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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (90537)	10/12/2009 10:48:30 PM
From: carranza2	Read Replies (2) \| Respond to of 94695

The truth is that the falling dollar is good news. For one thing, it’s mainly the result of rising confidence: the dollar rose at the height of the financial crisis as panicked investors sought safe haven in America, and it’s falling again now that the fear is subsiding. Asinine. That's only part of it, and only valid for the short term. Uh, Paul, you are an economist, have you forgotten that there are lots of foreign reserves denominated in USD and that a falling USD increases the chances that they will be switched, albeit slowly, into something else, and that this will accelerate the decline, and that a decline will lead to the abandonment of USD as a reserve currency? How can that be a good thing? And let's not bother ourselves too much with the question of why the USD is lower. To my untrained mind, it must be because we have a lot more of them. Once their velocity picks up, and it will, we'll have inflation, perhaps a lot of it. How can that be good? It will take time, but the ultimate effects of a lower USD are devastating. it’s about mentality Well, he has that right, and it is about the only right thing in that silly article. He might have added "and symbolism" to the phrase to make it accurate.