Article

2009-10-08 Economy

Asian central banks intervene to limit damage from tumbling US dollar

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Posted by tipper 2009-10-08 08:00|| || Front Page|| [3 views ] Top

#1 THE US dollar continued to tumble against most Asian currencies today, prompting another wave of intervention by central banks in South Korea, Taiwan, and the Philippines seeking to limit damage to their export industries.

The natural order is starting to exert itself by readdressing the underpricing of commodities dumped into the American market. As their prices rise, their products are more expense. They sale less. Fewer dollars should go international. American production should become cheaper and more attractive. HOWEVER, that advantage will be hammered by more dollars needed to chase imported energy sources driving up the price of production and transportation. Had we got in place domestic energy sources to handle domestic requirements, the cost would rise proportional to everything else within the domestic economy, rather than being subject to international demands, vagaries, and manipulations.

Posted by Procopius2k 2009-10-08 10:44|| 2009-10-08 10:44|| Front Page Top

#2 The USA not persuing energy independence is a huge geopolitical error. There are a number of scenarios where oil from the gulf gets cut off and once it does, getting it started again is a much bigger problem than most realize. States will be 'diverting' oil shipments and the cost of keeping the sea lanes open will become too high for the USA alone. And there is no one else prepared to do it on a global basis.

Then it won't be just oil, all those things needed to keep a modern economy running will become much more difficult to get.

Posted by phil_b 2009-10-08 21:33|| 2009-10-08 21:33|| Front Page Top

#3 right on phil...our leaders & eco-freaks are absolute morons. Coal, nuclear, U.S. oil drilling, nat gas - use some commonsense and do it all says I...anytime I hear some clown say "well, it will take us 10 yrs to get oil from Alaska." I reply - then we better start drilling today.

Posted by Broadhead6 2009-10-08 21:40|| 2009-10-08 21:40|| Front Page Top

#4 Then it won't be just oil, all those things needed to keep a modern economy running will become much more difficult to get.

But they will become more difficult to get for every other nation in the world. Relatively-speaking, Uncle Sam won't be disadvantaged. If anything, the producing countries will have to bulk up their militaries to ensure that their products get through.

Posted by Zhang Fei 2009-10-08 21:53|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2009-10-08 21:53|| Front Page Top

#5 "anytime I hear some clown say "well, it will take us 10 yrs to get oil from Alaska." I reply - then we better start drilling today."

I reply, "Then we should have started drilling 10 years ago."

Posted by Barbara Skolaut">Barbara Skolaut 2009-10-08 22:24|| 2009-10-08 22:24|| Front Page Top

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