Your FINANCIAL NEWS for Wednesday 10/11 - Dollar tumbles, gold hits record high

Dollar tumbles, gold hits record high

The dollar sank against the euro and hit a record low point against the Swiss franc on Wednesday while gold struck a new all-time peak, as traders mulled possible US moves to boost its ailing economy.

Meanwhile in Asia, China's central bank pledged to increase the flexibility of its exchange rate just as US lawmakers were to vote on legislation that could punish Beijing for alleged currency manipulation.

The People's Bank of China promised to continue to implement an "appropriately loose monetary policy" and "increase currency flexibility", according to a statement on its website.

It also said it would "gradually improve the exchange rate setting mechanism."

The central bank's wording was almost identical to that used in a similar pledge in June. Since then, the yuan has risen by less than two percent against the US dollar.

The US House of Representatives was to vote later on Wednesday on legislation to expand the powers of the US Commerce Department by allowing it to impose tariffs when another nation is found to be manipulating its currency's value.

The measure enjoyed strong support from President Barack Obama's Democratic allies and their labour union supporters, as well as his Republican foes, and was expected to win approval.

US lawmakers have redoubled their accusations that Beijing keeps the yuan -- and therefore Chinese exports -- artificially cheap, driving US manufacturers out of business and costing thousands of US jobs.

In London, commenting on the weakness of the dollar, Rajesh Patel, a trader at firm Spread Co in London, said: "The dollar bashing continues unabated today."

He said: "Quantitative easing seems to be well and truly at the forefront of traders' minds."

He also said: "Gold is being brought along for the ride, as cheaper dollars makes gold more attractive."

In early morning deals, the European single currency soared to a five-month high point of 1.3639 dollars -- last reached in mid-April -- and then fell slightly.

The Swiss franc, which is a traditional safe-haven investment, rose to a historic high level against the US unit, hitting just 0.9734 francs for a dollar.

The dollar has weakened as new negative data on the US economy strengthened forecasts that the Federal Reserve will pump in more money, known as quantitative easing.

Sterling steadied on Wednesday, one day after sliding as a Bank of England policymaker suggested that the central bank should consider pumping the British economy with more new money.

The weakness of the dollar pushed gold prices to a record high point of 1,313.45 dollars per ounce in London, after smashing through the 1,300-level late last week.

Last week the US Federal Reserve's policy committee said it was "prepared" to step in if the economy faltered further.

Speculation on US monetary easing intensified following two disappointing reports on Tuesday showing a drop in home prices and a sharp fall in consumer confidence.

In London on Wednesday, the euro changed hands at 1.3589 dollars against 1.3583 dollars late in New York on Tuesday, at 113.63 yen (113.88), 0.8589 pounds (0.8593) and 1.3273 Swiss francs (1.3255).

The dollar stood at 83.70 yen (83.84) and 0.9767 Swiss francs (0.9756).

The pound was at 1.5822 dollars (1.5801).

http://www.breitbart.com/article.php?id=CNG.5fd9d9aca2e24cbdb73350eb1197d306.661&show_article=1

Here is the information on the Dinar.

this is the web site:

http://www.gidassociates.com/index.php/why-invest-in-dina


Home Page Buy Iraqi Dinars Why Invest in Dinar? Company Information
Questions & Answers Safety & Security Terms of Use

Registered with the US Treasury

The Iraqi Dinar is not traded in the world markets but you can still
invest in this great opportunity. GIDAssociates.com is the largest
seller of the Iraqi Dinar in the United States and we ship the hard
currency to you in 25,000 denomination notes. Since GIDAssociates.com
is registered with the United States Treasury Department as a Money
Service Business you can be confident and assured of your purchase.

Here are some keynotes about this unique opportunity:

# Prior to the Gulf War, 1 million Iraqi Dinar = US $3,200,000.
Now you can buy 1 million Iraqi Dinar for only US $995.

# Iraq is the second leading oil producing country in the world,
and since October, 2003 the Iraqi Dinar has already appreciated 25%.

# Forecasters are predicting continued appreciation of the Iraqi Dinar.

You invest $995 to purchase 1 million Iraqi Dinar.

· Profit of $9,005 if the Iraqi Dinar appreciates to 1 Iraqi Dinar = 1 penny.
1 million Iraqi Dinar will = US $10,000.

· Profit of $3,199,005 if the Iraqi Dinar appreciates to the pre-Gulf War rates.
1 million Iraqi Dinar will = US $3,200,000.

