Topic: My Country don't accept Dollar anymore (Read 7049 times)

What, in your opinion, is the more attractive option?  All that capital needs to go somewhere. 

Does that mean it is illegal to convert it (that is a transaction) or is there an exception for currency converters?

Talking about exchanges, does anybody know if there is an Indonesian BitCoin exchange (as in one for exchanging Rupiah into BitCoin and vice versa)?

What i was trying to show with these articles is that during the last months, the main buyer of the bonds was the fed. And with the end of QE, it's going to be a lot more difficult to sell more (once the debt ceiling is raised). And in order for the keep the yield low, i think FED will have to buy some by one way or another.

So i think your sentence "People are practically climbing into the windows of the White House to buy US treasury bonds that carry pretty low (but so far guaranteed) profit.  The US could sell more then they are now quite easily and find buyers." is an exageration on the attractivity of US bonds (at the current yields).

I doubt this law is specifically about the US dollar, more likely transactions in any foreign currency are now banned. With only Rupiah transactions allowed. What this means for BitCoins is anyone's guess, if the Indonesian government sees them as currency, they are most likely now also illegal for use in Indonesia.

Did you read what you posted?  Not just the titles, the articles?

There is a lot of FUD in both articles.  The Reuters article has the title: "Treasury market wilts as Fed waves goodbye"
Yet only points to one less then perfect auction.  Even with the language it is easy to see through with statements like:

"This happened two weeks ago when three separate auctions "tailed" in the worst week for government debt sales since March 2010."

The worst since 15 months ago?  It's not like the worst in 10 years or something like that.  What does "tailled" mean?  It means the bidders didn't bid as much as expected.  They bid and bought. 

Do I think we can sell our debt forever?  no.  Do I think we need to manage our money better?  Of course.  Will there be inflation?  Of course.  The dollar coming to an end?  Not unless the congress critters PURPOSEFULLY fuck everything up by voluntarily defaulting on debt. 

Hum... then what do you think of this info ?
http://www.fxstreet.com/technical/forex-strategy/daily-commodities-update-technical/2011/06/13/
http://www.reuters.com/article/2011/07/07/us-usa-treasuries-auctions-idUSTRE7666K120110707
Seems like less and less people are buying US debt

The price of Bitcoin (and the volume traded) often rises in the night when most Americans are asleep (but not me).  HALF of my sales have been overseas even though the shipping cost is much higher.  I think about half of Bitcoiners are overseas as well. 

In this case... BitCoin: Made in Japan, tested in America. 

I am not sure where you get your information from.  People are practically climbing into the windows of the White House to buy US treasury bonds that carry pretty low (but so far guaranteed) profit.  The US could sell more then they are now quite easily and find buyers. 

What they are trying to do is force the people of Indonesia to use the official local currency, because if they don't then it isn't worth a damn.

The government of course has a different set of rules for itself.

Indonesia hates the dollar so much they sell bonds backed by dollars lol.

Would you want to buy a bond backed in some local currency without even a 20 year history of stability? Well, generally the answer is no. So they sell bonds backed by dollars.

Would you want to keep your life savings in a currency like that? No. While it's not illegal to hold dollars, consider that if you are holding dollars you wouldn't bother to exchange them to make a purchase if you didn't 'have to.' You lose money on fees whenever you exchange currency when you are 'the little guy.' You do not get 'the market rate.' If it wasn't a good idea to use dollars at the individual level, they wouldn't have the draconian laws trying to stop people from acting in their own immediate self interest.

Also, whether you are from Indonesia or if you travel to Indonesia and want to exchange dollars, they will give you less money the older and wrinklier etc the bill itself is. So that's another way you lose by exchanging. They do this because unlike US banks, they can't just trade old bills for new bills.

It all helps the government acquire and hold lots of crisp, relatively new dollars, which of course they need for those dollar backed bonds they sell.

I love it how so many people go to the defense of the dollar . It's so nice to see so many fellow Americans in this forum, which leads me to believe that Bitcoin is once again a purely American invention.(Not Japanese, *interesting cause USA bombed them in WW2) I won't be surprised if the majority of Bitcoin millionaires turn out to be Americans who fuel the AMERICAN economy with their Bitcoin earned money.

This is a great forum where ideas are vigorously debated.  Making stuff up undermines that.  Please stop.

http://www.reuters.com/article/2011/06/30/us-usa-china-treasuries-idUSTRE75T2MI20110630

Not only is China buying huge amounts of us$ officially - they have set up a parallel path to make secret purchases as well.

Huh?  People can't get enough of them.  The returns on them are extremely low, and people are still buying them.  China has diversified its investments, and isn't buy as many U.S. bonds.  But, if you look at the data, the countries with the currencies that China is investing in have stepped up their investments in U.S. bonds.  Here's a nice little video about it:

http://www.youtube.com/watch?v=4aNoZjAhSr8

They have been OFFLOADING the USD currency since 2008.
Now nobody wants to touch US treasury bonds.

Why would anyone want to hold the Euro?  Greece is essentially bankrupt with Ireland, Italy, Portugal, and Spain also in crisis.  The world does not exist in a vacuum.  There's much more than the USD at critical levels right now. 

On reading the thread, the idea that I get is not one of the weakness of the dollar, but that of its strength. It is because the currency is strong and the indonesian currency is perceived to be weak, that such policies are pushed by the government, so that people don't get too comfortable using foreign currency.

Do tell the Chinese government that.  It seems addicted to dollars.

If only 1% of their dollar holdings were moved to bitcoins....

that is logical, since the US gov basically prints more money at will.
why would anyone wants to hold the USD?
It is like holding fake money, where people can print at will.

translated the 2nd link (google translate said it couldn't translate the 1st one)

Looks like it's all foreign currencies, not just USD?

Hotels will not let you exchange USD for Indonesian currency?  That is a bad move for tourism/business though the US is a very small source of international travel because we all work 60 hr weeks and take very little time off.