China to US: #Debt-Default Idea is "Playing With Fire"

Like we don't already have burned fingers from watching the value of our dollar burn up? Why are they talking to us this way anyway? Oh yeah, they're the loan shark we owe all the money to!

Republican lawmakers are "playing with fire" by contemplating even a brief debt default as a means to force deeper government spending cuts, an adviser to China's central bank said on Wednesday.

The idea of a technical default -- essentially delaying interest payments for a few days -- has gained backing from a growing number of mainstream Republicans who see it as a price worth paying if it forces the White House to slash spending, Reuters reported on Tuesday.

But any form of default could destabilize the global economy and sour already tense relations with big U.S. creditors such as China, government officials and investors warn.

China warns U.S. debt-default idea is playing with fire | Reuters

Dollar "Bruised" by Bernanke Comments

Thanks Ben! Once again the Chairman of the Federal Reserve opens his mouth and the US dollar drops in response.

The dollar wallowed at one-month lows against a basket of major currencies early in Asia on Wednesday, struggling to get up after comments from the head of the U.S. central bank bolstered expectations that U.S. interest rates will stay low for longer.

Federal Reserve Chairman Ben Bernanke gave a somber assessment of the U.S. economy, acknowledging the growth has slowed, but offered no hint of providing more stimulus to accelerate growth.

"Though the Fed Chairman said that economic growth is likely to pick up in the second half of the year, overall dour comments virtually guarantee that U.S. interest rates will remain near record-lows through the foreseeable future," said David Rodriguez, strategist at DailyFX.

FOREX-Dollar bruised by Bernanke comments; euro eyes $1.47 | Reuters

Video: James Turk's Presentation on the Rise in Gold Prices, and the Fall of the US Dollar

James Turk of the GoldMoney Foundation speaks about currency devaluation and the rising gold price. How the gold price is rising against all major currencies and monetary policy is political, having abandoned all pretence of seeking monetary stability. He warns of the dangers of a hyperinflationary crisis. James also explains why gold should be considered money and not an investment.

He also talks of the coming dollar collapse and the waterfall decline in the dollar, especially since Ben Bernanke's words on QE. He talks of different examples of hyperinflation from paper money hyperinflation in Weimar Germany to deposit currency hyperinflation in Argentina. The presentation was held on 29 April 2011 in Munich, Germany.

YouTube - James Turk's presentation on the gold price and the US dollar

Video: Peter Schiff on RT - Dollar Could Collapse This Fall (May 31, 2011)

Paper: Hatred of the Dollar From a Global Perspective

Does everyone hate the US Dollar? Certainly investors overseas do . . . and it's getting worse.

Traders know that the U.S. Dollar Index ETF has been losing ground... fast. Year-to-date, the performance of the fund is worse than -7%. In the past twelve months, the fund has lost 18% of its value. As the value of the dollar declines, traders, banks, and even countries become concerned about the solvency of the American currency that has long been a benchmark standard in the global markets.

In a market of constantly fluctuating exchange rates and the never ending strengthening and weakening of money, leave it to the U.S. dollar to be one of the few currencies that are remaining steady and consistent- consistently weaker, that is. The value of the U.S. dollar has dropped in almost every forex market this past week and the immediate future for the currency continues to look bleak.

Hatred Of The Dollar From A Global Perspective