Double Dips, Dollar Declines and Disillusioned Doctors

Oh…and here’s something else to reckon with. New home sales took a dive in October. The FHFA has confirmed a “double dip” in the homing market. Prices are weak everywhere and falling in some areas.

And if you leave a house vacant, squatters might move in. Talk about complications! The house next door has been foreclosed. But the paperwork was fraudulent. Who owns it? So who’s got the right to expel the squatters?

Don’t worry about it. It will work its way out somehow.

*** And on the other side of the globe, they’ve had enough too.

“Russia and China Ditch the Dollar,” says the headline.

It was inevitable, wasn’t it? The two said they didn’t need no stinkin’ greenbacks to do their bi-lateral trade. They can work it out perfectly well in yuan and rubles.

Besides, with the Fed undermining the value of the dollar, who wants to hold it? You could have a few hundred billion one day. And then, the next day you discover that you’ve lost $200 million – just from holding the wrong currency at the wrong time.

No thanks.

The Russians and Chinese won’t be the first. And not the last either. Gradually and suddenly, the world will drop the dollar.

Eventually, Americans will drop it too.

*** “I don’t know if I want to be a doctor,” said Henry, back from college for Thanksgiving.

“I like the theory and the science of it. But now it’s extremely regulated and controlled. And nobody seems to know what the new health care system will mean or where it will end up. I don’t know if I could live with the paperwork.

“I’m thinking about sticking with physics.”


Bill Bonner,
for Markets and Money

Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and Money.
Bill Bonner

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9 Comments on "Double Dips, Dollar Declines and Disillusioned Doctors"

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“*** “I don’t know if I want to be a doctor,” said Henry, back from college for Thanksgiving.”

But nothing is more estimable than a physician who, having studied nature from his youth, knows the properties of the human body, the diseases which assail it, the remedies which will benefit it, exercises his art with caution, and pays equal attention to the rich and the poor.

Ned S
“The dollar reserve currency status allows the U.S. to run up high deficits and have its debt be denominated in the U.S. dollar, which in turn enables it to print unlimited dollars and inflate its way out of debt. America, understandably, wants to protect these privileges. In fact, some allege that the U.S. wants to protect this status so badly that it invaded Iraq because the country began selling oil in euros instead of dollars. Now, the U.S. is allegedly threatening Iran because of the country’s desire to use euros or Russian rubles in oil transactions. Meanwhile, China and Russia… Read more »
Ned S

It is good of BB to bring the link to our attention. And, in fairness with him being a good ole boy, I can’t really blame him for not especially feeling to quote extensively from it … No wonder so many intelligent and somewhat moral Yanks who actually have some choices feel a desire to leave home.


The Chinese will just have more excess USD paper to buy US treasuries and the equity papaer and stockpiles of resources from dopey US allies like Australia while they build relationships with non banksterised economies elsewhere. As long as they can control the asset speculators at home the US ZIRP extend and pretend suits them just fine. They just have to wash those trashy USD’s out of their hair,

Ned S

“As long as they can control the asset speculators at home the US ZIRP extend and pretend suits them just fine.”

I agree fully Ross. As I stated a while back, so long as China’s GDP is increasing by 8 or 9% pa and the US GDP is increasing by 2 or 3% pa, it’s not hard to figure out who is winning the game.


Spanish bonds kept falling last night despite the bail out. Now there is the irony. For the banksters at home in each country we consistently have “too big to fail” but for the foreign bond holding banksters you now have explicit empirically proven “too big to bail out” risk.


Shoes, here is some better presented US data showing short and 3 year movements


Here are some lines from a NYT article that may make one deeply sceptical about Wikileak’s so-called leaked US diplo correspondence. Like the Turks and Iranians say it looks like a Psywar propaganda release of selected sanitised correspondence to smite US enemies

NYT quote
The cables do not deal with the sharp increase during the Obama administration in drone attacks against Al Qaeda and Taliban militants in the tribal areas with Pakistan’s tacit approval. That is because the cables are not classified at the highest levels.
NYT unquote

Pigs will fly!

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