Strong US Dollar threatens stocks

Discussion in 'Economics' started by Hansel H, May 11, 2011.

  1. US internationals have been raking in huge profits on the back of the depressed US$. If the Dollar keeps climbing stocks will take a drubbing. Dollar up 1% today; Dow, SPY off 1%.

    Does this Dollar rally has legs/no legs?
  2. I can't see the dollar staying high for long with the liklihood of further QE.
  3. We're getting mixed signals on QE. We keep hearing about the economy being on the mend. American workers are going down the tubes but major American internationals are awash in cash. It's about how you define 'the economy'. If we get QE3 it may be a mini-QE and may result in a rising $ in anticipation of interest hikes next year.
  4. even with QE 1,2,3,4 the money supply will still be contracting at a faster pace then monitization. Unless banks start multiplying the fresh money into loans. it makes no difference if you swap the debt for money
  5. which pretty much shoots the whole lower taxes creates jobs theory