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

To: Gib Bogle who wrote (65560)	7/7/2006 11:07:04 PM
From: mishedlo	Respond to of 110194

How does increasing commodity price drive the dollar down against other currencies? It doesn't and copper is not money either except for pennies. Mish

To: Gib Bogle who wrote (65560)	7/7/2006 11:59:44 PM
From: GST	Read Replies (1) \| Respond to of 110194

The US has been the currency used to price things traded in global markets. It has been by far the dominant currency. The explosion in the price of things traded in dollars is stage one of the dollar meltdown -- fleeing the dollar for commodities. In the next stage, strong currencies begin to emerge -- the dollar won't be among them. For now, currencies backed by commodities are doing the best and the dollar has plummeted against these currencies. Asian currencies have lagged. That will change as the commodity they offer comes to the fore -- money itself.They have and we cannot live without it.