massive rally in USD coming!

Discussion in 'Trading' started by empee, Oct 7, 2008.

  1. empee

    empee

    I think over the next several months/years (macro view) we are going to see the biggest rally in USD we have ever seen! Why? With credit destruction, total dollar equivalents are being destroyed. Even with FED and $1 trillion in the grand scheme its not enuff. Really because everyone who was going to is already short the USD, as repatriation occurs, USD will rally; all other assets fall (Deflation).

    Ironically, its because of our credit sins versus say Euro who are more conservative, that we will see our currency which has been heavily shorted rally and because Euro didn't, the will sink.

    Thats the theory. lets see what happens.

    So in short, as things keep getting worse, our currency will get strong and stronger.. twisted eh?



    I know the alternate ending is that the FED hyperinflates to prevent this from happening, but I don't think they can (ie banks have to lend and people have to borrow); amazingly, a strong dollar will be bad for our economy as well. So strong dollar and all other asset classes short (already happening, or at least relatively with everything falling).
     
  2. rtp100

    rtp100

    oh yes keep on making calls

    you all hate cramer

    you are ALL cramer
     
  3. dhpar

    dhpar

    yeah. and house prices will go up forever....