Calendar Archive

Recent Tweets

Follow capflowwatch on Twitter
Decline of the dollar

US Dollar falls 50% against Brazilian Real

By John Schroy, on June 20th, 2007 | 3 comments
US Dollar devalued against Brazilian Real

Since 2003, the US dollar has fallen almost 50% against the Brazilian Real. What caused this to happen and what does it mean for the future of the dollar?

The reason for the strong real is the excess of Brazilian exports over imports. Government policy resulting in extremely high internal interest rates attracts holders of these dollar reserves to invest in short-term Brazilian debt.

However, not all is rosy in Brazil.

June 20th, 2007 | Print Article | Email Article Email Article | Topics: , , , , | Category: World Economy | 3 comments | Short url

Featured articles on inside pages

Stock buybacks

WSJ exposes the 9/11 caper

In a major exposé of misused executive options, the Wall Street Journal ran a front page article, reporting that as stocks sank after the the 9/11 attacks, scores of companies rushed to issue options to top officials. Some executives reaped millions.
More ...

Securities Analysis

Some banks are too complex to manage

It is no secret that Citicorp no longer earns the same respect in financial circles as in days of yore. The problem is excessive complexity. This article describes the simplicity of the Citibank operation in 1956 when the bank was the world's most powerful financial institution.
More ...

US Politics

Why are the Super-Rich often liberals?

If we are to believe the old adage that, 'people vote their pocketbooks', why are so many of the Super-Rich ardent supporters of the Democratic Party? Why do the liberal Super-Rich seem to act in a way that is so contrary to their selfish interests and economic well-being? Here I show how capital flow analysis of the Federal Reserve flow of funds accounts provides an answer to this apparent conundrum. More ...

US equities

Sarbanes-Oxley and the shortage of equities

The Sarbanes-Oxley Act of 2002, by discouraging companies to go public, will exacerbate the shortage of equities, with a negative effect on the US stock market, although this was not the intent of its authors. Poorly drafted, ill-conceived, and unfair this law does little to protect investors.
More ...

US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

Working off the US trade deficit

Foreigners hold $16.8 trillion in US financial assets as a result of selling more goods to Americans than they buy from them. Since the 'deficit' is in dollars, the US has no problem in 'paying it off'. More ...

Custom Search

Subscribe / Follow

Subscribe via RSS Subscribe via Email

Site navigation

Capital Flow Watch has hundreds of articles on economics and investments.

Articles have excerpts on the front pages, and on tag, category, search and archive pages.


Review capital-flow-watch.net on alexa.com

» Blog Guide

Excerpts by Category

Article Calendar

June 2007
MTWTFSS
« May Sep »
 123
45678910
11121314151617
18192021222324
252627282930 

Stock Quotes

DJIA11823.70  chart -1.39%
NASDAQ2686.89  chart +0.00%
S&P 5001276.34  chart +0.00%
Ftse 1005840.25  chart -0.70%
Dax7059.12  chart -0.61%
Cac 403973.76  chart -0.71%
Nikkei 22510237.92  chart -1.18%
Hang Seng Index23447.34  chart -0.72%
Straits Times Ind3179.72  chart -1.55%
Eur To Usd1.36  chartN/A
Usd To Jpy82.16  chartN/A
Gbp To Usd1.59  chartN/A
2011-01-28 16:01