Kuwait Example:
Prior to Saddam Hussein Invading Kuwait: 1M Dinar = US $2,790,000
After the Kuwait invasion by Iraq: 1M Dinar = US $100,000
Today 1M Dinar = US $3,423,000*
*That's a 34-fold increase!

Why buy Iraqi Dinar?
Iraq is positioned as the second largest oil reserve holder in the
world with 95 percent of Iraq’s revenue coming from exported oil. Even
in the midst of chaos, scandals and physical violence, the Iraqi dinar
has managed to appreciate by 25 percent in value. The “all-time low”
of the Iraqi dinar appeals to sophisticated investors. Many Investors
are aware that they are buying the Iraqi dinar at a postwar level;
therefore, it has captivated a broader spectrum. Anyone can afford
buying the dinars, regardless if they are big or small investors.

Iraqi Dinar security features:
Further encouraging the Iraqi dinar demand are the note’s security
features: watermarks, metallic inks, safety strip, color changing
symbol, raised lettering and writing that is only visible in ultra
violet light. When there is confidence in any currency, stability and
growth are the next to follow.

Buy Now! $30 25,000 Dinar
Buy Now! $125 125,000 Dinar
Buy Now! $249 250,000 Dinar
Buy Now! $498 500,000 Dinar

Dollar sinks after consumer confidence wanes
Sep 28 03:43 PM US/Eastern
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NEW YORK (AP) - The dollar fell against other currencies Tuesday after a handful of reports underscored worries about the weakening U.S. economy.
The two surveys, on consumer confidence and the outlook of CEOs at major U.S. companies, suggested that U.S. shoppers are increasingly downbeat about the economy while top business executives remain cautious and were increasingly likely to cut back on hiring plans.

In late afternoon trading in New York, the euro rose to $1.3567 from $1.3475 late Monday, hitting its most recent five-month high at $1.3595 earlier in the day. The euro has risen nearly 7 percent this month against the dollar because investors expect the Federal Reserve will take more action to support the U.S. economy. That would likely bring down interest rates and make the U.S. currency less appealing to investors.

The dollar has declined against the euro during the past several months despite ongoing worries about the debt levels of European governments and banks.

In other trading Tuesday, the British pound dropped to $1.5793 from $1.5855, while the dollar tumbled to 83.93 Japanese yen from 84.24 yen. It's the dollar's first drop below 84 yen since the Bank of Japan intervened in foreign exchange markets to weaken the yen on Sept. 16.

The yen had jumped to 15-year highs against the U.S. dollar earlier this month because of its appeal as a safe-haven currency. A stronger yen hurts profits of Japan's major exporters, threatening to undermine the country's recovery from the recession.

The dollar also fell against currencies of countries that are big commodity exporters, such as the Australian dollar. The Australian currency traded at its highest level versus the dollar since July 2008.

Driving the U.S. currency lower Tuesday was a Conference Board report saying its monthly index of consumer confidence fell to 48.5 in September from 53.2 in August. A September survey from Business Roundtable, an association of corporate chief executives, suggested that CEOs were less optimistic about sales growth and hiring plans than they had been in June.

Also on Tuesday, the dollar rose to 1.0311 Canadian dollars from 1.0259 Canadian dollars. It dropped to 0.9767 Swiss francs from 0.9845 Swiss francs, hitting its most recent 2 1/2 year low against the Swiss currency at 0.9740 Swiss francs.

Hmm?

Gates, Buffett set to dine with China's rich
Sep 29 06:06 AM US/Eastern

BEIJING (AP) - Microsoft Corp. co-founder Bill Gates and billionaire investor Warren Buffett are set to meet China's super rich Wednesday to sell the art of giving over a dinner that has sparked some soul searching among the world's second-largest number of billionaires.
Although the two have said they will not be asking China's newly minted millionaires to give up their fortunes, there have been reports some invitees were reluctant to attend because they did not want to be pressured.

Because of that concern, Gates and Buffett, who have campaigned to persuade American billionaires to give most of their fortunes to charity, issued a letter earlier this month saying they won't be pushing anyone to give up their fortunes but wanted to promote philanthropy.

The private dinner, which local media says will be in a mansion on the edge of Beijing modeled after the baroque 17th century Chateau de Maisons-Laffitte in France, is expected to gather several dozen people.

The state-run Global Times newspaper said Wednesday that Pan Shiyi and Zhang Xin, chairman and CEO of property developer SOHO China, and Niu Gensheng, founder of Mengniu Dairy, were among the invitees.

