Dollar Shoots Upwards Against Trade Partner Currencies, Euro Falls Fast

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The Dollar Is On a Tear as the Euro dies.   EUR/USD hits fresh 12-year lows below 1.0750 and another headline is interesting: US dollar freight train crushing all in its path today.  This is very simple to understand.  First of all, all our trade partners in Japan, China, Europe, wherever, love running trade surpluses with the US.  The US is extremely deep in debt to all other countries because of this and our central bank prints money like crazy which is why groceries are ten times more expensive today than 20 years ago.  Even so, the trade deficit eats all these excess dollars and FOREX holdings of all other nations absolutely bulges with trillions of US trade dollars held out of circulation.

 

The euro is a special case.  Europe decided to destroy itself by going to war with Russia in Ukraine.  To win this very violent war which was caused by a coup in Kiev engineered by NATO and the EU leaders, they imposed a quarantine on trade with a major trade partner, Russia.  Russia retaliated in like kind and now things are in the deep freeze.

 

It is very cold in Europe this month.  Bulgaria – State of emergency in the Republic, Batak, Yakorouda and Mineral Baths in Haskovo region as seven feet of snow falls there, Greece – Many villages blocked by more than 2 meters (7 ft) of snow, there is a Blizzard in Vladivostok whileItaly captures the WORLD one-day snowfall record of 8.34 feet in 18 hours. 13 Feet of Snow in the Pyrenees in 3 days in Spain.

 

Switzerland, which just voted overwhelmingly by 96% of the vote to not follow Germany’s lead in destroying their energy systems to stop ‘global warming’ that doesn’t exist, started the run on the euro back when they revalued their currency due to the differential between themselves and the rest of Europe.

 

Dollar hits multi-year highs versus euro and yen, Aussie sags on China data as China sees some contraction in their own economy since no economy can run red hot all the time forever.  I remember the birth of central banks: it was to stop bank panics and depressions.  Didn’t work, of course.

 

A lot of speculative bids from short-term players are likely to support the dollar until next week’s FOMC (Federal Open Market Committee), when the Fed could drop the word ‘patient’, said Kyosuke Suzuki, director of forex at Societe Generale in Tokyo.

 

Any move to exclude “patient” from the Fed’s statement after its March 17-18 policy meeting in the wake of strong employment would be seen as paving the way for an earlier rate hike.

 

Amid such expectations a significant overnight drop in U.S. Treasury yields, usually a negative factor for the dollar, failed to douse the greenback’s strength.

 

Instead of making peace with Russia, the NATO nations are shoving military right up to Russia’s borders and exhibiting how weak they are in public which to my mind, is rather stupid.  The Russians are feeling very aggrieved due to the Kiev attacks on Ukraine citizens who speak Russian.  The rest of Europe doesn’t emotionally want to fight at all whereas the Russians are very hot and angry which means they have motivation whereas NATO troops have little to none motivation.

 

Greece threatens to seize German property, Berlin refuses to pay WWII reparations because economic warfare is now raging within NATO.

 

Nikos Paraskevopoulos said he was “ready to approve” a Greek Supreme Court ruling in 2000 that would allow the appropriation of assets belonging to Germany’s archaeological school and the Goethe Institute. Proceeds from the property would be used to compensate the relatives of 218 civilians who were massacred by Nazi troops in a village in central Greece in June 1944…

 

The two countries are already squabbling over Greek demands to renegotiate the terms of a €240 billion ($260 billion) bailout. However, with Germany showing few signs of leniency, the new left-wing Syriza government has decided to raise the issue of war reparations again with Berlin.

 

All confederations collapse during economic downturns and wars.  Even in the Civil War, the southern states adamantly refused to help each other.  They each fought pretty much separately and were pried apart, bit by bit.

 

BOJ chief defends inflation target which involves printing money like crazy.  Little of this money ends up in the hands of consumers and workers in Japan who have miserable lives that have seen no pay hikes in nearly two decades.  Poverty grows there like mushrooms and it is all very sad and tragic and quite doomed.  But it does make exports much cheaper and these are thriving for now.  Just the country itself is dying.

 

China’s yuan breaks into the world’s top five as payment currency-SWIFT | Reuters which is big news.  China is basically the world’s #1 manufacturing power.  All manufacturing powers win major wars with weaker economic powers.  Germany would have overwhelmed England if it weren’t for going to war with Russia, for example.  The US won WWI and WWII due to being the manufacturing powerhouse that armed and made mobile all of its allies.

 

Now we have nearly nothing.  Especially making steel and major manufacturing hard metal items.  China has it now.  And the yuan will eventually be the world’s most important currency and the dollar will suddenly collapse when China eliminates its dollar FOREX treasury which is over a trillion dollars.

 


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20 Comments

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20 responses to “Dollar Shoots Upwards Against Trade Partner Currencies, Euro Falls Fast

  1. joseppi

    As we have been repetitively informed by the media that the Russian economy is in shambles because of US sanctions…..all the while, China and Russia are busy creating an alternative to the SWIFT international banking settlement system controlled by western banks.

    Today, we learn that western banking system is suddenly saying , “Please don’t go.”

    http://rt.com/business/239581-swift-russia-board-traffic/

  2. Jim R

    Remember a few years ago, when a cheap currency was a good thing? Yeah, the official spin was always that it was good for exports. But we don’t really export anything much … it was good for financial shenanigans, like the “carry trade”. Now not so much, because “trade” has been cut off by various “sanctions”.

