We continue to see the dollar hit lower lows. Yes, we currently are well aware of the dollar rally. Another government sponsored rally calculated to keep the rest of the world’s dollar holders happy and prove the US has a strong dollar policy.
If you looked at the long positions of Goldman Sachs, JPMorgan Chase and Citigroup you will find that at the end of the third quarter they were very long the dollar, short gold and silver and the shares.
This is another temporary dollar rally and a temporary gold and silver take down. Next the dollar will be allowed to hit lower lows, ostensibly to increase the US trade advantage, which is laughable.
It could add ½% to GDP at 71.18 and 1% at 65 on the USDX, which is not a solution for the American economy. Always left out of the reporting is that a lower dollar means higher prices for commodities and goods imported into the US and considerably more inflation. It will not encourage more foreign investment, because investors do not know how low the dollar will fall and it will not appreciably increase job opportunities. Jobs are still moving offshore to bolster 3rd world economies and to make giant untaxed profits for transnational conglomerates.
Free trade, globalization, offshoring and outsourcing were created to destroy the economies of the US, Europe and Canada and that is exactly what has happened and will continue to happen, because our purchased Congress won’t legislate the solution, which is tariffs on goods and services. We are well on our way to joining the third world and if you do not let Congress know you know what they are up too, then you will eventually live in a slum reminiscent of Calcutta, either that or in some US detention camp.
The bottom line is a lower dollar is disastrous for the US economy. The US is being slowly strangled to death. Who wants to invest in a country that is on the edge of real trouble, plus all the environmental laws and onerous taxes? Readers, most people do not have a clue as to how bad it is.
theinternationalforecaster.com |
