USDX

[cottonpicken]

Might be big news.


http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

[parsley]

Really got going last fall when China's meeings with Russia was the beginning of Russia's operating loan, with oil as payments. Pars

[cottonpicken]

If this is true it will be one of the biggest economic events in our lifetimes.

[parsley]

It will change the face of banking as we know it. Purchasing power.

I spoke with a young banker at a seminar last fall, who had never contemplated the impact of the dollar base of oil being changed,and he was interested enough to do some searching on hios own, and sent me some information he'd put together.

It's also going to catch a lot of people by complete surprise.

Change will be paced so fast, well, even witches will need new brooms. Pars

[cottonpicken]

Well its now the sixth aniversery from when i first contemplated and shortly there after knew it eventually would.You cant imagine what is about to happen pars.

And this story now has major steam in the sails.

http://www.bloomberg.com/apps/news?pid=20601087&sid=ai4e1MZcvHBc

Whats wheat worth when gold clips 2000?

Its going to be a late night and early morning now.

[parsley]

I got itchy feet to sell gold a week or so ago, but decided to stay with the plan. You emailed and recommended there was "xyz" I should buy, if you recall, but couldn't concentrate this summer. Chalk it up to a bad session. But I should have taken your advice, cott. Pars

[parsley]

cott,
Do you think Obama will dump support of Israel?

[boarderbloke]

Cotton, am I reading these numbers wrong? I think they're showing the CAN$ gaining on the EURO???

http://www.tfc-charts.w2d.com/marketquotes/index.php3?market=D6

Do you have a chart for these quotes from the NYBOT ?

[parsley]

<p></p>
<p class="EC_style8ptBK"><strong>[URL="http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a_y.ZoAbRxTE"](Gold advanced to an 18-month high in New York)[/URL]</strong></p>

Aussie interest rates up.
Oil up. Still in AM$.
Commodities up.

[bluefargo]

OK I confess to being a dummy on these matters. So the world decides to use a basket of currencies and gold as a basis for pricing oil instead of the US dollar. So what!
Presumably other commodities such as wheat, canola etc would eventually follow suit. What does this mean to Joe Blow farmer?

[cottonpicken]

Boarder-you may prefer this site for all your quotes and charts.

http://www2.barchart.com/mktcom.asp?code=BSTK

The cando moves with the euro but at a greater pace in relation to the usdx.

Pars-i dont know what oboma has planned geo-politically

Bluefargo-All commodity transactions are performed in dollars.This creates a demand for dollars.The oil market alone is 80 million barrels a day.This has been going on a long time and has allowed the u.s to expand the supply of dollars without experiencing the effects(hyperinflation).

Now the fun part.

When the world sees the usdx as pieces of paper they may deside to convertt those pieces of paper into something else,and they sure wont be looking to purchase new pieces of paper.

Why does this matter?

The us government will have nobody to buy its debt.
It will be further monetized.i.e-printed money buying debt.

I am still undescided as to how the carry trade that has devolped with the dollar will play out.

[cottonpicken]

What does this mean the joe blow farmer?

Twenty dollar wheat,nobody ever asked WHY the speculators drove the price that high.

The end of the dollar is why.

[bluefargo]

Thanks Cottonpicken

Good understandable explanation. I appreciate it.
Ever thought about writing a book "Economics for Dummies"

[cottonpicken]

Todays action should show everyone that there are greater forces at work than simple supply/demand theories.

[cottonpicken]

Thats not an 18 month high.
That is an all time high.