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

To: Real Man who wrote (493)	7/21/2007 8:07:23 PM
From: stan_hughes	Read Replies (3) \| Respond to of 71454

Short USD has got to be the most crowded trade on the planet with the possible exception of short Yen. It occurs to me this weekend that maybe we shouldn't be so focused on a deathwatch for the Clownbuck and perhaps should be looking for just the opposite. If one assumes that the blow-up catalyst has to come via an unknown or unanticipated event in order to have it upset the most applecarts, howzabout something that triggers a strong USD rally (e.g. a coup in Iran that craters oil prices, I don't know - humor me) That would send the USD and Yen flying against everything, especially the previously strong petrocurrencies (e.g. Canada, Russia, etc.) and simultaneously collapse all the metals along with it, but ironically, it would also blow up all the US stock/bond carry trade longs, especially those financed in Yen The twin deficits won't matter in the near term when everybody is trying to pile out of all these historically high foreign currencies once it looks like the game has changed Something to think about