That might be right, but if Becky from blabbering CNBC is right, then it seems that Oil wasn´t the issue here! That is why I am a bit perplex. Who is exporting to the US? China seems to have dropped, Middle East too, Europe in the face of a skyrocketing Euro?

I had to laugh when “the professor” on CNBC said that exports were fantastic but imports were even better. LAUGH … they even manage to make bad news sound good. You have to love´em for that.

AFFG

Citicorp’s Robert Rubin can lobby for a trillion dollar US taxpayer bailout from the Federal Reserve, but the rest of the world isn’t going to bailout or finance bad management by the Bernanke Federal Reserve. Frankly, the rest of the world Central Banks aren’t even lifting a finger to prevent the implosion of the US Dollar because there is simply nothing that can be done. Bernanke is flat wrong, the China PBoC isn’t going to purchase unlimited fiat US Dollars, the collapse of the US dollar isn’t China’s problem but America’s.

If Americans would kick the gas guzzler SUV habit, energy imports from the Middle East wouldn’t be a major problem since the US still produces 30-40% of its own oil usage. For instance, a Chevy Suburban SUV built is Mexico by GM burns twice the fuel of a Toyota Corolla built in California or three times the fuel of a Toyota Prius built in Japan. If Americans are complaining about high gasoline price, look no further than the bathroom mirror.

China is loosing more money with the appreciation of it´s currency having it money in treasuries and agencies, then it will in the stock market, because hard assets will go up in value IF the dollar continues to fall.

So don´t count too much on that assumption.

This AMERO thing is big in the “Conspiracy World”. I have problems believing it, because I see no interest in the US inheriting more problems from Mexico than it already has and Canada inheriting problems from the USA AND Mexico.

“My take on the new currency coming (the AMERO) is that it will exist side by side with the Dollar.”

That never really works. We had this in Europe with the ECU. You can´t imagine what happened when the Deutsch Mark rallied and eveybody else had to chase the DM … it caused the Pound to leave the ECU when Sorros broked the BoE.

“The AMERO for domestic US/Canada/Mexico and”

Which yoyo is going to hold a currency from a country which is on the brink of bancrupty? The AMERO would hyperinflate faster than you can say “AMERO”. People would rush into Gold and other hard assets … notably your new Dollar, since it is backed by gold. Why would anybody with a half way functioning brain want to hold a FIAT-Currency when it just lost one which is on top of that NOW backed by Gold?

“the Dollar as a true international currency,”

I think those day´s are over. Even “Kudlow” is talking about the American Peso … even so I must say, that should be a contrarian indicator. I still do expect the Dollar to rally against the EURO and to tumble against the Yen. I am short Euro and long Yen!

“possibly partially backed by gold/silver/oil or basket of commodities to give it value.”

Well partially or not makes a big difference, because by separating the internal demand for a currency from external demand makes the value of the dollar go to zero. So you will need a backing of some sort.

“Here is the kicker In my opinion, the AMERO will be introduced at 1 AMERO = 1 Dollar, all US/Canada/Mexico citizen accounts converted from Dollar to AMERO”

And what will be the convertibility between US Peso, Canadian Dollar and the Mexican Peso? Careful that is what broke the back of the East German economy as the East German Mark was converted 3:1 to the mighty Deutsch Mark. I could easily see a race to the bottom here.

“then instantly devalued to some ratio like 3 AMERO per Dollar or even greater (10 to 1?).”

I am not too sure that Americains will like the AMERO very much if they found out, that the Gov. just robbed them … a pretty bad start for a new currency don´t you think?

I just don´t see the point of all this “mess”. It would be easier just to cut the dollar loose, come out and say we introduce a new currency (we can call it AMERO if you want), we back it by Gold at let say, 3000 $/Oz and evaluate the AMERO to let say 100 AMERO/OZ and have the interest rate policy be set by the markets.

But somehow I don´t see that happening. Gold backing .. ??? The dollar would have to go to 0 first before we get that.

DC - A tentative answer: Probably ‘cos without sharing (sorry, socializing) the problems, paralyzed credit markets would eventually mean paralyzed businesses and that’s bad for Americans, Asians, Australians, Europeans…well, just about everyone else. As it is some businesses, like Dole (think bananas and oranges if nothing else), are havoing difficulty paying off future debt and are said to be drawing on lines of credit ; that’s red alarm for liquidity problems and may indicate going concern problems.

Brad- perhaps the Chinese are covertly buying into Europe and Australia, which begs the question when contagion goes global and everyone is dragged into a slowdown, what would they buy? Maybe assets in Africa? That’s gonna go well with human rights lobbyists!

http://www.cnbc.com/id/24010022/site/14081545

The voices of those who accuse the Fed of debasing the currency and creating moral hazard are stronger and stronger.

Former World Bank chief economist Joseph Stiglitz, eternal bear Marc Faber and renowned investor Jim Rogers accused the Fed of being the source for the global credit turmoil that is crippling financial markets.

Asked what he would do if he were in Federal Reserve Chairman Ben Bernanke’s shoes, Rogers said: “I would abolish the Federal Reserve and I would resign.”

“If you bail out an investment bank that gets in trouble, that’s not capitalism, that’s socialism for the rich,” Rogers told CNBC Europe. “That’s not the way this system is supposed to work. And why should 300 million Americans suffer so that we can bail out two or three investment banks on Wall Street?”

Stiglitz said some of the statements made by Fed officials over time had contributed to exacerbating the problem. “(Former Fed Chairman Alan) Greenspan, at the very moment interest rates were at the low, advised Americans to go out (and) take these veritable rate mortgages, which have been the source of the problem, when there was a clear bubble,” Stiglitz said.