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


To: rr_burns who wrote (100914)2/1/2009 1:36:18 AM
From: Skeeter Bug1 Recommendation  Respond to of 110194
 
rr, i think it is intentional, but they will *never* tell you that. the trick is to fleece people without the majority ever figuring it out.

the bushevics *massively* raised taxes by devaluing the dollar, yet nobody called him on it.



To: rr_burns who wrote (100914)2/1/2009 10:19:22 AM
From: Giordano Bruno  Respond to of 110194
 
Rising rates push the dollar higher.

stockcharts.com



To: rr_burns who wrote (100914)2/1/2009 11:17:58 AM
From: Tommaso3 Recommendations  Respond to of 110194
 
>>>Why is the US$ so strong now? What will signal a drop?
<<<

It appears to a lot of people now that the dollar is strong because of a loss of confidence in almost everything else (stocks, commodities, funds of all sorts, many other currencies) and a confidence in U.S. military and economic power.

The second question is easier to answer. A drop will be signaled when it drops. <G>

To reply more seriously, there seems to be such a world-wide panic that the financial systems are coming part, that most governments are rushing to expand credit and to increase supplies of their currencies. So the ratio of dolalrs to other currencies may not change as drastically as some people fear. Also, the dollar, as measured against other currencies may not drop as drastically as it would if it were not the world's reserve currency.

But because world money supplies are expanding greatly, there is likely (I would say certain) to be great inflation. That means a continued rise in gold prices and a recovery in oil and other commodity prices. Agricultural products may double or triple in price.