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: Real Man who wrote (24376)	11/18/2009 4:19:41 PM
From: GST	2 Recommendations Read Replies (1) \| Respond to of 71447

<when you are shorting the dollar, your bet is that Trichet is more prudent and won't print> Or you are making a bet that precious metals and soybeans cannot be printed, so the 'best' way to short the dollar is to borrow it and sell it in exchange for commodities, expecting the price of precious metals and commodities to soar in dollar terms, validating the wisdom of your trade. So long as loose lending and cheap credit conditions apply, you have a predictable way to make money. The Japanese carry trade lasted for 20 years -- and in contrast to the dollar carry trade, the logic behind the yen carry trade was to create a short term fix. The dollar carry trade is not a short term fix. On the contrary there is no reason to doubt that it will continue for the rest of your lifetime and mine. It will continue so long as we cannot save enough or borrow enough to cover out deficits -- with the key measure being the current account deficit. In my view we have passed the point of no return for the dollar.