tag:blogger.com,1999:blog-6616959642391988608.post8153383021366847926..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Bernanke and the dollarScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-6616959642391988608.post-31810572307019927312011-04-29T09:09:24.891-07:002011-04-29T09:09:24.891-07:00The velocity of the decline the in the dollar is t...The velocity of the decline the in the dollar is the real concern. Bernanke's disdain for defending the dollar has created a major momentum behind its decline it will be very hard to stop. DXY is down almost 15% since September, one of the strongest corrections of the previous decade. Now, we embark into uncharted territory as we float at historic weakness for the dollar. Central Bankers,acrossthecurvehttps://www.blogger.com/profile/16425254934059527965noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-33987769279323052852011-04-29T07:56:45.479-07:002011-04-29T07:56:45.479-07:00I don't disagree that the U.S. has a big debt ...I don't disagree that the U.S. has a big debt problem, but don't see how it is possible that debt amounts to $65 trillion or anything even close to that. There are indeed trillions of unfunded liabilities of social security and medicare, etc., but these liabilities are not debt. No one has a legal entitlement to his social security promises, for example. Plus, the unfunded liabilities canScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-80321906757974579382011-04-29T06:03:08.360-07:002011-04-29T06:03:08.360-07:00Scott,
Last PIMCO article (Skunked) brings that:
...Scott,<br /><br />Last PIMCO article (Skunked) brings that:<br />"As others, such as Pete Peterson of the Blackstone Group and Mary Meeker, have shown much better and for far longer than I, the true but unrecorded debt of the U.S. Treasury is not $9.1 trillion or even $11-12 trillion when Agency and Student Loan liabilities are thrown in, but $65 trillion more! This country appears to have Family Manhttps://www.blogger.com/profile/10304538166086313103noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-7014446931185127262011-04-28T23:13:01.874-07:002011-04-28T23:13:01.874-07:00I don't think their stated (public) goals are ...I don't think their stated (public) goals are tremendously important. As a private company, their goal is to make money, which requires keeping inflation low and predictable and avoiding deflation. They have been relatively good at this since the gold standard was removed, which freed them to adjust the value of the dollar more easily. There has not been a deflationary year since the 70'sStone Glasgowhttps://www.blogger.com/profile/00545401735030232324noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-32669633007402982562011-04-28T22:09:43.365-07:002011-04-28T22:09:43.365-07:00Re a better way to a strong and stable dollar: sim...Re a better way to a strong and stable dollar: simply tell the world that a strong and stable dollar is the Fed's primary objective. (As it is today their primary objective is low inflation and low unemployment, with the hope that that will then lead to a strong and stable dollar) I believe that if the Fed's primary objective were a strong and stable dollar, then low inflation and low Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-38693526755933407992011-04-28T21:44:01.707-07:002011-04-28T21:44:01.707-07:00"I have to believe there is an easier and mor..."I have to believe there is an easier and more direct way to achieve a strong and stable dollar, which is ultimately the only way to enjoy low and stable inflation and a strong economy."<br /><br />What is the easier and more direct way?Stone Glasgowhttps://www.blogger.com/profile/00545401735030232324noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-2864120317086886092011-04-28T12:02:04.642-07:002011-04-28T12:02:04.642-07:00We will soon discover if Uncle Ben and the USA wil...We will soon discover if Uncle Ben and the USA will be the first country to inflate it's way to prosperity.<br />Many have tried - none have succeeded.TradingStrategyLetter - Weekly Summaryhttps://www.blogger.com/profile/06430136667577107255noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-34755336950947311532011-04-28T09:24:37.120-07:002011-04-28T09:24:37.120-07:00Re: putting the inflation genie back in the bottle...Re: putting the inflation genie back in the bottle. It is indeed difficult. I note that every recession in the past 60 years has been precipitated by a tightening of monetary policy in response to rising inflation. Volcker's tightening triggered a very painful recession in the early 1980s. Interest rates had to climb well into double digit territory. Plus, it took a good 3-4 years before Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-86400197100364219962011-04-28T01:03:05.355-07:002011-04-28T01:03:05.355-07:00Does anybody realize how close to
