Wednesday, March 9, 2011

CNBC Video: States Worry About Currency Collapse, Flee Dollar, Rush Toward Gold, Silver

The US may not be on the gold standard anymore, but a number of states--including Utah--are taking the issue up and want their money tagged to gold and silver.

The following is from CNBCs Kudlow Report.

Mexican Peso Rallies to Strongest Close Against Dollar Since 2008

The all mighty . . . peso? It might not be as strange as you think. The Mexican peso is increasing in value as the US dollar dives.
Mexico's peso decoupled Wednesday from the equity markets it normally tracks, rallying its strongest closing level against the U.S. dollar since 2008 amid solid demand for local government bonds.

The peso was quoted in Mexico City closing stronger at MXN11.9310 to the dollar, compared with MXN11.9715 early in the session and MXN12.0035 at Tuesday's close.

The Dow Jones Industrial Average, which the local currency often tracks, closed flat, while other U.S. stock indexes were in the red and Mexico's benchmark IPC fell 0.7%. Political violence in Libya continued to weigh on global markets, though crude oil prices in the U.S. dipped on an unexpected increase in U.S. stockpiles.

Contrasting with its usual behavior, the Mexican peso seemed unperturbed by the weak risk appetite, reaching its strongest closing level since before the 2009 world financial crisis and recession.

A currency trader at the local Interacciones brokerage said the peso is being underpinned by demand for Mexican government debt on the secondary market, which has seen moderate selling in recent weeks.

Mexico's Peso Rallies To Strongest Close Vs Dollar Since 2008 -

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PIMCO Sells Off ALL Government Bonds

Do you think this speaks well for the future of the dollar? If a large investment company thinks that American debt is a bad idea, what does that tell you about what they think?
The world's largest bond investor has sold off all his company's U.S. government-related holdings, according to published reports.

The move by Bill Gross, founder of the Pacific Life Investment Management Co., was reported in The Wall Street Journal Wednesday. A Pimco representative did not return calls for comment.

The Pimco Total Return Fund, the world's largest mutual fund, held no government-related debt by the end of February, according to an unidentified person at Pimco quoted by the Journal. In January, U.S. government holdings had accounted for 12 percent of the fund.

Treasury prices nevertheless rose Wednesday after the government saw strong bidding at an auction of debt.

The Treasury sold $21 billion in 10-year notes at a yield of 3.49 percent. Investors placed bids worth 3.32 the amount up for sale, better than the 3.08 average over the last year. The strong demand comes even as Gross and other money managers have been selling Treasurys in recent months.

Report: Pimco Sells off All US Government Holdings - ABC News

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Tuesday, March 8, 2011

Video: 9 Trillion Dollars Missing from Federal Reserve; Fed Inspector General Can't Explain

Even in Washington, nine trillion dollars is a lot of money! Wonder what happens when that "extra" cash gets into the marketplace. Don't think it will dilute your dollars, do you?

Sunday, March 6, 2011

Breaking US Dollar Collapse News

What's Behind the Decline of the US Dollar?

This is one the of the best and simplest explanations we have seen:
The U.S. dollar's downward slide is accelerating as low interest rates, inflation concerns and the massive federal budget deficit undermine the currency. - Wall Street Journal, April 23, 2011
Interestingly, the Federal Reserve is responsible for, or an active participant in all three of these factors.