Claude:
<<The $US will drop, interest rates will move higher and gold will undertake a new rally. There are simply too much dollars
abroad.>>
Here too we disagree. Almost every major construction job in the world involves $US in some form or other. Most international mult-million $ projects are bid wholly or partly with a US$ component, and international trade is similarly carried out with $US taking a front seat. The demand for $US is there. The Euro is so far not making a mark that I can see.
Further, when one travels to countries in Europe, to Hong Kong, Taiwan,... the price of goods in $US is often 50% to 100%+ more expensive there. To me this signals that their currencies are still too strong vs. the $US. And our little Canadian dollar goes a long way here, compared to living in the UK, France, Germany, Switzerland,.. even if we are severely overtaxed. |
