Thread: "Currency Talk Only". Investing,Ideals,Suggestions,Advice

Originally Posted by mike brown

please explain...

Dubai, UAE and Baharain are currently positioning themselves as leaders in the Real Estate and Banking industry for the Middle East. Companies located in Dubai and Abu Dhabi, UAE are buying as much of the WEST allowable. Abu Dhabi will be the seat of the GCC Central Bank and you know what that means. My sources are what I read in Qatar Gulf Times, Peninsula and other Gulf newspapers. These GCC Countries are wealthy and they're letting the rest of the world know it.


V/R

Al

Also, I would think that on or about the time of the GCC conversion, currancies like SR, QR and UAE Dirham maybe a great investment. Considering the other GCC countries have currancy as high a $3+ and as low as $2+ and once the merge take place will see new potential for the $.27 countries listed above. Remember the Gold Dinar. Just my take.


V/R

Al

The USD just lost 3% against the Australian Dollar in the last couple of weeks do you think explains the shift in dinars 1470 to 1428 ????

Originally Posted by ElizabethD

The USD just lost 3% against the Australian Dollar in the last couple of weeks do you think explains the shift in dinars 1470 to 1428 ????

No, totally different currency. Plus with all the Articles confirming what they are doing, I would so NO.

Originally Posted by ElizabethD

The USD just lost 3% against the Australian Dollar in the last couple of weeks do you think explains the shift in dinars 1470 to 1428 ????

Good question,

Technically each currency is going to fluctuate at different levels to all other currencies, so yes, with the dollar on a dive for over 18 months, now at a decades low point, it does reflect upon the value of dinar as this is the currency it is tied to in CBI updates. The increase in dinar is impacted by the decrease in dollar value, so it looks even more significant than it is. It will be interesting to watch as the dollar continues to fall as it will be better for all of us dinarholics. (g)

Happy Holiday Season to all, Mike

This goes along with what Mike (OSW) has been saying.

Dollar falls vs euro, Greenspan adds to Fed jitters

NEW YORK (Reuters) - The dollar fell against the euro and pared gains versus the yen on Monday after ex-Federal Reserve chief Alan Greenspan warned investors to expect "a few years of dollar weakness."

The remarks from Greenspan, who was addressing a business conference in Tel Aviv, greased the dollar's slide against the euro. A burst of buying in the European currency flushed out any short positions established on Friday when November U.S. jobs data proved strong enough to trigger a dollar rally.

Earlier in the day, the greenback had clung to those gains as investors prepared for another warning on inflation from the Federal Reserve, which convenes on Tuesday for its last policy meeting of the year.

See full article.
http://today.reuters.com/news/articl...otStocksNews-3

Incase anyone is visiting the U.A.E. I just bought a million Dinar in Sharjah at the gold souk for $737.40

Interesting,

Timber!
The U.S. Dollar Index, which averages the exchange rates between the greenback and six other major world currencies, has shed nearly 10% over the past 12 months. Notably, about half of that has taken place since mid October.

At last look, the index was sitting at about 83.00. A drop below 80.50 would represent a multi-decade low.

A slowdown in the U.S. economy and declining GDP, in tandem with oil-driven inflation and current housing woes, will certainly erode the dollar's value even further.

Things are bad for dollar bulls now. And they only get worse . . .

According to the latest quarterly review from the Bank for International Settlements (BIS), oil-producing countries have reduced their USD exposure to the lowest level in two years. Crude exporters are reportedly shifting oil income into euros, yen, and sterling as a hedge against a continuing tumble in the USD.

The BIS confirms that Russia and members of OPEC have cut their dollar holdings from 67% in the first quarter to 65% in the second. A 2% cut may seem modest. But the move indicates crucial information for the USD outlook.
While dumping the dollar, the oil giants have increased their holdings in euros from 20% to 22% across the board. This shift has certainly added to the dollar's recent weakness, which has fallen to a 20-month low against the euro and a 14-year low against sterling.

The BIS is generally cautious with its language-unlike Michael Richards. Yet in the quarterly report it noted, "While the data are not comprehensive, they do appear to indicate a modest shift over the quarter in the US dollar share of reporting banks' liabilities to oil exporting countries."

The review showed that U.S. dollar deposits belonging to residents of Iran and held in banks in developed European countries decreased by $4 billion. Similarly, residents of Saudi Arabia reduced their U.S. dollar deposits in banks in the United Kingdom by $3 billion, while increasing those in yen by a similar amount.

Elsewhere, residents of Ecuador, Indonesia and Qatar reduced their U.S. dollar deposits in BIS reporting banks by $2.3 billion, $1.9 billion and $2.4 billion, respectively.

Overall, OPEC's dollar deposits fell by $5.3 billion, while euro- and yen-denominated deposits increased by $2.8 billion and $3.8 billion, respectively. Placements of dollars by Russians rose by $5 billion, but most of their $16 billion additional deposits were denominated in euros.
To read the BIS quarterly report yourself, click here.

