Comments on: Faber: Dollar Will Eventually Go to ‘Value of Zero’ http://www.ritholtz.com/blog/2009/10/faber-dollar-will-eventually-go-to-value-of-zero/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 23:28:32 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: davefromcarolina http://www.ritholtz.com/blog/2009/10/faber-dollar-will-eventually-go-to-value-of-zero/comment-page-1/#comment-229716 davefromcarolina Mon, 26 Oct 2009 22:43:01 +0000 http://www.ritholtz.com/blog/?p=42253#comment-229716 If memory serves, Communism was brought down quite a while ago. If memory serves, Communism was brought down quite a while ago.

]]> By: leftback http://www.ritholtz.com/blog/2009/10/faber-dollar-will-eventually-go-to-value-of-zero/comment-page-1/#comment-229662 leftback Mon, 26 Oct 2009 20:16:56 +0000 http://www.ritholtz.com/blog/?p=42253#comment-229662 This is all bollocks. The dollar will decline on and off in a zig-zag way, Japanese style, until we get our act together and have real growth and savings and write down our malinvestments. This is all bollocks. The dollar will decline on and off in a zig-zag way, Japanese style, until we get our act together and have real growth and savings and write down our malinvestments.

]]> By: Bruce in Tn http://www.ritholtz.com/blog/2009/10/faber-dollar-will-eventually-go-to-value-of-zero/comment-page-1/#comment-229557 Bruce in Tn Mon, 26 Oct 2009 17:32:41 +0000 http://www.ritholtz.com/blog/?p=42253#comment-229557 http://www.bloomberg.com/apps/news?pid=20601089&sid=aS7bHzA2hh0E China Should Raise Euro, Yen Holdings, News Reports (Update2) By Bloomberg News Oct. 26 (Bloomberg) -- China should increase the representation of the yen and the euro in its foreign-exchange reserves, the Financial News, a newspaper affiliated with China’s central bank, reported today. The U.S. dollar should retain the largest weighting in the reserves, at a smaller proportion than now, according to an article by Zhou Hai in the Beijing-based newspaper. Holdings in euro and yen should increase to reflect China’s growing trade with the European Union and Japan, according to the report, which didn’t give Zhou Hai’s job description. The dollar declined against 11 of its 16 major counter parts after the report today and touched a 14-month low versus the euro. China’s foreign-exchange reserves, the world’s biggest, increased by about $141 billion in the third quarter to $2.273 trillion, the nation’s central bank said Oct. 14. ...And those who say that a mismanaged dollar will continue to be the world's currency are wrong, too, imo. My target date for the world to effectively move to some other way to transfering money between countries with a vehicle other that the dollar is 2012. http://www.bloomberg.com/apps/news?pid=20601089&sid=aS7bHzA2hh0E

China Should Raise Euro, Yen Holdings, News Reports (Update2)

By Bloomberg News

Oct. 26 (Bloomberg) — China should increase the representation of the yen and the euro in its foreign-exchange reserves, the Financial News, a newspaper affiliated with China’s central bank, reported today.

The U.S. dollar should retain the largest weighting in the reserves, at a smaller proportion than now, according to an article by Zhou Hai in the Beijing-based newspaper. Holdings in euro and yen should increase to reflect China’s growing trade with the European Union and Japan, according to the report, which didn’t give Zhou Hai’s job description.

The dollar declined against 11 of its 16 major counter parts after the report today and touched a 14-month low versus the euro. China’s foreign-exchange reserves, the world’s biggest, increased by about $141 billion in the third quarter to $2.273 trillion, the nation’s central bank said Oct. 14.

…And those who say that a mismanaged dollar will continue to be the world’s currency are wrong, too, imo. My target date for the world to effectively move to some other way to transfering money between countries with a vehicle other that the dollar is 2012.

]]> By: Bruce in Tn http://www.ritholtz.com/blog/2009/10/faber-dollar-will-eventually-go-to-value-of-zero/comment-page-1/#comment-229550 Bruce in Tn Mon, 26 Oct 2009 17:22:01 +0000 http://www.ritholtz.com/blog/?p=42253#comment-229550 I think you fellows are whistling past the graveyard. This is part of the problem of categories..conservative or liberal...actually doesn't matter..they both treat the budget in a damaging fashion. Reagan, Carter , Bush, Clinton, Obama...doesn't really matter. The economics of it all have been ignored, when in fact each country is all about the Benjamins. The financial underpinnings of these countries will be the future growth or hardship for their individual populations. Could the dollar go to zero? I haven't seen anything in your "If we go to zero everyone else is in even deeper do-do..." statement that rebuts it. Will our dollar become worthless? I don't know, but I know it could. You want to give health care to everyone ? Pay for it. You want to bring down communism? Pay for it. Could the dollar become worthless? Certainly. Will it? Probably not, but recent spending by everyone in power has been less than comforting...just because a thing hasn't happened doesn't me it can't happen. I think you fellows are whistling past the graveyard. This is part of the problem of categories..conservative or liberal…actually doesn’t matter..they both treat the budget in a damaging fashion. Reagan, Carter , Bush, Clinton, Obama…doesn’t really matter. The economics of it all have been ignored, when in fact each country is all about the Benjamins.

