The Euro

[lizaa]

http://www.jonesreport.com/articles/...displaces.html


Euro displaces dollar in bond markets

VIDEO: Rumsfeld Says Flight 93 Shot Down


The euro has displaced the US dollar as the world’s pre-eminent currency in international bond markets, having outstripped the dollar-denominated market for the second year in a row.

The data consolidate news last month that the value of euro notes in circulation had overtaken the dollar for the first time. Outstanding debt issued in the euro was worth the equivalent of $4,836bn at the end of 2006 compared with $3,892bn for the dollar, according to International Capital Market Association data.

Outstanding euro-denominated debt accounts for 45 per cent of the global market, compared with 37 per cent for the dollar. New issuance last year accounted for 49 per cent of the global total.

That represents a startling turnabout from the pattern seen in recent decades, when the US bond market dwarfed its European rival: as recently as 2002, outstanding euro-denominated issuance represented just 27 per cent of the global pie, compared with 51 per cent for the dollar.

The rising role of the euro comes amid growing issuance by debt-laden European governments. However, the main factor is a rise in euro-denominated issuance by companies and financial institutions.

One factor driving this is that European companies are moving away from their traditional reliance on bank loans – and embracing the capital markets to a greater degree.

Another is that the creation of the single currency in 1999 has permitted development of a deeper and more liquid market, consolidated by a growing eurozone.

This has made it more attractive for issuers around the world to raise funds in the euro market. And, more recently, the trend among some Asian and Middle Eastern countries to diversify their assets away from the dollar has further boosted this trend.

René Karsenti, executive president of ICMA, said: “It is the stable interest rates in Europe that have helped and the fact that [the euro] has strengthened and shown resilience.”

Since the start of 2003, the European Central Bank’s main interest rate has fluctuated only 1.5 percentage points, ranging from a low of 2 per cent in the middle of that year to 3.5 per cent, its rate today.

In comparison, the Fed funds rate, the main US interest rate, has fluctuated 4.25 percentage points, ranging from 1 per cent in the middle of 2003 to 5.25 per cent, its level today. The euro has also risen to trade around $1.30 against the dollar, from around parity three years ago. Sterling issuance has grown in the past three years, reinforcing its attraction as a niche currency among some investors. The yen, in comparison, has fallen out of favour.

Overall, international capital markets have doubled in size in terms of bond issuance during the past six years.

[jacqui]

Can someone break this down in laymens term how this affects this country?
I appreciate this so much.

[lizaa]

we will have another money factor in the united states-it WILL be called the euro the u.s. dollar will soon be eliminated -it's already in the process.mexican money and u.s money united together called the euro-

[sephari]

the euro is more valuble than, more stable than, and thus, more desirable than the u.s. dollar. before the euro gained such preemenance, only american tourists could go to certain countries around the world and pay with their money rather than the local currency. the euro is now taking that place so that eventually spending the u.s. dollar somewhere else will be like spending a mexican peso in afganistan.
hope that helps.

Originally Posted by lizaa

we will have another money factor in the united states-it WILL be called the euro the u.s. dollar will soon be eliminated -it's already in the process.mexican money and u.s money united together called the euro-

The Euro is from Europe. Nothing to do with the Mexico or the U.S.

Originally Posted by sephari

the euro is more valuble than, more stable than, and thus, more desirable than the u.s. dollar. before the euro gained such preemenance, only american tourists could go to certain countries around the world and pay with their money rather than the local currency. the euro is now taking that place so that eventually spending the u.s. dollar somewhere else will be like spending a mexican peso in afganistan.
hope that helps.

Not really this article was specifically about bonds and what the bonds being purchased are denominated in. Bonds are debt taken out to finance governments, schools, and other municipal and government improvements. So buying a bond is essentially buying someones debt in which they pay you interest until maturity, that is when you get your initial investment back. Things like this is cyclical places like China, England and Japan ( major holders) have purchased their limit Treasury notes (American bonds) and are diversifying. In regards to the dollars preeminence as the currency of choice, The Euro is a potential threat , but, not now and not for a pretty long time. Anyone who is a fan of economic history will remember much of what is being said about the Euro was said about the yen and we all know what happened to Japan an almost 10 year long depression.

[lizaa]

Originally Posted by BeanBrahmin

The Euro is from Europe. Nothing to do with the Mexico or the U.S.


Not really this article was specifically about bonds and what the bonds being purchased are denominated in. Bonds are debt taken out to finance governments, schools, and other municipal and government improvements. So buying a bond is essentially buying someones debt in which they pay you interest until maturity, that is when you get your initial investment back. Things like this is cyclical places like China, England and Japan ( major holders) have purchased their limit Treasury notes (American bonds) and are diversifying. In regards to the dollars preeminence as the currency of choice, The Euro is a potential threat , but, not now and not for a pretty long time. Anyone who is a fan of economic history will remember much of what is being said about the Euro was said about the yen and we all know what happened to Japan an almost 10 year long depression.

