The dumbest, most destructive economic policy of the Bush Administration has been its weak-dollar position--letting the dollar slide in value against the euro, the yen, the pound and gold.
China may very well diversify away from the dollar and even US Treasury bonds, but it is hard to see any major government holder of US dollars going from a 95% dollar position to a 60% position, or even a 50% or lower position anytime soon.
The United States takes advantage of the dollar's position to borrow cheaply from the rest of the world, selling its assets in return for goods.
But we have a pretty good 5% position in dollar- denominated emerging market debt through Brady bonds.
Giving yourself the same upside potential, but having a much smaller, in terms of dollar value, total position.
Among other recent changes is a likely increase in the weighting assigned to the Australian dollar due to its position as a key supplier of industrial commodities to China.
If those critics listen carefully, however, they will hear murmurs about the possibility that the U.S. dollar will one day lose its position as the reserve currency.
There are limitations locally because of the measures and so the market is likely to migrate offshore to hedge its currency position to protect against dollar weakness for portfolio investments, currency speculation, and foreign trade.
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"Not only has time marched on in real estate markets, but the position of the U.S. dollar as the world currency has weakened significantly against the Sterling and Euro as well, " says Ian Payne, senior vice president and managing director for Europe, Middle East, Africa and Asia Pacific for Realogy (nyse: H - news - people ) global relocation firm Cartus.
The U.S. dollar index is trading weaker Friday on some profit taking and position evening from recent upside price action.
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In the forthcoming October 2010 issue of the AAII Journal, AAII Founder James Cloonan suggests looking for stocks whose average daily dollar volume is at least four times larger than your planned position.
At mid-morning the gold and silver markets dropped sharply and rapidly on some fresh technical selling pressure, talk that a large exchange traded gold fund liquidated a large position, and as the U.S. dollar index hit its daily high.
Given where marketable Chrysler debt is trading, we think the feds' position isn't worth more than 30 cents on the dollar.
Amid all the sturm und drang, one rarely hears a compelling argument for the dollar retaining its status as a dominant currency particularly given the fiscally-precarious position of the United States.
Hedge funds call this pair-trading, and right now he is keeping a 10% portfolio position with one-half allocated to the UUP, the bullish dollar ETF, and one-fourth to both the EUO and the ProShares UltraShort Yen (YCS).
Earlier this week, he told his subscribers that he sold part of his gold position as the charts of the yellow metal in U.S. dollar and non-U.S. dollar terms were turning modestly bearish.
He said the conventional wisdom originally was that the dollar would fall because Federal Reserve Chairman Ben Bernanke would not be removed from his position if Obama was re-elected, meaning that the bond-buying programs to stimulate the economy would continue.
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In a sign of India's precarious position, its currency has lost more than 15% of its value against the dollar since August, making it the worst-performing currency in Asia.
Now, if you managed to digest all that, how about you or the esteemed Mr Ungar respond to my original challenge: what dollar amount of funding for this program, if any, would cause you to change your position?
The cash position gets used for short-term positions in options, futures and complicated swamps and dollar forwards.
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Dollar cost averaging gradually adds to or removes from an investment, ensuring that you never purchase your full position at a high or sell it at its low.
True, for the moment the U.S. government is in the very fortunate position of being able to borrow at lower interest rates than before the crisis, and the dollar has actually strengthened.
The Chinese are increasing their position as a global currency and what does this all mean for the US and even more the US Dollar?
Mr Zarb arrived in 1997 to clean up a trading scandal and departed four years later with a multi-million-dollar severance package dripping with perks and a reputation that causes his name to pop up every time a senior economic position in government becomes available.
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