By Deborah Levine
It's the quiet ones that surprise you.
Brazil and Canada were among big sellers of Treasurys in the latest month for which data is available and the previous year, catching analysts off guard and raising speculation that quieter nations may be concerned about investing in the U.S.
Brazil and Russia, which along with India and China are part of the so-called BRIC countries, have expressed concern with the strength of the U.S. dollar. It was therefore not so surprising that the two countries reduced their holdings of Treasurys in May, according to the latest data available from the Treasury International Capital report released last week. The two are among the largest holders of Treasurys.
But Canada, the biggest trading partner for the U.S., has publicly said nothing of the sort. Taiwan and France were also notable sellers of Treasurys in the latest month.
"It's a bit like friendly fire," said Michael Woolfolk, senior currency strategist at The Bank of New York Mellon. "We saw some record selling of long-term Treasurys and that's exactly the kind of thing Wall Street and the government have been worried about for years, and it came from some unexpected places."
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We're quiet, not stupid.
ReplyDeleteHow do we separate the wheat from the chaff?
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Dollar selloff....bla bla bla.
So look at other countries and their fiscal policies. Exactly who is a paragon of virtue?
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To return to my primary question, how does one determine when the USD is in serious free fall? The USD Index? 10 year Tresuries? Are there other incicators I should be aware of?
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And let's put this into perspective. If the US is to rebuild its export base, then a lower USD is benificial. So is a sharp fall in the USD so bad?
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What really would be harmfull as far as I can see would be the inability of the USD to buy anywhere near the ol it previously could. That would cause fuel prices to raise drasticly in the US, with all the attendant economic effects.
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Come on people, speak up. Share your thoughts on this "survivalists forum".
How does one cope as the dollar gets stressed & perhaps sinks? What are the best techniques to protect oneself (keeping in mind the real life restrictions most US workers face due to Wall Steets influence on Gov policy to ensure that workers retirement funds ALWAYS flow their way).
Ideas?
You don't like our money anymore ,eh?
ReplyDeleteObviously the solution is to get out of holding the US dollar. Take any substantial money out of banks and sell stocks and invest it elsewhere before the market takes further hits.
ReplyDeleteI believe you touched on an important point. here in the US we have beeen forcibily buying up oil at very low prices. When prices shifted upward part of the economic turmoil we experienced was due to this adjustment. Further adjustments will be made. And oil will eventually go up higher; that is my belief. It's just a matter of time. One of the main sources of US wealth is cheap labor as well as cheap energy. This equation will change. You will see not only are we going to break because of mismanagement and ponzi schemes, but also the one great ponzi scheme that is capitalism.
Put your money in gold and silver.
ReplyDeleteBury it in the backyard.
Don't let no bank hold it for you.
I should say going broke...
ReplyDeleteWhen the banks release their 'extra digits' out into the market there is only one scenario - hyperinflation. I will finally get to be a trillionaire.
ReplyDeleteNo one likes our money anymore because it isn't real money! Nixon the "I'm not a crook" puppet took the last remaining vestiges of our monetary system into the toilet when he took us off the gold standard.
ReplyDeletePeople, if you don't own gold and silver when the levy breaks your doomed! Gold and Silver are true money, that paper you carry is emergency toilet paper!
Too rough! It will make for good packing material though.
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