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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Jill who wrote (4195)12/30/2003 8:38:26 PM
From: Jim Willie CB  Read Replies (2) | Respond to of 110194
 
you miss the key, by own admission, US$ will collapse

this is to be a big story all year long

how much farther will the dollar go?
how much lower should the dollar be?
are we seeing the advantages of a lower dollar?
just what imbalances is the dollar supposed to correct?
does anyone have a grip on the disadvantages?
will foreigners continue to supply $5B/day without higher rates?
will oil producers abandon the dollar?
will foreign central banks diversify to a greater extent away from the dollar?
will the US be the only nation to keep rates artificially low?

I think the answer to each question paints an extremely dire picture for the USDollar
I expect the USDollar to collapse ulimately
the Fed can forestall it
but their actions cannot prevent it from happening
their actions can only delay it
in fact, the more the Fed acts, the more ugly and devastating the payback will be

it will happen in stages, beginning later in 2004
people who dont understand the unprecedented imbalances, which are worsening horribly every year, will be surprised as to the utter destruction coming

LED BY THE USDOLLAR COLLAPSE
all in slow motion, slow enough to avoid detection

I expect another 50% decline in the dollar
furthermore, the decline versus Asian currencies has just begun, and will be the most painful and harmful
free market forces will ensure the Asians (jyen, yuan) will rise at least 50% from here
while Asia becomes the economic force on the planet
and largely ignores the rest of the world by 2006
they will keep much of their surplus capital within Asia for regional development

/ jim