Day Of Reckoning Looms For The U.S. Dollar
If this is your first time visiting Bible Prophecy In The News, I'd like to invite you to subscribe to our RSS feed. Never miss an update.. Thanks for visiting!
The U.S. dollar’s day of reckoning may be inching closer as its status as a safe-haven currency fades with every uptick in stocks and commodities and its potential risks - debt and inflation - are brought under a harsher spotlight.
Ashraf Laidi, chief market strategist at CMC Markets, said Wednesday a “serious case of dollar damage” was underway.
“We long warned about the day of reckoning for the dollar emerging at the next economic recovery,” Mr. Laidi said in a note.
Mr. Laidi said economic recovery would weigh on the greenback as real demand for commodities, coupled with improved risk appetite, caused investors to seek higher yields in emerging markets and commodity currencies. This would draw investment away from the U.S. dollar, which was dragged down by growing debt and the risk quantitative easing would eventually spark a surge in inflation.
The U.S. dollar slid against most major currencies Wednesday, hitting a five-month low of US$1.3775 against the euro and pushing the Canadian dollar up US1.21¢ to a seven-month high of US87.69¢.
John Curran, the senior corporate dealer at Canadian Forex, said the U.S. dollar would likely fall further in the next week, with the Canadian dollar likely reaching about US88.35¢, at which point it could break higher to test the US92.35¢ level.
“The U.S. dollar is continuing to slide as investor appetite is gaining momentum,” Mr. Curran said. “People are getting comfortable about taking on a little more risk.”
Where Are The $ Trillions Going?
Rep. Alan Grayson asks the Federal Reserve Inspector General about the trillions of dollars lent or spent by the Federal Reserve and where it went, and the trillions of off balance sheet obligations. Inspector General Elizabeth Coleman responds that the IG does not know and is not tracking where this money is.
Bailout - Too Little…Too Late or Just The Beginning?
The world’s financial markets face an uncertain and possibly volatile week as investors await details about how the Treasury will implement the government’s financial rescue package — and watch for any further fallout from the credit crisis around the globe.
The markets have switched their focus to the world economy now that the $700 billion bailout plan has become law. And there’s reason for their concerns — governments across Europe are rushing to prop up failing banks. On Sunday, Germany said it would follow suit with Ireland and Greece in guaranteeing all private bank accounts.
Those steps are the latest sign that the troubles of U.S. banks, which have all but paralyzed credit markets, are affecting the financial systems of other countries. Banks’ hesitation to lend to one another and to many businesses and individuals is the consequence of the bad mortgage debt that the financial rescue is supposed to sweep up. But it’s still unclear how quickly financial institutions will be able to hand that debt to the U.S. government and convince the markets they are healthy again.
Bob Moriarty, founder of 321Gold.com predicts a freeze-up of the banking system to happen shortly. In fact he states that he believes there is a 95% chance the world financial system will comletely collapse within 10 days.
Moral Decline Seen As Reason For U.S. Woes
October 2, 2008 by admin
Filed under Moral Decay
Many believe American has turned it’s back on God and entered what amounts to the modern-day gates of Sodom. Read more
Bailout Vote Fails - Stock Market Drops 777 Points
The stock market on Monday suffered its most devastating collapse since the 1987 crash as shellshocked investors dumped shares en masse after the House voted down a proposed $700-billion rescue of the financial system.
The unexpected defeat of the bailout package fanned fears that the most debilitating financial crisis since the Great Depression could intensify.
The Dow Jones industrial average sank 777 points — the largest point drop in its 112-year history. The Standard & Poor’s 500 index plunged 8.8%, its sharpest decline since Black Monday two decades ago, while the Nasdaq composite index plummeted 9.1%.
The tense credit markets tightened further as anxiety-ridden investors rushed into super-safe Treasury securities, pushing their yields down.
Notice the number of points the market fell, 777…. The world will mark this up to coincidence. I believe it’s the unfolding of bible prophecy in our day. This nation has turned it’s back on God, I believe there is a warning from God himself in the events that took place today. Few will listen, fewer still will hear.
Read more on God’s number, 7
“The financial markets are in panic,” said John Spinello, a Treasury market strategist at Jefferies Group Inc. in New York. “And until politicians realize that, and until Main Street America realizes that it’s not a Wall Street problem — it’s a Wall Street and a Main Street problem — the financial markets are going to be volatile and the decline is going to be hard to arrest.”
The flight to U.S. government securities, along with news of several major bank bailouts in Europe, boosted the value of the dollar against most major currencies.
Prices of oil and other commodities, already down early Monday on fresh concern about the global economy, accelerated their slides after the House vote. Crude futures tumbled $10.52, or 9.8%, to $96.37.
The day began with global stock markets falling on the new signs of financial stress in Europe and fears that the rescue package wouldn’t quickly ease a logjam in the credit markets or stave off a deep economic downturn.
German Finance Minister - US Will Lose Financial Superpower Status
The US will lose its role as a global financial “superpower” in the wake of the financial crisis, Peer Steinbrück, the German finance minister, said on Thursday, blaming Washington for failing to take the regulatory steps that might have averted the crisis.
“The US will lose its status as the superpower of the world financial system. This world will become multipolar” with the emergence of stronger, better capitalized centrers in Asia and Europe, Mr Steinbrück told the German parliament. “The world will never be the same again.”
His were the most outspoken comments by a senior European government figure since Wall Street fell into chaos two weeks ago.
He later told journalists: “When we look back 10 years from now, we will see 2008 as a fundamental rupture. I am not saying the dollar will lose its reserve currency status, but it will become relative.”
The minister, who has spearheaded German efforts to rein in financial markets in the past two years, attacked the US government for opposing stricter regulations even after the subprime crisis had broken out last summer.
The US notion that markets should remain as free as possible from regulatory shackles “was as simplistic as it was dangerous”, he said.
But Mr Steinbrück had warm words for the US’s crisis management in the past fortnight, including the government’s planned $700bn rescue package for the financial sector. Washington, he said, had earned credit for acting not just in the US interest but also in the interest of other nations.
Yet he repeated Germany’s refusal to mount a similar rescue operation using taxpayers’ money to acquire toxic assets. “This crisis originated in the US and is mainly hitting the US,” he said. In Europe and Germany, such a package would be “neither sensible nor necessary”.
Citing Grave Financial Threats, Federal Government Readies Massive Rescue
The Bush administration is urgently preparing a massive intervention to revive the U.S. financial system, including a plan to sweep away the unpaid loans that are choking banks and blocking the flow of money to borrowers.
Congressional leaders gave bipartisan support to the administration’s efforts after a meeting last night with Treasury Secretary Henry M. Paulson Jr. and Federal Reserve Chairman Ben S. Bernanke.
Paulson and Bernanke presented a “chilling” picture of the state of the financial system, according to a participant in the meeting who spoke on condition of anonymity. Lawmakers were told that the consequences would be grave if they failed to pass legislation by the end of next week. Sen. Harry Reid (D-Nev.) and Rep. Nancy Pelosi (D-Calif.) committed to meeting that deadline.
The plan involves using hundreds of billions of dollars in government funding to buy bad loans, leaving banks with more money and fewer problems, according to two sources familiar with what was said at the meeting.
After the meeting, Paulson told reporters the proposal was “an expeditious solution that is aimed right at the heart of this problem.”
Also last night, the Fed was considering offering backing for money-market mutual funds, which have had massive withdrawals in recent days, said a source familiar with the discussions.
