The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: ggersh who wrote (5242)	3/19/2008 7:20:57 PM
From: Real Man	Read Replies (1) of 71456

The direction of the currency move is very different? The fact that the dollar is sinking fast while the T-bond has been rallying is very confusing, and so is long-term Kondratieff cycle (the main argument for deflation). The fact that since 1971 we have a global dollar reserve fiat system makes things even more complicated. Nothing is easy. <G> A simplified look is at imbalances created. Is there a current account deficit? Yep, and huge. The dollar must drop, especially if rates go lower. Was there risk in Agency bonds? Yep, even though the market thought differently a year ago. Is there risk in Treasury bonds? Yep, it's the currency/inflation risk, even though the market perceives differently at this time. There were many financial/currency crises in our new completely fiat system, ever since it was created.

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