Hi Stockman - The article represents one good faction of the IDEOLOGICAL (as opposed to economic) anti-dollar crowd.
On the economic side, we see
Bill Gross, Warren Buffet, James Grant, Jim Rogers, etc.
On the ideological side, we see-
Mostly right wing gold bugs,
Blanchard, KitCo, Le Metropole crowd
The 'moralists' - opposed to either Iraq, defict spending, excessive energy consumption, or all three
Dr. Kurt Richenbacher
Often left, pro-Euro, anti-superpower pundits.
Your guy here thinks the whole Anglo-Saxon world will collaspse.
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Reality is different.
China buys US Dollars so it can run a 150 Billion trade defict with the US. China buys dollars so Wal-Mart will make thier factories hum. The US is by far their largest customer, and the Europeans won't replace the US.
They may decrease their buying.
Simmilar situation for Japan.
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This has been argued before,but the trade defict is not as large as it appears, because of transfer pricing to avoid taxes.
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The US buys lots of items from Europe which are very profitable for the Europeans. A much higher Euro will hurt this. The Screaming of the Euroepean exporters hs already started.
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My personal take is the USD drops 10-20% more, then after a month or so , reverses and goes up about 25 5 - a Fibonnaochi retrace.
I expect the USD to dip lower than the technical levels mentioned in this article before reversing.
Good article here -
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