Real vs Dollar and other currency issues

[Member #4156]

I am american. Now that obama is prez, I think I will change my handle to brokeman. America WAS the most vibrant. You know nothing about economics.

...and judging by your racists rants and support for a batshit crazy neo nazi loved Republican, you don't know shit about economics either. I hope you've enjoyed your teabagging by the way.

[Brazilman]

I am american. Now that obama is prez, I think I will change my handle to brokeman. America WAS the most vibrant. You know nothing about economics. You can't get out of a credit bubble, with even more borrowing and spending at a unprecedented level. You have to clean house, raise interest rates, so people will save, and cut goverment in half, so they can lower taxes for everyone. When bush came into office we had a 5 trillion dollar national debt. Thats all the debt we accumulated since the late 1700's, and now we have a 12 trillion dollar debt and obama has borrowed 2 trillion this year alone. He borrowed almost half of our total national debt from 2000 in ONE YEAR! We won't be able to pay the interest on this debt once rates go higher, which they will. I can't wait until all these rich black celebrities, that voted for obama, because he is black, and know nothing about the issues, lose all their savings, due to the collapse of their money. For the record, I hate john mcain also. I wanted Ron Paul for prez. In 4 years he will have a much better shot at winning. The only thing I like about Obama are his energy policies and stem cell policies but when it comes to finance he is bush 2.

[Lonzof]

America is done. Obama thinks he can just print 2 trillion in one year and it won't have consequences. He is a finance idiot. Instead of going in there and cutting spending by a trillion or 2, he goes in and prints a trillion or two. Your first black president, will go down as the next dope president. He is bush on steroids. Can't we get someone qualified as president just once. You had bush in there because of his dad and you have obama in there because he is black. How about someone with a brain in there. Enjoy your black prez black people because he will be one and out.

Now here's a first... a brazilian giving economic lessons. I'll enjoy all of our US presidents in a strong or weak economy since its the most vibrant.

Lonzof

[JohnnyBraz]

Is he so great that you don't mind paying double for your Rio holidays?

[JohnnyBraz]

Soon as Obama starting pushing for Trillion dollar deficits, the world (China) started to worry about their Dollar reserves as safe investments. Foreign purchases of U.S bonds has been down. Now Obama is foolishly bankrupting he country in his first 4 months. Now Brazil is leading he charge of abandoning the dollar. I am sorry to say this but Obama has bankrupt the U.S. and the Brazilian president see this clearly. This is not rocket science. Soon as the Fed started monetizing U.S debt the dollar has been sliding.

The us dollar is slowly crashing, not due to demand for hard currency, but due to developing nations worry about dollar reserves as safe havens. Many currency's globaly are pegged against the us dollar, if most off these countries attempted to float there own currency, without being pegged against the us dollar, expect a massive drop in demand for us dollars. Which means lower rates for us dollars, maybe even 1:1 against the brazilian real in 5 years time. I expect 1. 7 to 1. 8r to the dollar by the end off this year, and back to 1. 5 by the end off 2010. 80% because off obama. 20% due to brazil being the 2nd fastest growing economy in the world. By the way I am not an american, I'm australian. And all a low us dollar means to me is less american tourists in Rio. I have nothing against americans, but less tourists in Rio. Better for me.

[Member #4156]

I'm sorry, you were saying what about Bush destroying our economy with two unwinnable wars and putting us in this disaster to begin with?

Haha. They love to leave that out. But I digress...

[Madd Love]

I'm sorry, you were saying what about Bush destroying our economy with two unwinnable wars and putting us in this disaster to begin with?

Does 2 wrongs make a right?

Should we continue with fiscal irresponsiblity?

This is about our country. Not American against American.

Guess who is going to pay for all this????

[Madd Love]

A few weeks ago I read an article in newspapers talking about Argentina and China dealing in Yuan.

Here some internet references
http://www.chinadaily.com.cn/bizchin...nt_7630532.htm
http://www.marketwatch.com/story/chi...de-yuan-xinhua

I think long term we have more to worry about with the dollar than the Real.

[Psychman]

Soon as Obama starting pushing for Trillion dollar deficits, the world (China) started to worry about their Dollar reserves as safe investments. Foreign purchases of U.S bonds has been down. Now Obama is foolishly bankrupting he country in his first 4 months. Now Brazil is leading he charge of abandoning the dollar. I am sorry to say this but Obama has bankrupt the U.S. and the Brazilian president see this clearly. This is not rocket science. Soon as the Fed started monetizing U.S debt the dollar has been sliding.

I'm sorry, you were saying what about Bush destroying our economy with two unwinnable wars and putting us in this disaster to begin with?

