Imf Chief Economist Warns Of Dollar Fall

[malco]

It's all very well when pundits warn of the dollar going into free-fall, but when it's the Chief Economist of the IMF that's a bit more worrying:

http://goldprice.org/news/2006/01/imf-chie...-run-on-us.html

Thoughts?

[sp1]

Perfect

Every one sel sell sell sell usd

I need a good entry to load up (Hypothetical).

[Realistbear]

If the dollar drops the EU has a problem with exports and the recovery is fragile at best in Germany and France. The pound has nowhere to go but down due to Brown's deficit and surging unemployment. My bet is that the dollar may drop but sterling will do worse which is why I am hanging onto US$ for the long term as a world wide crash usually sees the US recover first as their economy is much more resilient. In any event the Chinese will not be pleased with a falling dollar since they own a good portion of US debt--if they sell $ their "debt" suddenly devalues which may be the US plan. Win win for the US$?

[DonnieDarker]

I'm deffo of to NYC this year then!

[Guest Riser]

I see a falling Dollar as the next driver for the gold bull. Over the past couple of years we have seen a gradual devaluation of all paper currencies against gold which is currently being boosted by foreign investment shying away from holding the Dollar trying not to be the "first to leave the poker table" as another poster put it.

The next phase will not just see foreign investors dumping the Dollar but also members of the US public buying gold to protect their wealth. This will see the price of gold skyrocket due to the worlds bullion market only being a fraction of the size of the stock markets. The wall of money from the deep oceans of the shares and derivatives markets will pour onto the shallow shores of the bullion markets will cause a wave of Sunami type proportions to develop which will no doubt leave a path of financial disaster behind it.

The question is how long can the central banks keep reducing interest rates in order to keep their FIAT systems inflated, one more economic shock may be enough the bring the whole sorry system to a dramatic end.

[Realistbear]

http://freeserve.advfn.com/news_Forex---Do...2_13951997.html

Deficit improving and economy healthy. Dollar up today.

http://www.iii.co.uk/news/?type=afxnews&ar...&action=article

NEW YORK (AFX) - The dollar zoomed ahead of the euro and yen Thursday afternoon, after a stronger-than-expected durable goods report provided support to the battered currency.

Edited January 26, 2006 by Realistbear

[Justice]

"Brown's deficit and surging unemployment"

You could had fooled me because it just said on BBC news that they need to outsource more jobs because the UK has a skill shortage.

What a insult

The only shortage is of skilled people who will work for £5.00 per hour

Was Blair to be a company then he would be taken to task for dumping. My guess is he get lots of brown envelopes from India and Tesco and cares more about his pocket than the people he is paid for to represent.

Revolt I say

Edited January 26, 2006 by Justice

[oracle]

I see a falling Dollar as the next driver for the gold bull. Over the past couple of years we have seen a gradual devaluation of all paper currencies against gold which is currently being boosted by foreign investment shying away from holding the Dollar trying not to be the "first to leave the poker table" as another poster put it.

The next phase will not just see foreign investors dumping the Dollar but also members of the US public buying gold to protect their wealth. This will see the price of gold skyrocket due to the worlds bullion market only being a fraction of the size of the stock markets. The wall of money from the deep oceans of the shares and derivatives markets will pour onto the shallow shores of the bullion markets will cause a wave of Sunami type proportions to develop which will no doubt leave a path of financial disaster behind it.

The question is how long can the central banks keep reducing interest rates in order to keep their FIAT systems inflated, one more economic shock may be enough the bring the whole sorry system to a dramatic end.

with you on that one riser...and I'm looking for sterling to follow the dollar down the toilet!

[gone west]

The next phase will not just see foreign investors dumping the Dollar but also members of the US public buying gold to protect their wealth. This will see the price of gold skyrocket due to the worlds bullion market only being a fraction of the size of the stock markets. The wall of money from the deep oceans of the shares and derivatives markets will pour onto the shallow shores of the bullion markets will cause a wave of Sunami type proportions to develop which will no doubt leave a path of financial disaster behind it.

How poetic! Very accurate as well.

China cares more about political expediency rather than economic gain. They would gladly suffer a fall in reserves than lose face. Notice that the US is twisting India's arm on Iran, but has said nothing, at least publicly, to China.