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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (391)	7/17/2007 9:24:40 AM
From: MythMan	Read Replies (2) \| Respond to of 71446

>>things will get really nasty in a hurry<< nothing gets nasty anymore, let alone in a hurry.

To: Real Man who wrote (391)	7/17/2007 10:32:32 AM
From: stan_hughes	Read Replies (1) \| Respond to of 71446

I think one of the things holding the Clownbuck in this range as measured by DXY is the fact that for every tick it drops, the mirror image is that the currencies of the world's export-driven economies are rising to where they are increasingly in danger of cratering for reasons of non-competiveness -- Canada being a prime example, as their central industrial manufacturing base is being priced out of existence here. The Chinese have somewhat insulated themselves from this problem by maintaining their quasi-peg to the USD. However, without getting into a full-blown global economics discussion, the overall effect of the declining dollar in the above sense is to wreck everybody's boat on the rocks and not just that of the USA. Note also that our 'mortgage-death' scenario that should lead to declining US consumption will have the effect of improving the trade deficit picture by reducing imports, thereby supporting the USD -- the point being, an argument can be made as to how "the buck stops here" around 80 whether the world economy blows up or not. IMO there are too many moving parts to evaluate and be sure of the outcome