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G7 ministers, central bankers to discuss U.S. ratings downgrade

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“What Japan needs to do is to enjoy the fruits of a high yen,” by investing in foreign countries, he added.

investing in foreign countries...like USA? China? Japanese businesses (not the consumers) have been enjoying the fruits of strong Yen for many years. G7 to 'calm' market fears now? Wish G7 had played a constructive and responsible role much earlier (Perhaps, when Obama was awarded for Nobel Peace Prize in 2009).

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So just a Great Depression 2.0 or Ultra Depression followed by WW3?

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Only S&P downgraded the US rating, Moody's and Fitch have done nothing to date, no need for a panic quite yet...

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Wanderlust: Yes, but small moves wind up being excuses for market reactions. And I hope the G7 can talk Japan into actually taking action.

Normally, the Japanese will study the issue, then form a committee, then come up with a plan to give the idea some thought. it's this thought that will allow some negotiations and a meeting at a later date, to discuss the possibility of action, by which will only happen after sound agreement is agreed to.

So the result? They will do nothing.

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Unless USA learns to live within its means instead of living of Chinese Labour and Japanese savings, this problem will continue

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Americans themselves own most of their own treasuries. Look it up.

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I don't know why people keep insisting on the exchange rate with the dollar. It is very simple, the dollar has undergone a massive devaluation because the past and current monetary policy of the USA/Fed. There's nothing to expect from it anymore, the value of the dollar in terms of other currencies or gold has decreased and it will probably never recover again. It is hopeless. This is how the USA is making its debt bearable, by reducing the dollar value. At the same time, it makes a huge (and legal) salary cut (in real value) over all the American workers, which, in turn, helps their economy. So I guess, there won't be any Armageddon. However, the people who saved money in USA will see a huge decrease in value of their savings. The guys who enjoyed life and did not save at all, these guys won't loose anything. Life is unfair.

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"Thanks to the tea party the US economy is now in a tailspin"

That's right, ever since the Tea Party assumed power their reckless spending has put the U.S. into deep debt... wait a minute... the Tea Party has never assumed power...

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FlatLight, don't despair - currencies rise and fall; the US dollar is on its back now, just like it was twenty years ago. Remember, though, that all is relative; sure, the US may be facing challenges, but what country or region isn't? Would you really rather be holding Yen or Euros or Yuan? Even gold: it has a history of plunging faster than it rises, and I think it is in a bubble now.

Hold tight and wait out the storm. Don't lose your head while others lose theirs.

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Don't lend any money to your American mates in bars.

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Anyone who says gold is currently in a bubble, knows nothing about gold, bubbles, or investing in general.

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But pundits have painted gloomy prospects for the effectiveness of such efforts, with Washington tolerating a weak dollar

Washington tolerating a weak dollar?

It should be changed to PROMOTING instead. China has been exporting unemployment to US while US is exporting inflation to China.

It is very important to understand that Washinton's plan will continue combating against China insisting YUAN stays in the basket system.

ld tight and wait out the storm. Don't lose your head while others lose theirs.

Yes or No. If you are young investors, it is a Yes. But for older investors, this is not a market for them to play unless they are willing to take a risk. If you know the market, this is a great opportunity. It is depend on investors age, risk tolerance level, investment portfolio allocaton, and future financial goals (today? 5 yrs? 10 yrs? 30 yrs?).

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knows nothing about gold, bubbles, or investing in general.

@jeff, you are not missing anything. These investors are back to square one.

As long as you have a good paying job with high skills, paid off your house mortgage, car loans, student loans and paid off your all your credit cards, there is nothing to worry. That's what my parents told me to do and I did follow their heart felt advice. I am doing okay.

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knows nothing about gold, bubbles, or investing in general.

@jeff, you are not missing anything. These investors are back to square one.

As long as you have a good paying job with high skills, paid off your house mortgage, car loans, student loans and paid off your all your credit cards, there is nothing to worry. That's what my parents told me to do and I did follow their heart felt advice. I am doing okay.

-1 ( +0 / -1 )

knows nothing about gold, bubbles, or investing in general.

@jeff, you are not missing anything. These investors are back to square one.

As long as you have a good paying job with high skills, paid off your house mortgage, car loans, student loans and paid off your all your credit cards, there is nothing to worry. That's what my parents told me to do and I did follow their heart felt advice. I am doing okay.

-1 ( +0 / -1 )

There is a lot to worry about. With governments constantly debasing their respective currencies nobody will be financially safe. As for me, I have to depend on Social Security because I have Cerebral Palsy and can't work full time.

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@jeff, my heart goes out to you. Stay put and do not borrow worry. Everything is going to be okay. The gov will not cut SSI disability insurance.

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I meant SSI Disability benefit.

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I would rather be holding yen... that's why i'm in japan. I am concerned about how dependent on the u.s. asian markets, and the rest of the world too, seem to be. Japan should start to move away from western dependence. Japanese people should be able to enjoy their strong economy, not be forced to devalue their own currency because the u.s. is failing.

It seems like the u.s. and europe are just like the big banks that caused the financial crises. Too big to fail. Its a shame really how a few CEOs can make the whole world plunge into econmic recession.

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Mikey K Do you realy think Japan can stand alone and survive? Does your goverment never have to borrow?The reason for attempting to devalue the yen is that in doing so it makes Japanese exports more attractively priced in regards to competitors. There are products also that you need to import that you are incapable of supplying yourselves May I also remind you that despite austerity measures in Europe making financial survival extremely difficult for many they were still able to find the means to send donations to help those in Fukishima to hopefully help them to rebuild thier lives.

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The silver lining is that people are taking a good hard look at what politicians do with our money. Greece , Spain, Ireland, Portugal, Italy - Europe is in big trouble. The Euro is finished. The media and the politicians are looking for scapegoats but the internet makes that just one more risk they take with our trust. Some, like zurcronium above, are easily fooled ('Tea party is bunch of terrists and they made the S & the P give a downgrade Uhmerica!') , but this time around the folly of the Keynesian approach and the long-overdue realization that the social democracy model of cradle-to-grave benefits is unsustainable will become clear.

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Obama and his party own the downgrade. Obama wasted a year on health care reform the majority of us did not want. He admitted that the 900 billion 'stimulus' bill funded jobs that were never there. His only budget plan was shot down 97-0 in the Senate - bipartisan unity!

But his golf game is looking a lot better than when he first got to DC.

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Breitbart - Dontcha know it's going to take President Obama and the Democrats at least several more years to fix the mess left behind by Bush, Cheney, Rumsfeld and the Republicans?

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