Veteran actor Jet Li and tycoon Wang Chuanfu, who owns automaker BYD Co., are also among those likely to attend, the China Daily paper said.

There are at least 875,000 U.S. dollar millionaires in China, according to Shanghai-based analyst Rupert Hoogewerf, who studies China's wealthy and compiles the country's equivalent of the Forbes list. But over the past decade, the distribution of wealth has grown increasingly uneven—incomes averaged just $3,600 last year.

Buffett was also in China to attend a series of events by BYD Co. to highlight the company's clean energy strategy. Buffett's Berkshire Hathaway Inc. owns a 10 percent stake in BYD.

At an event Wednesday in Beijing, BYD announced it would donate 1,000 sets of electricity storage systems for houses in remote areas of Tibet.

"We take for granted having electricity. Many families haven't had electricity. It can change the world," Buffett said.

The Bill and Melinda Gates Foundation office in China said earlier this month that some invitees to the dinner had asked if they would be required to pledge donations.

This prompted the two billionaires to issue a letter last week, carried by the official Xinhua News Agency, saying that while 40 super-wealthy American families have signed what they call the "giving pledge" at the urging of Gates and Buffett, the drive was not necessarily suited to China.

"We know that the Giving Pledge is just one approach to philanthropy, and we do not know if it's the right path forward for China," they wrote in the letter.

Gates and Buffett, who has pledged to give most of his fortune to charity over time with the biggest chunk going to the Gates Foundation, said they just wanted to share experiences with China's successful businesspeople. But they noted the country's newly minted wealthy were at a key moment when they could make a significant impact.

Meanwhile, around the world civil unrest continues and workers are totally p*ssed off at politicians and bankers who created the problem. I fully expect after the November elections as early as November 8th to begin to see another major financial crisis in the US.

Anti-austerity protests sweep across Europe
Sep 29 10:04 AM US/Eastern
By RAF CASERT

BRUSSELS (AP) - Anti-austerity protests erupted across Europe on Wednesday—Greek doctors and railway employees walked out, Spanish workers shut down trains and buses, and one man even blocked the Irish parliament with a cement truck to decry the country's enormous bank bailouts.
Tens of thousands of demonstrators marched through the streets of Brussels toward European Union buildings in bright red, green and blue labor union jackets, aiming to reinforce the impact of Spain's first nationwide strike in eight years.

Strikes or protests were also taking place Wednesday in Greece, Portugal, Ireland, Slovenia and Lithuania, all aimed at the budget-slashing, tax-hiking, pension-cutting austerity plans that European governments have implemented to try to control their debt.

The march in Brussels was taking place just as the EU Commission proposed new penalties to punish member states that have run up deficits, mainly to fund social programs in a time of high unemployment. The proposal, backed by Germany, is running into strong opposition from France, which wants politicians to decide on sanctions, not rigid rules alone.

"It is a bizarre time for the European Commission to be proposing a regime of punishment," John Monks, general secretary of the European Trade Union Confederation, told Associated Press Television News. "How is that going to make the situation better? It is going to make it worse."

Unions fear that workers will become the biggest victims of an economic crisis set off by bankers and traders, many of whom were rescued by massive government intervention.

"It is not right that people on low salaries have to pay to prop up the country. It should be the banks," said Belgian demonstrator Evelain Foncis.

Several governments, already living dangerously with high debt, were pushed to the brink of financial collapse and have been forced to impose punishing cuts in wages, pensions and employment—measures that have brought workers out by the tens of thousands over the past months.

"There is a great danger that the workers are going to be paying the price for the reckless speculation that took place in financial markets," Monks said. "You really got to reschedule these debts so that they are not a huge burden on the next few years and cause Europe to plunge down into recession."

In Spain, Prime Minister Jose Luis Rodriguez Zapatero's Socialist government is under severe pressure because of unpopular measures put in place to save Europe's fourth-largest economy from a bailout like one that saved Greece from bankruptcy.

The cuts have helped Spain trim its central government deficit by half through July but the unemployment rate stands at 20 percent, and many businesses are struggling to survive.

The strike Wednesday was Spain's first general strike since 2002 and marked a break in the once-close relationship between unions and the Socialist government.

Whistle-blowing picketers blocked trucks from delivering produce at the main wholesale markets in Madrid and Barcelona. Strikers hurled eggs and screamed "scabs" at drivers trying to leave a city bus garage in Madrid. Airlines canceled hundreds of flights.

Greece, which had to be rescued this spring by the 15 other nations that share the euro currency just to stave off bankruptcy, has also been forced to cut deep into workers' allowances, with weeks of bitter strikes and actions as a result.

