Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: TH who wrote (9626)	7/18/2008 2:44:26 AM
From: Real Man	Read Replies (1) \| Respond to of 71475

In some way high oil may be helping the dollar at the present time rather than hurting it, since our middle east buddies peg their currencies to ours. In some way they are thus like a part of US currency system - oil they export to Europe and China helps the dollar through the peg, oil they export to us does not matter. Petrodollar recycling. If they depeg, then ... I guess Bush bombs them -g- Take Spain and UK, for example. If Spain did not use Euro, then their currency would be at risk. UK - since they don't use the Euro, the pound will likely drop against it. The middle east currency, for all practical purposes, is the US dollar.

To: TH who wrote (9626)	7/19/2008 4:49:06 PM
From: GST	Respond to of 71475

<This is all about the dollar.> Bingo -- and the dollar requires some semblance of "growth" to keep it aloft. It is no accident that we have a slowing economy and at the same time we have soaring inflation. This has come as a surprise to many, but it is the slowing economy that is causing inflation to soar, driven in large part by the dollar's drop and its bleak future. In the end there is no amount of growth that will paper over the grand canyon of the current account deficit. So the real question is not if the dollar will make new lows, it is only a matter of how soon and how far down it will go per year.