Jump to content
House Price Crash Forum
Sign in to follow this  
gruffydd

Dollar Collapse Panic Breaks Out - Daily Telegraph

Recommended Posts

http://www.telegraph.co.uk/money/main.jhtm...bcnsaudi119.xml

Fears of dollar collapse as Saudis take fright

By Ambrose Evans-Pritchard, International Business Editor

Last Updated: 8:39am BST 20/09/2007

Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.

Ben Bernanke has placed the dollar in a dangerous situation, say analysts

"This is a very dangerous situation for the dollar," said Hans Redeker, currency chief at BNP Paribas.

"Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States," he said.

Edited by gruffydd

Share this post


Link to post
Share on other sites
http://www.telegraph.co.uk/money/main.jhtm...bcnsaudi119.xml

Fears of dollar collapse as Saudis take fright

By Ambrose Evans-Pritchard, International Business Editor

Last Updated: 8:39am BST 20/09/2007

Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.

Ben Bernanke has placed the dollar in a dangerous situation, say analysts

"This is a very dangerous situation for the dollar," said Hans Redeker, currency chief at BNP Paribas.

"Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States," he said.

Gulp.

F :unsure::blink::o

Share this post


Link to post
Share on other sites

F*cking crazy cutting half a percent ,when they have an inflation problem twice as bad as the UK.I am relying on Merv to weather Darling's seige and hold out at 5.75%.We will be going the same way as the dollar if they can replace him with Lomax.

Edited by crashmonitor

Share this post


Link to post
Share on other sites

This could be serious. Another knock on effect with this is inflation in Europe. Typically asian manufacturers are very reluctant to raise prices in the US market and simply pass on higher costs to other countries.

Share this post


Link to post
Share on other sites
This could be serious. Another knock on effect with this is inflation in Europe. Typically asian manufacturers are very reluctant to raise prices in the US market and simply pass on higher costs to other countries.

well that was my thought, the basta^ds drop their rates and we will end up paying the bill, typical american stab in the back.

About time they got payback tbh.

Share this post


Link to post
Share on other sites
This could be serious. Another knock on effect with this is inflation in Europe. Typically asian manufacturers are very reluctant to raise prices in the US market and simply pass on higher costs to other countries.

They won't have to raise prices if the dollar is sliding. The US will be importing inflation big time. Let's hope they still have something to export to take advantage of a weak currency.

Share this post


Link to post
Share on other sites
They won't have to raise prices if the dollar is sliding. The US will be importing inflation big time. Let's hope they still have something to export to take advantage of a weak currency.

Yes. War seems to be their most successful export. I suspect with a sliding dollar we'll see an increase in exports.

http://www.housepricecrash.co.uk/forum/ind...t=0&start=0

Edited by dstars

Share this post


Link to post
Share on other sites
I am relying on Merv to weather Darling's seige and hold out at 5.75%.We will be going the same way as the dollar if they can replace him with Lomax.

My eyes, the goggles, they do nothing. I wish I could un-read what you just wrote, and unthink what I just thought.

... so perhaps the gyrations on the Treasury Select Committee yesterday have more to do with (covert) US Foreign Policy directives than any more domestic concerns? If Merv won't chase the dollar down - ensure he is replaced by someone who will.

Either way, it all smells of Brown.

Share this post


Link to post
Share on other sites
My eyes, the goggles, they do nothing. I wish I could un-read what you just wrote, and unthink what I just thought.

... so perhaps the gyrations on the Treasury Select Committee yesterday have more to do with (covert) US Foreign Policy directives than any more domestic concerns? If Merv won't chase the dollar down - ensure he is replaced by someone who will.

Why was Paulson meeting with Darling and Brown on monday?

Share this post


Link to post
Share on other sites
Guest KingCharles1st
"This is a very dangerous situation for the dollar," said Hans Redeker, currency chief at BNP Paribas.

Ummm- this is a dangerous situation for anyone anywhere in the Middle East..!

Share this post


Link to post
Share on other sites
That's really funny.

Someone tell him.

Actually, it's a reference to the Radioactive Man movie, where Rainier Wolfcastle didn't appreciate the "Up and Atom" pun, and hence insisted on saying it as "Up and At Them".

Share this post


Link to post
Share on other sites
Actually, it's a reference to the Radioactive Man movie, where Rainier Wolfcastle didn't appreciate the "Up and Atom" pun, and hence insisted on saying it as "Up and At Them".

Cheers sprouty, I thought I would have to do it myself. ;)

Next time I will include the link.

OK next time CC, you do Up and Atom, I will do up and at them, then you do up and atom and I do Up and at them.

Trust me, it's hilarious.

Share this post


Link to post
Share on other sites
Cheers sprouty, I thought I would have to do it myself. ;)

Next time I will include the link.

OK next time CC, you do Up and Atom, I will do up and at them, then you do up and atom and I do Up and at them.

Trust me, it's hilarious.

No problem - I know sweet FA about economics, but I'm fine on Simpsons stuff :)

Share this post


Link to post
Share on other sites

Anyway.....

Looks like the situation is becoming very unstable. Looks like a game of chicken

involving China, Japan , Saudi and Russia. Maybe Saudi will blink first.

I'm sure that China and Japan must realise that the game is up for the dollar

and will start to withdraw too.

Share this post


Link to post
Share on other sites
Anyway.....

Looks like the situation is becoming very unstable. Looks like a game of chicken

involving China, Japan , Saudi and Russia. Maybe Saudi will blink first.

I'm sure that China and Japan must realise that the game is up for the dollar

and will start to withdraw too.

Naaah, it's much more fun to thumb my nose at CC thinking I missed the reference, and him with a simpsons avatar too. Unless you didn't know it was a simpsons avatar CC ;)

But seriously,

I don't get why this means the Yen carry trade resumes, which is a headline that was on Bloomberg this morning. Doesn't that rely on a strong dollar with higher IRs? I am not big on currencies but I thought it was where the Japanese bought currencies that had a higher interest rate than the yen, and lowering interest rates would result in a lower yield making it less attractive.

I need to be set straight on this one.

Share this post


Link to post
Share on other sites
Didn't realise Fall Out Boy was Radioactive Man's assistant. Just a band to me. Brilliant name.

I found that particularly ironic because I didn't know they were a band.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 350 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.