[Madd Love]

America is done. Obama thinks he can just print 2 trillion in one year and it won't have consequences. He is a finance idiot. Instead of going in there and cutting spending by a trillion or 2, he goes in and prints a trillion or two. Your first black president, will go down as the next dope president. He is bush on steroids. Can't we get someone qualified as president just once. You had bush in there because of his dad and you have obama in there because he is black. How about someone with a brain in there. Enjoy your black prez black people because he will be one and out.

I totally agree with you. You can't print and spend your way to prosperity especially after a crises. Obama is acting like a idiot to destroy the currency at the expense of tax payers.

We have at or near zero interest rates.......Instead of raising rates & cut spending, Obama spends 2 trillion which he does not have.

You don't give an overweight/unhealthy person more more MC Donalds or Dominoes Pizza. Instead you go on a diet to get healthy again.

And if you are in a hole already you don't dig deeper. WHAT AN IDIOT.

I guess we know what to expect with these foolish policies in Washington.

[Madd Love]

Soon as Obama starting pushing for Trillion dollar deficits, the world (China) started to worry about their Dollar reserves as safe investments. Foreign purchases of U.S bonds has been down. Now Obama is foolishly bankrupting he country in his first 4 months. Now Brazil is leading he charge of abandoning the dollar. I am sorry to say this but Obama has bankrupt the U.S. and the Brazilian president see this clearly. This is not rocket science. Soon as the Fed started monetizing U.S debt the dollar has been sliding.

[Member #1461]

We will continue to see the Dollar weakening against most of the world's currencies, and probably even more against the real.

It is really a simple question of supply and demand. Foreigners want to buy the Brasilian currency, the Real, and they want to invest in the Brasilian stock exchange (BOVESPA) and as a result the Real gets stronger (high demand) and the Dollar gets weaker.

It is a proccess which will continue for a good deal of time IMHO. I have been saying it on this thread since the rate was 2.2 that there is a massive influx of foreign traders interested in investing in Brasil, and that we will see the Dollar drop rapidly due to that.

The Brasilian government DOES NOT want the Dollar low, its bad for exporters in Brasil, and every day they set a point in the value of the Realollar exchange that they start to Buy Dollars thus increasing its value artificially.

However the demand for the Real is so great that it has little effect.

Yesterday for example (19 of May) the point of purchase for Dollars was 2.057, and they invested 2 billion real to try to raise the level of the Dollar artificailly and they failed it ended much lower (2% drop).

I am trying to make the point that rightfully or wrongfully, Brasil is percieved by investers in the world as a good place to invest their money, fuled by favorable analysis by some of the world's top economists, this has created a sort of "buzz" around Brasil's market and its rising rapidly, while the Dollar is devaluating rapidly.

I am not making the judgement here if is really justified or not, whether the Brasilian economy is handling the crisis better then other world economies or not, I am just making the point that investers think that it is. And that is what makes the Dollar lose value fast against the Real.

I stil maintain my previous statement that we WILL see the Dollar:Real exchange rate at 1.7/1.8 in about 2 months time, and anyone who wishes to exchange Dollars into Real, especially large sums of money would do well to do it now while the rate is still 2:1. I gave the exact same advice about 2 weeks ago when the rate was 2.2:1 and I am giving it again now.

You WILL be sorry if you wait for the rate to go higher, it wont, you will just be eating your heart out when it reaches 1.8 or lower.

[Hobbying]

These countries ought to learn from past mistakes when betting against the USD.

[Brazilman]

America is done. Obama thinks he can just print 2 trillion in one year and it won't have consequences. He is a finance idiot. Instead of going in there and cutting spending by a trillion or 2, he goes in and prints a trillion or two. Your first black president, will go down as the next dope president. He is bush on steroids. Can't we get someone qualified as president just once. You had bush in there because of his dad and you have obama in there because he is black. How about someone with a brain in there. Enjoy your black prez black people because he will be one and out.

[Gedanken]

Would it hurt their economy to just hold that money and not circulate it into the world economy?

The Chinese probably could get a better return on their exchange reserves, rather than just holding them as they have done - but getting a higher return on their exchange reserves is not what they are after. The Chinese foreign exchange reserves largely consist of US government debt, i.e. dollars. The reason they have bought up and hoarded shit loads of US dollars is to keep the demand for dollars high. This keeps the value of the dollar up against the Yuan, and this makes Chinese exports attractive for American consumers. American consumers buying cheap, Chinese products enables the Chinese to run a large trade surplus. And it is this that they have been aiming for, that is they have been aiming for export-driven economic growth. As you can see, their strategy has worked very well indeed. Any losses the Chinese incur on their dollar holdings as the dollar falls is a secondary concern. The Chinese aren't stupid, they know what they're doing.