Feds to Old People and U$D to Reality: Get Lost!

Bloomberg.com: Worldwide

Dollar Falls Most Against Euro Since 1999 Debut on Fed’s Rate

By Jamie McGee and Michael J. Moore

Dec. 17 (Bloomberg) -- The dollar declined the most against the euro since the 15-nation currency’s 1999 debut and sank to a 13-year low versus the yen as near-zero interest rates and rising budget deficits led traders to abandon the greenback.

The greenback extended its drop against a gauge of currencies of six U.S. trading partners, falling 11 percent from a 2 1/2-year high reached Nov. 21. Investors including hedge funds reversed bets that the dollar will appreciate to minimize losses as the end of the year approached, traders said.

“This move is historic,” said Russell LaScala, New York- based head of North American foreign exchange at Deutsche Bank AG, the world’s biggest currency trader. “It’s just going to keep going until the last bit of pain stops. I would not be shocked to see $1.50.

  Surprise, surprise! Dollar already going down the tubes. Who knew?

The Feds have decided to destroy the value of the dollar to protect the market capitalisation of their friends at GS, CITI, BAC etcetc Save the World! Old people on fixed incomes will just have to eat cheaper pet-food. Lucky for them, soon Chinese pet-food will be unaffordable, so they might not get poisoned. And all those low-wage workers for whom deflation would be their first real pay-raise in decades can get lost too. Old people, poor people, U$D debt-holders: Get Lost!

  Wonder what will happen to the value of the dollar when the rest of the world figures out that not only are we deliberately hyper-inflating our currency as an alternative to default, but we also consume more than anyone else, have more debt than anyone else, and produce less per capita of anything of value (meaning forget financial services, Hollywood crap, etc.) than anyone else except maybe places like Somalia?