Dollar claws at the greenback

[anakie]

Source: The Australian

WORLD currency markets are in disarray, with this week's cut in US interest rates putting pressure on nations from Saudi Arabia to China to sever links with the American dollar.

The Australian dollar is being swept along in a revaluation of global currencies, jumping almost 5 per cent in the past four days to hit US87c. Analysts believe the Australian dollar -- last night trading at US86.83c, heading towards the 18-year high of US88.45c struck in July -- could pass the US90c barrier in coming days.


.....


The Saudi Arabian Government has always kept its currency pegged to the US dollar because that is the currency in which oil is priced.

For the first time, however, it has failed to follow a US interest rate move, leading to speculation it will be forced to break the link with the dollar and start selling oil in other currencies.

Read more: http://www.theaustralian.news.com.au/story/0,25197,22461096-601,00.html

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One little Aussie Battler getting 90 US cents. This is unheard of, Australians are truly dumbfounded to be getting this much vs the USD. Funny thing is, I can find quite easily many quotes of Bush saying that the US economy is in great shape.

How will Bush stop his Saudi brothers selling oil in other currencies? And your government contemplates war with Iran.

Peace

[babylonsister]

1. Unheard of.

I've been to Indonesia about 16 times in the last 10 years, and I hear you.

We have the anti-Midas touch here with the blivet.

[liberalmuse]

2. "Your government"? So you aren't in America?

Lucky fuck. This is scary stuff. The Republicans cure-all for a bad economy is war, war and more war, so Bush will likely nuke Iran before the dollar falls too far. If my government carries out a pre-emptive nuclear strike on any country, they cease to be my government.

[lastliberalintexas]

17. LOL

Do you also find yourself with rather bitter feelings towards those lucky enough not to live in the US? I especially despise the French and Swiss these days. Lucky bastards already have the Champagne and Dordonge regions, Lake Geneve and Lauterbrunnen. What the hell makes them think they should also have peace and prosperity? :)



Unfortunately, I also fear the second part of your post. I don't know how they'll accomplish it, but this bunch has been wanting to get Iran for too long now for them to abandon those plans. Scary times indeed.

[f the letter]

3. but-but-but

i thought that endless exponential growth was the American dream! Why must they hate us for our freedoms! What do you mean that it's thermodynamically impossible to grow endlessly???

This is going to make for tough times for us freelancers...

[ClintonTyree]

4. The Canadian Dollar....

is, for the first time, on par with the American Dollar. That is H-U-G-E! I go back quite a few years and I can remember the exchange being almost 40%. Now it's AT PAR with the U.S. Dollar? We used to consider Canadian money Monopoly Money....a joke. People would walk by a Canadian Dollar on the street and not bother to bend over to pick it up.

How the mighty have fallen. The George W. Bush "economic miracle" continues to impress. :sarcasm:

How and why there are still "Conservatives" that support the moronic chimp in the White House is beyond me. :shrug:

Economists are just starting to talk about a "recession" in America. :eyes: I'm inclined to believe we're on the brink of a full-scale depression. Bush is desperately trying to stall, to "play for" a little time, until our country's monetary crisis, like everything else he's fucked-up, can be sloughed off onto the next President. Actually doing something about it would take effort and jeopardize this tax cuts for the wealthy. Can't have that. Nope, nope, nope. :banghead:

[TheFarseer]

6. If we can stall 14 more months by cutting interest rates

even if it means cutting them to 0%, then it will be the next president's fault.

[NuttyFluffers]

12. shhh, democrats are betting everything for the '08 presidency. it has to work!

y'know, just like Carter and the 17% inflation he was gifted by Vietnam War and other shenanigans by Nixon. and we all know how well that worked in getting Carter a 2nd term and turning our country around. ;)

[Fierce]

10. It's not the first time.

And it's come close many times. Border towns often offer rates "at par" even when they're not.

[ClintonTyree]

15. OK, I'm 58 years old....

and to my knowledge it's NEVER been at par with the American Dollar. And I live an hour away from the Canadian border.

[Fierce]

16. It was at par in 1976.

The all-time high against the dollar was 1957.

[happyslug]

21. The US-Canadian Dollar rate was almost 1 for 1 since at least 1858 (and some sources 1817)

Depends on when that part of Canada Adopted the Dollar.

For details see:
http://en.wikipedia.org/wiki/Canadian_dollar

The big question will the US Dollar drop to below its all time low against the Canadian Dollar of $2.78 of July 11, 1864?

But as a rule One US Dollar equal about one Canadian Dollar (With variation generally less than 4 Cents).

[skids]

5. Yeah, we've been "taxed" 5% on EVERYTHING in under a week...

...way to go all you republicans, globalists, and "sophisticated" businessmen! Heckuvva job!

[TomClash]

9. Hey SHUT UP and BUY AMERICAN THEN!

:sarcasm:

Oops, we don't really make enough of anything.

[ohio2007]

18. China still won't let the cat out of the bag as what the US owes them shinks and shrinks

and continues to devalue the longer they hold the debt.

?
Soon, the US won't owe them anything !
LMAO
China will have to take their wares elsewhere

[ohio2007]

19. uhhh, we call that INFLATION over here

imagine how bad it will hit the third world countries as the value of US aid sent to them shrinks.

...not worth cashing those aid checks imo.

[rustydog]

7. Bush isn'tt really saying the U.S. Economy is in great shape...

It is Bushspeak: "Heh, Heh, US economy if GREAT!? translation: " Us (our multimillionaires economy) economy is great.

He is not speaking of America, he is speaking of his Base. The filthy rich. and no matter how deep a rcession or shallow a depression, this country will still have the filthy rich who may be inconvenienced, but THEIR economy will still be great.

How many billionaires did not make Forbes list? The number would shock you.

[november3rd]

8. You got it, Rusty

After all the sabatoge of six and one half years of supply-side, deregulated, Contract on America economics, the American people still haven't woken up to the fact that their government doesn't represent us.

In fact, BushCo is holding the US--the American people--hostage with lies, deception, and war.

They want to scuttle the greatest society in the history of the world for a capitalist robber baron empire that privatizes everything from air and water to the armies that defend us and the schools that educate our children.

Why? Because those pillars of our civilization exist in the eyes of BushCo only for their mega profits and not at all for the collective wellbeing of the people of the United States, who just so happened to organize in the first place for the purpose of raising up justice and human rights.

[BrklynLiberal]

14. Right. The "haves" and the "have mores"...to quote prez shit-for-brains, himself.

[hedgetrimmer]

11. Crush the dollar, isolate the people ... instant Fascist state.

add 10 step program and shake- http://www.guardian.co.uk/usa/story/0,,2064157,00.html

[BrklynLiberal]

13. Didn't BushCo topple Saddam to stop him from trading oil in Euros?

Hmmm That sure worked out well, didn't it?

[CONN]

20. Bet Bush's Saudi friends will wait until he is out...

to switch currencies...

[daleo]

22. Bush raised the U.S. debt by $3 trillion, for his mad Iraq venture

The dollar is heading down in response. It's what that guy in the cave said he wanted.