*(OOPS] tHIS IS WHAT I WAS SPEAKING ON: AMERO
Analysts: Dollar collapse would result in 'amero'
Think deep recession likely regardless of Fed's actions


http://www.jonesreport.com/articles/...lar_amero.html



__________









Jerome R. Corsi / Prisonplanet.com | December 13, 2006
Two analysts who have reconstructed money supply data after the Fed stopped publishing it argue a coming dollar collapse will set the stage for creating the amero as a North American currency to replace the dollar.

The reconstructed M3 data – the broadest measure of money – published on econometrician Gary Kuever's website, NowAndFutures.com, shows M3 increased at a rate of 11 percent in May, compared to 9 percent when the Federal Reserve quit publishing M3 data earlier this year.

Asked why the Fed decided to stop publishing M3 data, Kuever told WND, "The Fed probably wants to hide how much liquidity is being pumped into the market, and I expect the trend to keep pumping liquidity into the market will continue, especially since the economy is slowing down."

Why is this important?

"The trend line in my M3-plus-debt chart is staggering," Kuever said. "There has been a straight, long-term trend line of M3-plus-credit increasing since 2000. Long-term, we are creating inflation and the dollar has lost almost 98 percent of its value in the past 100 years."

Kuever, a retired investor, is concerned that with growing budget and trade deficits "the dollar could collapse."

"Especially if the Fed cannot increase rates, because we have already entered a recession," he said.



Bob Chapman, who issued a reconstructed M3 estimate to the 100,000 subscribers to his newsletter, "The International Forecaster", agrees.

"The world is awash in money and credit," Chapman told WND. "My numbers show M3 increasing at about a 10-percent rate right now."

Chapman believes the U.S. economy entered a recession in February. In his newsletter of Dec. 9 he predicted the Fed would hold interest rates at 5.25 percent.

"The Fed is in a very tough spot here," Chapman wrote, "If they raise rates, the real estate market will collapse, and if they lower rates, the dollar will collapse."

Meeting yesterday, the Federal Reserve Open Market Committee voted, as Chapman had predicted, to hold the overnight lending rates between banks steady at 5.25 percent. This was the fourth straight meeting the Fed had voted not to change rates. In its rate announcement, the Fed affirmed the economy had slowed.

Almost immediately after the announcement of the Fed's decision, the dollar weakened to a new 20-month low against the euro, with currency markets reportedly pricing in the expectation the Fed will be forced to lower rates next year to bolster the economy. Following the announcement by the Fed, the U.S. Dollar Index, or USDX, also dropped, with the dollar going below 83.

A dollar collapse is imminent, Chapman declared.

"Technicians studying the USDX think there is a support level for the dollar at 75, but I don't think so."

How low could the dollar go?

"If the dollar breaks through 78.33 on the USDX," Chapman answered, "my guess is the dollar will go through a 35-percent correction, which would put it at 55."

"The key in how low the dollar goes is the interest rates," Chapman told WND. "In January, the Fed is going to have to make a decision which way to go. If Fed rates go up, the dollar will hold in the 78.33 range, but the stock market and the economy will tank. If next year the Fed lowers rates to keep the economy from crashing, the bottom will fall out of the dollar, and I see it going as low as 55. Once the dollar hits bottom, it will take the stock market and the economy right with it anyway. The Fed is in a box they can't get out of."

As WND reported earlier this week, in an unusual move, the Bush administration is sending virtually the entire economic "A-team" to visit China for a "strategic economic dialogue" in Beijing Thursday and Friday. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke are leading the delegation, along with five other cabinet-level officials, including Secretary of Commerce Carlos Gutierrez. Also in the delegation will be Labor Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, Energy Secretary Sam Bodman, and U.S. Trade Representative Susan Schwab.

But Chapman doubts the trip will help the Fed to engineer a slow dollar slide.

"The Chinese are going to do what the Chinese want to do, not what we want them to do," he said. "I believe the Chinese are going to send Treasury Secretary Paulson and Fed Chairman Bernanke home packing, with little or nothing to show for the trip."

How severe will the coming dollar collapse be?

"People in the U.S. are going to be hit hard," Chapman warned. "In the severe recession we are entering now, Bush will argue that we have to form a North American Union to compete with the Euro."

"Creating the amero," Chapman explained, "will be presented to the American public as the administration's solution for dollar recovery. In the process of creating the amero, the Bush administration just abandons the dollar."

Originally Posted by lizaa

*(OOPS] tHIS IS WHAT I WAS SPEAKING ON: AMERO
Analysts: Dollar collapse would result in 'amero'
Think deep recession likely regardless of Fed's actions


http://www.jonesreport.com/articles/...lar_amero.html



__________









Jerome R. Corsi / Prisonplanet.com | December 13, 2006
Two analysts who have reconstructed money supply data after the Fed stopped publishing it argue a coming dollar collapse will set the stage for creating the amero as a North American currency to replace the dollar.

The reconstructed M3 data – the broadest measure of money – published on econometrician Gary Kuever's website, NowAndFutures.com, shows M3 increased at a rate of 11 percent in May, compared to 9 percent when the Federal Reserve quit publishing M3 data earlier this year.