Greek bus and trolley drivers walked off the job for several hours while Athens' metro system and tram shut down. National railway workers also walked off the job, disrupting rail connections across the country, while doctors at state hospitals were on a 24-hour strike.

Greece has already been suffering from two weeks of protests by truck drivers who have made it difficult for businesses to get supplies. Many supermarkets are seeing shortages, while producers complaining they are unable to export their goods.

Greece's government has imposed stringent austerity measures, including cutting civil servants' salaries, trimming pensions and hiking consumer and income taxes. Several other EU nations are also planning actions.

In Dublin, a man blocked the gates of the Irish parliament with a cement truck to protest the country's expensive bank bailout. Written across the truck's barrel in red letters were the words: "Toxic Bank" Anglo and "All politicians should be sacked."

Police arrested a 41-year-old man but gave few other details.

The Anglo Irish Bank, which was nationalized last year to save it from collapse, owes some euro72 billion ($97 billion) to depositors worldwide, leaving Irish taxpayers with a mammoth bill at a time when people are suffering through high unemployment, tax hikes and heavy budget cuts.

Also Wednesday, some 400 protesters rallied in an illegal demonstration in Vilnius to demand authorities in Lithuania cease harsh austerity measures such as salary cuts.

"All of working Europe is on the streets today to express dismay over nearsighted income-cutting politics," said Vytautas Jusys, a 40-year-old engineer who lost his job this year.

In Slovenia, thousands of public service workers continued their open-ended strike on Wednesday to protest the government's plan to freeze their salaries for two years—or until economy grows again at a rate of 3 percent.

Unions in Portugal expect some 30,000 people to show up for demonstrations.

Carol wrote:Here is the information on the Dinar.

this is the web site:

http://www.gidassociates.com/index.php/why-invest-in-dina


Home Page Buy Iraqi Dinars Why Invest in Dinar? Company Information
Questions & Answers Safety & Security Terms of Use

Registered with the US Treasury

The Iraqi Dinar is not traded in the world markets but you can still
invest in this great opportunity. GIDAssociates.com is the largest
seller of the Iraqi Dinar in the United States and we ship the hard
currency to you in 25,000 denomination notes. Since GIDAssociates.com
is registered with the United States Treasury Department as a Money
Service Business you can be confident and assured of your purchase.

Here are some keynotes about this unique opportunity:

# Prior to the Gulf War, 1 million Iraqi Dinar = US $3,200,000.
Now you can buy 1 million Iraqi Dinar for only US $995.

# Iraq is the second leading oil producing country in the world,
and since October, 2003 the Iraqi Dinar has already appreciated 25%.

# Forecasters are predicting continued appreciation of the Iraqi Dinar.

You invest $995 to purchase 1 million Iraqi Dinar.

· Profit of $9,005 if the Iraqi Dinar appreciates to 1 Iraqi Dinar = 1 penny.
1 million Iraqi Dinar will = US $10,000.

· Profit of $3,199,005 if the Iraqi Dinar appreciates to the pre-Gulf War rates.
1 million Iraqi Dinar will = US $3,200,000.

[Snip...]

Humm.. If it sound too good to be true - it generally is.

Carol, I found your link to the dinar site broken!
I did manage to find it and was left with a cold feeling about it, but even if it appreciates to 10:1 that sounds a good buy. But with the value of all of the worlds currencies de-valueing against gold, I am not sure where this could go. The Dinar is in the same sinking boat.
This one works though http://www.gidassociates.com/index.php/why-invest-in-dinar

Here is one question in their FAQ which raised my eyebrows.

Q. How can I cash in my Iraqi Dinars?
A. Please call 1-800-319-5206 prior to returning your dinar for current buy back rates. Until markets develop for the resale of Iraqi Dinars, it may be difficult for you to liquidate your Iraqi Dinars or exchange them for US Dollars.
--------------

I can't see the market developing, to that degree and tptb would not want the country to all of a sudden be full of multi millionaires after it was blasted back into the stone age relatively recently.

It is without a doubt, an interesting concept. I will keep a close eye on where that is going. Thanks Carol.
Blessings

I have friends who are talking about cashing their dinars in... in China, Singapor

Thanks for the new link. Indeed, buying dinars is a risk and it sounds too good to be true. However, we enjoy a good risk now and again just like we enjoyed roller coasters. It's not that much money and even if it goes up one cent there is a nice payout.