a depression we ...Does anybody realize how close to<br />a depression we got in 2008 plus<br />does anybody realize how close to<br />a depression we will have if Dr.<br />Ron Paul M.D. gets real power???broderohttps://www.blogger.com/profile/12296214283216386700noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-52195835804329080812011-04-27T19:06:24.854-07:002011-04-27T19:06:24.854-07:00"A weaker dollar risks letting the inflation ..."A weaker dollar risks letting the inflation genie out of the bottle, and we know it's very hard to put back in once that happens."<br /><br />Huh? Hard to "put back?" Volker didn't have any trouble 30 years ago. Probably the easiest thing to fix and you guys talk about it like it was an incurable disease.Johnhttps://www.blogger.com/profile/06365403570563730880noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-49232188518951439952011-04-27T18:20:56.664-07:002011-04-27T18:20:56.664-07:00Cabodog,
Have you ever heard the term buy the rum...Cabodog,<br /><br />Have you ever heard the term buy the rumor sell the fact?<br /><br />In the words of Maury Finkle, founder of Finkle Fixtures, Biggest Lighting Fixture Chain in the Southland,<br /><br /><br />Do it.Lorihttps://www.blogger.com/profile/01438039963046848511noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-76909565321737537322011-04-27T17:48:10.980-07:002011-04-27T17:48:10.980-07:008;30 PM EUR-USD 1.482
This AM it was down to 1...8;30 PM EUR-USD 1.482 <br /><br />This AM it was down to 1.472 from the previous day. <br /><br />When states obviously can't pay their debt, the adjustment occurs primarily through their currency which falls dramatically. This is the point which major investors overseas and also in the U.S. understand. Unfortunately for Greece, Ireland and Portugal, they don't have this option. <br /><Williamhttps://www.blogger.com/profile/04418491109912775561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-42034156580956791952011-04-27T17:10:51.687-07:002011-04-27T17:10:51.687-07:00William-
I share your sentiments, and admire your...William-<br /><br />I share your sentiments, and admire your balanced point of view.<br /><br />The problem is entitlements, the number of federal employees, military spending and rural subsidies. <br /><br />Aside from that, it is pretty easy to fix.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-41529179409043909402011-04-27T17:09:15.484-07:002011-04-27T17:09:15.484-07:00Scott, the scary thing about gold right now is tha...Scott, the scary thing about gold right now is that, yes, in 1980 it was higher (in real terms), but that was in response to REAL inflation. <br /><br />Gold right now is high due to the FEAR of the return of inflation. <br /><br />What will gold be when inflation actually returns?Cabodoghttps://www.blogger.com/profile/08299113185481067179noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-45480522362760810222011-04-27T16:27:47.716-07:002011-04-27T16:27:47.716-07:00Ben "Trust Me" Bernanke has to be a new ...Ben "Trust Me" Bernanke has to be a new coined phrase. I love it but I will take the under on his eventual success.Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-83747972005967741552011-04-27T15:19:27.116-07:002011-04-27T15:19:27.116-07:00I think that we shouldn't give too much credit...I think that we shouldn't give too much credit to Mr. Bernacke for the decline of the US Dollar. <br /><br />What is dismaying foreign investors is the real results of last year's mid-term elections: 1) the December compromise in which the Democrats got more spending and the Republicans got low tax rates and 2) the shameful Budget Shutdown sham which claimed to save $38 Billion but cut Williamhttps://www.blogger.com/profile/04418491109912775561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-60182294168442567912011-04-27T14:39:25.588-07:002011-04-27T14:39:25.588-07:00First some good news:
"The Nasdaq Composite...First some good news:<br /><br /> "The Nasdaq Composite index hit its highest level in more than 10 years Wednesday as US stocks pushed upward after the Federal Reserve left ..."<br /><br />A 10-year high! <br /><br />I guess I am the only man in America who believes in Bernanke. I think he is deeply learned, and a dedicated public servant. If anything, I think he is a little bit too Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com