Asked why the Fed decided to stop publishing M3 data, Kuever told WND, "The Fed probably wants to hide how much liquidity is being pumped into the market, and I expect the trend to keep pumping liquidity into the market will continue, especially since the economy is slowing down."

Why is this important?

"The trend line in my M3-plus-debt chart is staggering," Kuever said. "There has been a straight, long-term trend line of M3-plus-credit increasing since 2000. Long-term, we are creating inflation and the dollar has lost almost 98 percent of its value in the past 100 years."

Kuever, a retired investor, is concerned that with growing budget and trade deficits "the dollar could collapse."

"Especially if the Fed cannot increase rates, because we have already entered a recession," he said.



Bob Chapman, who issued a reconstructed M3 estimate to the 100,000 subscribers to his newsletter, "The International Forecaster", agrees.

"The world is awash in money and credit," Chapman told WND. "My numbers show M3 increasing at about a 10-percent rate right now."

Chapman believes the U.S. economy entered a recession in February. In his newsletter of Dec. 9 he predicted the Fed would hold interest rates at 5.25 percent.

"The Fed is in a very tough spot here," Chapman wrote, "If they raise rates, the real estate market will collapse, and if they lower rates, the dollar will collapse."

Meeting yesterday, the Federal Reserve Open Market Committee voted, as Chapman had predicted, to hold the overnight lending rates between banks steady at 5.25 percent. This was the fourth straight meeting the Fed had voted not to change rates. In its rate announcement, the Fed affirmed the economy had slowed.

Almost immediately after the announcement of the Fed's decision, the dollar weakened to a new 20-month low against the euro, with currency markets reportedly pricing in the expectation the Fed will be forced to lower rates next year to bolster the economy. Following the announcement by the Fed, the U.S. Dollar Index, or USDX, also dropped, with the dollar going below 83.

A dollar collapse is imminent, Chapman declared.

"Technicians studying the USDX think there is a support level for the dollar at 75, but I don't think so."

How low could the dollar go?

"If the dollar breaks through 78.33 on the USDX," Chapman answered, "my guess is the dollar will go through a 35-percent correction, which would put it at 55."

"The key in how low the dollar goes is the interest rates," Chapman told WND. "In January, the Fed is going to have to make a decision which way to go. If Fed rates go up, the dollar will hold in the 78.33 range, but the stock market and the economy will tank. If next year the Fed lowers rates to keep the economy from crashing, the bottom will fall out of the dollar, and I see it going as low as 55. Once the dollar hits bottom, it will take the stock market and the economy right with it anyway. The Fed is in a box they can't get out of."

As WND reported earlier this week, in an unusual move, the Bush administration is sending virtually the entire economic "A-team" to visit China for a "strategic economic dialogue" in Beijing Thursday and Friday. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke are leading the delegation, along with five other cabinet-level officials, including Secretary of Commerce Carlos Gutierrez. Also in the delegation will be Labor Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, Energy Secretary Sam Bodman, and U.S. Trade Representative Susan Schwab.

But Chapman doubts the trip will help the Fed to engineer a slow dollar slide.

"The Chinese are going to do what the Chinese want to do, not what we want them to do," he said. "I believe the Chinese are going to send Treasury Secretary Paulson and Fed Chairman Bernanke home packing, with little or nothing to show for the trip."

How severe will the coming dollar collapse be?

"People in the U.S. are going to be hit hard," Chapman warned. "In the severe recession we are entering now, Bush will argue that we have to form a North American Union to compete with the Euro."

"Creating the amero," Chapman explained, "will be presented to the American public as the administration's solution for dollar recovery. In the process of creating the amero, the Bush administration just abandons the dollar."

That article seems a bit conspiratorial and its wrong on some key points, especially in regards to the country being in a recessions. I serious doubt the Amero will come to fruition, but anything is possible, but this article makes it seem like a dubious proposition.

[The Dragon]

I'm bumping this thread. Just heard about it today on another forum. I have so many questions about it. It came up in the discussion that the so-called Mexican against Black war in LA (By the way does not really exits) was actually cooperate America and the medias way of moving Black folks out of certain areas of LA to make room for the Latin people because in a minute there will be no border separation between the US and Mexico. This is supposedly the goal for the US and Canada. We are supposed to be coming together as one.

I really would not have a problem with this if it were not for the fact that it is being kept secret and the government and president is out right lying about it's stance concerning the border issue in California making us believe that they are really against "illegal" immigrants "sneaking" across the borders here into America. They are also lying when the claim to be concerned about these "immigrants" taking jobs away from "us" Americans.

If this is to benefit all three countries (or more) and the people therein, why the cover up and lies??

I have alot of questions I need from yall.

Also, if they want an area cleared out for the people across the border to settle, were are they expecting "us" to go? What about immigrants from other countries? What about all them white folks living in those areas due to be overhauled for the new replacements?

Like I said, I need some opinions and feedback.

[Ankhur]

And we need to figure out an economic survival plan for the sake of our grands!!!!!!!!!!!!