterling at 211 was nuts as is the Euro at 160. I could see a range for Euro up to 150 and sterling up to 170, but that's it. that does make a lot of sense. The Chinese posturing, however, seems to be infighting between central bank and foreign ministry. Who wins could be a real wild card in this debate. The dollar is not going to collapse against sterling or the euro, that’s for sure. Sterling at 211 was nuts as is the Euro at 160. I could see a range for Euro up to 150 and sterling up to 170, but that’s it.

]]> By: kynikos http://www.creditwritedowns.com/2009/07/japanese-defend-dollars-status-while-china-tears-it-down.html#comment-56690 kynikos Sun, 05 Jul 2009 00:33:00 +0000 http://www.creditwritedowns.com/2009/07/japanese-defend-dollars-status-while-china-tears-it-down.html#comment-56690 Yeah... the dollar will fall against what? Maybe NOK I guess... but I do like short sterling and euro versus dollar now. Too many people are expecting the dollar to collapse and markets rarely do what the majority thinks. Also, the large amount of dollar demoninated debt props up the dollar in a global balance sheet recession. Regardless of what you think of the dollar, the massive debt keeps everyone locked-in into the currency. Yeah…

the dollar will fall against what? Maybe NOK I guess… but I do like short sterling and euro versus dollar now. Too many people are expecting the dollar to collapse and markets rarely do what the majority thinks. Also, the large amount of dollar demoninated debt props up the dollar in a global balance sheet recession. Regardless of what you think of the dollar, the massive debt keeps everyone locked-in into the currency.

]]> By: Edward Harrison http://www.creditwritedowns.com/2009/07/japanese-defend-dollars-status-while-china-tears-it-down.html#comment-56688 Edward Harrison Sat, 04 Jul 2009 00:18:00 +0000 http://www.creditwritedowns.com/2009/07/japanese-defend-dollars-status-while-china-tears-it-down.html#comment-56688 is the dollar as rubbish as the other lot? It's hard to say. There are pluses and minuses, but on the whole I see the dollar as weak. Over the shorter-term, the weakness of the European banking sector is going to prevent the Euro from being a dollar replacement. In the end, as you say, a better hedge out of the dollar is hard assets i.e. gold and commodities. is the dollar as rubbish as the other lot? It’s hard to say. There are pluses and minuses, but on the whole I see the dollar as weak. Over the shorter-term, the weakness of the European banking sector is going to prevent the Euro from being a dollar replacement.

In the end, as you say, a better hedge out of the dollar is hard assets i.e. gold and commodities.

]]> By: Stevied b. http://www.creditwritedowns.com/2009/07/japanese-defend-dollars-status-while-china-tears-it-down.html#comment-56687 Stevied b. Fri, 03 Jul 2009 20:30:00 +0000 http://www.creditwritedowns.com/2009/07/japanese-defend-dollars-status-while-china-tears-it-down.html#comment-56687 So, the dollar is rubbish - but as it can only be replaced by more rubbish, let's pretend the dollar isn't as rubbishy as the rest. Surely it's delusional and a recipe for eventual stagflation, where all major currencies will be exposed as having declining value via the rising cost of raw materials as soon as velocity shows any sign of picking-up, which WILL happen later if not sooner - and any vague prospect of recovery will be dealt a fatal blow as a result. So, the dollar is rubbish – but as it can only be replaced by more rubbish, let’s pretend the dollar isn’t as rubbishy as the rest. Surely it’s delusional and a recipe for eventual stagflation, where all major currencies will be exposed as having declining value via the rising cost of raw materials as soon as velocity shows any sign of picking-up, which WILL happen later if not sooner – and any vague prospect of recovery will be dealt a fatal blow as a result.

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