US Dollar strengthens, Gold futures lower, Asia tanking,

[golfguru]

All boils down to European countries drowning in debt.

http://www.marketwatch.com/story/gold-futures-lower-as-dollar-strengthens-2011-09-11?link=MW_story_latest_news

http://www.marketwatch.com/story/asia-stocks-plunge-after-us-european-losses-2011-09-11

I think we will now see the gold peddlers increasing their ads on TV to come after my stronger paper dollars. Hehe..

[Art_from_Ark]

1. Stronger paper dollars?

They aren't too strong in my neck of the woods-- in fact, they've been hovering around a post-war low.

http://finance.yahoo.com/q?s=USDJPY=X

[Bonobo]

2. Art, is there a relationship between the Nikkei tanking and the value of yen?

Can you generally hope for the Nikkei tanking to mean the yen will also weaken or is it not like that?

[Art_from_Ark]

3. From what I've heard and read, a weaker yen is better for the Nikkei

That is, a weaker yen makes it seem like the stocks are undervalued to foreign buyers, while a stronger yen provides some incentive to foreign buyers for cashing out and going someplace else. Average Japanese buyers tend to stay away because of past performance, and the requirement to buy a minimum of 1000 shares of a single company (with a few exceptions).

Frankly, I'm surprised at how strong the yen has been, even with the intervention by the Bank of Japan.

[Bonobo]

4. You think we will ever see a yen at 85 or 90 or dare I say 100?

Wondering when and if I should cash out of my dollars... will it keep getting worse, man?

[Art_from_Ark]

5. 100 looks pretty iffy

I was betting that the dollar would get stronger after the 2008 election, but it's done just the opposite. I've lost 20% on the meager dollar investment I bought when it became apparent Obama would win (should have bought gold). I don't really see how much lower the dollar can get versus the yen, though, because the high yen is killing Japan's export industries and businesses that cater to foreign visitors and the government will have to do something to at least get the yen back into the 80s.

[Yo_Mama]

6. A weaker yen is much better for exports

So the Nikkei tends to move inversely with the yen.

[Art_from_Ark]

7. Of course, there are quite a few listed companies

that are not dependent on exports, like TEPCO (well, scratch that), JAL (scratch that, too), NTT, communications companies, food companies, restaurant chains, convenience stores, department stores, construction companies, etc., while some companies like ENEOS, Idemitsu, Kyngus, and other resource-dependent companies tend to benefit from a high yen since they mainly purchase their resources from overseas.

[Yavin4]

8. You Do Know That A Strong Dollar vs Euro Is Bad for the U.S. Economy, Right?

A strong dollar would kill U.S. exports to Europe, our largest trading partner. So, you do know that the Fed will have to devalue the U.S. dollar even more to account for the weakend Euro, right? Which also means that China would have to devalue more.

Welcome to the currency wars!

[whosinpower]

9. Which is why - again

The US needs to stimulate job creation - to consume more of its own goods.

[Yavin4]

10. With A Weakened Euro, We Would Be Buying More European Goods

As their prices would plummet because of the strong dollar.

[golfguru]

11. I am neither for strong nor weak US dollar

I merely play the game with cards dealt. Since I can't control the events, survival of #1 is the first priority in economics. I see the PIIGS (Portugal, Ireland, Italy, Greece & Spain) all have one thing in common...too much national debt. And they are all now in trouble. That will cause severe banking problem in Europe and will also contagion US banks. We could easily succumb into a severe economic contraction. Cash is king!

[golfguru]

12. Gold down $47 at the moment.....hang on to those paper dollars n/t

[roamer65]

13. Get out of fiat currencies while you still can, folks.

The Euro goes, the whole fiat system goes down with it.