Category: US Dollar
The analysis published under this category are as follows.Friday, March 07, 2008
Real US Interest Rates and US Dollar Index (USDX) / Currencies / US Dollar
After sliding to its lowest levels in history this week, the flagging US dollar has captured the limelight. And it certainly should. The dollar is like nothing else, a critical linchpin that links every market and asset of global importance. The implications of the dollar's fall from grace are profound and universal.
It's funny, as a surprising number of mainstream analysts on CNBC in recent weeks are talking as if this dollar weakness is new. Apparently they have no historical charts. The dollar, as measured by the flagship US Dollar Index (USDX), has been in a secular bear market since July 2001 . It has lost 39.2% of its value since then.
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Sunday, March 02, 2008
US Dollar Plunges! Inflation Surges! Crunch Time for the Money Supply Pumpers! / Currencies / US Dollar
Jack Crooks writes: While nearly all eyes on Wall Street were riveted to the Dow's 315-point decline yesterday, the action in the U.S. dollar was even more dramatic, plunging to new all-time record lows!
But I still don't believe we've reached panic time just yet. In other words, you should be open to the dollar going even lower.
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Saturday, March 01, 2008
Like Beauty, the Value of Gold and the US Dollar Are in the Eye of the Beholder / Currencies / US Dollar
Like beauty, the value of gold and the dollar are in the eye of the beholder, which at times can be entirely subjective, arbitrary, and irrational. This is much akin to financial speculations throughout history from stamps to sea shells.
Everyone has their theory on why the US dollar is sagging – huge deficits, slowing economy, high inflation, artificially low interest rates, subprime issues etc.
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Tuesday, February 19, 2008
US Dollar at Major Turning Point? / Currencies / US Dollar
Jack Crooks writes: No matter how much money you've made betting against it, there comes a point when you've got to start feeling sorry for the U.S. dollar. In recent years it's become more hated than even the New York Yankees. And that's saying something!
You already know why the dollar has been suffering. Enormous trade deficits, a deteriorating real estate market, rising consumer debt, etc. All of these are contributing to the dollar's demise.
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Wednesday, February 06, 2008
Win-Win Economics February 2008 - Alternative Money and Recession Relief / Currencies / US Dollar
In This Issue:
In the News: Alternative Money
February Feature: Fourth Corner Exchange Bellingham, Washington
Quote of the month: Charles Mackey, 19th century Scottish journalist - “Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.”
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Sunday, February 03, 2008
Ben Bernanke Declares War on the US Dollar! / Currencies / US Dollar
Jack Crooks writes: It's hard to believe that the greenback could get any worse off than it already is, but the Federal Reserve looks dead set on doing everything in its power to punish the buck even more.
Witness the Fed's latest actions ...
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Friday, February 01, 2008
Remaking the US Dollar from the Bottom Up / Currencies / US Dollar
Marco Saba, a researcher at the Italian Center for Monetary Studies and author of a critical book about banking titled "Bankenstein" (2006) took the time to write me about the dollar at the beginning of last year. Mr. Saba?s field of expertise is seignorage (monetary rent), macroeconomic evaluations and central banking.
For those of you unfamiliar with Mr. Saba, his work has led him to the belief that the current monetary system is in need of reform. In fact, the sheer radical-ness of the idea is akin to throwing the baby out with the bath water.
Monday, January 28, 2008
US Dollar Continuing Rally or Fresh Lows? / Currencies / US Dollar
Jack Crooks writes: Forecasting market tops and bottoms is a mug's game. In reality, the best we can do is trade with confidence when the time is right.
In fact, I've learned the key to long-term market success isn't just about winning trades ... it's about limiting what you lose during the times you are wrong. And I think the single best way to control your risk is by holding two opposing views of the market in your mind at the same time.
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Wednesday, January 16, 2008
Fed Plays Russian Roulette with US Dollar - Stoking the Fires of Stagflation / Currencies / US Dollar
In an age where governments of every political stripe distort data to promote their own self interests, it's hardly surprising that they present inflation data in a manner that is best suited to their particular needs. By the same token, it's entirely natural for official inflation data to be wildly at odds with the reality that is faced by consumers and businesses, and to be regarded with utter disbelief.So it wasn't shocking to hear Federal Reserve officials insist last week, that inflation in the United States is under control, before telegraphing another tidal wave of liquidity injections into the US economy in the months ahead. “Stable inflation expectations give the Fed a lot of room for maneuver. If the evidence suggests that substantial policy easing is appropriate, I don't think we're going to face a risk of adverse inflation consequences,” said St Louis Fed chief William Poole on Jan 9th.
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Sunday, January 13, 2008
US Dollar and British Pound Both Heading Down! / Currencies / US Dollar
The housing market in the United States is collapsing. It's no longer a secret. Nor do you have to be an economist to see how the real estate contagion is taking its toll on the broader American economy.
Heck, the evidence of an economic slowdown was already piled high, and last Friday's jobs report was the cherry on top of the whipped cream!
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Thursday, January 10, 2008
Currency Forecasts 2008 - Protracted Selling of the British Pound / Currencies / US Dollar
A likely major FX theme of 2008 is already being playing out; Protracted selling in the British Pound, broad strength in the Australian dollar and continued rally in gold. We had described the British pound as the likely "dollar of 2008" and so far it hasn't disappointed. GBP drops to new all time lows against the euro, 8-month lows against the dollar, and 10-year lows against the Australian dollar. The latest catalyst to sterling's gloom is a decline in consumer confidence a 13-month low, decline in job placements to a 54-month low, and 2.2% decline in like for like Christmas sales from major retailer Marks & Spencer.Read full article... Read full article...
