USD looks like used toilet paper but this does not mean it can't bounce. Agree/disagree? feel free to share your views on the dollar and its impact on the equity market. I will kick this thread off with a recent quote from Richard Russell: "... The phony prosperity since 1971 was built on a Fed-created fantasy currency. Fantasies can only last so long -- until they meet head on with the brick wall of reality. But here in the year 2010 the fantasy of fiat or fake money has hit the wall of reality. The US prosperity and the phenomenon ever-rising prices was a product and a creation of a fantasy currency. Thus, I believe that the very fundamentals of this bear market will be an epic clash between a world built on fiat money and a return to the reality of intrinsic wealth. This bear market will be about the collapse of fiat money. In all history, no fiat currency has ever survived. The fundamental of this bear market will be about the collapse of the world's fiat currency and all the fake prosperity that has been created through fiat currency. In other words, cold reality will prevail. The people of the world will, at last, realize that money by fiat is not reality, it's fantasy money and a dream created by man. ..." http://www.ibtimes.com/articles/682...russell-on-the-death-knell-for-the-dollar.htm
Timely call I believe. I'm Long USD/JPY from 83.30 targeting 92-100. The bottom in USD would coincide with the top in stocks which I believe happened last week. I'm also looking for a short eur/usd entry at the moment.
I think you are early. Remember how Euro was at it's low and all the pundits were asking themselves if they should buy the Deutsche Mark the next day because they were sure Germany leaving the Union was just hours away... That's the kind of atmosphere one ought to be looking for to go against the herd and I don't think we are there just yet.
USD is falling because a lot of fools think Europe problems went away and that QE is an evil thing. Nothing can be more evil than preserving the purchasing power of the European rich when 20% of European are unemployed and basically below povertry and the continent is in the verge of massive social unrest. The real problem is that US and the FED is transparent about their QE while ECB and its corruption hide their real moves behind complicated transanctions that involve guarantees and no real money end up to the consumer and small businesses but only to oligarch controlled corporations. When people realize the deception, USD will skyrocket. USA with all its problems is still a real financial power. Europe is a dark pool.
Its coming along with a bit of inflation if you know what I mean!!! Get ready for a whole lot of INFLATION!!!!!! Bubble ben bernanke has not a clue what he is doing, he thinks inflating our way out of this crisis is the answer, spending trillions of dollars for a quick fix. Look and gold oil and the rest of commodities, how can anyone think this is healthy for the economy.