    More recently, they’ve been boasting about how low the Ruble is, saying Russia is in some sort of economic distress. (Like the CAD and AUD and NZD, the Ruble fluctuates with oil and commodity prices) Russia is not in any economic distress.

    Well, now we have the opposite of that. It still doesn’t matter much, because we don’t export much except military hardware.

    What we have is a good old fashioned deflationary depression, like in the ’30s. Money is more valuable because most people don’t have much of it. But it probably won’t get to the point where an old $20 gold piece is once again worth $20…

  3. melponeme_k

    Speaking of industrialization and steel. Did you see this wacky story at NYTimes? What drugs are they giving their “reporters”.

    http://www.nytimes.com/2015/03/12/business/international/for-chinese-economy-steel-goes-from-strength-to-weakness.html?ref=world&_r=0

    How is being the only superpower with just about the only major steel industry left standing a weakness?

  4. tio

    The euro is a special case. Europe was ordered to destroy itself by going to war with Russia in Nulandistan. To win this very violent war, which was caused by a coup in Kiev engineered by the Empire of Chaos and its NATO minions, the Empire imposed a quarantine on trade within the eurasian trade corridor. Russia said fuck you.

    tweeked that para for you.

    ΩΩΩ

    ELAINE:🙂

  5. Christian W

    Latest meme from Nuland, the US assistant secretary for European and Eurasian affairs, lover of Nazis and wars:

    ““Even as Ukraine is building a peaceful, democratic, independent nation across 93 percent of its territory, Crimea and parts of eastern Ukraine are suffering a reign of terror,”

    That is beyond embarrassing. “Fuck the Truth” Nuland

    ——

    In Greece it looks like those saying that Tsipras and Syriza were Soros puppets were correct. Greece has started to demand war reparations from Germany, which isn’t going to help the Greek position in the negotiations at all.

    http://rt.com/news/239593-germany-greece-war-reparations/

    From the start of the crises in Greece the Greek elites have been using Germany as a bogey man to hide their crimes behind, knowing full well that hate of the “foreign enemy” will unite the Greeks behind them instead of the elites being stringed up from lamp posts for their corruption.

    “Someone” (guess who?) is using WWII to stir up emotions in Europe to (guess what) divide and conquer…

  6. Christian W

    Well, now we have the opposite of that. It still doesn’t matter much, because we don’t export much except military hardware.

    The US exports war, poverty and misery. Even as the very same things are about to devour it.

  7. aashild

    @Christian

    I agree with the points you have made. Good analysis.

    The last thing the US want to see is the formation of a Eurasian economic corridor, stretching from China to Europe trough Russia and Central-Asia. By antagonizing and isolating Russia, the US hopes to prevent this from happening. Many companies in Europe would like to do business with Russia, but they are being blocked from doing so by their respective governments.

  8. emsnews

    And this is all doomed to failure!

    Europe needs desperately Russia’s CO2 stuff to fuel their economies and heat their homes and they also need to sell stuff to Russia instead of running huge deficits with Russia who will then buy from China instead.

    This whole thing is too silly and stupid. Ridiculous and dangerous, too.

  9. Christian W

    Tio is correct.

    Europe (not counting the UK here) has the same problem Russia has, lots of corrupt leaders (read US bought) in awkward places and lots of CIA operators messing things up.

    This is why German action is so hesitant and bewildered, even if it is obvious that the US created war in Ukraine is a war on Europe itself.
    Hopefully the Germans can get their act together soon. Making deals with Russia is better than committing seppuku on the orders of Washington and London.

    The situation in Europe is pretty dire. Poland and the Baltic states have been bought off by the US. France is under Zionist attack. The UK wants to protect the City racket at all costs. Germany is being isolated. The US is active in Romania, Bulgaria and the small Balkan states. Hungary is about to get a good wallop too for daring to cross the Master. Sweden is run by the most two faced backstabbing weakspined lickspittles possible, the quintessential Bilderbergers. Spain is fascist. Norway wants to be some kind of tiny US military Special Force. Italy is the usual mess. Never mind Greece, that elite haven of corruption.

    Yuk.

  10. Jim R

    Russia should demand the same thing Elaine should get: all the money from the CO2 “credit” scheme.

    Because Russia has forests. Some of the few forests left, and they are taking CO2 out of the air!

    The financial engineers owe Russia, bigtime!

  11. emsnews

    Yup, correct. I want my money for cleaning up the environment!

  12. Christian W

    US Fed tells the Germans their Deutsche Bank fails a stress test…

    just a little friendly warning you know.

    At Sput niknews.com (one word…)

  13. LOU

    When does the dollar crash?

  14. Jim R

    2018 or so. Could be wrong though, I’ve been expecting it to crash any day since 2007 or so.

  15. emsnews

    The Tech giants all want cheap labor so the government pretends we don’t have enough tech workers and lets in a flood of aliens.

    Yes, both Democrats and Republicans have done this to the workers. Both want to kill off citizen workers because they cost too much and foreign labor that is illegal or temporary is great for the super rich.

  16. joseppi

    Elaine has been talking about this eventual mutiny for a long time…..

    “I suspect this will be the first of many decisions to be taken by countries such as the UK to position themselves between the new economic superpower and the existing one.”

    http://www.bbc.com/news/world-australia-31864877

  17. emsnews

    Thanks for the news, Joseppi. Wrote about it this morning.

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