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

Alan Greenspan Says Dollar Peg 'needs To Go'

Recommended Posts

Sorry if this is already posted.... I'm sure it must be somewhere.

Is this man really a Nazi waging WW3 and intent on destroying the USA from within? It beggars belief that such a comment could be made when the USD is already on the brink.

http://www.gulfnews.com/business/Economy/10192824.html

"It [de-pegging] is probably the most useful thing that can be done to stop the increasing influence of foreign assets on the monetary system and therefore the monetary base which is basically the major force in inflationary pressures," Greenspan told the Abu Dhabi Corporate Leadership Forum.

Share this post


Link to post
Share on other sites

I always imagined that many countries would "de-peg" from the US$ if it continues to tank.

Certainly in Hong Kong (who are currently pegged) we hear plenty of rumblings to de-peg from USA and into a basket of Asia currencies.

Share this post


Link to post
Share on other sites
I always imagined that many countries would "de-peg" from the US$ if it continues to tank.

Certainly in Hong Kong (who are currently pegged) we hear plenty of rumblings to de-peg from USA and into a basket of Asia currencies.

I'm sure.... but would you really expect Greenspan to be encouraging it????

Share this post


Link to post
Share on other sites
I'm sure.... but would you really expect Greenspan to be encouraging it????

He is unencumbered now.

Can say what he really feels.

Trying to put some distance between his reign and when the USA fell to earth?

Share this post


Link to post
Share on other sites
He is unencumbered now.

Can say what he really feels.

Trying to put some distance between his reign and when the USA fell to earth?

Or assist the birth of the Amero?

Share this post


Link to post
Share on other sites
Or assist the birth of the Amero?

They need to take the dollar down to make them more competitive.

Starting afresh with "Amero" is something that will only happen in a doomsday scenario (Cgnao)

Share this post


Link to post
Share on other sites
They need to take the dollar down to make them more competitive.

Starting afresh with "Amero" is something that will only happen in a doomsday scenario (Cgnao)

yeh thats what mugambae in zimbabwae is doing.

he is a very smart man, devalue your currency so you can be more competitive globally and help your people :lol:

why is it every one here thinks a devalued currency is a good thing.

ANY COUNTRY, can EASILY, devalue its currency.

a strong currency is hard to obtain, a weak devalueing currency is piss easy to have.

a weak currency isnt good!

Share this post


Link to post
Share on other sites
yeh thats what mugambae in zimbabwae is doing.

he is a very smart man, devalue your currency so you can be more competitive globally and help your people :lol:

Classic.

Shouldn't we be putting Mugabe forward for a Nobel economics prize?

Bernake was heard to say "Robbie he's my idol".

Share this post


Link to post
Share on other sites
Sorry if this is already posted.... I'm sure it must be somewhere.

Is this man really a Nazi waging WW3 and intent on destroying the USA from within? It beggars belief that such a comment could be made when the USD is already on the brink.

http://www.gulfnews.com/business/Economy/10192824.html

"It [de-pegging] is probably the most useful thing that can be done to stop the increasing influence of foreign assets on the monetary system and therefore the monetary base which is basically the major force in inflationary pressures," Greenspan told the Abu Dhabi Corporate Leadership Forum.

Both Ben and Al know that a possible (probable?) Great Depression scenario is forming due to the credit market situation. Whoever is the most competitive viz. exchange rates and ability to export will be first out of a severe deflationary recession (depression?). These two gentlemen are smarter than many give them credit for.

Al has been criticised for fueling a Gordonesque credit bubble in the US. He attempted to reverse the trend by a long series of hikes. What happened was a long series of dropping rates coming from the credit markets that ignored the Fed rate. We are now witnessing a reversal of that process with the Fed cutting and commercial rates rising. Hence the "conundrum."

Share this post


Link to post
Share on other sites
I always imagined that many countries would "de-peg" from the US$ if it continues to tank.

Certainly in Hong Kong (who are currently pegged) we hear plenty of rumblings to de-peg from USA and into a basket of Asia currencies.

Asia must export to the West to grow. High Asian currencies will prevent that from happening. The Eurozone cannot afford a high Euro as it slips into recession and with a growing trade balance problem with China.

Things are not always what they seem. Trust the bankers, they know what they are doing.

To wit:

http://uk.biz.yahoo.com/080229/214/huja9.html

Edited by Realistbear

Share this post


Link to post
Share on other sites
Guest X-QUORK
Things are not always what they seem. Trust the bankers, they know what they are doing.

Excuse me? Trust that comment comes with a heavy dose of irony?

Share this post


Link to post
Share on other sites
Excuse me? Trust that comment comes with a heavy dose of irony?

No. That is why I italicised the "the." I was not referring to NR, B&B, HBOS and that ilk but the behind the scenes banking fraternity that seem to be able to work together accorss international and commercial boundaries to maniuplate markets when things get out of control on the front lines of banking. No conspiracy theories, jut the CBs and those that back them stepping in where the free market has lost control.