The financial underpinnings of these countries will be the future growth or hardship for their individual populations. Could the dollar go to zero? I haven’t seen anything in your “If we go to zero everyone else is in even deeper do-do…” statement that rebuts it. Will our dollar become worthless? I don’t know, but I know it could.

You want to give health care to everyone ? Pay for it.

You want to bring down communism? Pay for it.

Could the dollar become worthless? Certainly. Will it? Probably not, but recent spending by everyone in power has been less than comforting…just because a thing hasn’t happened doesn’t me it can’t happen.

]]> By: The Curmudgeon http://www.ritholtz.com/blog/2009/10/faber-dollar-will-eventually-go-to-value-of-zero/comment-page-1/#comment-229548 The Curmudgeon Mon, 26 Oct 2009 17:15:47 +0000 http://www.ritholtz.com/blog/?p=42253#comment-229548 "That assumes a cataclysm on a scale that puts us back in the stone age…" Exactly. Perhaps not in twenty years, but eventually. All things return from whence they came. So will we. But really, all that would be required for the dollar to go to zero, either relative to other currencies, or relative to a hard currency, like oil, is for there to be continued increases in the growth rate of the dollar supply while there is a decline or stasis in the growth rate of the value a dollar purportedly represents. Before it reaches that point, though, velocity will have to approach zero as well. “That assumes a cataclysm on a scale that puts us back in the stone age…”

Exactly. Perhaps not in twenty years, but eventually. All things return from whence they came. So will we.

But really, all that would be required for the dollar to go to zero, either relative to other currencies, or relative to a hard currency, like oil, is for there to be continued increases in the growth rate of the dollar supply while there is a decline or stasis in the growth rate of the value a dollar purportedly represents. Before it reaches that point, though, velocity will have to approach zero as well.

]]> By: dark1p http://www.ritholtz.com/blog/2009/10/faber-dollar-will-eventually-go-to-value-of-zero/comment-page-1/#comment-229545 dark1p Mon, 26 Oct 2009 17:10:20 +0000 http://www.ritholtz.com/blog/?p=42253#comment-229545 I agree with you, Singer. If the dollar goes to zero, where will the other currencies be? Less than zero? One of the huge fallacies of the dollar bears is they ignore the fact that it's all relative. You think the dollar is in lousy shape? Take a gander at the Euro and the Yen. And if China ever told the truth about their economic bust-in-progress, the Renimbi wouldn't look so hot, either. If the dollar goes to zero, then all fiat currencies go to zero. That assumes a cataclysm on a scale that puts us back in the stone age... I agree with you, Singer. If the dollar goes to zero, where will the other currencies be? Less than zero? One of the huge fallacies of the dollar bears is they ignore the fact that it’s all relative. You think the dollar is in lousy shape? Take a gander at the Euro and the Yen. And if China ever told the truth about their economic bust-in-progress, the Renimbi wouldn’t look so hot, either.

If the dollar goes to zero, then all fiat currencies go to zero. That assumes a cataclysm on a scale that puts us back in the stone age…

]]> By: SINGER http://www.ritholtz.com/blog/2009/10/faber-dollar-will-eventually-go-to-value-of-zero/comment-page-1/#comment-229543 SINGER Mon, 26 Oct 2009 17:05:23 +0000 http://www.ritholtz.com/blog/?p=42253#comment-229543 Eventually... He says in 20 years I think, with intermittent dollar rallies... Doesn't everything eventually go to zero? My thing is, the high likelihood that another currency scheme would be instituted before the dollar hits zero... Just like the entire financial system went to zero, but then a bailout occurred and money was printed, so it never got to zero... Eventually… He says in 20 years I think, with intermittent dollar rallies… Doesn’t everything eventually go to zero? My thing is, the high likelihood that another currency scheme would be instituted before the dollar hits zero… Just like the entire financial system went to zero, but then a bailout occurred and money was printed, so it never got to zero…

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