More bad news about the dollar.

http://www.breitbart.com/article.php?id=CNG.f44dc0982a11a52246a9f2b994a36455.231&show_article=1

Dollar falls as 'currency war' concerns linger
Oct 11 07:02 AM US/Eastern


The dollar fell against the euro and yen on Monday after the world's top finance officials failed to reach a consensus on measures to head off what some see as a looming "currency war", analysts said.

The euro reached 1.40 dollars, while the US unit hit a fresh 15-year low against the yen amid growing expectation that the Federal Reserve will pump more money to bolster the struggling US economy, they added.

"The euro was given a boost after the IMF meeting, which failed to resolve the so-called currency war," said Kathleen Brooks, an analyst for online trading company Forex.com.

The European single currency reached 1.4012 dollars a few days after breaching the 1.40 level for the first time for eight months.

In mid-morning trading, the euro stood at 1.3946 dollars, compared with 1.3926 dollars late on Friday in New York.

Against the Japanese currency, the dollar dropped to 81.39 yen -- the lowest point since April 1995 and below the level which triggered Japanese government intervention in the foreign exchange market on September 15.

International Monetary Fund policymakers failed on Saturday to reach a consensus on measures to head off what some see as a looming currency war but pledged to keep working toward easing global economic imbalances.

On the London Bullion Market, the price of gold climbed to 1,348.55 dollars an ounce from 1,341.50 dollars an ounce late on Friday.

Well, I said I would watch the progress of Iraq Dinars as an investment.

It seems that the scheme has been going since 1988 to raise the price of the Dinar. I have only begun to research this and already, I am confused to heck. On first glance, it looks like a con but there is clearly more to this issue than that I have discovered thus far. No smoke without fire - as they say.

Here is an article I came across which supports the con theory.

Japan Investors Duped Into Buying Iraqi Dinar as U.S. Withdraws
October 25, 2010, 10:54 PM EDT
By Masatsugu Horie

Oct. 26 (Bloomberg) -- Japanese consumers are being warned about an investment scam promoting the purchase of the Iraqi dinar on predictions the currency will surge in value as U.S. combat troops withdraw from the country.

A man in western Japan spent 2 million yen ($25,000) to buy 500,000 Iraqi dinar ($428) after a caller recommended buying the currency because it was expected to gain as much as 30-fold, the National Consumer Affairs Center said on its website. The man, whose attempts to get a refund were unsuccessful, was among more than 200 people who bought the currency, the posting said.

“In most cases, the exchange rate is extremely bad,” Ryota Kato, a spokesman for the center, said yesterday by telephone. “And you wouldn’t be able to exchange the dinar back into yen because currently no Japanese bank will accept it.”

The Central Bank of Iraq exchanges 1,170 dinar for 1 U.S. dollar, according to its website, a rate that has been in place since early 2009. An Iraq government spokesman said in April the country has no plans to stop linking its currency to the dollar.

Kato said the center received 368 inquires about Iraqi dinar in the nine months ended September, compared with four for all of last year. Among the 202 people who said they purchased the currency, the average investment was 3.5 million yen.

“One person spent 20 million yen buying dinar,” said Kato, adding that the elderly have been targeted. Consumers are also advised to take precautions if asked to buy the Sudanese pound, he said.

The full Article can be viewed here http://www.businessweek.com/news/2010-10-25/japan-investors-duped-into-buying-iraqi-dinar-as-u-s-withdraws.html

Blessings

We just happen to have an account with HSBC International Bank which just happens to have a branch in Iraq. So if this does happen... we have a connection. I have one friend who insists something is about to break soon. I just don't know. I tend to put this into the back of my mind and watch what the money gods will decide.

One opinion is that once the DOW hits 11,200 again and silver touches $25 per ounce.... then the stage is set for the mother of all stock market crashes.

The stage is set today.

NOV 8TH at about 11:23 a.m. E.S.T the market will start a historic 891 point slide for the day.

It will hit bottom on March 23rd, 2011 at 5909


Then there is this.


How can the Gross Domestic Product grow when people are being laid-off from going to work and producing the domestic product?

CIA fact book states GDP at:

-- $14.14 trillion (2009 est.)

-- $14.52 trillion (2008 est.)

-- $14.52 trillion (2007 est.)
https://www.cia.gov/library/publications/the-world-factboo​k/geos/us.html

US GDP 2010 has already topped 2008 & 2007 figures.
www.usdebtclock.org

Why hasn't UNEMPLOYMENT rate dropped to 2007-2008 levels?
www.tradingeconomics.com