Thursday, January 10, 2008
Impact of US Dollar Inflation and Devaluation - ILLUSION, MYTH AND MAGIC / Currencies / US Dollar
THE DOLLAR HAS LOST OVER 97% OF ITS PURCHASING POWER SINCE 1913 (THE FOUNDING OF THE FEDERAL RESERVE 94 YRS. AGO).
What does it look like when we convert U.S. benchmarks of value to other THINGS over the past 8 years?
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Sunday, January 06, 2008
US Dollar Stealth Devaluation Leading to Hyper Inflation / Currencies / US Dollar
Wow, what a start to 2008! So far in 2008, both the Wilshire 5000 (which is essentially the entire U.S. stock market) and the S&P 500 have lost all their gains from the entire year of 2007 in just the first three trading days of 2008. Gold set a new record high , Thursday intraday and closing, at 872.90 and 869.10 respectively. Oil hit $100 a barrel for a moment intraday Wednesday, for the first time ever . The HUI Amex Gold Bugs Index enjoyed an 11.83 percent pop the first three trading days of 2008. Sweet. Treasury Bonds rose 2 points , closing inches from 118.00. The Dollar got carved up , falling into the 75's.Read full article... Read full article...
Sunday, January 06, 2008
US Recession - Friday Unemployment Bombshell and How to Trade The Dollar / Currencies / US Dollar
Jack Crooks writes: Recession is the operative word for the U.S. economy right now. The housing market is already there. And various other economic indicators are pointing straight down. Just look at the latest data that came out this week ...
The ISM Manufacturing Index report showed that 10 straight months of expansion came to a screeching halt in December. The measure contracted the most since 2003, and was much weaker than everyone expected.
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Friday, December 28, 2007
US Dollar Forecast 2008 - Determines Trend for Stocks, Bonds and Commodities / Currencies / US Dollar
It's all about the Dollar (again)
Even to the casual observer it's now apparent that the financial world is one giant see-saw. On the one side of swing is the once Almighty Dollar and on the other side is every other investable asset class.
Wherever the Dollar goes in 08, stocks, bonds and commodities will head the other way.
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Wednesday, December 19, 2007
US Dollar Rally to Terminate Under Weight of Inflation / Currencies / US Dollar
Old man winter definitely arrived last night (for the second time this year, dumping around 6 inches of snow on the Peg. Each snowflake by itself is nothing in weight, but collectively represent a significant amount of weight that can pack down and form glaciers that may not move mountains, but definitely carve a path. Think of each USD as a snowflake, which by itself is nothing. Collectively though, the trillions of USD similar to the snowflakes blanketing a city are instead blanketing the globe. This creates a real slippery situation that causes accidents left and right, even for those that are conservative drivers. Snowploughs (AKA Central Bankers) can clean up and move the snow, but it merely is removed. Allow for a strong wind and the snowflakes are blown all over the place, creating huge drifts in areas where there once was nothing.Read full article... Read full article...
Monday, December 17, 2007
2008: Penance for 2007 / Currencies / US Dollar
Should auld acquaintance be forgot,
and never brought to mind ?
Should auld acquaintance be forgot,
and auld lang syne ?
The timing of these year-end prediction columns is often of little importance. Believe it or not, what happens in December tends to meld into January. This blurring of the lines between one year and the next will not be your usual holiday hangover.
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Wednesday, December 12, 2007
US Dollar Bounce May be Temporary as Global Credit Markets Remain Frozen / Currencies / US Dollar
As pundits on Wall Street want to hop on the next trade, they pronounce the U.S. dollar is due for a bounce. In favor of a bounce speaks that popular media cover the dollar's demise; and the Economist shows a burning dollar bill on its cover page while discussing the “panic” out of the dollar. While short-term currency moves are notoriously difficult to predict, it is rather worrisome that contrarian indicators pose the best arguments for better fortunes for the greenback. We also beg to differ with the Economist: there is no panic out of the dollar, at least not yet.Read full article... Read full article...
Friday, December 07, 2007
Inevitable Demise of the Debt Based US Dollar / Economics / US Dollar
From Fear to Horror - With the bi-polar behavior of the financial markets these past few months, it is sometimes best to remember back to when the unfolding of current events was seen only by the heretics. It is at this point in time where they had the least biased view of the history now being made. These mavens were few, and the ramifications of their insight were but distant theory. And perhaps only they properly recognize the extent of the horror now confronting those trapped inside the nanny-state bubble. Cooing pundits and those that soften the hard edges are not to be trusted.Read full article... Read full article...
Thursday, December 06, 2007
U.S. Assets Getting Devalued as US Dollar Falls! What to do... / Currencies / US Dollar
Larry Edelson writes: The subprime mortgage crisis and real estate implosion in America have created a debt debacle. Consumers and corporations are in debt up to their eyeballs. And the national debt is increasing at a rate of more than $7.4 billion per day !
As a result, the Fed has been forced to crank up the printing presses to flood the economy with paper money in an attempt to inflate away the debt and keep it from crushing the economy.
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