Share this post


Link to post
Share on other sites
Guest X-QUORK
No. That is why I italicised the "the." I was not referring to NR, B&B, HBOS and that ilk but the behind the scenes banking fraternity that seem to be able to work together accorss international and commercial boundaries to maniuplate markets when things get out of control on the front lines of banking. No conspiracy theories, jut the CBs and those that back them stepping in where the free market has lost control.

Correct me if I'm wrong, but wasn't it the CBs that created the cheap credit environment post 9/11? Eddie George admitted as much a few months ago.

I'm sure there are some clever people who have great ideas about how to correct things when they go wrong, just a shame they can't sort things out until after the horse has bolted.

Share this post


Link to post
Share on other sites
Correct me if I'm wrong, but wasn't it the CBs that created the cheap credit environment post 9/11? Eddie George admitted as much a few months ago.

I'm sure there are some clever people who have great ideas about how to correct things when they go wrong, just a shame they can't sort things out until after the horse has bolted.

Al cut IR but when he tried to reverse the process by hiking .25% at every Fed meeting for a couple of years the credit markets ignored the signal and began expanding debt through "creative" means (manufactuing money out of thin air--CDOs, Hedge Funds, ABCs etc etc.). IN other woirds, the CBs ghave the markets a much needed prod to maintain growtrh momentum but it was carried too far by an underregulated private banking sector.

IMO, the blame lies with those charged with regulating credit. The Gordon Brown's of this world.

Feed a sheeple with credit and it doesn't know when to stop.

Share this post


Link to post
Share on other sites

Just found this.... well worth a read. It really does seem to be getting through to people that this is intentional..... nothing is going out of control.....

http://www.funnymoneyreport.com/

We are about to witness a financial calamity of epic proportions and the establishment shows no sign of wishing to implement policies to reverse this. The end game appears to be the continued destruction of the U.S. Dollar which will allow the establishment to implement the North American Union and a regional currency which will completely undermine the sovereignty of the United States. The crisis in the U.S. Dollar will be used to facilitate this phony solution which will give the big multinational corporations and central bankers even more power.

Share this post


Link to post
Share on other sites
yeh thats what mugambae in zimbabwae is doing.

he is a very smart man, devalue your currency so you can be more competitive globally and help your people :lol:

why is it every one here thinks a devalued currency is a good thing.

ANY COUNTRY, can EASILY, devalue its currency.

a strong currency is hard to obtain, a weak devalueing currency is piss easy to have.

a weak currency isnt good!

it is when you have mountains of debt that you will never seriously be able to repay.

well, as long as you can keep it from spiraling out of control :lol:

Share this post


Link to post
Share on other sites
Both Ben and Al know that a possible (probable?) Great Depression scenario is forming due to the credit market situation. Whoever is the most competitive viz. exchange rates and ability to export will be first out of a severe deflationary recession (depression?). These two gentlemen are smarter than many give them credit for.

Al has been criticised for fueling a Gordonesque credit bubble in the US. He attempted to reverse the trend by a long series of hikes. What happened was a long series of dropping rates coming from the credit markets that ignored the Fed rate. We are now witnessing a reversal of that process with the Fed cutting and commercial rates rising. Hence the "conundrum."

Bloody hell. I agree with you.

I think that you are spot on with this. The other day when Paxman asked Stiglitz if he thought there was a possibility of a depression he said no. But he had to. He was pretty certain about a recession though.

Clearly, there is a, or will be a recession and it will be worse than any since the 70/80's.

Once you believe this, as Ben, Alan and Jo do, then you reconsider the risk horizon. Once a recession has probability of 1, the probability of a meltdown gets re-evaluated and rises in probability.

Cash will soon be king, queen and emperor.

Share this post


Link to post
Share on other sites
"Inflation has many causes, from rising global demand for commodities to the monetary constraints of currencies pegged to the weakening American dollar. But one cause is the skyrocketing price of oil itself. It is helping push many ordinary people towards poverty even as it stimulates a new surge of economic growth in the Glf," the report said.

"Inflation has many causes" - Really? It seems that the main one isn't explicitly mentioned, that is that middle eastern states are forced to create more money themselves stay on a par with the rapidly devaluing dollar!

Share this post


Link to post
Share on other sites

Asia must export to the West to grow. High Asian currencies will prevent that from happening. The Eurozone cannot afford a high Euro as it slips into recession and with a growing trade balance problem with China.

High asian currencies will also increase asian demand for consumer goods,that become increasingly more affordable to the average punter,so it's not the case that the continent is solely a workshop for the west,if the top 10% of earners in asia have income comparable to the average westerner(say £20k per annum...or about 140kRMB),then it doesn't matter much if western consumerism falls off a cliff.

That's why we're going to get hyperstagflation 2008-2010 and the depression from 2010 onwards,when asia takes up the baton as the powerhouse of the world.I would not discount germany coming along for the ride too,they don't have anywhere near as much exposure in their economy to a weakening consumer.

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.

  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • 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.