Greenspan has Faith in Gold - 2 minute point

3 posts / 0 new
Last post
Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Greenspan has Faith in Gold - 2 minute point

If this isn't an insane asylum then I give up.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Re: Greenspan has Faith in Gold - 2 minute point

Anywhere but the dollar. I can't even keep up with all of the dollar news stories coming out at this pace today:

"China's right, the U.S. government wants to inflate its way out of debt."

"It can bode well for India"

“No one wants to hold dollars in their hands if they can exchange them for yuan and benefit from the potential appreciation,” said Shi Lei, a Beijing-based analyst at Bank of China, the nation’s biggest foreign-exchange dealer. “Companies prefer to borrow dollars now to meet overseas payments with a view to repaying the loans once the yuan has risen.”

"China's economy expanded 8.9 percent year on year in the third quarter, up from the rise of 7.9 percent in the second quarter and 6.1 percent in the first three months of the year. Earlier this month, the World Bank raised its forecast for China's economic growth this year to 8.4 percent from 7.2 percent.

"While the bulk of the foreign investment is due to expectations the Chinese economy will outperform the global economy in the medium term, some may be due to speculative capital flowing in on hopes for a stronger currency," said Chan.

The yuan has been almost flat at 6.83 against the United States dollar since the middle of August 2008."

"Mr Bernanke reiterated that the Fed still expects to keep rates near zero for an “extended period” based on its forecast of “low levels of resource utilisation, subdued inflation trends and stable inflation expectations.”"

"Nov. 16 (Bloomberg) -- Canada’s dollar rose after traders said there is no “fresh substance” to Federal Reserve Chairman Ben S. Bernanke’s comments that economic “headwinds” will probably restrain the pace of the U.S. economic recovery.

“It all still comes down to the economy, and it would be stupid to think a little bit of jawboning like this is about to turn the U.S. dollar around, even if the few remaining dollar bulls will welcome the perceived shift in official attitude away from benign neglect,” Alan Ruskin, head of currency strategy at RBS Securities Inc. in Stamford, Connecticut, wrote in an e- mail. Bernanke’s comments are “backed by no fresh substance,” he said."

"Oil climbed as much as 3.8 per cent as the US currency’s drop encouraged the purchase of alternative investments."

""There is going to be continued downward pressure on the dollar, which will be supportive of prices," said Mike Wittner, head of oil research at Societe Generale SA in London."

"Yao said that the yuan’s exchange rate had only a small impact on China’s trade surplus and, moreover, that it was unfair to blame global imbalances on Chinese exports.

“If we only demand that one country appreciate its currency, but the dollars’ value keeps going down, it is not conducive to the global economic recovery and it is also unfair,” Yao said."

"Gold rose to record highs on Monday above $1,140 an ounce as the dollar extended losses, increasing bullion's appeal as a hedge against the falling U.S. currency."

"Nov. 16 (Bloomberg) -- Gold prices jumped to a record for the fourth time in six sessions as investors purchased the precious metal as an alternative to a slumping dollar."

 

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Greenspan has Faith in Gold - 2 minute point
saxplayer00o1 wrote:

 I can't even keep up with all of the dollar news stories coming out at this pace today

 

You know, I thought I was all over the Daily Digest but I tip my hat to you! If you can't keep up with it - then it is a hurricane! Cat 5+.

Take care!

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments