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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.96+0.2%Nov 19 4:00 PM EST

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To: TobagoJack who wrote (55404)9/23/2009 12:00:40 PM
From: KyrosL  Read Replies (2) of 217885
 
I expect the dollar index will settle between 60 and 70 and bounce around there for the next few years. At that level a lot of manufacturing in the US becomes competitive again versus most of the rest of the world, especially Europe. Also, outsourcing of services becomes unprofitable.

If by "return to natural size", you mean "living within our means", I fully agree. A diminished dollar, especially with respect to Asian currencies, is essential for this. There are no longer any "strong dollar policy" statements out of Washington, as the dollar is approaching its all time lows. A rapidly diminishing US trade deficit is the main driver of US GDP growth, and Washington has figured it out.
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