Conclusion
U.S. equity investors would be wise to add significantly to international holdings as well as into hard assets. In particular, I continue to like the upside of Canadian and Australian mining stocks.

Until next time,

Happy Holiday Season to all, Mike

Not sure if this was posted but I found it interesting and I know that China is a major player in the dollar.

Even as the stock market is hitting new record highs almost every day, the Federal Reserve and Treasury Department are quietly coordinating a devaluation of the dollar that the Bush administration hopes will be a slow decline rather than a dollar collapse.

This week, in an unusual move, the Bush administration is sending virtually the entire economic "A-team" to visit China for a "strategic economic dialogue" in Beijing Dec. 14 and 15.

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke are leading the delegation, along with five other cabinet-level officials, including Secretary of Commerce Carlos Gutierrez. Also in the delegation will be Labor Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, Energy Secretary Sam Bodman, and U.S. Trade Representative Susan Schwab.

The Bush administration wants to get China's cooperation in preventing a dollar collapse. That's the conclusion of John Williams, an experienced professional econometrician, who writes the "Shadow Government Statistics" blog.

(Story continues below)


Williams has re-created M3, a money-supply measure whose data the Federal Reserve simply stopped publishing after issuing a technically worded March 2006 announcement.

Williams reports M3 is currently growing at close to a 9.6 percent rate and trending higher, compared with an 8 percent rate early this year, when the Fed quit reporting the measure.

"The Fed is pumping liquidity into the U.S. economy," Williams told WND, "and the Fed evidently did not want the markets to follow too closely what the Fed was doing with the money supply."

China today now is holding a historically unprecedented $1 trillion in foreign exchange reserves. During the Thanksgiving holiday, an announcement by China that their central bank planned to diversify foreign-exchange holding away from the dollar caused the dollar to drop in value on international currency markets. Since then, the dollar has hit a 20-month low against the euro.

"This was almost an orchestrated announcement," Williams claimed. "Around Thanksgiving the markets were thinly traded. I'm not sure who was playing games there, but the signal was clearly heard."

"You're dealing with mass psychology here," Williams argued. "The central bankers around the world know they are going to take a hit on their dollar holdings. None of the central bankers want to start a dollar panic, but none of the central bankers want to be the last out of the dollar, either."

Williams explained that the Federal Reserve is in a bind.

"Raising rates would kill any chance of avoiding a recession, but in terms of the dollar, we can't raise the rates fast enough when the dollar starts to slip quickly."

Are we experiencing a dollar collapse?

"Not yet," Williams answered. "I believe we're going to have a dollar collapse, but the Fed is going to do its best to slow play the dollar's decline in value, so that it takes a year or two for the dollar value to reach its low point."

Williams explained the risk of collapse the dollar faces:

"There will be a central bank, most probably in Asia, who will start the move away from the dollar and when it happens, you're going to see other central bankers covertly trying to follow. The move will magnify very quickly and it could become a full-fledged panic and a dollar collapse."

The Fed is struggling right now to contain inflation and stimulate economic growth. All the Fed is doing right now with all their grand policy shifts is using a lot of propaganda and market massaging to try to prevent a financial panic."

Recent reports have shown that U.S. gross domestic product growth slowed to 1.6% in the third quarter, the lowest in more than 3 years.

Will a declining dollar help narrow the U.S. trade deficit with China?

"You could take a 30 percent decline in the value of the dollar," Williams argued, "and it wouldn't make much of a dent in our trade deficit with China, not as long as Bush administration trade policy continues to be one-sided in favor of China."

"The Fed is faced with an impossible circumstance with the trade and budget deficits being run by the Bush administration," Williams told WND, "and they are just playing games with the markets and the public by not publishing M3, the broadest measure of money supply and the best indicator we have of long-term activity."

M3 is the broadest measure of the total money in the economy, including checking and savings accounts, cash, time deposits, and money-market funds. Economist Milton Friedman, one of the key economists contributing to the conservative theories that led to the development of "Reaganomics," argued that money supply is a key measure correlated both with economic growth and inflation.

WorldNetDaily: U.S. dollar facing imminent collapse?

Originally Posted by Dinar Madness

Not sure if this was posted but I found it interesting and I know that China is a major player in the dollar.

WorldNetDaily: U.S. dollar facing imminent collapse?

Excellent,

Yes, we all have to be educated on the subject of currencies, not just the dinar or dong, but the dollar as well. For too long we have all taken it for granted that the dollar was strong, if not the strongest currency, but this is all about to change dramatically in the coming year, and it has already begun if you do a little research.

The point of this subject is to protect ROL members from losses if you cash out all your dinar at once which many said they would do. Again, many said the would go out and buy a new house, etc., and this is not the smart strategy as you will soon learn if you hang around this forum as many of us do. This is just one of the articles which will help you understand how to best protect your future wealth, so be a good student and read every post. (g)

Happy Holiday Season to all, Mike